The Shakedown 6-1-25

by Shake P
We came off a choppy and difficult week as the easy part of the rally is certainly behind us. Stock selection is of the utmost importance right now. NVDA came out with another big earnings report that initially garnered lots of excitement with a gap up that was ultimately faded. After the "TACO Trade," became a media sensation (Trump Always Chickens Out) regarding Trump's tariff policy, he has predictably began ramping up feuds with China and the EU once again this week. Are tariff selloffs a thing of the past or will we see some fresh volatility in the coming weeks if deals aren't put forth?
 
Stocks remain in an uptrend and the 20ema on the SPY/QQQ daily charts remain our line in the sand for this momentum move off lows. We are still above that area and moving fine from a technical standpoint. I will have a close eye on semi's this week as a sign of market health. Friday was a wild day that saw a fast intraday selloff that looked like the trend was changing, only to quickly V-bottom off lows and give a strong close to end the week. Friday's lows become an import pivot support after that V-bottom we saw.
 
Heading into this week, I am reminded of the saying, "Strong convictions loosely held." We have been in a ferocious uptrend since we bottomed April 7th. Momentum trading has been working really well. Last week was the first week full of fakeout moves and false breakouts -- but we still closed very strong as a whole. While we remain in this uptrend, I want to continue buying the strongest stocks coming out of consolidations. If we see this trend bend downward this week, I will be pretty hands off.
 
Let's get into the report.
 
 
 

 
Economic Data This Week
 
Upcoming Earnings
 
 

 
 
 
 

 
 

 

 

 
 

 
 
 

 
 

 

 

 
Nuclear Theme
On Friday May 23rd, Trump signed 4 executive orders aimed at revitalizing the US nuclear energy sector, with the goal of QUADRUPLING nuclear power capacity by 2050. These orders streamline the permit process, boost nuclear fuel supplies & authorize reactor construction on federal lands, particularly for military and AI data center use. This is a HUGE bill that had the sector breakout on its highest volume ever. The stocks are too stretched to look for immediate entries. But with consolidation, these should be a focus to get into with calculated entries in the coming weeks.
 
 
 
 
FROG Long
 
 
 
 
Some names correct by moving lower in price, the best and strongest names do so by correcting sideways as FROG has shown the past 2 weeks. With the 10ema catching up on the daily, this name is looking more ready than ever for the next leg higher. Looking at the hourly chart, you can see how tightly wound this name is heading into the week. The tight consolidation with sellers drying up indicates a big move could be coming. Looking to have a position through 43.25 and potentially add through the macro trigger at 44.
 
Trigger: $43.25/44
Stop: $41.89
Target: $53+

 

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