The stock market is still holding strong—but it's not without its quirks. We've been trending above the 9 EMA and 20 SMA for weeks and months, respectively. That’s textbook bull market behavior. But things are starting to look a little tired. Some of the high-flyers are rolling over, and you can see it in the daily charts and intraday action.
Even though we’re in a full-blown bull market, this is a market that could use a shakeout. A solid 2–3% down day would clear out weak hands and reload the bulls. Until that happens, this is a day trading market. You’ve got to stay nimble, focus on catalysts, and stick to fresh setups from your premarket scans.
I’m not initiating too many new swing positions unless we get a proper pullback. Stochastics are nearly at 90, Bollinger Bands are tight, and we're starting to see some exhaustion. We don’t need to predict the top—just recognize when the momentum is getting stretched.
Look at some of the big Ethereum plays like COIN, BMNR, and SBET. They gapped up and rolled over hard, even though Bitcoin and Ethereum were strong. That’s a signal that the risk-on names are starting to leak.
But trading is still great if you stay tactical.
Here are a few top setups from today’s watch list:
- SMCI: Momentum beast, but don’t chase. Look for a red-to-green on weak open.
- RMBS: Post-earnings breakout candidate if it clears $70.
- TRON: Watch for a breakout over $12 with strong volume.
- ETHU: Big ATR name. Keep an eye on $128 level.
- CDNS: Multi-month range breakout with earnings catalyst.
- SM: Swing trade candidate. Multiple resistance tests, oil & gas strength, room to 200SMA.
- UNITY: Pullback into the bone zone after base breakout.
- OKLO: Best intraday trader of the bunch. Massive liquidity and ATR.
- RKLB: Watch for undercut/bounce pattern back over key MAs.
If you’ve followed my 21 Principles of Trading, you know it’s about pattern recognition and preparation. And in this kind of market, preparation is your edge. This is the time to lean on daily routines and premarket scans. Mark your levels. Narrow your list. Trade with precision.
Want to learn exactly how I scan for setups like these? Read more here: 21 Principles of Trading
And if you're struggling to trade small accounts or overtrading this market, these articles will help:
- How to Manage Risk Trading a Small Account
- 5 Simple Strategies to Conquer Overtrading
- 10 Trading Goals Every Trader Should Set in 2025
And remember—don’t marry your stocks. we’re paid for reacting to price and trading patterns—not our opinions.
Keep your risk tight. Trade the setups, not your hopes. And stay ready for that 2% down day that shakes everything loose.
Want to learn how to trade like this in real-time?
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About the Author
Kunal Desai is the founder of Bulls on Wall Street and a veteran trader with over 20 years of experience. He has helped thousands of traders develop technical skills and discipline using both free and premium tools.
