THE MORNING MOMENTUM Tuesday, July 7, 2026
🌅 PRE-MARKET SNAPSHOT (as of ~8:25am ET)
Money is rotating out of chips and into value today — the mirror image of Monday's bounce.
Index | Change |
|---|---|
SPY | −0.2% |
QQQ | −1.0% |
DIA | +0.3% |
IWM | +0.4% |
📰 WHAT YOU NEED TO KNOW
Chips are giving back all of Monday's bounce, and then some. Samsung Electronics reported a 19x jump in quarterly profit overnight, but soft guidance spooked investors — Samsung fell 8.8% in Seoul, and the selloff spread straight into US premarket: Micron −5.1%, Western Digital −6.8%, Applied Materials −5.8%, KLA −5.3%, Intel −3.5%, Qualcomm −2.9%. Whatever bounced Monday is unwinding hard today.
Nvidia is down ~1.7% on chatter about a delayed "Kyber" AI rack system — Nvidia has denied it, and Mizuho called the rumor "clickbait," but it's still weighing on sentiment this morning.
SpaceX (SPCX) officially joins the Nasdaq-100 today — trading close to flat premarket ahead of index-fund buying at the open.
The real story of the morning is M&A, not momentum: Vertex Pharmaceuticals is acquiring Crinetics Pharmaceuticals for $85/share in cash (~$10B) — CRNX is up ~99% premarket, essentially locked at the deal price. This is an arbitrage situation, not a momentum trade.
Geopolitical: a tanker was reportedly struck near the Strait of Hormuz, lifting Brent and WTI modestly on renewed Iran-related tension.
🎯 MOMENTUM PLAYS TO WATCH — Confirmed by Options Flow
AMD — Down ~3.8% on roughly 2x normal options volume. Real conviction on the downside, tracking the broader chip selloff.
TSLA — Down modestly (~0.5%) but on 2.8x normal options volume — smaller price move, notable positioning worth watching for follow-through.
WULF — Down ~1.3% on ~2x normal options volume, giving back part of Monday's rally on the Anthropic Kentucky data-center deal.
Stretched, not a chase: DuPont (RSI 91), Qualys (RSI 89), and DaVita (RSI 85) remain technically overbought heading into today.
📅 TODAY'S CALENDAR
SpaceX joins the Nasdaq-100 at the open. Light on scheduled US economic data otherwise — watch Samsung-driven chip weakness and any further Strait of Hormuz headlines for direction.
⚡ TRADER'S NOTE
Today is essentially Monday in reverse: the chip bounce is unwinding hard on real news (Samsung's guidance, not just profit-taking), while the clearest confirmed signal is downside conviction in AMD. The Crinetics deal is a real, priced-in M&A event — not something to chase. Worth watching whether the chip selloff stabilizes or extends into the close.
⚠️ DISCLAIMER
This newsletter is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Always do your own research and consult a licensed financial advisor before making investment decisions.