The Trading Post | 06.02.26

Good morning,

Wall Street futures are cooling after another record run, HPE is ripping on AI infrastructure demand, Alphabet is backing more enterprise AI build-out, Nvidia and Microsoft are still carrying the “please don’t call it a bubble” trade, oil is climbing on Gulf tension, and traders are now left asking whether this rally needs a breather or just another espresso.

Let’s jump in.

Yesterday’s Post-Market Performance

As of 06.01.26 market close.

Market News

• Futures cool after record highs: S&P and Nasdaq futures are slipping slightly after another record-setting push, with traders watching whether the 7,600 area becomes a launchpad or a very expensive ceiling. For active traders, watch the opening range in ES/NQ — a weak open that loses VWAP could invite fade-the-open scalps, while a clean reclaim of prior highs keeps dip-buyers in control. Reuters

• HPE rockets on AI infrastructure demand: Hewlett Packard Enterprise is jumping after strong results and AI-related order strength, giving traders another “data centers will save us all” setup. Watch for opening-drive momentum, then look for VWAP/5-minute EMA holds on any pullback instead of hero-buying the first candle like it owes you money. Reuters

• Alphabet adds fuel to enterprise AI build-out: Alphabet’s continued AI investment keeps the infrastructure trade alive, especially across cloud, networking, and server-adjacent names. Sympathy movers clearing recent bases or 20-day highs on volume are the cleaner targets; random laggards popping just because someone whispered “AI” in the hallway are still laggards. Reuters

• AI chip leaders stay in charge: Nvidia, Microsoft, and the broader AI hardware complex remain near the center of market strength, with traders still leaning into trend-line and moving-average bounces. Watch NVDA, MSFT, and key semiconductor names for pullbacks that hold above prior breakout zones or the 10/21-day averages; failed pre-market highs can flip fast into put-spread scalp territory. CNBC

• Oil, yields, and geopolitics complicate the party: Oil is moving higher on Gulf tensions and Strait of Hormuz worries while Treasury yields remain elevated, creating a possible rotation setup away from high-multiple tech and into energy/financials. If crude holds bid and tech starts losing VWAP, watch XLE-style strength versus QQQ weakness — the market’s favorite way of reminding everyone that gravity still has a login. Reuters

• Record rally remains extended, not broken: The S&P and Nasdaq are coming off another strong close, and until the market shows a real failed breakout, the trend still favors buying controlled pullbacks over trying to top-tick the move. That said, deteriorating breadth with fresh index highs would be your cue to tighten risk, because “everything is fine” is usually said right before someone checks the advance/decline line. Reuters

Earnings We’re Watching

• Dollar General Corporation (DG) - Tuesday (BMO) 

• Victoria’s Secret & Co. (VSCO) - Tuesday (BMO) 

• Palo Alto Networks, Inc. (PANW) - Tuesday (AMC) 

• ULTA Beauty (ULTA) - Tuesday (AMC) 

Daily Moment of Zen

Why It Matters:

That’s the kind of quote that should be printed on every trader’s monitor, preferably right next to the button they keep clicking out of boredom.

The beautiful, annoying truth is that trading is not a business of being right all the time. It’s a business of being right enough, managing the damage when you’re wrong, and not turning one bad trade into a full-blown Greek tragedy with margin.

Six out of ten sounds underwhelming until you realize most traders blow themselves up trying to be right ten out of ten. They widen stops, average down, ignore the chart, negotiate with candles, and suddenly a small paper cut becomes a financial shark attack.

Good traders don’t need perfection. They need discipline, position sizing, clean setups, and the emotional maturity to say, “That one didn’t work,” without immediately revenge-trading like the market insulted their family.

Being right 60% of the time is plenty — assuming the other 40% doesn’t come with a side quest called “destroy the account.”