WEEKEND UPDATE 5-31-26
Getting ready for MONDAY!!
MARKET UPDATE
It was a short week on Wall Street, but that didn’t stop the market from making some wild moves. Several software and AI infrastructure stocks had double-digit gains after reporting here at the tail end of earnings season. A US-Iran peace deal is reportedly waiting for approval from President Trump, spurring another round of market optimism. As of now, there are reports that Trump has sent the deal proposal back to Iran, asking for several amendments including stronger language on nuclear provisions.
Major chip names head to Taipei’s Computex AI conference to unveil their latest products. Nvidia CEO Jensen Huang headlines the event with his keynote address after teasing their own PC chip alongside Microsoft’s Windows and CPU manufacturer ARM. Other chip execs will be taking the stage through Wednesday, including those from Intel, Qualcomm, and Marvell. Semiconductors now make up a record weight of major index funds, so let’s take a look at where this event is hitting on the charts.
INDEXES
S&P 500
Double digit moves in large-cap tech stocks pushed the S&P up to 7,580 (+1.4%), now for NINE consecutive winning weeks. This has only happened three times since 1990 and if next week ends positive, it will be the longest win streak since 1985. Weekly RSI is now at the highest reading in nearly two years. Oversized moves of single stocks continue to elevate the index so keep an eye on recent top performers in chips and memory for a bellwether should bullish trends begin to retrace.
Nasdaq 100
The Nasdaq had its first close over a major 30,000 level this week, settling at 30,333 (+2.9%). Price trends are currently converging in a typically bearish Rising Wedge pattern while trading in the bottom of the Machine Learning Moving Average (200) band that flipped bullish April 8th, indicating bullish momentum may be slowing. While momentum has been overwhelmingly bullish, long traders will want to keep a close eye on this pattern’s lower trendline, which would mark a (likely overdue) pullback if it breaks.
MAJOR STOCK MOVERS
DELL
Dell had its best single-day performance EVER after it reported beating earnings expectations Thursday, gapping up a whopping 33%. It has quickly become one of the most volatile stocks in the S&P 500, having not made a new all-time high in years until late March, to more than doubling in two months. Not to say it hasn’t been earned, with the company announcing its AI order backlog reached a whopping $51.3B.
From a technical standpoint, this move is out of this world, blowing up the ATR (Average True Range) in a statistical outlier of a move as it became one of the hottest stocks on Wall Street and in Washington (Trump bought up to $5M of the stock in early February.)
WTI (Crude Oil)
Crude oil prices in the US saw a welcome drop this week with US-Iran developments. The consolidation oil has been trading in broke to the downside and market structure has even printed a bearish Change of Character on the daily chart. It’s now approaching support below at April lows near $80/barrel. We’ll need to see that clear, likely alongside a reopening of the Strait of Hormuz, before any hopes of filling the gap since the US began operations in Iran.
BTC
Bitcoin continues to sell as tech stocks make all-time highs, further breaking a long-standing correlation. It is experiencing some relief a prior resistance turned support, which may prove temporary if this short-term downtrend continues.
The largest Bitcoin treasury company, Strategy (ticker: MSTR) is known for weekly BTC purchases, but notably did not purchase any in the week prior as they focused on debt repurchases.
All other sectors this week failed to outshine Tech as the chips and shovels of AI continued monster rallies, now joined by software names with stellar earnings reports. Crude oil in US markets fell nearly -10% over the four trading days as markets digested what seems to be the final phases of an initial US-Iran deal.
WHERE ARE WE GOING NEXT WEEK
TSLA
With Elon Musk’s gargantuan SpaceX IPO expected June 12th, the market is buzzing with chatter of a potential SpaceX x Tesla merger. Analysts are citing Tesla board members migrating to roles in SpaceX, shared collaborations between teams, and dual roles of CEO (Elon) and the VP of materials engineering. With Elon’s ambitions to build orbital data centers, the solar panel capacity of Tesla helps justify a synergistic combination as the power source.
Analyst price targets for Tesla range from $360 to $548, though if Elon gives a nod to a potential merger, expect updates with a premium current TSLA shareholders would accept (requiring a vote).
SNOW
The market sentiment going into this year was that AI would ‘kill’ software stocks. After Q1 reports from companies like Snowflake, it appears the opposite is true; AI actually brought more data and services to software businesses enabled by AI token sales. Snowflake achieved record revenue in Q1 (resulting in a +48% week for the stock) and even announced a $6B deal with Amazon’s AWS platform.
The wave of durability in software earnings reports may be a new sector theme this quarter, renewing bullish momentum in Microsoft and other beaten down names.
KEY MARKET INDICATORS TO WATCH
Insider News - With Q1 earnings season now squarely behind us, expect transaction news to be hitting the tape more frequently.
AESI 0.00%↑
The over $1M dollar buys from Congress pouring into $AESI.
Atlas Energy price target raised to $19 from $13 at Piper Sandler
ABNB 0.00%↑
Airbnb’s CEO also took to the market to cash out this week, declaring his first stock sale of 2026. With Q1 earnings season now squarely behind us, expect transaction news to be hitting the tape more frequently.
Significant Congressional Activity
Other Insiders of interest
SCHW - CEO Buy - $1,850,000
NCLH - CEO Buy - $2,500,000
ANET - 10% Owner Sell - $35,000,000
ABNB - CEO/Chairman Sell - $68,300,000
SNOW - Director Sell - $93,000,000
WMT - Walton Family Scheduled Sell - $254,000,000
EARNINGS FORECAST
Next Week
https://elite.finviz.com/calendar/economic?dateFrom=2026-06-01
The most anticipated earnings releases for the week of June 1, 2026, are Broadcom #AVGO, CrowdStrike #CRWD, Credo Technology #CRDO, Palo Alto Networks #PANW, Hewlett Packard Enterprise #HPE, Ciena #CIEN, Rubrik #RBRK, Planet Labs #PL, C3.ai #AI, and Dollar General #DG.
MY IDEAS AND TRADING NARRATIVE
Continuation Plays
ASTC 0.00%↑
GFAI 0.00%↑
MASK 0.00%↑
NAMM 0.00%↑
VCIG 0.00%↑
** FRIDAY SHORT SQUEEZES - Easiest Pattern to Trade / Many set-up for day 2 / day 3 continuations
** NOW WITH PDT going away....we will see some MASSIVE (highly uninformed people) doing some panic buying and selling
BE READY!!!
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Watch for the Panic Points...
$ASTC - Squeezed massively last week (Breaks over $50.00)
$GFAI - $1.00 Dollar Cross /VWAP play
$MASK - Break over $4.20
$NAMM - Break over $2.50
$VCIG - Squeezer from Friday (Breaks over $9.00)
SWINGS / OPTIONS
POWI 0.00%↑
Speculative Idea...
This stock has a “BULL Probability” at 17.5%, but low volume.
Strong Support at $77.00
Sitting in the Fair Value Gap (FVG) now---but up trending at close.
Waiting to see what Futures Market does tonight
Needs to break the previous HOD and hold it. ($88.00)
Looking at Swing Play with Option
260717 $100.00 CALL
Cost: $5.50-5.80
Entry $95.00
Exit $125.00
Stop $85.00
$DELL
Trending, but I am thinking it is a dangerous “oversold” status right now.
Expecting the MMs to do some major manipulation on Monday/Tuesday / Wednesday.
Long term target remains as a “strong buy”
Waiting for the expected PULLBACK to $350.00 (or lower to $340.00) before I am willing to re-enter into a LONG OPTION
The shorter term play
260717 $400.00 CALL
Cost: TBD (current $55.30)
Entry $350.00
Exit $425.00
Stop $340.00
The longer term play
260818 $470.00 CALL
Cost: TBD (current $54.65)
Entry $440.00
Exit $550.00
Stop $420.00
I have 30 common shares on this now...Watching for break above $19.00 for a possible Options Play.
INSPIRATIONAL MESSAGE
