Power Hour #55: Regime Shift: Defensive Rotation Before the Bell – Monday 6/8/2026

Welcome to WaveRider Power Hour, your final hour tactical edge. Let's dive in. Breath just collapsed below the 50% threshold. The regime has shifted and we have less than an hour to reposition. Mm-hmm. Honestly, yeah, the engine is running, but the tires are slipping. Did the regime hold or break today? Right. Look, it broke. The 40-day SMA participation dropped from 50.75% to 50.07%. Just barely under the line. Oh, man. Exactly. And the 20-day participation shrank by 3.0 percentage points today. That's a massive contraction in a single session. Yeah. I mean huge. Sentiment is only 4% bullish. That's extreme fear. So the market is in a defensive regime. Where do we move capital? Mm-hmm. So basically, cut technology and communication services immediately. They're bleeding. We're trimming those positions right… Right now. Yes, anything below the 20-day average gets cut. No hesitation. And the one place we're moving into? Right. Right. You know what? Healthcare. It's at the 95th percentile strength. It's the only anchor. The RSPH rotation? Exactly. Exactly. Move capital there. It's the sole lifeboat. Any late entries worth chasing before the bell? Sure. Like OnlyPal. It's a momentum breakout in transplication. What's the trigger level? Mmm, enter only above $7.24. If it doesn't hold that, we sit. And what about GLUE Yeah Okay so GLUE is a reversal play in medical It interesting LLY and INTC LLY holds firm INTC remains under Pressure? So we hold LLY, dump INTC. Right. And watch for GLUE confirmation. Okay, but if the market breaks further tomorrow, what's the plan? Mm-hmm. Here's the thing. If 40-day participation drops below 50% tomorrow, we shift to find free money. That's the tripwire? Yes. And watch the health care index. It must hold above 0.71. If it breaks 0.71? Ah, wow. I mean, then the defensive floor is gone. Total collapse. Current risk metric? It's at 127.1%. Defensive positioning is man- Mandatory. That's high. Very high. Yeah. So we trim, rotate, and set stops. Right. Quick recap for the last hour. Mm-hmm. So cut tech below 20-day averages, rotate to RSPH, watch PAL above $7.24. And if healthcare breaks 0.71? Exactly. We go all in on the find free money strategy. Sounds like we have our marching orders. We do. Execute the rotation now. Right. Before the bell, cut the exposure and move to defense. Exactly. Don't wait for the open. That's the plan. Stay safe out there. Yeah, you too. Thanks for tuning in to Wave Rider Power Hour. We'll see you tomorrow. Right. See you then? That's all for today's episode of Wave Rider Power Hour, your final hour tactical edge. See you next time.