The Trading Post | 02.05.26

Good morning,

Tech stocks are attempting to stabilize after a two-day AI/software rout, small-caps are quietly outperforming, volatility refuses to fully cool off, Alphabet is digesting higher AI capex, the Fed is pushing back on rate-cut fantasies, and critical minerals are back in focus as the U.S. ramps up supply-chain chess against China.

Stop guessing and start winning with Cracking the Trader's Code—a free workshop from trading veteran Rob Roy that reveals the real reasons most options traders fail (and how to fix them). 

Let’s jump in.

Yesterday’s Post-Market Performance

As of 02.04.26 market close.

Market News

• Tech tries to bounce after a sharp AI/software selloff – Nasdaq futures are modestly green after erasing YTD gains in two sessions, with AMD, Palantir, and other AI leaders at the center of valuation jitters and monetization anxiety. Traders are split between mean-reversion buyers and fade-the-rally sellers.

• Small-caps outperform while volatility stays elevated – Russell 2000 and mid-caps closed higher even as the S&P slipped, with VIX hovering near 18. Rotation is favoring domestically focused names over mega-cap tech while volatility remains high enough to keep options premiums interesting.

• Alphabet slides on higher capex and a YouTube ads miss – GOOGL is under pressure after guiding to heavier AI infrastructure spending. Margins take a short-term hit, but the Street is still leaning bullish on long-term AI and cloud dominance.

• Fed’s Cook says inflation progress has ‘plateaued’ – Tariff-driven goods inflation is complicating the disinflation narrative, keeping the Fed firmly in wait-and-see mode and rate-cut hopes on a short leash.

• Critical minerals back in focus as U.S. counters China – Washington is pushing allies toward a coordinated trade bloc to secure rare earths and battery materials, putting long-term supply-chain winners back on trader radar.

A Message From Wealth Builders HQ

Finally Trade Options with Confidence and Consistency 

If you've been trading options for a while but still feel like you're spinning your wheels, you're not alone. Most traders fail not because they're missing one secret indicator, but because they never learned how to connect the dots between strategy, structure, and execution. 

Rob Roy, founder of Wealth Builders HQ and a 25-year veteran of teaching everyday people how to trade like pros, is hosting a free workshop to change that. 

In this training, you'll discover: 

• The "Pattern of Profitability" – Why 90% of traders chase the wrong trades and how to spot the repeatable setups that actually work 

• The Force Multiplier Method – How to leverage what you already know about options, even if you've struggled in the past 

• The Mentor Effect – Why proper guidance may be the ultimate decider between spinning your wheels and scaling up 

You'll walk away with a clear framework for building consistent trading habits, simple ways to find quality trades without watching charts all day, and the confidence to finally follow your trading plan instead of your emotions. 

No fluff. No hype. Just a clear roadmap for consistent, confident options trading. 

Register for this free workshop at Cracking the Trader's Code and secure your seat today. 

Earnings We’re Watching

• Bristol Myers Squibb (BMY) - Thursday (BMO) 

• CIGNA Corp. (CI) - Thursday (BMO) 

• ConocoPhillips (COP) - Thursday (BMO) 

• Cummins, Inc. (CMI) - Thursday (BMO) 

• Estee Lauder Companies, Inc. (EL) - Thursday (BMO) 

• Hershey Company (HSY) - Thursday (BMO) 

• KKR & Co. L.P. (KKR) - Thursday (BMO) 

• Ralph Lauren Corporation (RL) - Thursday (BMO) 

• Shell plc (SHEL) - Thursday (BMO) 

• SiriusXM Holdings Inc. (SIRI) - Thursday (BMO) 

• Snap-On, Inc. (SNA) - Thursday (BMO) 

• Thomson Reuters Corporation (TRI) - Thursday (BMO) 

• Affirm Holdings, Inc. (AFRM) - Thursday (AMC) 

• Amazon.com, Inc. (AMZN) - Thursday (AMC) 

• Atlassian Corporation Plc (TEAM) - Thursday (AMC) 

• Microchip Technology Inc. (MCHP) - Thursday (AMC) 

• News Corp (NWS) - Thursday (AMC) 

• Reinsurance Group of America, Incorporated (RGA) - Thursday (AMC) 

• Roblox Corporation (RBLX) - Thursday (AMC) 

• Warner Music Group Corp (WMG) - Thursday (AMC) 

Daily Moment of Zen

Why It Matters:

The key phrase isn’t stupid…it’s “every once in a while.” Because the market isn’t irrational all the time… just often enough to remind traders who’s actually in charge.

These are the moments when good news sells off, bad news rips, obvious breakouts fail instantly, and perfectly logical macro narratives get steamrolled by positioning, flows, or a single headline no one saw coming. It’s not randomness…it’s crowding, leverage, and human behavior colliding at scale.

For traders, this is the line between professionals and tourists. Pros expect the market to do something dumb occasionally, so they size correctly, define risk, and survive long enough to capitalize when sanity returns. Amateurs assume the market should make sense—and that’s usually right before it punches them in the face.

When the market takes your breath away, that’s not a signal to get emotional. It’s a reminder to step back, tighten risk, and wait for the next high-probability setup. Stupid moves don’t last forever—but overconfident traders disappear fast.