Good Morning!

It’s been a volatile week across markets as oil spikes, geopolitics escalate, and traders adjust to a rapidly shifting macro backdrop.

Low-float stocks can move 20–40% in a single session when volume spikes, but only if you catch the setup early.

Our newest analyst C1apped specializes in spotting these moves using volume-based reversal analysis, alerting trades live during the highest momentum window of the day.

His most recent alert on Thursday..

📌 $GXAI
Entry: $1.80
Exit: $2.40
Return: ~40% in a single session

C1apped currently runs an 80–85% monthly win rate trading low-float names between 7:00 AM – 11:30 AM EST, when volume and volatility peak.

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Markets were once again dominated by geopolitics yesterday as the escalating conflict between the U.S., Israel, and Iran sent energy prices surging and injected fresh volatility across global assets.

While equities have been choppy, the real story in markets right now is the growing risk of a global energy shock.

Tensions in the Middle East intensified after Iran reportedly attacked a tanker in the Strait of Hormuz, one of the world’s most critical energy chokepoints.

The strait handles roughly 20% of global oil shipments, and tanker traffic has effectively stalled as shipping companies assess the security risks.

The U.S. government has responded by offering political risk insurance and considering naval escorts for tankers attempting to pass through the region.

For markets, the implications are clear: when oil supply routes are threatened, traders immediately price in inflation risk and slower global growth.

Oil has been the biggest macro mover this week.

U.S. crude (WTI) surged above $80 per barrel, posting its largest single-day gain since 2020 and climbing roughly 20% over the past week.

Brent crude has pushed even higher, settling above $85 per barrel.

Gasoline prices are already responding, jumping nearly 27 cents in the U.S. in just one week, the sharpest increase since the early stages of the Russia–Ukraine war in 2022.

If the Strait of Hormuz remains disrupted for an extended period, energy traders believe oil could move significantly higher.

Equities struggled as energy prices climbed.

The Dow Jones Industrial Average fell nearly 800 points, while the S&P 500 and Nasdaq also ended the session lower as investors rotated away from risk assets.

Treasury yields have also been climbing throughout the week, with the 10-year yield rising to around 4.13%, reflecting concerns that higher oil prices could keep inflation elevated and delay potential Federal Reserve rate cuts.

Energy stocks were the only sector of the S&P 500 to finish in positive territory.

Meanwhile, investors have been rotating toward what some analysts are calling the “HALO trade” — Heavy Assets, Low Obsolescence.

These are companies tied to physical infrastructure and real-world demand such as oil producers, industrials, and defensive consumer names, businesses viewed as relatively insulated from both AI disruption and geopolitical shocks.

Interestingly, traditional safe-haven assets haven’t behaved exactly as expected.

Gold prices actually fell during the week despite the geopolitical turmoil, with analysts pointing to a stronger U.S. dollar and rising Treasury yields as the primary reason.

Bitcoin, meanwhile, briefly dropped below $63,000 immediately after the initial strikes on Iran before rebounding back above $70,000, continuing to show resilience during geopolitical shocks.

Beyond the immediate geopolitical tensions, some Wall Street veterans are warning that deeper structural risks may also be building.

Former Goldman Sachs CEO Lloyd Blankfein recently cautioned that the rapid expansion of private credit markets is starting to show signs of the kind of leverage and opacity that preceded the 2008 financial crisis.

While there’s no immediate panic in credit markets, the comments highlight a broader concern among institutional investors: after years of easy money, pockets of hidden risk may be lurking beneath the surface.

For now, markets remain highly sensitive to developments in the Middle East.

If energy supply disruptions continue, or escalate, oil, inflation expectations, and global risk sentiment will likely remain the dominant drivers of markets in the weeks ahead.

Stay ahead, stay informed, and most importantly, stay profitable.

‘til next time,

TradingLab