TMAD FLOW: Consumer Staples and Healthcare Long, Memory and AI Short

$NVDA $CRWV $HUT $AMZN $MSFT $SPCX

Nov 05, 2026

∙ Paid

Hi everyone,

We sent a longer report yesterday. Most of the industries we spoke about moved, such as solar, home builders, Please don’t forget our webinar tomorrow at 12pm ET. Here is the link. We will go over new features of the scanner and you can ask us about setups and stocks.

Meeting ID: 832 9297 5563

Passcode: 372094

Market Update

See video about today’s letter here.

The Dow rose 3.0%, the S&P 500 gained 1.6% (its best day in three months). Consumer discretionary led at +4.3%, followed by financials, communication services, staples, real estate and healthcare, each up more than 3%. CALL SURGES across board. See heat maps what strikes and expiries have highest flow and change in open interest.

TMAD.app

The laggards:

The common thread is that markets now expect a Democratic Congress to push back on the Trump agenda that was lifting these groups.

Data centers and AI power names (Vistra, Vertiv, Eaton, CoreWeave) were hit hardest. Democrats won big data-center states like Texas and Georgia, so investors worry about limits or pauses on new builds over power prices and grid strain.

AI chips and memory (Nvidia, Micron, SanDisk, Seagate) sell into that buildout. Fewer new data centers would mean fewer chips and drives sold, so they fell with it. The cash-rich companies paying for the buildout, like Microsoft and Amazon, rose instead, since slower building means less spending pressure on them.

Oil fell about 8% because traders are betting a Democratic Congress will push to end the Iran war, which would mean safer shipping through the Strait of Hormuz and more supply.

Defense (Lockheed, L3Harris, drone makers) dropped because Trump’s $1.5 trillion defense budget request now has to get through a tougher Congress. There is still going to be demand to restock, so we can keep those on a close watchlist for a bounce, LMT specifically. Stick with profitable, solid companies. The speculative, unprofitable ones might take a while to get back up.

There are some great short setups I’m going to share with you below.

Winners tied to the Democratic win: Managed care led, with Centene up 12.6%, Molina up 8.9% and Oscar up 8.6%. Solar rose about 5.7%, and homebuilders gained 5.4%. Microsoft (+6.7%) and Amazon (+6.1%) rallied on the view that a slower data-center buildout means less spending pressure on them.

We shared with you this expectations last night.