Next Day Prep #34: Market Madness Mega-Caps Soar, Small Caps Suffer – Friday 5/23/2025
Key takeaways
- Traders should exercise caution in the current market environment marked by elevated Treasury yields and selling pressure. Focus on high-relative-volume stocks and tight stops while monitoring key support levels for major indexes like SPY and QQQ.
Next Day Prep: Market Madness Mega-Caps Soar, Small Caps Suffer
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good day, traders! Here’s a snapshot of what to watch in the markets for tomorrow, May 23rd. Today saw mixed sentiments as Treasury yields reacted to the reconciliation bill passing the House, leading to initial jitters but later soothed by economic data.
Overnight Headlines
- President Trump’s comments on the Russia-Ukraine conflict
- Tragic incident near the Jewish Museum in D.C.
- Bitcoin crossing $111,000 and OPEC’s production considerations
Economic Announcements
Key economic data included a dip in initial jobless claims and April’s record-high median home price. Tomorrow’s focus is on more jobless claims and PMI data amid fiscal policy uncertainties.
Earnings Highlights
Among the top earnings performers was Snowflake (SNOW), showcasing robust demand for its AI Data Cloud and raising full-year product revenue outlook.
Top Movers
Watch stocks like CTGO and LZMH for potential continuation breakouts, and keep an eye on anticipation setups in companies like ADBE and ORIC.
Quick Trade Ideas
- For continuation: Consider entries in CTGO around $18.00 and LZMH near $14.00.
- For anticipation: Look for opportunities in ADBE around $415 and ORIC near $5.90.