EB Daily Market Report - Tuesday, May 19, 2026

First, a quick reminder that last quarter's portfolios will come to an end as of today's closing prices.  Also, next quarter's portfolios will begin using today's closing prices.  As I mentioned on Monday at our quarterly portfolio draft, whether to buy portfolio stocks is each member's choice, including the timing of such buys.  We are NOT Registered Investment Advisors, so please consult with your own financial advisor before buying or selling any securities.

For education, simplicity, and transparency, we will enter the stocks at today's closing prices and will hold them through August 19th.  There are 30 stocks, 10 in each portfolio (Model, Aggressive, and Income).

Today's action is about what I would have expected - more selling in many growth names, though we have seen recovery in many of them since an early morning selloff.

Here are some comments regarding new stocks entering our portfolios:

ICHR - neared initial price support at 61 this morning
SNDK - bouncing off 20-day EMA test
BAND - volume is light, but possible dark cloud cover/bearish engulfing candle;  doesn't change longer-term picture, but COULD represent a short-term top
RKLB - big recovery after initial test of support this morning
STX - 20-day EMA test
AXTI - 20-day EMA test
KLIC - 20-day EMA test
KEYS - nice test of initial support, EARNINGS TODAY AFTER THE CLOSE (we are buying and holding into earnings in our portfolio, which is VERY risky)
NBIS - neared test of gap support and 20-day EMA
STRL - 727.45 is top of gap support;  tested both 20-day EMA and this gap support today
MU - nearly tested 20-day EMA
AVT - tested 20-day EMA
GEV - tested bottom of gap support and 20-day EMA for 2nd consecutive day
CAT - tested top of gap support at 856.63

Short-term, I'm watching our major indices trend BELOW their respective 20-hour EMAs.  Failure to get through today could lead to further downside in the near-term.  On the QQQ, if we do roll over one more time, watch gap support at 695, which was tested earlier today.  Loss of that level could lead to further short-term market weakness, possibly even 20-DAY EMA tests ahead.

I can also argue there are head & shoulder tops on the hourly charts on both the QQQ and SPY.  Loss of neckline support would argue for a further short-term decline.

Happy trading!

Tom