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Next Day Prep #232 Neutral

Next Day Prep #232: Bearish Regime, Fragile Rally: Trading with the Grain – Wednesday 3/25/2026

March 25, 2026 4:17
Tickers Mentioned
Episode Summary
The market’s latest rally shows select strength, not broad recovery—confirming a Cautious Bearish regime. We break down why only catalyst-driven moves pay off, and how to trade oil, Iran, and momentum without overextending.
Key Takeaways
  • Market rebounded on Iran peace proposal hopes.
  • Iran denied negotiations, limiting gains.
  • Oil price retreat gave support.
  • Memory storage stocks lagged on AI news.
  • Monitor geopolitical headlines and Treasury yields.
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Today’s Verdict

Situation Awareness: Bearish. Stocks rebounded on peace proposal hopes, hitting 200-day moving averages before Iran denied talks. Oil’s retreat supported gains, but geopolitical uncertainty lingers. Trade mode for tomorrow: selective and defensive, prioritizing quick trades and tight risk management. Market vulnerable to headline risk as investors monitor US-Iran negotiations and oil price swings. Regime context — 28.2% of stocks closed above their 40-day SMA (vs 25.9% prior day, regime held at Bearish), and the 4% Bull/Bear gauge shows 230 bulls vs. 57 bears. The 5-day trend shows a consistent down sequence, confirming downward momentum.

SIP: ARM CORT HPE AMD

  • What’s working today: key setups include 2LYNCH: 15, D9M: 78, Reversal: 141 strategies fired today
  • Leading sectors: Materials (+2.0%), Health Care (+1.0%), Consumer Discretionary (+1.2%); leading themes: Precious Metals (+3.4%), Technology Hardware (+7.9%), Cruise Lines (+2.5%)
  • Key event: Arm Holdings’ strategic shift to in-house silicon drove a significant stock surge.
  • Regime threading: morning SA called Bearish (25.9%), closing is Bearish (28.2%) — held as indexes failed to sustain gains and geopolitical concerns persist.
  • DEP watchlist: ANNA APA HPE SATL WRD
  • SIPS: DOCN GPI MDGL IBG CVGI

Market Scorecard

  • SPY +0.5%, QQQ +0.8%, IWM +0.7%
  • Breadth: 28.2% stocks above 40-day SMA, down trending
  • Volume: Below average, suggesting hesitant accumulation.

Today’s Scorecard — What Worked & What Didn’t

  • Materials (+2.0%): Newmont (NEM +2.54%) outperformed on precious metals rebound.
  • Sector: Advanced Micro Devices (AMD 7.26%) and Intel (INTC 7.08%) as CPU crunch deepens demand drivers.
  • Memory Storage Disappointment: Sandisk (SNDK -3.50%) and Micron (MU -3.40%) declined after Google Research revealed TurboQuant.
  • Breadth: 28.2% of stocks are above their 40-day moving average; Breadth continues weak trend for downtrend confirmation.

Key Earnings & Economic Calendar

  • Braze (BRZE): Missed EPS estimates but beat on revenue; shares jumped nearly 20%.
  • GameStop (GME): Reported adjusted earnings of $0.49 per share, revenue fell 13.9% year-over-year.
  • Tomorrow: Weekly Initial Claims (consensus 210,000) and $44 billion 7-year Treasury note auction results.
  • Tomorrow: Earnings from DOO, CMC, LOVE, SCVL (pre-market); AGX, BTGO, OXM (after-hours).

Tomorrow’s Watchlist & Setups

  • ARM at $157.07 — Continuation Breakout, targetting $166, driven by in-house silicon pivot.
  • NVDA at $178.71 — Mega-cap rebound, looking for support at $175 for potential long entry.
  • AMD at $220.27 — Consolidating after breakout, buy dips if oil rises.
  • HPE at $25.80 — Pullback to rising trendline after hardware rally.
  • Focus: Technology sector, leveraging momentum from chipmakers and hardware names.

Strategy Outlook & Scenarios

  • Bullish: Iran peace talks progress further, crude oil falls below $85/barrel.
  • Bearish: Geopolitical tensions escalate, pushing oil back above $95/barrel.
  • Strategy signal counts: 2LYNCH: 45, D9M: 78, Reversal: 141 – Signal Counts confirming current trend of reversals and continuations on overextended moves.
  • Tomorrow’s regime forecast: Cautious Bearish (as breadth fragile and susceptible to shifting geopolitical sentiments).

Action Codes

  • BTFD – “Buy The Dip”: Reversal strategies and heavily shorted stocks rising off lows.
  • T3A – “Think 3 Days Ahead”: Monitor political factors and determine trend strength in 3-day range.

Summary & Final Thoughts

  • Tomorrow, approach trading selectively, focusing on quick trades in leading sectors while managing downside risks.
  • Key risk: Sudden shifts in geopolitical news impacting oil prices and market sentiment.
  • Market stance: Selective and defensive.
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