May 19, 2025

Markets:

Stock futures tumbled on Monday as a downgrade of the U.S.′ credit rating by Moody’s caused Treasury yields to spike.

Moody’s on Friday after the bell bumped the country’s rating down by one notch to Aa1 from Aaa, bringing the agency in line with its peers. The firm cited the financing challenges tied to the federal government’s growing budget deficit and the ramifications of rolling over existing U.S. debts in a period of high borrowing costs.

The debt downgrade pressured bond prices, sending yields higher, at a time when the economy is already under pressure from President Donald Trump’s unfolding tariff policy. The 30-year U.S. bond yield traded above 5% on Monday and the 10-year yield topped 4.5%, levels that pressured equity markets last month and helped cause Trump to back off his stiffest tariffs. Loans for houses, cars and credit cards track these rates.

Portfolio:

First, we will start by stating Using a bogus made-up credit rating system for a country is one way to reset the RSI.  Moddy's downgrade is such a joke but you'll better realize the monster opportunity we now have.  Retail will rush into puts this morning – mistake.  Also, while everyone was so focused on Moody's, the US House panel approves Trump tax cut bill, setting up a possible vote on passage this week.  The passing of this bill would ignite a next level move alone.  Finally, Jensen has announced some monster new initiatives coming up this morning.  But let's focus on elsewhere is the narrative right now while they reneter at better prices. 

Our service has been on fire, we will not be shaken we know the path and the overall trend we are building.  

We enter the session holding setups in NN, CONL, and GME.

That's it.  Watching the open closely and then we move in.  Be ready.