MARKETS RECOVER FROM MOODY'S DOWNGRADE AS GOLD & BIOTECH LEAD THE WAY 🚀 TIME TO Turn Market Noise into Profits (May 19, 2025)

In partnership with

Learn AI in 5 minutes a day

This is the easiest way for a busy person wanting to learn AI in as little time as possible:

1. Sign up for The Rundown AI newsletter

2. They send you 5-minute email updates on the latest AI news and how to use it

3. You learn how to become 2x more productive by leveraging AI

Sign up to start learning.

Market Sentiment and Activity Analysis (May 19, 2025)

The market opened with initial weakness due to Moody’s U.S. credit rating downgrade, with S&P 500 futures dropping to 5893 pre-market. However, sentiment shifted bullish as Morgan Stanley’s CIO recommended buying the dip, leading to a recovery with the S&P 500 turning positive by 9:57 AM PDT. Bitcoin rebounded above $105,000, supported by institutional buying and regulatory tailwinds.

• Stocks Sentiment: Positive. Despite early selling pressure, the market reversed with S&P 500 futures targeting 5987–6000. Tech and healthcare sectors led the rally.

• Options Sentiment: Positive. Bullish call buying in $AAPL, $UNH, and $TSLA signals short-term upside..

• Crypto Sentiment: Bitcoin’s record weekly close, institutional adoption by JPMorgan, and regulatory clarity in Australia drove bullish momentum.

📰 KEY TRUMP-RELATED CATALYSTS

• Russia-Ukraine Ceasefire Announcement: Trump confirmed progress with Putin; ceasefire talks underway, with Vatican involvement suggested.

• Trade Implications: Trump hinted at large-scale U.S.-Russia trade deals post-conflict. This boosts long-term sentiment for:

  • Energy, Defense, Agriculture, and Commodities.

• Trump Deficit Plan: Plans to address U.S. deficit suggest pro-tax cut, pro-growth fiscal stimulus bias.

• Crypto Sentiment: Stablecoin discussion stalling in Senate; Trump aligned with deregulation approach.

🔮 OVERNIGHT STRATEGY & RUMOR WATCH

Top Overnight Watchlist:

• $SNOW: Jefferies PT raised to $220. Earnings 5/21.

• $META: Bullish May 30 $660 call flow; AI chip and infrastructure tie-ins via $MSFT Azure.

• $FSLR: Heavy upside call flows. Clean energy long play, anchored to geopolitical stability.

• $COIN: DOJ investigation confirmed. Watch $IBIT & crypto volatility.

• $SOC: Energy resurgence. Oil production restart confirmed.

• $PEGA: Joining S&P Midcap 400. +6.7% PM gain. Strong momentum catalyst.

• $CRWV: July $105 call sweepers. Repeat activity signals high-spec AI momentum.

• $MCD: Strong setup approaching breakout. June $300 calls in play.

🔥 BULLISH SECTORS – TRUMP IMPACT

❄️ BEARISH SECTORS – RISK FLAGS

🔥 HIGH-CONVICTION TRADE IDEAS (Premium Subscribers For May 20)

### $SNOW – AI Leader Pre-Earnings Run

🌙 PREMARKET STRATEGY – TUESDAY MAY 20

Focus on:

• Earnings: Watch SNOW, PANW, HD premarket trends.

• Sectors: Clean Energy (FSLR), AI (SNOW/MSFT), Retail (TGT).

• Macro: Watch for G7 FX remarks, China PPI + loan rates, Trump morning Capitol meeting.

📊 TRADING EXECUTION STRATEGY

• AM Setup: Use 8:30–9:30 ET open to gauge direction after overnight futures.

• Volume Focus: Seek names with >150% relative volume on dark pool or option sweeps.

• Indicators: Use VWAP and Gamma pin (COTMP) to determine breakout/pin zones.

✅ SUMMARY: MOST PROFITABLE PLAYBOOK

/Overall Market Strategy:

• Focus on Tech and Crypto: Leverage momentum in tech and crypto-related stocks driven by AI catalysts and institutional adoption.

• Monitor Earnings: Target, Home Depot, and Palo Alto Networks earnings may drive sector volatility. Prepare for potential pullbacks in consumer discretionary.

• Risk Management: Hedge with SPY puts if futures drop below 5970. Watch for tariff-related weakness in consumer discretionary.

Key Events for May 20, 2025:

• Economic Data: China Loan Prime Rates, Australia RBA Rate Statement, German PPI, Eurozone Consumer Confidence.

• Earnings: Target, Home Depot, Palo Alto Networks, Amer Sports, Pony AI, Viking Holdings.

• Catalysts: Google I/O Conference, WTI crude futures expiration, Fed speakers. Trump-Putin talk developments may support risk assets.📝 FINAL NOTES:

• 🛠️ Expect Wednesday volatility (VIX OPEX) – traders may reposition overnight.

• ⚠️ Monitor Fed Bostic statements into Tuesday – potential rate cut signal.

• 🎯 Momentum into Memorial Day breakout likely to favor AI, healthcare, and defense.

Speciak Mastermind Guidance: Clarity & Focus in Trading This Week

• Stay Disciplined: Focus on high-probability setups in Tech and Crypto. Avoid overtrading in consumer discretionary due to tariff risks.

• Monitor Geopolitical Developments: Trump-Putin talks may continue to support risk assets. Be prepared for volatility if sanctions on Russia are announced (Walter Bloomberg, 2:28 PM PDT).

• Earnings Focus: Use TGT, HD, and PANW earnings as catalysts for sector moves. Hedge positions ahead of potential volatility.

• Risk Management: Keep tight stops. Hedge with SPY puts if futures drop below 5970. Monitor VIX options expiration on Wednesday for potential pullbacks (Jason, 1:11 PM PDT).

Encourage Informed Decision-Making:

• Leverage bullish momentum in tech and crypto while staying cautious of consumer discretionary risks. Use real-time data and news catalysts to guide trades. Monitor earnings and geopolitical developments closely.

Subscribe to Upgraded Premium Reports