Before we get started, remember that the market is closed Monday for Martin Luther King Jr. Day.

We also have the Presidential Inauguration day, and it seems like the market is feeling optimistic for the new administration, though there are concerns about fiscal policy.

The big question is whether the market will see a "sell the news" reaction to the inauguration, particularly in the crypto space, which has been leading in 2025.

But for now, the SPX is above the downtrend line near 5964-5980, which is definitely a good thing.

The longer we stay above that, the better for our longs.

The tricky thing will be figuring out which sectors are going to lead.

Banks and energy are winning in 2025, and we're even seeing some stability in small caps.

Make sure you keep an eye on rates.

Thankfully, TLT has come off the lows (as rates have backed down), which helped give the market a shot in the arm.

If TLT starts breaking down, the rally could be disrupted. So put it on your radar.

Now let's go over our names:

AMZN February 14 $235 Calls: Amazon is one of the better-looking Mag7 names, and I expect it to give us a nice pre-earnings rally. It gapped up nicely today, though it's come off the highs. I'd like to see a strong close.

XBI January 14 $91 Calls: biotech is getting a small bounce today, though it's still acting pretty feeble. I'll let it ride for now.

AVGO January 24 $250 Calls: this stock has acted much better in recent days so there is some potential these calls can bounce before expiration next Friday. Still, I might have to exit early so keep an eye out for alerts.

CEH January 17 $35 Calls: This January effect name did not work at all, so these options will expire worthless today.

Have a good weekend, and be careful out there!

—Scott ​