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Futures are ripping on falling oil and yields, but with only 23% of stocks above their 40-day average, the Cautious Bearish regime call stands. The team breaks down why chips and AI-infrastructure names are the lone engine driving this bounce, and lays out a tight-leash playbook around AMAT, ADI, and WDC ahead of Thursday’s Trump-Xi summit.
Chapter by chapter
Regime Call: Cautious Bearish Bounce
Futures surge on easing oil and yields, global markets rally, and Bitcoin tops 85,000, but the Fed stays hawkish with 16 of 18 officials eyeing another hike.
Breadth Deterioration Under the Hood
40-day and 20-day breadth both slide further as chips carry the tape while yield-sensitive sectors like utilities, real estate, and homebuilders get crushed.
Chip Leaders and a PSKY Fade Warning
Continuation signals cluster in AMAT, ADI, UCTT, and WDC alongside pre-market gappers COHR, MRVL, and QCOM, while PSKY flashes a fade-to-respect pattern.
Action Codes: CRT, FHP, and Gap Scenarios
The team lays out Controlled Risk Taking on chip leaders with tight stops, a First Hour Pass given no data, and clear gap-up versus gap-down game plans.
Key points
Only 23.13% of stocks are above their 40-day average, and breadth is actively deteriorating day over day despite the futures rally.
Easing oil (WTI $97.57) and easing yields (10-year at 4.95%) are the twin catalysts lifting futures and global markets together.
The rally is a single-engine move led by chips and AI-infrastructure names (AMAT, ADI, UCTT, WDC), while yield-sensitive sectors lag hard.
The Fed remains hawkish with 16 of 18 officials penciling in another hike, and no U.S. data today shifts focus to Thursday's Trump-Xi summit and Tuesday's Trump-Zelensky meeting.
Trade playbook: Controlled Risk Taking with tight stops on chip leaders, First Hour Pass to let the market confirm direction, and respect (don't chase) the PSKY fade.
See AMAT in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open AMAT in WaveFinder.
See ADI in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open ADI in WaveFinder.
See UCTT in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open UCTT in WaveFinder.
See WDC in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open WDC in WaveFinder.
See COHR in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open COHR in WaveFinder.
See MRVL in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open MRVL in WaveFinder.
See QCOM in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open QCOM in WaveFinder.
See PSKY in WaveFinder. Sign in with your email, and new accounts are free and take about 30 seconds.
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Use left and right arrows to move through history, plus and minus to zoom, ] and [ to open the next and previous event, Escape to close its card, Enter to open PSKY in WaveFinder.