Coming off yesterday’s mixed performance – the SPY edged higher while the QQQ dipped slightly – markets are entering a cautiously optimistic Wednesday. Gold softened yesterday, and the 10-year Treasury yield remains relatively stable around 4.46%, suggesting a continued, but not aggressive, risk-on sentiment. Today we’re watching how these signals hold as we head into key economic data later this week.
Technology continues to show momentum, leading the way into today’s session after a strong showing yesterday (XLK). Communication Services (XLC) is holding steady, while Consumer Discretionary (XLY) is showing moderate interest. We’ll be monitoring if the strength in tech can broaden out to the lagging Materials (XLB), Industrials (XLI), and Utilities (XLU) sectors.
We're watching AAOI, AMZN, ANET, MSFT, NOK, and SHOP for potential catalysts today given recent headlines and technical setups. Specifically, the ANET vs SMCI pair trade is showing a widening conviction spread.
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