Market Recap
Indices were quiet this week, with $SPY and $QQQ consolidating inside a range for most of the week, with a breakout attempt on Thursday after the PPI print, though retracing much of it back down on Friday.
Software got a lift on Thursday after Reuters broke that Silver Lake has been in talks for months to take Workday private, and $WDAY closed up nearly 18% at $206.45 on a deal that would be one of the largest software buyouts ever. The stock halted three times on the way up, running as much as 25% intraday. Private equity paying up for a beaten down enterprise name is a vote against the AI disruption story that has been hanging over the group all year, and the read through carried the wider software complex with it.
Semis still trade poorly, after trying to break higher from the multiday consolidating range but overall not moving for the past 3 days. AMAT dropped on earnings as well as AVGO getting hit on Friday.
SanDisk’s Investor Day provided another catalyst for the memory trade on Thursday, with management laying out an upbeat long-term financial model and stronger revenue growth projections. The outlook reinforced expectations for a sustained memory upcycle and improving industry fundamentals, helping lift sentiment across the broader memory complex and driving strength across the group.
Energy quietly led the whole thing. $XLE and $XOP were bid from Monday’s open and never gave it back. The sector was up over 6% week to date on Friday’s close.
Watchlist
Quiet earnings week, with most of the focus toward individual catalysts, relative strength, and names that are beginning to separate themselves from their respective groups.
$NBIS was one of the standout winners from earnings last week, closing up 34% after reporting and finishing the week close to all-time highs. The ideal entry came on earnings day itself, so at current levels the focus is on whether it can consolidate the move and offer another setup rather than chasing the initial expansion.
$CRWV also saw a large post-earnings rally, but the optimism was short-lived. The stock has been sold every day since, leaving behind increasingly messy price action. For now, it needs time to reset and rebuild structure before becoming more interesting again.
$AMD was a notable relative-strength name on Friday following reports that Google could work with AMD on a future generation of its TPU accelerators, while expectations for Broadcom’s TPU volumes were reportedly being revised lower. The chatter circulated heavily during Friday’s session and coincided with strength in AMD while $AVGO sold off.
More broadly, AMD has held up relatively well through the recent semiconductor pullback. Despite remaining within a wide and loose consolidation range, it avoided the deeper retracements seen across several other semiconductor names. That relative strength, combined with the potential Google catalyst, puts it high on the watchlist if the group can regain momentum.
$AAOI finished Friday strongly and remains one of the more interesting names within the optical computing group. The strong close keeps it on watch for continuation, particularly if momentum returns to the broader AI infrastructure and optical names.
$SPCX continues to trend higher following its lockup expiration. The stock has so far absorbed the additional supply without breaking its broader uptrend, keeping the existing trend intact and making it one to continue monitoring for pullbacks and continuation setups.
Closing Thoughts
The market remains fairly quiet as we move through the peak summer period. Volatility and daily ranges have continued to narrow, leaving many stocks chopping around without much sustained direction.
In this type of environment, the focus should remain on individual catalysts and names showing abnormal volume or reacting to meaningful news. These are more likely to provide clean opportunities while the broader market remains relatively muted.
Nothing particularly stands out heading into the week, but conditions can shift quickly. Stay selective, remain patient when there is no clear edge, and be ready to get aggressive when the right opportunities appear.
If you enjoyed this read, please consider leaving a like on the post, and let me know in the comments if I missed anything or what you’re watching for this week!
P.S.
If you haven’t checked out the Valhalla Portal yet, it’s where I track catalysts, setups, and market activity in real time - a live feed of everything that moves the tape, built for the community. I’ll be doing a dedicated post soon walking through all the features in detail, so stay tuned for that. In the meantime, you can check it out here: