The CPI numbers came in as expected, and the market didn’t just like it—it exploded. The opening dip was the only chance to add before everything started trending up. This is one of those days where heat is heat, trend is trend, and you just jam the damn buttons until the deals fall off.
SPY and IWM: Full Breakout Mode
SPY broke out and IWM launched. This is big—small caps and mid caps are waking up in full force. When IWM’s putting up sticks like this, we’ve got confirmation of speculative flow. The trend is strong, the setups are working, and there’s no sense fighting the tape right now.
Top Stocks on the Watchlist
REAL – 8 million shares traded, $5 breakout, clean flat-top base. Exactly the kind of name you want when IWM is trending.
LTBR – Earnings name with a triple-tap breakout. If we get a weak open on this tomorrow, I’m looking for a red-to-green entry. If it tightens up, it could turn into a swing.
TNXP – News-driven name, small float, 32% move on the day. Not an A+ for swing, but for day trades, this is a must-watch.
U– Reversal city. Earnings pullback is being bought. Clean ORB pattern on the 5-minute. Multiple tests of the bone zone and holds—it’s textbook.
LMND – Massive fade at the open and then total reversal. These are the kind of intraday dip opportunities that trend traders live for.
SHOP – Been consolidating 3–4 days. If it holds this base, this could pop. I’d look for volume confirmation and a trend-line break.
LC – Earnings breakout, double-tapped the 9 EMA. Building a trend-line break setup that looks prime for a swing trade.
AMSC – Swing setup. Pullback into the 9 EMA with clean structure. Lower volume name but great for patient entries.
MU – Breakout play. Semi names are cooking, and MU is catching up. If we get a pullback into the gap zone, I’m looking to strike.
A good pattern to practice on all these would be the first pullback pattern. It is clean and easy to find daily so you.
Strategy Insight: Use Earnings Season to Your Advantage
Earnings breakouts are trending harder and cleaner than most momentum names right now. REAL, MERC, and AQST are all evidence of that. Run your scans in the morning for fresh earnings movers and look to trade the first dip if the tape confirms strength.
Final Thoughts
This market is hot. Normally I trade a couple hours a day, but lately I’ve been staying in the chair till the close. These are the days you earn your keep—load up your watchlist, prep like a pro, and strike when the setups come. If you have some free time check out these 40 trading lessons that I have learned in my career! Just one of these could make a huge impact.
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About the Author:
Kunal Desai is the founder of Bulls on Wall Street and one of the most experienced trading mentors in the world. With over two decades of experience and 7,000+ students trained, his mission is simple: teach traders how to build real skills, not hype. You can find him trading live inside his Bootcamp daily.
