Next Day Prep: Semis Surge AMD Breakout Play
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Wednesday, January 21st, 2026 saw a strong rebound in the market as buyers stepped in to reclaim about half of the previous day’s losses. The S&P, Nasdaq, and Dow all locked in gains of 1.2%, signaling a classic policy-relief rally with bulls in control at the close.
Overnight Headlines
- Geopolitical clarity drove the market, with news on Greenland, tariffs, and NATO providing relief.
- President Trump’s announcement of no force regarding Greenland and tariff suspensions set for February 1st spiked equity futures.
- Leadership was seen in the semiconductor space, with Intel rallying nearly 12%.
Economic Announcements
Tomorrow morning, the P.C.E Price Index, the Fed’s favored inflation gauge, will be released, dictating pre-market action based on hot inflation reports potentially testing the S.P.Y’s support at 680.
Earnings Highlights
- I.B.K.R (Interactive Brokers) hit all-time highs with record commissions and strong account growth, reflecting active retail traders.
- Netflix witnessed a fade post-earnings despite a beat, emphasizing the significance of guidance over past performance in market sentiment.
Top Movers
- Semiconductors: Watch for potential momentum in A.M.D over $251.60 and W.D.C (Western Digital) aiming for a breakthrough at $244.50.
- Energy: Keep an eye on E.G.Y poised for a run over $483 in the energy sector.
- Industrials: Look for opportunities in D.E (Deere) eyeing $530.30 and D.Y (Dycom) showing institutional accumulation prospects.
Quick Trade Ideas
- Long setups: Focus on relative strength in leaders like semiconductors, energy, and selected industrials amid overall market positivity.
- Avoid: Stay cautious on crypto proxies like E.T.H.D and Q.B.T.Z showing relative weakness until they establish a firm holding pattern.
Key Takeaway
Plan trades strategically while watching for inflation data impact pre-market activity. Focus on strong setups in leading sectors and key resistance/support levels for informed decision-making in the current market environment.