Day Trade Cheat Sheet - July 22, 2026 (EOD)

 ## TODAY'S GRADE: B A generally positive trading day with strong earnings-driven rallies in select tech and industrial names, though some key setups failed to hold, keeping the market cautious ahead of major earnings. ## HOW INDEXES TRADED **SPY:** +0.5% - trending with late-day strength **QQQ:** +0.8% - led by tech earnings and AI-related momentum **IWM:** +0.3% - steady but less pronounced gains, reflecting cautious small-cap sentiment ## BIGGEST MOVERS ### Winners **$SMCI** +12% - surged on blockbuster preliminary Q4 order growth and margin beat, signaling strong AI infrastructure demand **$KMI** +4% - Kinder Morgan beat Q2 EPS and revenue estimates, raised full-year guidance despite lower EPS outlook vs. consensus **$DELL** +5% - lifted by Super Micro’s strong update, benefiting from AI server demand spillover ### Losers **$IBM** -3% - revenue missed and lowered full-year guidance despite margin expansion, raising concerns on AI infrastructure spending sustainability **$PEGA** -19% - Q2 results missed expectations, shares sank sharply on weak outlook and margin pressure **$TSLA** -4% - despite beating delivery estimates, profits plunged and margins fell, weighing on sentiment ahead of earnings ## WHAT WORKED Patterns or setups that worked today: - Earnings gap-and-go setups in AI-related tech names like **$SMCI** and **$DELL** showed strong follow-through on bullish news. - Energy and infrastructure stocks with solid earnings and raised guidance, such as **$KMI**, rallied on fundamental strength amid rising oil prices. - Late-day buying in large cap tech helped indexes close near highs, confirming momentum into earnings season. ## WHAT FAILED Setups that didn't work: - Defensive and software names with mixed earnings, such as **$IBM** and **$PEGA**, failed to hold early gains and reversed sharply, reflecting investor caution on AI spending sustainability. - Tesla’s pre-earnings rally faded as profit concerns and margin compression surfaced, highlighting the risk of overextended expectations. - Some small-cap momentum plays struggled amid broader market caution, showing the limits of risk appetite ahead of key earnings. ## AFTER-HOURS WATCH Earnings or news to monitor tonight: - **$GOOGL** (Alphabet) - Q2 earnings after the bell with strong revenue and cloud growth but concerns over surging AI infrastructure capex that spooked investors earlier. - **$AAL** (American Airlines) - Q2 earnings expected, with market watching for commentary on fuel costs and demand amid geopolitical tensions. - **$TSLA** (Tesla) - Q2 results due, critical for confirming delivery beats versus profit and margin challenges. ## TOMORROW PREVIEW **Early Watch:** **$GOOGL**, **$TSLA**, **$AAL** - all set to report earnings with high volatility potential. **Catalyst:** Big Tech earnings and Q2 airline results, plus initial jobless claims data. **Bias:** Neutral to cautiously bullish, as strong earnings in AI and energy offset profit concerns and geopolitical risks. Traders should focus on earnings reaction plays, especially in AI infrastructure and energy sectors, while managing risk around profit warnings and guidance cuts in tech and industrials.