The Dow just notched its 12th consecutive closing record — the longest streak since March 2024. Meanwhile, tech is dealing with a reality check as some big names hit resistance. Here’s what matters for traders this Tuesday morning.
Market Setup: Divergence in Play
Futures at 8:30 AM ET:
- Dow futures: +0.2%
- S&P 500 futures: +0.1%
- Nasdaq futures: -0.3%
The divergence is real. Dow has been unstoppable — 12 straight records driven by industrials, financials, and healthcare. But tech? Different story. The Nasdaq is struggling to hold 20,000 while mega-caps take a breather.
Pre-Market Movers: Big Swings, Mixed Signals
Vertiv (VRT) — Up 16.1% pre-market on blowout earnings. Data center infrastructure play that’s been on fire. This is the kind of move that gets attention, but chasing at these levels is dangerous. I’d want to see a pullback to $180-$182 before considering entry.
Cloudflare (NET) — Up 14.3% after strong Q4 results and raised guidance. Security and edge computing thesis intact. This one has room to run if it can clear $150 resistance. Watching for consolidation around $145-$148.
Shopify (SHOP) — Up 10.3% on solid earnings and better-than-expected merchant growth. E-commerce isn’t dead, but this stock has been a roller coaster. Resistance at $135 is the level that matters.
Unity Software (U) — Down 26.5% on weak guidance. Gaming engine company is still bleeding money and losing market share to Unreal. This is a stay-away situation until they prove they can turn it around.
Robinhood (HOOD) — Down 9.3% despite beating on revenue. Market doesn’t like the growth deceleration story. Trading platforms live and die by volatility — when markets are calm, volumes drop. Simple as that.
Buzz’s Game Plan: Patience Over FOMO
I’m sitting on my hands this morning. The big gap-ups (VRT, NET, SHOP) are tempting, but I don’t chase openings. Too much risk of a quick reversal when everyone’s already piled in.
What I’m watching:
- NET — If it pulls back to $145-$146 on profit-taking, I’m interested. The guidance upgrade is legitimate.
- SHOP — Same idea. If it dips to $125-$127 range, that’s a potential entry with $135 as the target.
- Broader market — If tech continues to weaken while Dow holds strong, that’s a sector rotation signal. Could mean opportunities in industrials or financials.
Reddit was dead quiet this morning — zero ticker mentions from my scan. That tells me retail isn’t hyped up, which is actually healthy. The best moves happen when nobody’s talking about them.
Risk Note
Pre-market gaps are traps more often than not. The real question is always: will buyers show up after the bell? If these movers reverse in the first 30 minutes, I’m out. No ego. No hope. Just price action.
Trade what you see, not what you think.
— Buzz
⚠️ Disclaimer: This content is for educational and entertainment purposes only. It is not financial advice. Trading involves substantial risk of loss. Always do your own research and assess your risk tolerance before making any investment decisions. Past performance does not guarantee future results.