Power Hour #125: Rotation, Not Rout: Reading the Breadth Collapse – Monday 10/12/2026

Welcome to Wave Rider Power Hour, your final hour tactical edge. Let's dive in. Breath just fell off a cliff. 14% of stocks above their 20-day, down from 24 yesterday. 60 minutes to the close. What do we do with that? Okay, so first thing, don't panic. You're sure? I'm sure. Short-term breath caved, yeah, but the 40-day actually ticked up to 29.74%. Wait, up. Up. From 27 yesterday, that's the tell. The intermediate trend isn't broken. So it's rotation, not route. Exactly. Surface panic, but the undertoes still turning. This is a rotational risk off day plain and simple. And the sentiment side? Bearish tilt. Bull 4% at 82. Bear 4% at 284. No argument there. Mm-hmm. What about our usual levels? SPY, QQQ, IWM? Nothing today. No levels. So breath is the only tape we've got. So we fly on internals. Internals only. That's the day. Okay, that means decisions named by name. Let's get into it. What are we cutting? O-R-C-L, 141.53, minus two sentiment on capital constraints. Trim into the bell. Just trim? Trim hard. An NBIS, 22107, minus two on that mist and thropic deal. That one I'd exit before the close. Exit completely. Completely. Both flashing warnings and tech ATRs falling to .26. Which means sectors losing steam lean out of software and large cap tech across the board. Right. So what's actually working? Energy. RSPG staying green while everything else bleeds. And that's your rotation tail? That's the whole thing, honestly. If this were real liquidation, energy goes down with it. It's not. So hold your energy exposure. Anything worth entering here? One name on confirmation. PMI, 1150, up 21.3%, RVAL, 2.2. On confirmation, meaning it holds above 1150 with volume into the final half hour. No hold, no trade. Got it. Anything else? MMED, 1927, RVAL, 2.7, lead reversal candidate. Same rules? Same rules. Only on a reclaim of the day's high. ATHM's your backup if MMED doesn't fire. And the rest of the movers? Skip them, thin volume, low conviction, noise, not evidence. So treat PMI and MMED like... Like suspects. You don't act till they show their hand. Love that. Okay, energy's the thread holding this whole tape together. Does it carry into tomorrow? I think it does and here's why. Crude. B&O. B&O, 63.99, plus two sentiment on supply disruption. That's your overnight swing factor. So oils the weather report. Exactly. Storm keeps brewing overnight, energy gaps up with wind at its back. What's on the continuation list? GPOR at 165.17, and LNG at 283.43, watch both at the open. And the cleanest long. eBay, 112.19, sitting just 5.97% off its 52-week high after a top pick upgrade. Oh, that's interesting. Right? The breakout reclaim is the cleanest setup on the board. You want it reclaiming toward that high. And the regime tomorrow? Defensive by default. Energy and healthcare favored. Tech kept light. Until what? Until that 14% above the 20-day stops deteriorating. Breath stabilizes. We reassess. Not before. So discipline over hope. Confirmation over hope every time. Okay, that's the close. Let me land it. Cut O-R-C-L and N-B-I-S before the bell. Hold your energy. Let PMI and M-M-M-E-D prove themselves. Don't chase. And watch crude overnight because if that supply story keeps running, energy opens strong tomorrow. That's the play. Today was rotation, not route. Oil tells tonight's story and tomorrow's open. That's the power hour. See you at the next bell. That's all for today's episode of Wave Rider Power Hour. Your final hour, Tactical Edge. See you next time.