Day Trade Cheat Sheet - July 05, 2026 (Morning)

 ## MARKET MOOD: MIXED Overnight sentiment is cautious amid geopolitical tensions in the Red Sea and mixed earnings previews. Investors are digesting strong AI infrastructure spending data while weighing risks from global conflicts and energy market uncertainties. ## TOP 5 HEADLINES 1. Cargo vessel in Red Sea reports coming under attack → Impact: Heightened geopolitical risk could pressure energy and shipping stocks. 2. Data center leases top $850 billion as Meta, Microsoft, Oracle lead record AI infrastructure spending → Impact: Positive catalyst for AI-related tech and semiconductor stocks. 3. Micron begins $9.3 billion Japan plant expansion to boost AI chip production → Impact: Bullish for **$MU** as it strengthens AI supply chain positioning. 4. Bitcoin mining stocks IREN, RIOT, and MARA slide amid AI pivot headwinds → Impact: Bearish pressure on crypto miners facing competitive challenges. 5. Saudi Arabia stocks lower at close; Tadawul All Share down 0.26% → Impact: Regional energy market volatility may weigh on global energy equities. ## PRE-MARKET MOVERS ### Longs (Bullish Catalysts) **$MU** - Launch of $9.3B Japan expansion to increase AI chip output **$META** - Leading AI infrastructure spending, strong retail buzz **$UNH** - Medicare advantage payment hike boosts healthcare insurers **$CVS** - Analyst upgrades following Medicare payment increases **$PLTR** - AI growth catalyst from data center demand ### Shorts (Bearish Catalysts) **$MARA** - Bitcoin mining pivot faces fresh headwinds, shares sliding **$RIOT** - Similar crypto mining challenges amid AI competition **$SPCX** - Retail interest high but geopolitical risks may pressure **$SAUDI** (Tadawul) - Regional market down on geopolitical concerns **$AMZN** - Data not available but cautious due to broader tech volatility ## INDEX BIAS **SPY:** NEUTRAL - Mixed signals from geopolitical risks and strong AI-driven tech spending balance out. **QQQ:** BULLISH - Heavy AI and semiconductor exposure with strong infrastructure spending supports tech momentum. **IWM:** BEARISH - Small caps vulnerable to risk-off sentiment amid global uncertainties. ## SECTORS **Favor:** Technology - AI infrastructure spending and semiconductor expansions provide strong tailwinds. **Avoid:** Energy - Geopolitical tensions and Saudi market weakness create near-term headwinds. ## CATALYST WATCH - 08:30 AM ET: U.S. Initial Jobless Claims (Market impact on risk sentiment) - 10:00 AM ET: ISM Manufacturing PMI (Key economic indicator for industrials and cyclical sectors) - Earnings next week: **$MU**, **$PEP**, **$DAL** - Watch for AI-related guidance and consumer demand signals. ## BOTTOM LINE **Today's Play:** Selective The dominant theme is a tug-of-war between strong AI-driven tech investment and geopolitical/energy market risks. Focus on high-quality tech names like **$MU** and **$META** benefiting from record AI infrastructure spending and semiconductor capacity expansion. Avoid energy and crypto miners facing headwinds from geopolitical instability and competitive pressures. Stay selective and nimble as markets digest these conflicting forces.