Next Day Prep: Storage Wars Memory Stocks Skyrocketing!
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Person1: Welcome to Next Day Prep – What We Are Watching Tomorrow! I’m your host, and we have a jam-packed session today. The bulls are officially running in 2026, folks.
Person2: They certainly are. We saw the S&P 500 and the Dow notch fresh record highs to kick off the first full trading week of the year. It feels like the momentum from late ’25 has just rolled right over.
Person1: It really does. But I noticed something interesting in the tape today. While the big indices hit records, the small caps actually stole the show. The Russell 2000 was up over 1.4 percent.
Person2: Exactly. That’s a risk-on signal. When you see the Russell and the Mid-Caps outperforming the mega-caps, it tells you participation is broadening.
Overnight Headlines
Person1: Let’s talk about the sector winds. Technology is usually the headline, but today there was a very specific flavor to the tech rally. It wasn’t just ‘AI chips’ in the traditional sense, was it?
Person2: No, it was a pivot to storage. The memory names went parabolic. We had Microchip Technology issuing massive upward guidance, basically saying the cyclical downturn is over.
Economic Announcements
Person1: We had some Services PMI data drop. Any red flags there?
Person2: A little bit of cooling. The reading hit 52.5, down from the flash reading. However, the real macro drama was in Energy. The sector was the worst performer, down nearly three percent.
Earnings Highlights
Person1: FedEx, ticker FDX, had a strong late-day surge. If we get a morning pullback to around 306 or 307, that’s a prime entry for a run toward 310. It’s acting very firm in the Industrials group.
Top Movers
Person1: The market punished Tesla for NVIDIA’s entrance into the autonomous driving space. Tesla dropped over four percent, while NVIDIA didn’t see a moonshot despite its new announcements.
Quick Trade Ideas
Person2: The WaveRider scans flagged clear continuation setups in Vertex Pharmaceuticals (VRTX) and Regeneron. These stocks showed clear relative strength into the close.
Key Takeaway
Person1: Tomorrow morning, watch that 692 level on the SPY. Keep an eye on the Biotech rotation, and don’t get caught on the wrong side of the Energy trade.
Person2: Stick to your levels and remember, volatility is low, but that can change in a heartbeat. Good luck and trade safe!