Day Trade Cheat Sheet - July 23, 2026 (EOD)

 ## TODAY'S GRADE: C A challenging day for day traders as major tech names sold off on AI spending concerns and rising oil prices, leading to choppy action and limited clear setups. ## HOW INDEXES TRADED **SPY:** -1.2% - choppy with late selling pressure **QQQ:** -2.5% - heavy tech-led selloff, volatile **IWM:** -0.8% - relatively resilient but trending lower ## BIGGEST MOVERS ### Winners **$RTX** +7% - Strong Q2 beat and raised full-year outlook amid defense spending surge **$SNA** +5% - Earnings beat supported by organic growth and margin expansion **$NVO** +4% - Solid earnings and guidance in healthcare sector ### Losers **$GOOGL** -6.3% - Stock sold off sharply after Q2 earnings; capex guidance raised to $205B, sparking fears of cash flow pressure **$TSLA** -14% - Earnings miss and concerns over AI spending overshadowed record deliveries **$ORCL** -5% - Stock weighed by concerns over AI spending and margin pressure ## WHAT WORKED Patterns or setups that worked today: - Defensive names with strong earnings like **$RTX** and **$SNA** showed reliable bounce setups on earnings beats. - Short setups in high-flying tech stocks after earnings misses or guidance cuts, notably **$GOOGL** and **$TSLA**. ## WHAT FAILED Setups that didn't work: - Long plays in AI-related tech stocks expecting a relief rally failed as investors digested heavy AI capex and debt concerns. - Momentum trades in chipmakers like **$NVDA** struggled despite technical breakout talk, reflecting broader sector caution. ## AFTER-HOURS WATCH Earnings or news to monitor tonight: - **$AMD** - After hours reaction to Intel’s strong Q2 and long-term CPU deals with China could impact AMD’s outlook. - **$META** - Upcoming earnings on July 29 will be key to gauge AI spending impact and ad revenue resilience. - **$AMZN** - July 30 earnings will be critical after Alphabet’s capex shock; watch for cloud growth and spending guidance. ## TOMORROW PREVIEW **Early Watch:** Defensive and industrial names like **$RTX**, **$SNA**, and **$HON** may continue to attract buyers. Watch for potential short squeezes in beaten-down tech. **Catalyst:** Earnings from **$META** and economic data including pending jobless claims and housing permits could influence market direction. **Bias:** Neutral to bearish, as markets digest elevated AI spending, rising oil prices above $100, and mixed earnings signals. --- Day traders faced a tough environment with tech stocks leading the selloff amid concerns over Big Tech’s ballooning AI capex and debt. Alphabet’s 6.3% drop after raising capex guidance to $205 billion weighed heavily on the Nasdaq, dragging **$GOOGL** and related tech names lower. Tesla’s 14% plunge following a disappointing earnings report despite record deliveries further dampened sentiment. Defensive sectors and industrials like **$RTX** and **$SNA** outperformed, benefiting from strong earnings and raised guidance, offering more reliable setups. The market’s reaction underscores the growing investor anxiety around the sustainability of AI-driven growth given the massive capital expenditures and negative free cash flow reported by some leaders. This dynamic has created a bifurcated market where quality defensive names with earnings beats outperform, while growth and AI momentum trades struggle. Looking ahead, traders should monitor upcoming earnings from **$META** and **$AMZN**, which will provide further clarity on how AI spending is impacting profitability and growth outlooks. Economic data releases and oil price movements will also be key to watch as inflation risks remain elevated. Overall, caution is warranted with a bias toward defensive positioning until clearer signals emerge.