| S&P 500 Up Nine-Straight Weeks Wall Street closed out the month of May with a bang as the major indexes set another round of record highs. Overbought levels remain in play but we have mentioned these types of conditions can last for weeks, and even months. At some point, another major pullback will come, but for now, the bulls continue to show strong momentum. The Nasdaq hit an all-time high of 27,904 while ending at 26,972 (0.2%). Undefined resistance is at 27,000. Fresh support is at 26,000. The S&P 500 closed at 7,580 (0.2%) with the record peak at 7,599. New resistance at 7,600 held. Support is at 7,400. The Dow traded up to a lifetime high of 51,099 before settling at 51,037 (0.7%). Fresh resistance at 51,000 was cleared and held. Crucial support is at 50,000 going forward. Earnings and Economic News Before the open: Science Applications International (SAIC) After the close: Cango (CANG), Credo Technology Group (CRDO), Hewlett Packard Enterprise (HPE) Economic News None Technical Outlook and Market Thoughts For the week, the Nasdaq and the S&P 500 were up over 2%. The Russell rose 1.5% and the Dow gained just under 2%. Year-to-date, the Nasdaq has jumped 16% and the S&P has rallied 11%. The Dow is up 6% and the Russell has surged 18% this year. The S&P extended its winning streak to nine-straight weeks while the Nasdaq’s streak ended at six-straight in mid-May but returned last week. Since the March 30th lows, the Nasdaq has skyrocketed 30% and the S&P 500 has zoomed 20%. The Dow has added 13% and the Russell has advanced 21%. The uptrend channels for the major indexes off the March 30th lows were readjusted over the weekend following Friday’s ongoing run to all-time highs and fresh breakouts. We readjusted the Dow’s uptrend channel last week on the double-top breakout above 50,000-50,500. The Dow tagged an all-time high of 51,099 with undefined resistance at 51,000-51,250 getting cleared and holding. We said there was blue-sky territory towards 52,000-53,000 from our April 17th notes on closes above 50,500 and the previous February 10th all-time peak at 50,512. New support is at 50,000 with backup at 49,250. Closes below 48,750 and the 50-day moving average would be a bearish development and likely indicate a near-term peak.  The Russell fell on Friday after smashing a fresh all-time high at 2,942 on Thursday. Our April 17th notes predicted upside towards 2,900-3,000 with these targets getting split.Fresh support is at 2,875 with additional help at 2,800. Closes below 2,725 and the 50-day moving average would suggest a near-term top.  The Nasdaq hit a record peak of 27,094 on Friday after clearing our upper and revised Price Target at 26,750 from mid-May. There is near-term upside to 28,000-28,250 on continued closes above 27,000. We have also penciled-in 30,000 possibly tripping this year for Tech. Rising support is at 26,000 followed by 25,250. Closes below 24,500 and the 50-day moving average would indicate a possible short-term peak.  The S&P 500 touched a new record high of 7,599. We predicted in mid-April 7,350-7,500 could come into play and on May 15th we whispered strength towards 7,600-7,750. Support is at 7,400 followed by 7,225. Closes below 7,100 and the 50-day moving average would imply a top, as well.  The S&P 500 Volatility Index (VIX) closed just above 15 on Friday after kissing an intraday low of 15.22. We predicted the VIX could trade down to 17.50-15 during May and the height of the first-quarter earnings season. This zone was split after Nvidia’s earnings the prior week with follow through last week. You can’t call it much better than that. There is still a good chance 13.50-12.75 comes into play over the summer, and perhaps dare we say, single-digits? The December 24th low is at 13.38. Resistance is at 16.75-17.50. Closes above the latter gets 20-22 back on the map. One important note, the relative strength index (RSI) on the VIX rarely trades down to 30 (OVERSOLD conditions) and is currently at 35. The last time an RSI of 30 was kissed on the VIX was November 2022.  The relative strength index (RSI) levels for the Nasdaq and the S&P 500 have remained near and above the 70 level for the past six weeks. Readings above this level indicates OVERBOUGHT conditions but we mentioned these conditions could last for weeks and perhaps, months. There could still be some upside this week to start, but our near-term outlook has turned slightly cautious over the next week, or so, as the bounce off the March 30th lows seems to be driven by the algorithms. It’s likely not a “coincidence” the Nasdaq and the S&P 500 closed Friday with mad gains of EXACTLY 30% and 20%, respectfully. While the Dow has lagged, it is still up double-digits off the late March lows. For the year, the Track Record is now at 27-4 (87% win rate) for our Velocity Options directional Alerts with SIX triple-digit winners: GRPN 169%, IRDM calls 120%; KEY calls 107%; VIAV calls 271% and 319%; and BCRX calls 100%. We also have TWO more triple-digit winners that are still open with Stop Limits in place to continue to protect profits. Futures are showing a higher open for Monday morning. Dow futures are up 67 and the Nasdaq futures are higher 156 points as we head to press. S&P futures are adding 20 ticks and the Russell futures are up a lucky 7. Momentum Options Alerts Update for 6/1/2026 Closed Momentum Options Trades for 2026: 27-4 (87%, 6 triple-digit winners); 2025: 55-20 (73%, 17 triple-digit winners); 2024: 77-17 (82%, 38 triple-digit winners); 2023: 34-11 (76%, 8 triple-digit winners). Overall: 193-52 (79% win rate) 69 triple-digit winners. Please remember, all “Exit Targets” and “Stop Targets” are targets. You should not have any “Stops” entered to close any alerts or “Limit Orders” in your brokerage account unless we list one. We will send out an “Alert” or “New Alert” if we want you to close a position or if a new position comes out. Otherwise, follow instructions at all times in the updates on Monday’s and Thursday’s along with Text Alerts and videos throughout the week. Text Alerts (Telegram):Velocity Options: https://t.me/+uzxYHX8YEh85MzYx Special Notice: once again, we have a number of updates that are important so please take your time and read each trade update. We have been extremely busy over the past two weeks as we have locked-in a number of half profits and overall winners. We have Stop Limits in place to further protect profits. Richtech Robotics (RR, $3.02, down $0.23) Option: RR July 5 callsExpiration Date: July 17th, 2026Entry Option Price: $0.30 (5/27/2026)Current Option Price: $0.21Exit Target: $0.60Return: -30%Stop Target: None Action: Key resistance is at $3.25-$3.50. Closes above the latter and the 200-day moving average would be a very bullish signal. Major support is at $2. Earnings are due out this Wednesday. The company is expected to report a small loss but the partnership with Microsoft is likely the key to a major stock move. We talked about this deal in January when shares cleared $5. A profitable quarter and good developments with MSFT could get that Price Target in focus. An earnings miss could get a retest down to $2. We will know the fate of this Alert this week so we are expecting a quick exit, either way.  Plug Power (PLUG, $3.95, down $0.17) Option: PLUG July 4.5 callsExpiration Date: July 17th, 2026Entry Option Price: $0.44 (5/26/2026)Current Option Price: $0.42Exit Target: $0.90Return: -5%Stop Target: None Action: Upper support at $4-$3.75 failed to hold on the fade to $3.85. Resistance is at $4.25-$4.50 with closes above the latter possibly leading to a breakout up to $5-$6.  Rocket Companies (RKT, $14.27, up $0. Option: RKT July 17 callsExpiration Date: July 17th, 2026Entry Option Price: $0.50 (5/26/2026)Current Option Price: $0.53Exit Target: $1.00Return: 6%Stop Target: None Action: Friday’s peak reached $14.80 with key resistance at $14.75 and the 50-day moving average getting cleared but holding into the close. Closes above these levels would be bullish for ongoing strength towards $15.75-$16. Support is at $14 with backup at $13.50.  Stratasys (SSYS, $10.54, up $0.52) Option: SSYS July 10 callsExpiration Date: July 17th, 2026Entry Option Price: $0.40 (5/22/2026)Current Option Price: $1.25 (closed half at $0.85 on 5/27)Exit Target: $1.60, raise to $2.Return: 163%Stop Target: 55 cents, raise to $1.00 (Stop Limit) Action: Raise the Stop Limit at double-nickels to $1.00 on the other half. This will lock-in a 131% win. Raise the Exit Target to $2 on the other half. Shares surged to a high of $10.73 with early February and lower resistance at $10.75-$11 getting cleared but holding. There is ongoing breakout potential towards $11.50-$12.75 but RSI is at 73 and overbought conditions. Support is at $10-$9.75 and the 200-day moving average.  BlackBerry (BB, $8.67, up $0.25) Option: BB July 8 callsExpiration Date: July 17th, 2026Entry Option Price: $0.40 (5/18/2026)Current Option Price: $1.65 (closed half at $1.10 on 5/22)Exit Target: $2.00Return: 263%Stop Target: $1.00, raise to $1.30 (Stop Limit) Action: Raise the Stop Limit at $1.00 to $1.30 on the other half of the Alert. This will further lock-in a gain of 200%, up from 163%. The average closing price is at $1.45 at current levels. Shares tagged a high of $9.31 on with fresh resistance at $9.25-$9.50 getting topped but holding. New support is at $8.75-$8.50. Our Price Target at $10+ over the near-term and possibly $15 at some point this year.  Teucrium Corn Fund (CORN, $17.93, down $0.28) Option: CORN August 22 callsExpiration Date: August 21st, 2026Entry Option Price: $0.38 (5/13/2026)Current Option Price: $0.20Exit Target: $0.80Return: -47%Stop Target: None Action: Key support at $18 failed to hold with the low at $17.90. Resistance is at $18.25-$18.50 and the 50-day moving average. The August options have nearly three months before expiration and why we went longer-term with this position.  Vale S.A. (VALE, $16.25, down $0.30) Option: VALE June 19 callsExpiration Date: June 18th, 2026Entry Option Price: $0.55 (4/20/2026)Current Option Price: $0.10Exit Target: $1.10Return: -82%Stop Target: None Action: Hold for another week. The charts remains bullish with breakout potential and analysts remain bullish following recent upgrades.  |
BioCryst Pharmaceuticals (BCRX, $9.12, up $0.65) Option: BCRX June 12 callsExpiration Date: June 18th, 2026Entry Option Price: $0.53 (3/24/2026)Current Option Price: $0.25Exit Target: $1.10Return: -53%Stop Target: None Action: Shares were volatile last week after jumping 7.7% on Wednesday with key resistance at $9.25 and the 50-day moving average holding. Thursday’s failed attempt to clear and hold these levels was disappointing. Support is at $8.75-$8.50. |
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