The Sunday Swell: July 26, 2026 Session

Sitting in the lineup and searching the horizon for the next wave to catch…

Sundays are my time to hit the “reset” button. I spend the morning running through various screens to build out my buy/short watchlists for the week ahead.

I want to emphasize the word watchlist. Whether these names turn into actual trades depends entirely on how the week develops and if the price action hits my own specific execution zones. Before we dive into this week’s list, a few quick notes to set the stage:

• The “Teach a Man to Fish” Disclaimer: This weekly update is for educational purposes. My goal is to show you exactly how I utilize the tools at my disposal—many of which you have access to. The star of the show is the Erlanger Chartroom Software. Having run the nightly processing for Erlanger Research for years, I know this system inside and out. I’m here to show you how to drive the car, not just give you the GPS coordinates.
• The Secret Sauce: My idea generation focuses on a “Triple Threat” of data: Short Interest (Educational Video), Options (Educational Article on MR and this is the main focus of a majority of my ideas), and Seasonality (Educational Video 1 and Educational Video 2). I often layer this with a fundamental quant filter from Revelation Investment Research. This helps me identify “1+1=3” opportunities or, conversely, flags the stocks we should stay far away from on the long side.  TIP: In Market Rebellion Squeeze Play Pro Activity Posts tab, enter in search “training” to bring up other various articles on the reports and how to use them.
• Know Your Style: My style is a bit different from Geoff’s. We complement each other, but you need to understand that these ideas are often shorter-term and more aggressive. I don’t always wait for the “all-clear” signal. Sometimes I’m catching a falling knife on a long or standing in front of a freight train on a short—taking small, tactical positions on aggressive charts looking for a reversal.

I might trigger on a daily Heikin Ashi candle turning green, while Geoff might wait for price action to cross a Displaced Moving Average (Educational Video). You might take one of these names and apply your own triggers—RSI, Stochastics, or standard MAs.  Whenever I do this, I think of the movie Hitch. There’s a scene where Will Smith is teaching Kevin James how to dance and tells him, “This is where you live. Right here.” (Video Here). It’s about staying in your lane. Take these ideas but apply the triggers that work for your risk tolerance.

So, let’s jump in. I feel like a kid again with my Churchill fins on, about to jump into 5ft Sandy’s (that’s 10ft mainland!) on a glassy day. Just make sure you read all the caution signs on the beach before you dive in headfirst.

Subject: The Consistent Swell – Short Interest Reporting & Wave Pools

Greetings Rebel Squeeze Subscribers!

One thing about surfing and forecasting is the endless search for consistency. Swell consistency, wind consistency, tide consistency—it almost never happens out in the ocean, which makes predicting a great session a tough task.

That’s why these new “wave pools” popping up across California, Texas, and beyond are so popular: they come as close to manufactured consistency as you can get.

When it comes to overseeing our data at Erlanger Research, one area where we do get total consistency is the bi-weekly short interest reporting from the exchanges. Every two weeks, the short interest calendar (click here) gives us a fresh, reliable pulse on market positioning.

I’ve written a couple of core training articles for the Squeeze Play community that stand the test of time when integrating this data into your daily Chartroom workflow:

• Training Article: Happy Short Interest Day… Now What?

• Training Article: Highlighting New Type 1s and 4s – 2-Month Look Back Ahead of Short Interest Release

Pro Tip: You can always hit the search bar in the Rebel Squeeze Play Pro Activity Feed and type in “Training” to uncover a treasure trove of educational posts to help you hunt for setups.

High Short Interest & Low-Priced Pressures

Geoff recently posted an article highlighting the elevated short interest across both the NYSE and Nasdaq exchanges (read here). He pointed out a fascinating phenomenon: an influx of short sellers stepping into lower-priced, high-beta stocks.

Looking at our Erlanger Chartroom Software Library (Top 50 Jumps in NYSE & NASDAQ), a bunch of highly visible, heavily traded, and volatile names are showing up right now and some of these names I am adding to this week’s watch list: JOBY, BBAI, IREN, and GRAB.

 

Peak Earnings Density: The Busiest Week of the Season

Get ready—we are paddling straight into the heaviest reporting window of the Q2 earnings season.

According to FactSet’s latest S&P 500 Earnings Season Update, 177 S&P 500 companies (including 9 Dow 30 components) are scheduled to report Q2 results this week (July 27–31). This is the peak-density week of the entire cycle, featuring megacap tech heavyweights like Microsoft, Meta, Apple, and Amazon.

Travel Heads-Up

A quick logistical note: I will be traveling this upcoming week through the weekend. I’m unsure if I’ll be able to drop a post next Sunday, but if time opens up and conditions are right, I’ll check in from the road!

The Background Tracks: Morning Prep Listening

While prepping this week’s Swell and digging through the data, I had these three excellent episodes looping in the background:

• The Real Eisman Playbook | Google’s Negative Cash Flow and the AI Capex Reckoning: Steve Eisman breaks down the shift as Google reports negative free cash flow driven by massive AI infrastructure spend. A must-listen macro look at what surging capex commitments mean for hyperscaler valuations and broader market liquidity.

• Goldman Sachs: The Markets | Are Hedge Funds Still Bullish on AI Stocks?: Chris Hussey chats with Goldman’s Vinny Lin on prime brokerage flows. They analyze the historic momentum unwind in tech and whether institutional length reduction represents a healthy positioning reset or a fundamental loss of conviction.

• The All-In Podcast | The Fight Over Open Source AI, Anthropic’s $1.5B Payout, NYC Socialists: The Besties cover the battle over open-source AI models, Anthropic’s landmark IP settlement, and how market pressure is building as big tech capex ramps up while stocks digest the earnings results.

See you all out in the water—let’s go catch some good waves!

From previous Sunday Swell Sessions Watch Lists (just search the term “SWELL” under the Activity Posts page.

• • Keeping on the long watch list for opportunity to unfold still:  UEC, PLUG, SOUN, RDW, RR, C, HTZ, LUMN, NVTS, MCHP, UUUU, NOK, LUNR, IONQ, HSY, EME, GEV
  • Keeping on the sell/short watch list for opportunity to unfold still: V, DG, BAX, ROKU, NSP, BAC
  • Removing on long watch list as price action unfolded or underlying data components does not support it anymore: CLF, TLRY, NG, SLV, MARA, LHX.
  • Removing on sell/short watch list as price action unfolded or underlying data components does not support it anymore: TXRH, AXP.

New weekly additions to the trading watch list for me: 

From Erlanger Research Chartroom Library Reports:

MR Long Ideas – PC 10d PER Ratio High:

MIR, RUN, WH

Various Options Scans:

I source ticker lists from various scanners and drop them into an Erlanger Chartroom Quotesheet. (Tip: You can simply copy your own list of tickers and paste them directly into the ‘Symbol’ column). I place these in my custom Erlanger Workspace (*.CRW file—see this Educational Video for the setup). This week, a high-volume options screen flagged the following names for excessive negative sentiment (put activity). I am looking at a turnaround to the upside on my Long watch list.

Secondly, let’s head into slightly deeper water with a screen I call the ‘Low Country Boil.’ Living down here in the Lowcountry—and hitting the local beaches whenever a Hurricane Swell rolls in to keep my Hawaiian roots intact—I’ve learned that a proper boil isn’t about a quick flash in the pan. It’s about the simmer.  This specific screen is designed to catch lower priced stocks with options activity that is slowly building and largely undetected. Specifically, I’m watching for that slow, building swell of negative put activity. When it hits that boiling point where the sentiment is just too stretched, we look for the turnaround. It’s about spotting the wave while it’s still just a ripple on the horizon, long before it breaks for everyone else.  Not every indicator lines up perfectly, the waters are choppy here so navigate carefully.

RKT, GRAB, JOBY, LUMN, RGTI, UEC, USAR, SMR, QUBT, NN, BBAI

Revelation Screens

This showed up on one of my Revelation Screens (i.e. positive fundamentals).  Underlying Erlanger items seems good for a long idea on the watch list:

AON

 

UOA Review

Bonus Section: UOA!  Sundays I like to export from the UOA section of Market Rebellion the weekly hits and size them up in Erlanger Chartroom for Short Squeezes and Put Squeezes (Long watch list):

CSCO, IREN

 

To keep things balanced, I have a couple of names for the Short/Sell watchlist. Keeping with the theme: I’m looking for these building waves to finally break.  Generally, these are the flip-side setups in the options data—places where the call activity is becoming excessive even as the price keeps climbing. If you are long these names, you need to be hyper-aware of your surroundings and the potential dangers.  It reminds me of surfing Tonggs in front of the Outrigger Canoe Club back in high school. There was a massive boat winch from an 1878 ship wreck sitting just inside the break on a very shallow reef. You’d take off on a beautiful, good-sized wave, but you had to know exactly where that winch was. These charts are the same: the ride might feel great right now, but you’re potentially heading straight for the reef. Navigate carefully.

MR Short Ideas – CP 10d PER Ratio High:

CROX, PII

 

Revelation Screens

This showed up on one of my Revelation Screens (i.e. negative fundamentals).  Underlying Erlanger items seems gloomy enough for a sell/short idea on the watch list:

OXY

UOA Review

I also took a weeks’ worth of ‘Bearish’ Unusual Options Activity from the Market Rebellion UOA Elite Service. My goal was to see which of those bets aligned with the negative sentiment readings we’re seeing in the Erlanger Chartroom.  Here are some names that aligned:

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Various Options Scans:

I source ticker lists from various scanners and drop them into an Erlanger Chartroom Quotesheet. (Tip: You can simply copy your own list of tickers and paste them directly into the ‘Symbol’ column). I place these in my custom Erlanger Workspace (*.CRW file—see this Educational Video for the setup). This week, a high-volume options screen flagged the following names for excessive positive sentiment (call activity). I am looking at a turnaround to the downside on my Short/Sell watch list.

IOVA (not a big fan of going against biotech names….especially low priced ones as they can quickly fly in your face!)