📝 Three Trades for the Week
A 5-Week Vertical Put Spread, a 14-Week Wheel Opener, and a 5-Week Bearish Put Butterfly
Market Summary
This week brought fresh record highs on the S&P 500 and Nasdaq while the Dow finished roughly flat and the Russell 2000 continued to lag. The S&P 500 pushed to 7,444 on Wednesday, the Nasdaq closed at 26,402, and IWM held above its rising short-term averages without expanding to new highs. April PPI came in hot at 1.4% month-over-month and 6% year-over-year, the highest annual print since 2022, yet equities shrugged it off as investors rotated into healthcare and consumer staples. The Senate confirmed Kevin Warsh as the next Fed Chair to succeed Jerome Powell, whose term ends May 15. President Trump arrived in Beijing for a summit with President Xi covering trade, tariffs, AI policy, and Taiwan arms sales. Momentum favors large-cap growth, breadth remains narrow, and trend momentum stays positive across the major benchmarks.
