The market continues to be defined by strong upside momentum, led heavily by the Nasdaq and AI-driven names.
A large portion of the rally is concentrated in a handful of mega-cap and semiconductor stocks, and that trend remains firmly intact.
While there are risks in the background like elevated oil prices and uncertainty around Fed policy, price action continues to show that the path of least resistance is still higher.
The key theme right now is simple. Stay aligned with the trend instead of trying to fight it. These moves can last much longer than expected.
At the same time, it is important to stay prepared for a shift if the trend actually changes to the downside. That means having a plan, not forcing trades early.
There is also continued opportunity in small caps, AI secondaries, and squeeze setups. Liquidity traps and perpetual squeezers are showing up more frequently, along with episodic pivots and earnings-driven moves.
Video & Game Plan
Main Watches
AKAN Classic low float perpetual squeezer. This is in the later stages after a large move and prior bases are starting to break. Likely not an easy short but a good move to study.
SNDK Part of the memory megatrend with strong fundamental growth as a tailwind. The big question for memory is at what point can the cycle change when enough supply can come online. Until then, likely just a continued volatile uptrend.
BE Megatrend style name with strong underlying growth story. Missed move but still offers potential reentry opportunities on consolidation.
CAR Massive breakdown confirmed by fund selling shares. Increased float makes bounce harder. Less attractive for long setups now until float can be reabsorbed by market.
INTC Strong move supported by government involvement and narrative. Watch for sympathy plays in the space as the gov likely tries to do more of these given recent success.
NVDA Range bound after failed breakout and mixed reactions to earnings. Expecting consolidation unless a new catalyst emerges.
POET Example of secondary AI name unwinding on negative news. Good idea to keep these types on watch for negative catalysts that can take all the air out of the momentum.
MXL Another secondary AI name. Can trend higher but vulnerable to sharp downside on bad news.
AMSC Grinding higher with bullish flow. Watching for continuation toward prior highs as long as AI trend stays strong.
GME News-driven move after talk of a potential EBAY bid. High uncertainty. Plan for both upside continuation or full reversal depending on developments and news.
TEAM Possible episodic pivot after strong earnings and upgrades. Looking for consolidation followed by continuation higher.
PLTR Earnings this week. No bias but expect potential volatility and strong reaction.
CRCL Watching regulatory developments around stablecoins and staking. Potential upside if favorable news hits.
SOUN Strong turnaround and trending higher. Watch for continued controlled upside.
BBAI Often follows SOUN. Keeping on watch for sympathy moves.
XTLB Initial move with volume. Watching for consolidation and potential secondary squeeze.
HCAI Similar setup to XTLB. Needs consolidation before next leg.
TLIH Big move and volume. On watch for liquidity trap setup if it bases.
ATER Strong ramp and pullback. Watching for reclaim and move back toward highs.
MRNA Weak earnings and breaking down. Good candidate for downside if market shows weakness.
SOBR Heavy volume. Watching for gap up and fade on Monday or consolidation into Tuesday into a liquidity trap.
CUE Either consolidates into a liquidity trap setup or fails after a Monday gap.
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