🚨 I’ll be live at 10 a.m. ET with Graham Lindman🚨
Chris Pulver is joining us and we’ll cover the big market comeback story, a 10th straight close higher for the Nasdaq and nine of 10 for the S&P 500 — so is Iran old news now? [tap to join us for Opening Playbook]
The market’s ripping again.
And I know what a lot of traders are thinking: This has gone too far, too fast — time to short it.
That instinct shows up every time we get a sharp V-shaped recovery. It feels stretched, it feels overextended, and the natural reaction is to fade it.
But that’s usually the wrong move.
Because moves like this tend to signal continuation, not exhaustion. When momentum builds this quickly, it often carries further than most traders expect. Strength like this doesn’t just disappear — it feeds on itself.
And more importantly, institutions don’t fight that kind of momentum. When the tape starts moving with force, they typically position with it, not against it.
That’s why I’m leaning cautiously bullish here. Not aggressively long, but not looking for shorts either. The weight of the evidence still points higher.
Where Strength Is Quietly Building
One of the more important developments has been under the surface.
Technology (XLK) has been showing signs of accumulation for months. Nothing dramatic — just steady, quiet strength while the broader market was still uncertain.
Now that momentum is picking up, that early positioning is starting to matter.
This is usually how institutional behavior plays out. They accumulate when things are quiet, then press when the market confirms the move. What looks obvious now was building long before it showed up in price.
If this rally continues, XLK has a strong case to be one of the primary drivers.
How to Approach This Market
This isn’t a market where you need to chase, but it’s also not one to blindly fade.
You can lean bullish while still managing risk. Defined-risk setups, balanced positioning, and staying selective all make sense here.
It’s also a market that can move faster than expected. Trades that normally take days can play out in hours when volatility expands. That means being willing to adjust — taking profits sooner, tightening exposure, and staying flexible as conditions change.
And keep an eye on leadership. XLK is one of the clearest signals right now, but it won’t be the only one. Where strength clusters tends to tell you where the market wants to go next.
V-shaped recoveries aren’t something to automatically fade. More often than not, they’re signals that momentum is building and continuation is more likely than reversal.
You don’t have to chase it, but stepping in front of it just because it “feels” extended is how traders get run over.
Now don’t forget to join us at 10 a.m. ET weekdays for Opening Playbook, and at 3:30 p.m. ET Closing Playbook!
Nate Tucci
Tucci Trades
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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