Day Trade Cheat Sheet - August 09, 2026 (EOD)

 ## TODAY'S GRADE: B A generally positive trading day with solid gains in tech and AI-related stocks, though some defensive sectors lagged amid ongoing geopolitical uncertainty. ## HOW INDEXES TRADED **SPY:** +0.7% - trending higher with steady buying **QQQ:** +1.2% - strong tech-led rally, boosted by Magnificent 7 rotation **IWM:** +0.3% - modest gains, more choppy and cautious ## BIGGEST MOVERS ### Winners **$AMZN** +14% - blowout earnings beat fueling renewed investor confidence **$NVDA** data not available, but Nvidia-backed Lumentum is soaring ahead of earnings **$SHOP** data not available, but noted for recent strong performance this week ### Losers Data not available for specific large losers today. ## WHAT WORKED Patterns or setups that worked today: - Rotation into Magnificent 7 stocks - investors favored top AI and tech leaders like **$AMZN** amid bargain hunting - Momentum plays in semiconductor-related names - Nvidia-backed stocks showed strength ahead of earnings - Defensive ETFs lagged, confirming risk-on sentiment despite geopolitical tensions ## WHAT FAILED Setups that didn't work: - Defensive sector plays - ETFs in staples and utilities showed relative weakness as investors rotated out - Some small caps and non-AI tech names remained choppy, failing to break out amid broader market strength ## AFTER-HOURS WATCH Earnings or news to monitor tonight: - **$LITE** (Lumentum) - Nvidia-backed company reporting earnings this week, key to watch for AI supply chain insights - **$ROCKET** (Rocket Lab) - upcoming earnings expected to clarify growth prospects amid recent volatility ## TOMORROW PREVIEW **Early Watch:** Magnificent 7 stocks including **$MSFT**, **$GOOG**, and **$META** as investors continue rotation into AI leaders **Catalyst:** Inflation data expected to test market’s rate hike expectations; geopolitical developments around Strait of Hormuz remain a risk factor **Bias:** Bullish into tomorrow, supported by strong earnings momentum and positive rotation into growth sectors, but cautious on geopolitical headlines --- Overall, today’s market action favored high-quality growth and AI-related names, with **$AMZN** leading the charge after a strong earnings beat. The rotation into the Magnificent 7 stocks continues to underpin the tech-heavy Nasdaq rally, while small caps and defensive sectors lagged. Traders should watch for tomorrow’s inflation data and Lumentum’s earnings for further directional cues.