The stock market volatility picked up today with the QQQs finishing down just 0.3%, but under the hood, individual stocks told a different story. From downgrades hitting BE to wild action in speculative mid-caps like R-Cat and ALAB, traders are starting to see signs of rotation. In this blog, I’ll break down the market structure, the stocks flashing warning signals, and the setups that should be on your trading watchlist tomorrow.
Market Recap: A Healthy Dose of Volatility
The overall indexes were calm, but under the surface, small and mid-cap stocks saw some real movement. BE, once a market darling, was crushed by downgrades, shedding 20–25%. Other high-flyers like ALAB and Reddit also showed cracks after monster runs. This kind of action often signals much-needed pullbacks after extended trends.
Even names like Western Digital and SanDisk — companies traders hadn’t looked at in decades — have tripled in recent months. A little deflation here is not the end of the world. In fact, in strong bull markets, pullbacks are often the setups that fuel the next leg higher.
(For more on how traders should approach risk in hot markets, check out our guide on managing risk in a small account).
Key Stocks to Watch
BE – Downgrade Fallout
- Once untouchable, BE is showing real weakness after analyst downgrades.
- Down 20–25% in just a few sessions, this is a cautionary signal.
- Watch for continuation lower toward the 20 SMA.
Intel (INTC) – PR-Driven Catalyst
- Intel announced it asked Apple to invest, sparking new attention.
- Not the hottest day trader in terms of ATR, but great for hybrid swing/day trade setups.
- Strong volume flow makes this one to watch for continuation.
ALAB & MATA – Watching the 50-Day
- ALAB was a high flyer from $90 to $260. Now sitting near its 50-day moving average.
- A gap-down test of the 50 could provide a clean bounce setup.
- MATA also consolidating at its 50-day — worth keeping an eye on.
CNC (Centene) – Healthcare Strength
- Riding the coattails of UNH strength, CNC looks ready for a gap-fill breakout.
- Thin options volume, so shares are the way to go.
- Healthcare could be part of a broader sector rotation.
CrowdStrike (CRWD) – Textbook Pullback
- From $400 to $500, now pulling back in a very orderly fashion.
- Four low-volume down days right to the 9 EMA “bone zone.”
- Classic buy-the-dip setup if support holds.
Tesla (TSLA) – Still Dominating
- Tesla continues to shred, now targeting $500+.
- Fridays are historically Tesla’s strongest day — worth remembering.
- Watch for flush setups at the open for dip-buys.
Other Setups in Play
- Iron: Extended nine points above the 9 EMA — potential blowoff top tomorrow.
- MSTZ (MSTR short ETF): Cleaner setup for traders looking to short MicroStrategy without the margin headaches.
- StubHub IPO: Weak chart; looks like a short candidate if it gaps higher.
- Crypto plays (HUT, WULF, MARA): Still forming bullish flags. Worth watching if Bitcoin/Ethereum catch a bid.
Action Plan for Tomorrow
- Mix of longs and shorts: We’re seeing both strength (CNC, CRWD, Tesla) and weakness (BE, StubHub).
- Tighten swings: Pullbacks can get nasty. Trail stops if you’re sitting on gains.
- Stay nimble: If cryptos keep sliding, risk appetite in equities may fade too.
(Want more detail on trading strategies? Read our post on the 21 Principles of Trading).
Final Thoughts
Markets are still hot, but there are cracks forming beneath the surface. If you’re trading tomorrow, keep a balanced book of both long and short candidates. Stocks like BE and ALAB could see more weakness, while leaders like Tesla and CRWD continue to reward dip buyers.
This is the type of market where disciplined risk management and sticking to proven setups is everything.
Ready to level up your trading? Join my 60-Day Trading Bootcamp where we go deep into setups like these, trading psychology, and building consistent profitability.
About the Author
Kunal Desai is the founder of Bulls on Wall Street, teaching traders how to dominate the markets since 2008. He has trained thousands of students worldwide through his live trading bootcamps and mentorship programs. Kunal specializes in momentum trading, risk management, and helping traders build consistency.
