BREAKING: WSJ Apple-Intel Chip Deal Sends INTC Vertical Mid-Tape | Stock Market Live

Key Concepts

• Market Sentiment: Bullish, characterized by a "grind higher" in major indices (NASDAQ, S&P 500) and a focus on AI-driven growth.
• Technical Indicators: Volume Weighted Average Price (VWAP), 10/20 Exponential Moving Averages (EMA), and "flat top" breakouts.
• Options Strategy: Using Open Interest (OI) to identify "call/put walls" and supply/resistance zones.
• Risk Management: The "1% Rule" (limiting loss per trade to 1% of account capital) and the importance of holding for risk-to-reward ratios rather than "shotgunning" out of positions.
• Sector Focus: Semiconductors (NVDA, AMD, MU, TSM, INTC), AI Infrastructure (CoreWeave, Rocket Lab), and Fintech (Block, Coinbase).

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1. Market Overview & Trading Performance

The session is defined by a strong rally in the NASDAQ and S&P 500. The hosts emphasize that while the market feels "ridiculous" due to the relentless upward trend, the strategy remains to "go with the flow" and avoid fighting the trend.

• Key Trades: The hosts discuss specific trades in RXT, MASK, YMAT, and AEHL. They emphasize that they share both winners and losers, noting that trading is about managing probabilities (50-55% win rate) rather than perfection.
• Strategy: The hosts advocate for "standing on business"—buying quality names and holding them long-term, while using intraday volatility to scalp smaller positions.

2. Technical Analysis & Methodologies

• Identifying Short Covering vs. True Buying: The hosts suggest looking at the "tape" (Time & Sales). Continuous flushes at or above the ask indicate strong buying, whereas a slow grind with deeper pullbacks may suggest short covering.
• Options Open Interest: Joey explains that high open interest at a specific strike price acts as a "supply zone." If the underlying asset hits this zone and the supply isn't absorbed, a rejection is likely.
• Risk Management Lesson: Neil provides a detailed lesson on risk-to-reward. He argues that traders often exit winning trades too early. To achieve long-term profitability, one must hold the bulk of a position to capture the full move, ensuring that when the trade works, the reward significantly outweighs the risk.

3. Notable Market News & Corporate Developments

• Intel (INTC) & Apple: A major catalyst occurred when the Wall Street Journal reported a preliminary agreement for Intel to manufacture chips for Apple devices. This caused a massive spike in INTC, pushing it to all-time highs.
• CoreWeave (Earnings): The company reported explosive revenue growth (420% YoY) but faced a sell-off due to high capital expenditures (capex) and deteriorating operating margins. The market is concerned about the "debt-intensive" nature of AI data center buildouts.
• Cloudflare (NET): Shares dropped following a 20% workforce reduction. While management framed this as an "AI-first" efficiency move, investors interpreted it as a sign of growth pressure and longer sales cycles for their "Zero Trust" products.
• Rocket Lab (RKLB): A standout performer, up nearly 30%. The company is transitioning from a launch provider to a "space systems" company, with 68% of revenue now coming from satellite components and high-margin space systems.

4. Sector-Specific Insights

• Semiconductors: The "chip trade" remains the primary driver of market gains. Names like Micron (MU) and SanDisk (SNDK) are highlighted for their massive year-to-date gains.
• Fintech: Block (SQ) is performing well due to growth in Cash App and Bitcoin-related gross profit. Coinbase (COIN) is struggling with declining retail trading volumes but is finding a "structural hedge" in interest income from USDC stablecoin balances.
• Energy/Geopolitical: The hosts monitor USO and Middle East headlines, noting that geopolitical tensions often create noise that traders can exploit for short-term volatility.

5. Synthesis & Conclusion

The overarching takeaway is that the current market is designed to reward long-term holders of high-quality tech companies, despite the "noise" of daily geopolitical or economic headlines. The hosts conclude that while intraday trading requires precision, discipline, and strict adherence to risk management (the 1% rule), the broader market environment remains heavily skewed toward AI-related growth. Traders are advised to focus on relative strength and avoid the temptation to short parabolic moves in strong sectors like semiconductors.