This morning the scanner is showing two things clearly: biotech is bouncing hard and the chip complex is continuing its recovery for day two. Before we get into today's setups, I want to flag something important right off the top. Tomorrow is June 10. CPI drops in the morning AND Oracle reports earnings after the bell. That makes today a setup day before a binary event, which changes how I think about entries and overnight holds.
Leading the gap up board is NUVL up 38.84% pre-market. Nuvalent is recovering from the ASCO conference selloff that hit biotech names last week. Leerink and Cantor both reiterated bullish ratings on the stock heading into two key FDA PDUFA dates: zidesamtinib on September 18 and neladalkib on November 27 of this year. The catalyst is clear. The recovery from ASCO weakness is the setup. I covered the chip complex recovery already in yesterday's watch list, so if you want that full breakdown, go read the June 8 pre-market watch list first.
On the chip side, MU is up 4.33% and MRVL is up 3.66% extending yesterday's bounce. APLD is up 10.94% as AI data center names continue to catch a bid. This is day two continuation in the chip complex, which I wrote about as a theme in the June 8 to 12 week-ahead. Remember Oracle reports earnings tomorrow night, which adds another layer of fuel or risk to the entire chip and AI complex depending on results.
Two small float AI names are also running this morning. BNAI (Brand Engagement Network) is up 18.11% on a $1 million investment into Accelevate AI combined with a $1 million equity commitment. Float is 4.09 million shares. DAIC is up 38.22%, a CID HoldCo AI company that did a 1 for 25 reverse split recently. These are high-risk, low-float momentum names. I treat them with small size and tight risk.
QTEX is up 19.28% as the quantum theme continues on day three. I covered the day one and day two moves in the June 5 watch list. Three-day runners in small float quantum names can keep going but the risk of a violent reversal increases with each session.
On the gap down side, the names to watch for potential fade setups are NPT down 36.64% and STI down 20.36%. NPT ran 138% on June 8 on China supply chain news and is now reversing hard with a 3.51 million float. STI is a space battery name that was gapping up yesterday and is now reversing. These are the names that had their moment and are now returning to earth. I watch for confirmation of the reversal before considering any position.
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