DCG Mastermind Market Recap & Trading Strategy — May 5th - Trading Game Plan: Navigating May 6th, 2025 - Strategy, Key Levels & Actionable Ideas

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STOCK MARKET NEWS

Hot Trades Today:

1. HIMS (Healthcare): Breakout performance on Amazon executive appointment news

2. GOOGL ($180): Gained on Waymo expansion news

3. DIS ($108.75): Recovered from early lows, benefiting from domestic media focus

4. EWY ($62): South Korea ETF saw bullish options flow on trade deal optimism

5. KWEB (China Internet ETF): Significant put-selling activity on trade deal hopes

Key Catalyst Trades For Tomorrow:

1. AMD ($105): Reports earnings after close - semiconductor sector barometer

2. MAR ($249.88): Earnings report - hospitality sector indicator amid strong ISM services data

3. EA (Electronic Arts): Earnings impact on gaming sector

4. Trade Balance Data: Impact on trade-sensitive sectors and ETFs

Earnings Watch (May 6):

• Pre-Market: Celsius Holdings (CELH), Lemonade (LMND), Datadog (DDOG)

• Post-Market: Advanced Micro Devices (AMD), Lucid Group (LCID), Rivian (RIVN), Super Micro Computer (SMCI), Electronic Arts (EA)

Economic Data (May 6):

• Trade Balance (8:30 AM ET)

• 10-Year Note Auction (1:00 PM ET)

• FOMC Meeting Begins

• Crude Oil Inventories (10:30 AM ET)

TRUMP TRADING NEWS

Trump Impact & Political Edge:

• Treasury Secretary Bessent indicated potential trade deals as early as this week, boosting trade-sensitive ETFs

• Trade deal optimism boosted Tech and international ETFs (EWY, KWEB)

• 100% tariffs on foreign-produced movies continued to pressure international content providers (NFLX)

• Pro-crypto stance sustained bullish sentiment in crypto stocks (COIN)

• Alcatraz prison reopening announcement drove security/prison stocks higher

Trump Momentum Trades:

1. EWY/KWEB: ETFs seeing momentum on trade deal optimism

2. COIN: Crypto exchange benefiting from Trump's pro-crypto stance

3. DIS: Domestic content provider gaining advantage from foreign film tariffs

4. Security/Prison stocks: Continued momentum on Alcatraz initiative

CRYPTOCURRENCY NEWS

Bitcoin & Crypto Sentiment:

• BTC trading at $94,800, down 1.18% reflecting pre-FOMC caution

• COIN executed protective put spreads, indicating cautious optimism

• Bullish long-term outlook due to Trump's pro-crypto stance, but short-term caution persists

• ETF flows showing neutral positioning ahead of FOMC decision

Key Crypto Developments:

• Institutional sentiment remains cautiously optimistic

• Reduced June rate cut probability tempering near-term enthusiasm

• Bitcoin holding support despite pre-FOMC hesitation

• COIN positioning with protective strategies suggests market preparing for volatility

OPTIONS NEWS

Key Options Activity:

• EWY: 10,000 July $62 calls bought - bullish on South Korea trade prospects

• KWEB: 25,000 June $34 puts sold - bullish on China internet trade outlook

• PLTR: 2,500 June 155/180 call spreads bought into earnings - anticipating continued AI momentum

• AMD: June 2027 $105 calls bought ahead of earnings - long-term semiconductor optimism

• COIN: Protective put spreads implemented - cautious optimism on crypto exchange

Unusual Options Flow:

• SPY protective puts increasing ahead of FOMC

• HIMS: May 9th $40 puts sold - bullish sentiment following COO appointment

• UBER: Weekly $87 calls bought - anticipating positive earnings reaction

MASTERMIND GUIDANCE

Overnight & Premarket Strategy:

• Focus on stocks with upcoming earnings (AMD, MAR) and trade deal momentum (EWY, KWEB)

• Monitor futures for continued stabilization - support at 5350 crucial

• Hedge with SPY puts if futures break below 5350

• Track Asian markets for reaction to trade deal optimism

• Maintain tight stops due to FOMC volatility

Clarity & Focus For Trading This Week:

• Prioritize catalyst-driven trades in tech and consumer discretionary

• Implement robust risk management with defined stops due to FOMC uncertainty

• Focus on earnings reactions (AMD, MAR, EA) for sector direction

• Watch trade deal developments closely - Treasury Secretary comments suggest imminent news

• Reduce overall equity exposure ahead of Wednesday's FOMC announcement

🔥 TRADE OPPORTUNITIES 🔥

Key Options Activity:

• VIX call volume surged Monday with sharp VIX increase

• AI-related stocks: Seeing protective put buying amid tech weakness

• Energy sector: Hedging activity increasing with oil price decline

• Healthcare: Defensive put buying after tariff-related ZBH plunge

Unusual Options Flow:

• SPY protective puts increasing ahead of FOMC

• Airline stocks: Call activity on lower oil prices

• Gold miners: Call buying accelerating as gold prices surge

• PLTR: Significant options repositioning after disappointing market reaction to earnings

MASTERMIND GUIDANCE

Overnight & Premarket Strategy:

• Monitor Asian markets for reaction to U.S. sell-off

• Watch earnings from MAR, RACE, DUK for sector direction

• Track S&P futures behavior around 5640 support level

• Focus on media stocks (NFLX, DIS) for further tariff reaction

• Monitor market internals for signs of oversold bounce or continued weakness

Clarity & Focus For Trading This Week:

• Reduce risk exposure ahead of FOMC meeting Wednesday

• Use tight stop losses due to headline-driven volatility

• Focus on domestic-focused companies insulated from tariffs

• Consider gold miners as potential hedge against market volatility

• AMD earnings will provide critical semiconductor sector direction

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