This weekly trading roundup comes after a volatile but constructive week for U.S. markets. Stocks digested hotter-than-expected inflation data early in the week, only to rebound as bond yields stabilized and earnings from mega-cap tech helped steady sentiment. While small caps and speculative growth names struggled, leadership remained firmly with large-cap tech, semiconductors, and select AI-infrastructure plays. The market continues to reward patience and discipline, not aggression. With CPI behind us and earnings season still in full swing, traders now shift focus toward follow-through and whether leadership can expand beyond a handful of names.
Market Highlights
1. Stocks rebound after inflation scare
U.S. equities recovered late in the week after an early selloff tied to sticky inflation data, as yields pulled back from recent highs.
Source: Reuters
https://www.reuters.com/markets/us/us-stocks-week-ahead-inflation-earnings-2026-02-07/
2. Big tech earnings stabilize the tape
Strong results from mega-cap technology companies helped the Nasdaq outperform, even as broader participation remained narrow.
Source: CNBC
https://www.cnbc.com/2026/02/06/stock-market-today.html
3. Bond yields pause after sharp rise
The 10-year Treasury yield held near recent highs but stopped climbing, giving growth stocks room to bounce.
Source: MarketWatch
https://www.marketwatch.com/markets/bonds
4. Semiconductors continue to lead
Chip stocks held their trend, reinforcing semis as one of the clearest leadership groups in the market.
Source: Investors Business Daily
https://www.investors.com/market-trend/stock-market-today/
5. Market breadth still limited
Despite the rebound, fewer than half of S&P 500 stocks remain above their 50-day moving averages, keeping traders selective.
Source: Bloomberg
https://www.bloomberg.com/markets
Trader Psychology & Improvement
- 1. Volatility is not opportunity without rules
High volatility amplifies mistakes when traders abandon structure.
Source: Investopedia – Trading Psychology
https://www.investopedia.com/articles/trading/08/trading-psychology.asp - 2. Narrow leadership requires patience
When few stocks lead, overtrading becomes the biggest enemy.
Source: CFA Institute – Investor Behavior
https://www.cfainstitute.org/en/research/foundation/2016/investor-behavior - 3. Avoid chasing post-CPI rebounds
Emotional reactions after macro data often lead to poor entries.
Source: Investopedia – Behavioral Biases
https://www.investopedia.com/terms/b/behavioralfinance.asp - 4. Position sizing controls emotional stress
Proper sizing reduces fear and improves execution quality.
Source: Investopedia – Position Sizing
https://www.investopedia.com/articles/trading/09/position-sizing.asp - 5. Judge trades by execution, not outcome
Great traders focus on process consistency, not individual wins or losses.
Source: Psychology Today – Decision Making Under Uncertainty
https://www.psychologytoday.com/us/basics/decision-making -
How I’m Trading the Week Ahead
- Primary focus: Large-cap tech and semiconductors that held trend during the CPI volatility.
- Secondary focus: Earnings reactions with clean volume confirmation.
- Avoid: Low-float sympathy names and weak small caps without institutional support.
- Risk control: Max 2% account risk per trade; smaller size during headline-driven sessions.
- Execution: Opening-range breakouts, first pullbacks, and trend-continuation setups only.
- Catalysts: Ongoing earnings, Fed speakers, and next week’s inflation follow-ups.
Outro
Save this weekly trading roundup as your playbook heading into the new week. The market is still trending, but only for those willing to stay disciplined and selective. Choppy environments punish impatience and reward structure. If you want to sharpen execution, reduce mistakes, and trade alongside a disciplined community, the 60-Day Trading Bootcamp is where we turn weeks like this into long-term consistency.
👉 https://bullsonwallstreet.com/live-60-day-bootcamp/
About the Author
Kunal Desai is a professional trader and the founder of Bulls on Wall Street
(https://www.bullsonwallstreet.com), one of the longest-running active trading education platforms in the industry. He has been trading U.S. equities, options, and futures for over 20 years and began teaching traders live in real time in 2008—long before online trading education became mainstream.
Kunal is known for his disciplined, rules-based approach to momentum trading, risk management, and trader psychology. Over the years, he has coached thousands of traders through bull markets, bear markets, and high-volatility environments. He is also the creator of the 60-Day Trading Bootcamp
(https://bullsonwallstreet.com/live-60-day-bootcamp/), the first live trading bootcamp of its kind, where traders learn to execute consistently in real market conditions.
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