Dear Student,
We’ve covered a lot of ground this week — from the real impact of Moody’s U.S. debt downgrade… to Bitcoin’s latest breakout… to some unusual activity heating up in the options market.
But I’ve also seen a wave of questions come in — all circling one big theme: What areas of the market do I really pay attention to?
So that’s exactly what we’re diving into in today’s Q&A.
Let’s jump in…
Question #1
Do you just look to trade a specific stock or group of stocks?
Answer:
Great question — and the short answer is: I like both.
I trade options on individual stocks and exchange-traded funds (ETFs). Some of my favorites are the “Big Three” indexes: the Dow, NASDAQ, and S&P 500.
Each of these has its own ETF — DIA, QQQ, and SPY. And because they’re some of the most actively traded options out there, you get top-tier liquidity. That makes it easier to get in and out at good prices — which is critical when you’re managing real capital in fast-moving markets.
Question #2
Hey Tom! What sector of the markets do you focus on? Is there one you favor right now?
Answer:
Hah— sounds like you’re fishing for a hot tip. Remember, I’m not financial advisor or broker-dealer, so I can’t give you an personalized advice. But here’s what I will say…
I don’t play favorites. I go where the opportunity is — regardless of the industry.
Right now, for example, we’re deep in earnings season for the retail sector. And between inflation pressures and ongoing tariff concerns, it’s a tricky time for a lot of these names.
That’s why I wait. I let earnings come out… watch how the market reacts… and then decide if there’s a trade to take. No front-running. Just smart, reactive setups based on real data.
Question #3
Tom, do you have a favorite sector?
Answer:
I get this one all the time. “What’s your favorite?” “Where do you focus most?” “Which part of the market do you like best?”
The truth is — I love Bitcoin and crypto… but where I focus shifts constantly.
It all comes down to where the best opportunity is, whether bullish or bearish.
For stocks, I break it down across 11 sectors — using ETFs like The Consumer Discretionary Select Sector SPDR Fund (XLY) for consumer discretionary… The Technology Select Sector SPDR Fund (XLK) for tech… The Health Care Select Sector SPDR Fund (XLV) for healthcare… and so on.
If I’m looking at commodities, I might focus on oil or gold with ETFs like United States Oil Fund, LP (USO) and SPDR Gold Shares (GLD). Then, it’s all about the setup. I look at both the fundamentals and the technicals. If the group is showing strong earnings, great — but I also want to see the price action confirm it.
For example: are we breaking out to new 52-week highs? Are we busting through resistance levels?
That’s where trades are born.
Question #3
Tom, I saw that you’re going live this weekend, but I’m traveling with my family. Will there be a replay of your session?
Answer:
The good news is that these sessions will be recorded. The BETTER news is that I’m doing one final session on Monday, May 26, at Noon ET for anyone who couldn’t make it on Saturday and Sunday.
So enjoy your time away with your family. Just make sure you click on the link below to save your spot for Monday’s session – and I’ll take care of the rest.
Click here to register for Monday, May 26 at Noon ET
See you soon!
To your continued success,
Tom Gentile
America’s Pattern Trader
