The market continues to reward those who respect the trend. Today was a robust session as the S&P 500 maintained its upward momentum, pushing all the way into our Value Area High (VAH). While our initial thesis looked for price to balance between 6932 and 6889, the market never even visited that lower zone after opening above it. This lack of downside interest fueled a consistent bid right into the close. As we discussed yesterday, the overall trajectory is up, and I am now looking for a definitive break over the VAH to test the 7000 level.
The Post-Mortem
The most interesting aspect of today’s session wasn’t just the index, but the action within our specific watchlist names. SHEL was on pace for a gap up but sold into the open, reversing all the way to 73.50 before a sharp bounce back to the highs. The stock remains structurally sound, and I expect this strength to persist through the first half of the year.
We also saw a major catalyst in CBLL, which spiked premarket following news of its FDA Breakthrough Device Designation. Although it saw some selling later in the day, this news is a fundamental game-changer for their stroke detection technology and future revenue potential. I expect CBLL to soar through all-time highs in the coming weeks, with 35 being a very realistic target. ASX also posted a strong session, gapping up and holding Friday’s highs.
The power of this watchlist is in the numbers. While the S&P is up roughly 3% over the last few months, our cumulative gains on these selections sit at 245%. To put that in perspective: if you allocated 5% into each of these stocks, you would be 50% in cash with a portfolio up over 12% in just over a month. We are outpacing the index by nearly 10x. This is why I advocate for LEAPs on these high-trend stocks—one large winner can beat the market for the entire year. If you are struggling with 0DTE volatility, shifting your focus to longer-dated contracts on these momentum names is the professional adjustment to make.
Volume Profile Notes
Structurally, very little has changed. We are seeing volume build steadily above the Point of Control (POC) at 6932, which confirms that price is being accepted at these higher levels. There isn’t much more context needed—the market is telling us it wants higher prices.
