PLTR Turning Bearish: Failed Swing High vs. SPX and Uptrend Line Broken

Looking at the daily chart of PLTR (Palantir Technologies) with the SPX (S&P 500) plotted in the lower pane for comparison, a few things immediately catch my eye. Just the other day, while the broader market pushed to a fresh swing high, PLTR couldn't muster the strength to follow suit, its price stalled and failed to climb higher. That's a classic bearish divergence, signaling underlying relative weakness even if it's not the most extreme one I've seen.
What really has my full attention now though is the more decisive development. PLTR has broken below its recent uptrend line. That line had been supporting the stock's steady climb for weeks. Once it gives way like this, especially when combined with the relative underperformance against the SPX, the technical picture starts to shift.
The pieces of the puzzle are coming together to form a much more bearish picture. The divergence highlights that momentum is fading relative to the market, and the trendline break confirms sellers are taking control at least in the short term. I expect PLTR to move lower over the coming days potentially testing prior support levels if the overall market weakens or even just consolidates. Of course, nothing in trading is guaranteed, but right now the evidence is stacking up on the downside.
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EBAY Shows Clear Relative Strength While the Market Sells Off

 

Today was another great reminder of why I put so much emphasis on relative strength. It’s one of the cleanest ways to identify opportunity when the broader market is working against you. Above is a 5-minute chart of EBAY, and in the lower pane I have the SPY for comparison.

Shortly after the open, the SPY which already opened lower began trending down, printing a series of lower lows and lower highs. That kind of action usually puts pressure on individual stocks. What caught my attention immediately, though, was that EBAY was doing the exact opposite. Right off the open, EBAY started trending higher. While the SPY was making lower lows, EBAY was holding firm and even carving out a higher low. That divergence is a textbook example of relative strength.

When I see a stock making higher lows while the market is breaking down, it tells me that buyers are stepping in and absorbing supply. That’s a strong clue that institutions are accumulating shares. Around 12:30 ET, the SPY made another new low and finally began to turn higher. EBAY, on the other hand, had been consolidating near its highs during that time. Instead of pulling back, it broke out to the upside.

Once that resistance level was taken out, EBAY continued to trend higher for the rest of the session and closed right at its highs. That’s exactly the type of price action I look for, strength first, breakout second, and follow through into the close.

This trade looked very similar to MU, which showed the same type of relative strength earlier and went on to be a big winner. These setups don’t happen every day, but for those willing to slow down and compare stocks to the market, they can provide a real edge. Relative strength continues to be one of the most powerful tools in my trading toolbox.

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MU Shows Classic Relative Strength: How I Spotted the Move Before the Market

 

Today was a perfect example of how relative strength can give you an edge and even tip you off to a trade before most people notice it. Above is a 5-minute chart of MU, and in the lower pane I’ve plotted the SPY for comparison. Just after the open, the SPY began selling off, forming a series of lower highs and lower lows that continued until roughly 12:30 ET. While the market was clearly moving lower, MU was doing something very different, it was consolidating at the highs, barely giving back any ground.

This is exactly what I look for when scanning for relative strength. The stock that can hold up while the market is weak is often the one being quietly accumulated by strong hands. In my book, Master The Market With Relative Strength, I call this a classic setup: a stock that shows resilience during a market sell-off is often preparing for a move higher.

Notice how MU made higher lows relative to the SPY during this period. That’s the key clue for me, it signals under the-radar accumulation. When the stock finally broke out to a new high, it didn’t just drift up, it rallied all the way to the close, finishing at its high of the day. That’s exactly the kind of move I’m looking for, a stock that holds up while others are weak and then continues higher once the accumulation phase is complete.

What I love about today’s action is how clear-cut it was. Relative strength isn’t about guessing or hoping; it’s about observing which stocks are leading or holding up while others are lagging. MU was under accumulation by strong hands, and the breakout confirmed it. Traders who recognized this relative strength early would have been positioned for a solid edge.

This example reinforces a core lesson I talk about repeatedly, watching for relative strength versus the market can highlight stocks that are poised to move even when broader sentiment looks bearish. Today’s MU action is a textbook illustration of using relative strength to find stocks that give you an advantage and one that reminds me why this strategy has been so powerful over the years.

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BNAI Surges 108%: Why the $2.50 Level Matters

 

What a big day for BNAI, with the stock surging 108%. Looking at the daily chart, I drew a resistance line at the $2.50 level, and it’s interesting to see how often this stock held $2.50 as support in the past. Earlier this month, we broke below that level, which now makes it a potential area of resistance.

Even though BNAI rallied as high as $2.91 today, it closed right at $2.51, just above resistance. When I look at it, I’m not convinced we’ve fully cleared this key level yet. The close tells me the rally encountered selling pressure right at that resistance line, and that’s something I want to see resolved before committing.

One notable aspect of today’s action is the massive volume bar, which topped 149 million shares. That’s significant because it shows there was a huge amount of activity, but it also highlights that sellers stepped in around the $2.50 level.

My plan for trading this stock is simple: I want to see $2.50 cleared decisively, which in my mind means the stock needs to rally at least toward $3.00. Once that happens, I’ll look for a pullback to the $2.50 area, which should now act as support. Until I see that confirmation, I’ll remain on the sidelines.

Patience is key here. BNAI’s volatility makes it tempting to jump in early, but waiting for the level to flip from resistance to support gives me a higher probability trade and keeps me in control.

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TLRY and the Cannabis Sector: Watching the Sixth Lower High for a Potential Long Entry

 

Another down day in the cannabis sector, and once again we’re seeing a lower high. Lately, my posts have been focused on these lower highs, stalking them for a potential entry, but so far nothing has triggered. I like to wait for the setup to align perfectly, and patience is a big part of my strategy. Right now, one of the setups I’m really watching closely is TLRY. Looking at the daily chart, you’ll notice this is the sixth lower high, which is significant. It tells me the stock has been in a controlled pullback, and that control is exactly what I like to see when positioning for a potential turn.

Another detail that stands out is today’s narrow candlestick body compared to previous days. The smaller range signals a slowing of momentum, which in my experience often precedes a reversal. When the volatility contracts and the selling pressure eases, it can set the stage for an upward move once the right trigger occurs. That’s what I’m looking for here,  a clean, controlled pullback that sets up for a long entry.

My game plan is simple: I want to watch for today’s high to be taken out before committing. For TLRY, that means a break above $9.79. If that happens, I’ll not only enter but also look to add to my position. It’s all about waiting for confirmation rather than jumping in prematurely.

While TLRY is my top watch, several other cannabis stocks are showing similar setups. MSOS, ACB, and CGC to name a few, all have pullbacks that are worth monitoring for the same type of entry. But there’s something about TLRY that makes it stand out, the clean structure of the pullback, the clear sequence of lower highs, and the contracting range all give me a level of confidence that’s hard to ignore.

I’m not forcing a trade. I’m simply watching for the trigger, letting the market show me the path, and being ready to act when the setup confirms itself. That discipline, waiting for the right signal  is what keeps me in control and allows me to trade with the odds in my favor. TLRY could be the first to move, and when it does, I’ll be ready

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