Week of June 8, 2026
⚠️ Read the methodology first. Do NOT take any setup below without first reading the Methodology page. The stop-loss rule, position sizing, and 3-stage exit logic are what make these setups work. Skipping the rules = losing money even on winning signals.
What happened: Friday, June 5 was the market's worst day in over a year — the Nasdaq dropped about 4% and the S&P 500 snapped a 9-week winning streak. Two things hit at once. First, Broadcom's soft outlook on AI chips set off a brutal selloff across semiconductors (Marvell −16%, Micron −13%, AMD and Intel −11%, Broadcom −7%). Second, a hot jobs report — 172,000 new jobs, roughly double what was expected — pushed the 10-year Treasury yield above 4.5% and erased hopes for interest-rate cuts. The VIX (the market's "fear gauge") spiked about 34%, back above 20 for the first time in weeks.
The rotation: Money didn't just leave — it rotated. Out of high-flying tech and AI, and into defensive names: consumer staples, utilities, and healthcare. That is exactly the kind of stock our system has been flagging — Walmart, Deere, Raytheon. When growth gets sold and money hides in steady, boring, dividend-type names, our book is positioned for it.
What we're watching: The whole week hinges on the inflation report (CPI) Wednesday, June 10 at 8:30 AM ET. After a hot jobs number, a hot inflation print means more pressure on tech and more fuel for this rotation; a cool print means yields likely ease and the dip gets bought again. The Federal Reserve meets the following week (June 16–17). Until Wednesday, we are not assuming Friday was "the top" or "just another dip" — we let the data tell us. We don't chase. We wait for clean signals.
In plain terms: the market had its ugliest day in over a year, driven by chip stocks and rising interest rates. The safe, boring, dividend-type stocks held up — and that's where our positions sit. Wednesday's inflation report is the next big tell.
Below: the double-premium Deere trade we just closed across two accounts, the positions we're still holding (Walmart, Raytheon), an honest update on a trade we're red on (Netflix), a loss we took cleanly (Google), and signals we're watching but haven't entered (utilities, NextEra, McDonald's).
Back-to-back PREMIUM signals — May 22 at $528.75 and May 26 at $528.21 — same stock, same support zone, just 4 trading days apart. When the system flags the same level twice, it's telling you that price floor is real. We took the first signal in one account and the second in another. Both are now closed, and both won:
What "+3.5R" means: the win was about three-and-a-half times the dollars we'd put at risk. And on the larger position, we let the runner run to a +12% gain rather than grabbing profit early — the patient exit the whole system is built around.
We entered Walmart off a PREMIUM signal that fired May 28 — a textbook defensive name catching the rotation bid. We're holding it as deep-in-the-money LEAPS (long-dated call options expiring January 2027) rather than short-dated contracts, so time decay isn't a threat and the thesis has room to breathe. Entry zone around $118.50; now ~$118.88. Our first profit-taking level is $122.14 — we won't trim before then. Stop: a daily close below $116.74. Walmart held up while the market got crushed Friday — exactly the relative strength we want in this tape.
Entered at $174.50. RTX is a top-tier defense stock — it has fired this exact strict setup 5 times in the past 5 years and won every single time (100% win rate). Now ~$178.96, about +1R into the trade and holding above its long-term moving average even through Friday's selloff. First partial at $183.68; stop on a daily close below $169.91. Defense remains a relative-strength pocket here.
The honest stuff: a position we're currently red on, and a loss we just took. This is where the real learning is. Not financial advice.
Honest update. We're holding Netflix from a Low-Volume Drift / Wyckoff "Last Point of Support" signal — the read that big institutions are quietly absorbing supply at a level. Right now we're down about −6.5% (≈ −$1,928); price has slipped under the $90.45 level we were watching. Two honest things: (1) This is exactly why, when we take an LPS, we hold it in shares or long-dated LEAPS — staying power to sit through the drift with no expiration clock forcing a bad exit. A slow setup needs time, so short-dated options are the wrong tool. (2) But "give it time" is not the same as "ignore the exit." Our own backtest shows this particular setup has a negative edge on Netflix specifically — so the thesis is on a short leash. If it can't reclaim and hold the level, the disciplined move is to take the loss, not marry it. (3) One new wrinkle in our favor: on Friday — right as the market puked — NFLX also fired a Bracket Excess LONG signal, a separate and independent setup pointing the same way. Two different signals at the same zone is more conviction than one, and it's a constructive sign the level is being defended. It doesn't erase the caveats above, but it's why we're inclined to give this a little more rope and watch for a confirmed reclaim as a potential add — not throw it away down here. We're showing you a live trade that isn't working yet, and exactly how we're thinking about it. Not a recommendation to buy.
Not every trade wins — and that's the point of this card. We took an 8/21 EMA pullback on Google at $382.80. The setup invalidated: the stock gapped down through our stop on June 2, and we sold at $367 for a −$1,580 loss (−1R) — meaning one unit of the risk we had pre-defined before entering. Here's the most important lesson on this page: we did not widen the stop, average down, or "hope." We took the planned loss and moved on. A −1R loss is a normal, survivable cost of doing business; turning a −1R into a −4R by refusing to exit is what actually blows up accounts. The system works because we honor the stop on the losers as strictly as we hold the winners.
For weeks, a long list of high-beta names were clean 8/21 EMA pullback longs — shallow dips to the 8-day line while price held above the 21. Friday changed that: many of them flushed straight through both the 8 and the 21. By our own rule, once price loses the 21 the long setup is dead — and those same names start to set up as short candidates instead. Two disciplines before anyone acts on that: (1) Don't short into the hole. Shorting the day after a −4% Nasdaq session is chasing — you wait for the bounce that fails (a lower high that rejects at the 8/21), not the initial flush. That confirmation can take days to weeks, likely around this week's inflation data and next week's Fed meeting. (2) Target the right names. The short edge lives in high-beta growth and semiconductors — the stuff that just broke — not defensives, and not every name (some of our best long names actually lose money on the short side). This is a setup-in-waiting we're flagging early, not a trade for today.
Names we're tracking closely. A signal firing — or a chart looking good — is not the same as an entry. We wait for a clean trigger and the right risk/reward. Not financial advice.
Utilities fired a PREMIUM signal on May 18, ran up, and have now pulled back to sit right on their long-term moving average — a textbook re-test of the level. Utilities are catching the defensive-rotation bid. The one caution we're weighing: utilities are sensitive to interest rates, and rates just spiked Friday — so this is a "watching closely," not an automatic entry. We want a clean trigger here, not a chase. Now ~$44.35.
NextEra is sitting right on its long-term moving average with a clean bracket setup and well-defined risk — exactly the kind of chart we like (now ~$85.84, with the 200-day line at ~$85.30). But it has not fired an actual signal yet. We're flagging it as "on deck": if it triggers, it's a name we'd want. Until then it's a watch, not a buy — and the same interest-rate caveat applies to it as to utilities broadly.
McDonald's fired a Bracket Excess signal on May 11 at $276 and has traded in that bracket since. It's the cleanest defensive setup we're tracking — exactly the kind of name catching the rotation bid. The level we're watching to start scaling in: ~$278, the 50% retracement of Friday's bar. The plan is to scale in — a first small tranche there, adding lower toward the bracket low only if it comes — with a stop below the bracket, rather than buying all at once. A return to the level isn't an automatic green light, so we keep the first piece small and let it prove the hold. This is the one from this group we're closest to actually taking.
We just closed Deere for a double-premium win (above) — and it's already setting up again, this time as an 8/21 EMA pullback around $570–573, which lines up with the 50-day moving average. Honest note: our backtest shows that 50-day "confluence" does not actually add edge to an 8/21 pullback (that boost only shows up on strict bracket setups near the 200-day) — so we treat the 50-day as visual support, not a reason to size up. And since DE just ran ~+12%, this is a later-stage continuation entry: tighter risk, smaller size, only on a clean trigger. On watch, not in.
Setups that already played out, shared as proof points — what the system identified BEFORE the move happened.
JNJ fired a strict signal on March 12 at $281. The stock dipped briefly to $277.92 that day before turning higher. By April 21 it traded at $320 — a +13.9% gain. That's what a clean A+ signal on a Tier-1 defensive name looks like when held through to target.
IBM fired a Bracket Excess signal on April 23 at $229.50. Worst-case drawdown that day: $221 (−3.7%). By May 22 it peaked at $263 — a +14.6% gain in one month. A textbook example of the asymmetric risk/reward this strategy provides.
Type in your TOTAL trading account size below — not what you want to risk on a trade, not your monthly budget. The TOTAL dollar value of the account you trade from. The calculator returns the POSITION SIZE the system would use for each tier of setup.
Based on a $100,000 account, here's what the system would deploy per signal:
Why these numbers are conservative: the position size looks big (up to 25% of account) but the actual dollar AT RISK is small — the system uses tight structural stops (1.5% of share price). So even on a Premium-sized trade, you're risking less than 0.5% of your account. This is how we can size up on conviction without blowing up.