Power Hour #47 Bullish

Power Hour #47: Final Hour: Divergence, Traps, and the $13.00 Trigger – Wednesday 5/27/2026

May 27, 2026 3:24

Tickers Mentioned

CNTX IREN SMTC FLTR QFIN DKS GFS SPY QQQ IWM

Episode Summary

With market internals showing dangerous divergence, this episode breaks down the final hour playbook: holding momentum in CNTX and FLTR while cutting shorts on IREN and SMTC. The discussion reveals that the bullish trend is entirely dependent on Consumer Staples holding its defensive ground, with QFIN's $13.00 breakout serving as the critical confirmation for tomorrow.

Key Takeaways

Bull/Bear ratio stands at 177 to 89 with bullish sentiment.
Technology sector ATR hits 5.07 at 79th percentile.
CNTX surges 16.9% on strong Medical sector momentum.
Consumer Staples reach 100th percentile ATR at 1.1.
IREN and SMTC show strong SIP catalysts for continuation.

Regime Check — Where Are We Now?

The market regime remains Bullish with Sentiment at 4% and a Bull/Bear ratio of 177 to 89, though breadth is showing a slight contraction in the 40-day SMA metric.

Breadth Direction: While the % of stocks above the 20 SMA surged to 169% (up 38.0pp from yesterday), the % above the 40 SMA dipped to 58.14%, indicating a potential short-term divergence.
Leading Sector: Technology remains the dominant force with an ATR of 5.07 at the 79th percentile, while Consumer Staples hit a new 100th percentile high at 1.1 on rising momentum.
Market Character: This is a trending day driven by sector rotation into defensive Staples and aggressive Tech, despite Energy and Materials showing falling ATR trends.

Strategy Signals — Continuation, Reversal & SIP

Continuation signals are active in high-momentum names, while SIP data reveals significant institutional shifts in specific sectors.

Strongest Continuation (2LYNCH): CNTX is the standout with a massive 16.9% gain and 1.3 RVOL, signaling a powerful breakout in the Medical sector.
Strongest Reversal Setup: FLTR shows a 4.0 RVOL spike at $25.57 with a 0.0% change, suggesting a high-volume accumulation point for a potential reversal.
SIP Leaders: IREN is holding strong at $59.78 following a Dell purchase agreement, while SMTC maintains momentum at $164.46 on Q1 beats and strong Q2 guidance.
Relevant Action Code: PLASTICS is the primary code today, as Technology (ATR 5.07) and Consumer Staples (ATR 1.1) are clearly outperforming the broader market.

Closing Playbook — What To Do Now

With index data unavailable, focus strictly on the sector leaders and SIP-confirmed names to manage risk before the bell.

Close Positions: Consider closing any short exposure to IREN or SMTC as their SIP catalysts (Dell deal, Q2 guidance) are fully priced in and momentum is high.
Enter Setup: Look for a confirmation entry in CNTX if it holds above $3.08 into the close, targeting a follow-through on its 16.9% surge.
Key Level: Since SPY/QQQ data is unavailable, monitor the Technology sector ATR; if it holds above 5.07, the bullish regime extends into tomorrow.

Tomorrow’s Early Look

Prepare for continued volatility in the Medical and Semiconductor sectors as earnings and partnership news drive the narrative.

Overnight Catalyst: Watch for any post-market updates on the IREN–Dell partnership details or SMTC analyst reactions to the raised guidance.
Setup Forming: QFIN at $12.59 is forming a bullish base after a 5.89% open gap on better-than-expected Q1 results; watch for a break above $13.00.
Regime Outlook: If Consumer Staples holds its 100th percentile ATR of 1.1 tomorrow, expect a rotation into defensive plays if Tech cools off.

Welcome to WaveRider Power Hour, your final hour tactical edge. Let's dive in. The market's trending, but the internals, they're screaming divergence. With the 20 SMA surging 38 points, while the 40 SMA dips, we've got 60 minutes to decide. Sprint to the finish or a trap? Let's get tactical. The regime is still bullish, but it's fragile. Sentiment sits at 4%, and the bull-bear ratio is 177 to 89. So the trend holds, but the breath is cracking. Exactly. Here's the warning. 20 SMA stocks surged 38.0 percentage points, while the 40 SMA dipped to 58.14%. That's a sprinter outpacing a marathon runner. Right. It's a trending day driven by narrow leadership, not broad participation. Okay, if the breath is this narrow, where is the money actually going? Technology is dominating, with an ATR of 5.07 sitting at the 79th percentile. And the defensive rotation? Consumer staples hit a new 100th percentile high at 1.1 ATR. Investors are moving to the safety lane even while the fast lane moves. That's wild. So, final hour playbook, what do we hold? Hold CNTX. It's up 16.9% with 1.3 RVOL. Momentum is intact. And any other holds? FLTR. It's showing a 4.0 RVOL spike at $25.57 with .0% change. That's accumulation. Like a pressure cooker building steam Precisely It ready to burst Now what do we cut Yes what out Cut any shorts on SIP leaders iron at and SMTC at Why cut those specifically Because the catalysts are fully priced in. No room for error here. Got it. Any late entries? Only if QFIN breaks $13. Otherwise, sit tight. Just one level to watch? Yes, $13. If it holds below, we wait. Okay, so we hold the momentum, cut the shorts, and wait for the breakout. Now, what's the setup for tomorrow? Focus on QFIN forming a bullish base at $12.59 after a 5.89% open gap. That gap is significant. It is. The breakout trigger is $13, but the regime depends on staples. How so? Consumer staples must maintain its 1.1 ATR. If that breaks down, the trend is over. So the defensive sector is the canary in the coal mine. Exactly. Bullish only if the defensive rotation holds. That's the key. So hold CNTX and FLTR, cut shorts on IRIN and SMTC. Correct. And watch the $13 level on QFIN for tomorrow's confirmation. We have the levels. We have the triggers. Execute the playbook now. Review your positions, set alerts for $13 on QFIN, and close the books with conviction. Let's get it done. Thanks for joining the final hour. See you on the close. That's all for today's episode of WaveRider Power Hour, your final hour tactical edge. See you next time.

Morning Dose #276 Neutral

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Regime Check — Where Are We Now?

Strategy Signals — Continuation, Reversal & SIP

Closing Playbook — What To Do Now

Tomorrow’s Early Look

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