AI Bid, New Highs — Don’t Fight It
by Tony Rago
Big push to new highs overnight, driven largely by chip strength and earnings momentum — the AI trade continues to be the engine here. NQ led the charge again, and when that sector is in control, it tends to pull the broader market with it. Add in crude slipping back under 100, and you’ve got another tailwind helping risk stay bid. That said, this move is getting extended. Price has traveled, positioning is stretched, and yet shorts continue to get squeezed — a clear sign that momentum is still in control for now.
This is where traders get themselves into trouble trying to pick tops. You might feel like it’s gone too far, but fighting price in a tape like this can be costly. The focus stays the same — trade what you see, not what you think. I’ll let the opening range (OR) develop and use that as my guide, letting the market define the levels that matter. Patience here isn’t passive — it’s strategic. Let it show its hand, then step in with structure behind you.
👉 Full breakdown is inside today’s Pre-Market Playbook. Check it out here and trade it smart.
– Tony
