Market Briefing
As we head into the back half of May, traders are juggling a mix of macro catalysts and sector-specific stories. CPI data gave some signs of cooling, but the market remains uncertain about the Fed’s next steps. Tech is showing resilience, energy is holding ground, and retail earnings are delivering mixed signals. This weekend and into Monday, traders should focus on setups developing from macro data, rotation trends, and institutional flow—not just reacting to the headlines.
Sector Spotlight: Semiconductors
Chip stocks have been heating up again, driven by renewed AI enthusiasm and capital inflows ahead of Computex 2025 (June 2–5). Names like NVIDIA (NVDA) and AMD are showing strong relative strength as demand for next-gen GPUs builds. Watch SMH, the semiconductor ETF, for clues on broader momentum.
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NVDA recently broke out to fresh highs; earnings on deck May 22 could be a catalyst.
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ASML and TSMC have quietly gained steam as supply chain optimism resurfaces.
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Traders may want to track volume trends and bullish divergences across smaller-cap plays like ON and MRVL.
3 Charts to Watch
1. NVIDIA (NVDA)
Breakout Level: $920
Watch For: Post-CPI continuation, strong volume confirms setup
Why It Matters: AI tailwinds + pre-earnings positioning could accelerate gains
2. Alibaba (BABA)
Support Level: $82
Watch For: Bounce after earnings; oversold conditions improving
Why It Matters: Rebound in Chinese consumer sentiment may trigger recovery
3. SPY (S&P 500 ETF)
Key Zone: 523–526
Watch For: Break above this range signals risk-on move into next week
Why It Matters: Could mark a shift in sentiment post-CPI and retail earnings
Trader’s Weekend Checklist
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Set alerts: NVDA $920, BABA $82, SPY $526
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Review earnings: DIS, BABA, WMT
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Watch SMH for sector rotation clues
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Keep tabs on 10Y yield — still hovering near 4.6%
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Scan for Monday gaps in crypto-related equities (COIN, MARA, RIOT)
Hidden Gem: Montauk Renewables (MNTK)
Overview: Montauk Renewables is a lesser-known renewable energy company specializing in converting methane from landfills and agricultural waste into renewable natural gas (RNG). As the push for sustainable energy intensifies, MNTK could become a strategic player in the clean fuel ecosystem.
Why It’s Interesting:
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Undervalued Niche: RNG is gaining traction as a bridge between fossil fuels and full electrification.
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Expansion Signals: Recent growth in production facilities and partnerships suggest upside.
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Small-Cap Momentum: With relatively low coverage, MNTK could benefit from renewed ESG flows.
Considerations:
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Thin liquidity and wider bid/ask spreads can create choppy price action.
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Sensitive to regulatory shifts in carbon credit markets and tax incentives.
Watch for any breakout above $9.00 with volume — confirmation could offer strong risk-reward.
Current Market Headlines to Know
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Fed Uncertainty Persists – Comments remain non-committal on rate cuts; inflation still a concern
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Crypto Strength Continues – Bitcoin holding above $68K; Ethereum seeing bullish option activity
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Retail Mixed Bag – Walmart beats on essentials, but discretionary names show softness
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Tech Rotation Building – Traders favor large-cap growth as yields stabilize
Disclaimer:
This report is for informational and educational purposes only and does not constitute financial, investment, or trading advice. All investing involves risk, and past performance is not indicative of future results. Always do your own due diligence and consult with a licensed financial advisor before making any investment decisions.