Next Day Prep #266: The Snowflake Spark: Igniting a Peace Trade Rally – Thursday 5/28/2026

Welcome to WaveRider Next Day Prep Review. Review today, prepare tomorrow. Let's dive in. How did the market ignore a 3.3% core PCE print and geopolitical spikes to close at record highs? The answer lies in a single spark. Snowflake. Seriously? Just one stock? Just one, but it was the right one. Okay, so the morning call was cautious. Did that hold up? It did. The cautious regime held through the close. But with that inflation data and the headlines? Yeah, and the GDP print of 1.6% too. I mean, that's stagflation territory, right? Exactly. But the market ignored the bearish data. How? Because of the peace trade rally that kicked in. Oh, right. The ceasefire MOU. Right, right. It cleared the storm, allowing a steer toward new highs. A ship navigating a storm that suddenly clears. That's exactly it. No dropping anchor. But the breath, did that look healthy? It narrowed slightly but kept the upside bias Narrowed how much From 60 down to 56 above the 40 SMA Still majority but tighter Much tighter. But look at the final hour. The 4% bull-bear gauge? Massive skew. 317 bulls versus 68 bears. Wait, 317 to 68? That's wild. It was a massive bull skew in the final hour. So the morning thesis of selective momentum was validated. Validated completely by those final numbers. Okay, so the verdict holds. But why snowflake? It was the spark in a dry forest. A spark in a dry forest. I like that. It ignited the whole sector, really. What was the catalyst? The 33.5% revenue growth and that 6B AWS deal. 6 billion? 6 billion. It validated the AI monetization thesis. And the volume? Critical. 4.9 times relative volume. That's heavy conviction. It was volume confirmation for the continuation. So, everyone just piled in? Well selectively Risk appetite returned instantly Investors trading umbrellas for sunglasses That the perfect analogy So defensive stuff got crushed Mm-hmm. Utilities dropped 1.1%. And staples? Consumer staples fell 0.5%. Capital rotated hard into growth. Tech gained 2.2% while the others lagged. Even oil? Oil spiked to $92, then reversed on the ceasefire. It confirmed the peace trade immediately. It did. The lesson here is volume. Continuation requires volume. The market rewarded high-conviction AI names. Overbroad participation. Exactly. Now, what's the playbook for tomorrow? I'm looking for specific entry triggers. Let's talk snow first. Where do we need it to hold? It needs to hold $230 for a target of $250. $230 to $250. Simple. Simple, but tight. What about PLTR? PLTR needs a break above $145. And the supply? Supply is sitting right at $149.64. So a tight range there Very tight And LLY Eli Lilly Support is resistance at Okay, those are the levels. Those are the levels. But does the regime shift yet? No, it remains cautious for now. Until what? Until breath exceeds 65%. We need that 65% for a shift. Until then, it's a tightrope approach. Stepping forward only when balance is confirmed. Precisely. Selective aggression in AI software. With strict risk management on oil data. You have to watch the oil data closely. Because one spike could change things. It could, but for now, we trade the levels. Not the headlines. Not the headlines. That's the key takeaway. Trade the specific levels, not the headlines. So, review your watch list tonight? Absolutely. Prepare for a gap up or gap down. And strict stop losses in place? Strict stop losses are non-negotiable here. Okay, that's the plan. That's the plan. Thanks for breaking it down. My pleasure. Catch you on the next one. See you then. That's all for today's episode of Wave Rider Next Day Prep. Review today. Prepare tomorrow. See you next time.