Market Prep: SPX Repricing & Stocks Rotation

Market flow analysis

Hello everyone,

We hope you are all well and enjoying the volatility. We have warned many times that the market is overvalued and needs to reprice. We stated that the technical charts look weak and that we’re playing defensive. The SPX broke down the 100DMA and will most likely close there as well. There is nothing bullish about this chart, as we are now below the compression levels, with a possibility that it might go even lower and touch the 200DMA around 6,560 - currently only about 3% away.

Goldman Sachs is warning that the U.S. stock market might need to fall further before it can start a real recovery. Despite a generally strong economy, the S&P 500 has been struggling for several months to stay above the 7,000 level due to heightened tensions in the Middle East and rapidly changing oil prices.

While history shows the market often bounces back within a month during an oil spike, the first two weeks of March are usually a very bumpy time for performance. Also, retail investors are being much more cautious this year than they were during the high-growth periods of 2025.

Additionally, the helpful boost from companies buying back their own stocks is about to disappear for several weeks due to a scheduled "blackout" period. Overall, experts believe the immediate path for investors will be "painful" and volatile.

So have your shopping list ready for critical levels of interest on quality names. We’re going to list some of them today which are in good buying spots and worth to consider leaps on (12+ months call options).

We also have some shorter term trade ideas and trade updates, as we are having a wild morning and many names trailed out.

See our trading book and trading watchlist below: