Stock Trends

Face. Ripper.

Good morning,

It has been a hell of a week.

And frankly, it’s hard to know where to begin, so I’ll start with an apology.

I ended Tuesday’s Overtime report with what I thought was uncontroversial, sage advice, writing:

Patience is key. I want this to be over as much as you but historical technical damage can’t be fixed in a day.

Resist the urge to chase every daily reversal. Go for a walk. Keep your eyes off the market. The market bottom checklist is our guide, not every headline or tweet.

Except that was terrible advice. Because 10 minutes into trading on Wednesday, the President of the United States posted this on his social media:

And then 4 hours later, he paused the tariffs and THE NASDAQ COMPOSITE GAINED 12 F*ING PERCENT, THE BEST DAY SINCE 2001!!

We truly lived in unprecedented times.

I’ll end today’s report with some charts and thoughts on market action, but to say today’s report looks different from the one I started yesterday morning would be an understatement.

This week, we’ll review:

• Yesterday’s biggest gainers

• Financials ahead of Friday’s earnings reports

• 2 opportunities in healthcare

• All the stocks on our Hot List

• and more!

---

Wednesday’s top gainers in the S&P 500

Microchip Technology (MCHP): +27.1%

MCHP had problems well before tariffs and I suspect will continue to have problems after slightly less tariffs. Don’t chase rallies in downtrends.

United Airlines (UAL): +26.1%

This stock has traded like a meme coin since the election but I’d have to be more bullish than bearish on it. Despite dropping 55% from its mid-January highs, UAL is now reversing off the top of a three-year base.

Advanced Micro Devices (AMD): +23.8%

Maybe that was a blow-off bottom as AMD traded below its downtrend channel but there’s nothing about this chart that says it’s a buy. It remains in a steep downtrend, below a declining 50-DMA.

Monolithic Power System (MPWR): +23.4%

Be very wary of MPWR if the stock is below $579. Big percentage gain aside, as long as we’re below that level, this looks like a throwback to the breakdown point that is likely to fail.

Delta Air Lines (DAL): +23.4%

Delta is in no-man’s land and doing nothing for you in relative terms. If you want to take a stab at one of these (or just an airline), UAL is the best chart.

---

Financials ahead of earnings (all report Friday)