The Trading Post | 06.05.26

Good morning,

Chipmakers are losing steam, Nasdaq futures are getting dragged lower by AI leaders, the Dow is holding near record highs thanks to defensive rotation, Broadcom’s earnings miss is putting pressure on the AI complex, and SpaceX IPO buzz is keeping risk appetite alive because apparently trillion-dollar space dreams are now a market stabilizer.

Let’s jump in.

Yesterday’s Post-Market Performance

As of 06.04.26 market close.

Market News

• Chipmakers lose steam as AI leaders drag Nasdaq futures; NFP looms large for rate path: U.S. futures are red pre-market as semis weaken after Broadcom’s disappointing result and guidance clipped the wings of the AI trade. Watch AVGO, NVDA, SOXX, SMH, and QQQ for failed bounces into prior support/now resistance. If NFP runs hot and yields push higher, AI/semis may remain the market’s piñata. Reuters

• Dow holds near record highs as defensive rotation offsets tech selloff: While growth names took a breather, the Dow pushed to a record close yesterday as money rotated into mega-cap defensives and healthcare. If NFP creates a flush into prior breakout levels on DIA or SPY, watch for buy-the-dip setups with risk defined below yesterday’s lows. Boring stocks may be useful again. Terrifying, but useful. CNBC

• Broadcom earnings miss sparks profit-taking in AI complex; CrowdStrike and software join the pullback: AVGO’s revenue shortfall and cautious tone sparked de-risking across chips, cybersecurity, and AI-linked software. Aggressive traders can watch AVGO and CRWD for oversold reversal setups on the 5- or 15-minute chart near daily support, but keep timeframes tight. Falling knives are still knives, even if they have AI branding. Reuters

• SpaceX trillion-dollar IPO buzz and AI euphoria keep indexes near highs despite volatility: High-profile IPO chatter is helping keep broader risk appetite intact, with the S&P 500 still near record territory even as volatility picks up. Focus on ES, NQ, and SPX range breaks after the NFP reaction. If implied volatility spikes and price pins after the data, short-dated credit spreads or iron condors may come into play for disciplined traders. Reuters

Earnings We’re Watching

• ABM Industries, Inc. (ABM) - Friday (BMO) 

Trade Ideas

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Daily Moment of Zen

Why It Matters:

This is one of those quotes that sounds simple until the market opens and your “long-term discipline” gets body-slammed by a red candle.

Buffett’s point isn’t that traders should blindly buy every selloff or short every rally. That’s not investing wisdom — that’s just cosplay with a brokerage account. The real lesson is emotional inversion. When everyone is euphoric, discipline matters more than FOMO. When everyone is panicking, opportunity starts showing up dressed like disaster.

For active traders, this means the best setups often appear when the crowd is leaning too hard in one direction. Greed creates overextended charts. Fear creates forced selling. Both can create opportunity — but only if you have a plan, defined risk, and the emotional stability of someone who didn’t just discover leverage yesterday.

The market loves to punish consensus. Your job is not to join the stampede. Your job is to wait until the crowd gets sloppy, then act with precision.

Greed and fear move markets. Process keeps you from becoming the liquidity.