The U.S. stock market remains red hot, with small caps starting to shine and momentum stocks breaking out across the board. After last week’s FOMC shakeout, the market ramped right back, showing little sign of weakness. Traders looking for a pullback may have to wait longer, as even shallow dips are getting bought aggressively.
Market Overview
- Indexes strong: The SPY and QQQ continue to grind higher, while the IWM briefly paused near all-time highs.
- Pullbacks are shallow: Any dips have been orderly, with no real volatility shock.
- Structure intact: With the rate cycle turning and trend firmly higher, it’s still a bull market.
When the market structure is this firm, individual stock setups still rip even on flat days. That’s the edge right now.
Key Watchlist Stocks
NBIS – A classic $100 roll setup. These names often rip quickly once they clear $100, with room toward $120–130. Better as a swing trade due to tricky intraday action.
Quantum Stocks (RGTI, QUBT, QMCO) – These names have been on fire. RGTI in particular is extended, but watch for a potential pullback setup. Options may be safer than stock if chasing here.
LTBR – If the nuclear + quantum theme continues, LTBR is primed. Not a perfect breakout level but strong volume action points to potential upside.
UMAC – A developing swing setup with drone-sector tailwinds. Watching for continuation if volume holds.
AVGO – Pulled back into the “bone zone” after earnings. A gap-down entry into support could be a strong long opportunity.
NXe – Multiple resistance tests forming a breakout zone. Volume accumulation suggests a move higher is near.
Microsoft ($MSFT) – Finally cleared the “bone zone” flip after digesting earnings. Calls in the 525–530 range could target the next leg higher.
Rivian ($RIVN) – Needs to clear $15. A speculative play, but in a hot market, even laggards can get juice.
CNC – A healthcare stock consolidating at lows. With UNH strong, this laggard could see rotation.
Trading Strategy Takeaway
The theme here is small cap momentum and $100 roll setups. This isn’t the time to get too fancy with shorts. Ride the trend, manage risk, and keep an eye on liquidity as markets push all-time highs.
💡 Pro Tip: In hot markets, avoid overloading with 40–50 tickers. Narrow your list to 5–10 setups so you don’t miss the cleanest plays.
📈 Related Reading: How to Manage Risk Trading a Small Account
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About the Author
Kunal Desai is a veteran trader, educator, and founder of Bulls on Wall Street. Since 2008, he has trained thousands of traders worldwide through live bootcamps, mentorship programs, and his real-time chatroom.
