Macro conditions continue to shape the trading landscape, and this past week once again highlighted how quickly sentiment can shift when momentum, headlines, and earnings expectations align. The market extended its V-shaped recovery, and while the move has been constructive, it also reinforces the importance of staying selective and managing risk carefully in a tape that can still change fast.
If you’re wondering how professional traders are capitalizing while keeping their risk levels in check during market cycles like the current one, then you might want to check out Investors Underground.
For traders looking to get more familiar with the Investors Underground platform, the current test drive offer provides 14 days of unlimited access for $49. That includes all chat rooms, scanners, watchlists, pre-market broadcasts, and the broader set of tools and resources available to members.
It is a strong opportunity to experience the workflow, preparation, and real-time market insight that drive the community. The promotion is ending soon, so it is worth taking a look while it is still available.
Video Scan
V-Shape Recovery Continues
This week saw further continuation of the V-shaped recovery that has been developing over the past several trading sessions. Technology names, including MSFT, AVGO, and AMZN, performed very well, along with AI and quantum-related themes.
The broader rally was supported by a more constructive tone around geopolitical developments, particularly headlines tied to the U.S.–Iran situation and the Strait of Hormuz. At the same time, earnings season expectations remain supportive, which has encouraged investors to add exposure into the rebound.
With that said, be aware that headline / state-sponsored meme video risk continues. Overnight exposure can become a liability quickly, and even a single unexpected development can alter the risk:reward of even the most carefully planned setups.
Have a clear plan and respect the volatility that comes with breaking news cycles.
PDT Rule Update
Another important development this week came from the regulatory side, where the SEC approved a FINRA rule change tied to the Pattern Day Trader rule. If implemented as expected, the change would reduce the current $25,000 minimum account requirement for margin trading to a much lower threshold.
The PDT rule remains in effect for now, with the change expected at some point later in 2026. Brokers are also expected to introduce a more dynamic intraday margin framework, though the exact mechanics are still unclear.
If this change does go through as anticipated, it could open the door to more participation from smaller accounts and potentially increase liquidity in the market. That makes it an important structural shift to watch as the year progresses.
Main Watches
Heading into next week, Stan’s focus remains on a mix of momentum continuation names, a potential liquidity trap, and potential exhaustion / failed follow-through setups.
BIRD: Watching for a retest of the prior day high, a move to new highs, or failed follow-through. No strong opinion yet until the structure becomes clearer.
ROLR: On watch for a potential liquidity trap setup
NVTS: Showing characteristics similar to LUNR, with potential for continuation higher if the breakout holds
PLTR: Still trending strongly and showing gap-up potential, but the $150 area is a key level to monitor for possible failed follow-through
AMZN: Similar to PLTR, with a strong uptrend near all-time highs and the possibility of an exhaustion move followed by failure
AXTI: On watch for exhaustion after a strong move higher
CAR: Still a major name on everyone’s radar, but the share structure and irregular price action make it a difficult ticker to approach. It remains on watch, though not a priority.
For the previous 13-14 trading sessions, the market has been rewarding participation to the long side, which is especially good for swing traders. It has also offered many opportunities on the intraday and short side when names extend or start to fail. This remains a great example of a trader’s market due to the heightened volatility. The most effective approach is to stay flexible, don’t guess where the market goes, and allow the setup and price action to dictate the trade.
0 Comments