# The Momentum Scan — 2026-06-03
## At a glance
**RCAT** STRONG-borderline · Phase 2 ENTRY · RS 95.9 · Vel +8.50/day · FQ 16/30 — fastest climber, drone-defense cluster
**UMAC** STRONG-borderline · Phase 2 ENTRY · RS 99.8 · Vel +3.99/day · FQ **30/30** · VolSlope +1.22 — textbook setup, perfect fundamentals
**BMA** STRONG-borderline · Phase 2 (price-only) · RS 92.7 · Vel +4.29/day · FQ **30/30** — Argentine bank, volume hasn’t confirmed yet
**HBM** CAND+ · Phase 2 ENTRY · RS 96.3 · Vel +3.10/day · FQ **30/30** — copper macro story
**SNOW** CAND+ · Phase 2 ENTRY · RS 99.0 · Vel +3.77/day · FQ 28/30 — software-app, sector cooling drags score
**HCC** CAND+ · Phase 2 ENTRY · RS 94.2 · Vel +4.08/day · FQ 20/30 — coking coal momentum
**ERO**, **FCX** CAND+ · Phase 2 price-only · copper cluster
**AXON**, **APTV** CAND+ · Phase 2 price-only · defense + auto parts
⚠ CAUTION 13 names in mania (MRVL, ARM, VSH, MU, STM, CEVA, FTNT, CRWD, TENB, NTAP, HPE, NSIT, PENG) — RSI 80+ or parabolic, wait for pullback
⚠ SKIP SMCI · governance blacklist — never recommend regardless of RS
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The tape is at maximum risk-on. **35 industries** have top-quartile RS at or above 85 — that’s not a hot sector, that’s a hot market. Semis and cybersec have already pushed into mania (RSI 80+ across the entire cohort), so the trade isn’t “chase the leaders” anymore — it’s find the names that climbed fast in the last 5–10 days but haven’t yet hit terminal velocity. **RCAT** (Vel +8.50/day) leads that screen by a wide margin; the drone-defense cluster keeps building. The cleanest fundamental-quality setup of the night is **UMAC** — perfect FQ 30/30 plus +3.99/day velocity plus expanding volume — but the score caps mid-bucket because velocity isn’t quite at terminal speed. That’s a feature, not a bug; UMAC is the kind of setup that compounds over weeks, not days.
The other story is **copper**: HBM, ERO, FCX all in Phase 2 with FQ 27–30, but only HBM has confirmed volume. Treat HBM as the cleaner trade; ERO and FCX as sympathy plays that need volume confirmation before sizing up.
## The Top Calls
**RCAT — STRONG-borderline · SP 74 · Phase 2 ENTRY · Aerospace & Defense**
The fastest mover in the entire universe. RS went from 2.4 (5/27) to 95.9 (6/3) in 5 trading days — that’s a +93-percentile climb. Velocity +8.50/day caps the SP-Score base at 40 (the maximum). Volume slope confirmed positive at +0.48. RSI 66.59 — not yet mania. Day −3.0% today suggests the easy money is taking some off; that’s healthy for a multi-week trend.
FQ 16/30 is the weak link — the fundamentals haven’t caught up to the price action yet. This is a momentum trade riding the drone-defense cluster, not a quality-and-growth setup. Sized accordingly.
Trade plan: wait for the next pullback to the 9-EMA on the daily ($X area — verify intraday). Stop under the 21-EMA. Take partials at +2R given the velocity extension; trail the rest under 21-EMA daily. Exit if cluster peers (ELMT, KTOS, MRCY) roll over together. Drone-defense is a single-narrative trade — when the narrative cracks, everything in the cluster reverses.
**UMAC — STRONG-borderline · SP 72 · Phase 2 ENTRY · Computer Hardware**
The cleanest setup of the night. Perfect fundamental quality (FQ 30/30 — revenue momentum, earnings momentum, beat quality all maxed), confirmed RS climb (20.0 → 99.8 over 16 days), confirmed volume expansion (+1.22 slope), RSI 74 (not yet mania), and the broader tech tape (XLK +1.25% today) is supportive.
UMAC is in the same drone-defense cluster as RCAT but its quality is genuinely better. Both names move together; UMAC tends to have less violent intraday swings.
Trade plan: pullback to 10-day MA = entry, stop under 21-day MA. Hold to 5-day or 10-day continuation target. Add on first pullback that holds the breakout level. This is one of the rare setups where adding-on-strength is justified by the quality score.
**BMA — STRONG-borderline · SP 73 · Phase 2 (price-only) · Banks - Regional**
Argentine financial. Velocity +4.29/day from RS 6.8 → 92.7 over 20 days. FQ 30/30. KRE cohort up +1.80% today helps. The ONE caveat: volume slope is NEGATIVE (−0.73) — the price is moving but participation isn’t expanding. That’s why this gets capped at STRONG-borderline despite the otherwise pristine setup.
Trade plan: if volume confirms in the next 1–2 sessions (rel-vol spikes above 1.5x), this becomes a STRONG⭐ candidate. Until then, hold size at half the normal STRONG-tier allocation. Emerging-markets banks tend to move in violent gaps — if you miss the entry, don’t chase.
**HBM — CAND+ · SP 68 · Phase 2 ENTRY · Copper**
Hudbay Minerals. RS 34.2 → 96.3 over 16 days. Volume slope barely positive (+0.04). FQ 30/30 — perfect fundamentals. The macro story is the trade here: copper supply tightening + AI infrastructure demand (data-center copper consumption) is structural. Cohort context: XLE (commodities proxy, since we don’t track a copper-specific ETF) was +1.15% today.
Trade plan: this is a hold-and-compound trade, not a swing. Position size in 3 tranches over a week (entries on pullbacks to rising 9-EMA), trail under 50-day MA, target a 6-week swing. If copper breaks below recent consolidation low, exit entire position — the macro narrative requires copper to keep grinding higher.
**SNOW — CAND+ · SP 62 · Phase 2 ENTRY · Software - Application**
Snowflake’s Day 6 from its 5/28 +37% earnings gap. Velocity +3.77/day, RS 99.0 (basically at the top), FQ 28/30, RSI 77.75 (close to mania edge). The IGV software-app cohort cooled today (−2.76%) which dragged the cohort points to slight negative — that’s the wrinkle.
The Q1 print’s bull case (A6.4 structural raiser archetype) is still intact. The technical pullback potential is real: 13 mania-tier names landed in software/cybersec today including FTNT, CRWD, TENB, NTAP. If the sector cools 3–5%, SNOW reverts to mid-RS-90s and the entry gets cleaner.
Trade plan: don’t chase here. Wait for a daily pullback to $X (verify the breakout-from-base level). Confirmed entry only on volume bounce off that level. Stop tight under the 9-EMA. Smaller size than RCAT/UMAC given the cohort fatigue.
**HCC — CAND+ · SP 62 · Phase 2 ENTRY · Coking Coal**
Warrior Met Coal. RS 12.6 → 94.2 over 20 days. FQ 20/30 (revenue momentum strong, earnings less so). Volume slope +0.51 confirmed. Coking coal is a steel-demand proxy — if global steel keeps building, HCC works. China data and US infrastructure spending are the macro inputs to watch.
Trade plan: similar to HBM — multi-week hold, three-tranche entry on pullbacks, trail under 50-day MA. Coking coal is more cyclical than copper, so be ready to exit faster if China steel data turns.
## The Other Catalysts
**Phase 2 (price-only — volume not expanding):**
- **ERO** CAND+ SP 70 · Copper · FQ 28 · volume slope −0.64. Sympathy to HBM, lower conviction until volume turns.
- **FCX** CAND+ SP 66 · Copper · FQ 27 · volume slope −0.20. Same cluster, large-cap version.
- **AXON** CAND+ SP 62 · Aerospace & Defense · FQ 23 · velocity +4.20. Stock has run hard, RS 92.5, no volume confirmation.
- **APTV** CAND+ SP 60 · Auto Parts · FQ 18. EV-cycle exposure. Trade only on confirmed volume.
- **FLNC** CAND+ SP 52 · Utilities - Renewable · Vel +3.16. Already covered in 6/1 earnings-csv as STRONG⭐ — this is Day 2 continuation read.
**Phase 3 MANIA (CAUTION — DO NOT chase):**
- **MRVL** Day +10.1% / RSI 88.24 · semis · parabolic — already in our 6/2 publish as STRONG⭐ EP signal, holders should be taking partials
- **HPE** Day −4.0% / RSI 83.61 · finally cooling from 6/2 STRONG⭐⭐⭐ EP-γ 91 — watch for Day 4–7 base-and-go
- **ARM** RS 99.2 / RSI 80.74 · semis · classic late-cycle setup
- **VSH** RS 99.1 / RSI 89.64 · semis · most overbought in the screen
- **MU** RS 97.5 / RSI 82.22 · semis · DRAM cycle peak watch
- **STM** RS 96.2 / RSI 81.03 · semis · same cluster fade risk
- **CEVA** RS 97.6 / RSI 81.06 · semis · smaller name, more reactive
- **FTNT, CRWD, TENB, NTAP** RS 97+ / RSI 80+ · cyber mania cluster · wait for sector-wide pullback before re-entering
- **NSIT** RS 97.2 / RSI 87.36 · electronics distributor riding cyber wave
- **PENG** RS 99.3 / RSI 88.14 · IT services parabolic
## The Quiet Beats
Phase 1 STEALTH names building toward Phase 2 — none qualify as buys yet, but mark for follow-up scan in 3–5 days:
- **VCYT** SP 61 · Diagnostics & Research · FQ 27/30 · Vel +2.77/day. RS 91.4, the cleanest stealth setup in healthcare.
- **IOT** SP 58 · Software - Infrastructure · FQ **30/30** · Vel +2.56/day. Samsara. Quality is best in class; velocity is the gating factor.
- **AGYS** SP 52 · Software - Application · FQ 24/30 · Vel +2.64/day. Agilysys. Software-app cohort fatigue is the headwind.
- **SEDG** SP 52 · Solar · FQ 18/30 · Vel +2.81/day. SolarEdge. Energy transition exposure.
- **MDB** SP 52 · Software - Infrastructure · FQ 27/30 · Vel +2.00/day. MongoDB. Slower climb but quality is real.
Promote any of these to Phase 2 if their RS adds 3+ points in the next 3 trading days AND volume slope turns positive.
## Yesterday’s Lessons
- **R10.1 second-entry window** opens 6/5 for the 6/1 sp-scan STRONG⭐⭐ trio (DAVE 87, DY 88, PLTR 85). Today is Day 2 for all three — too early to re-enter, but watch their basing pattern. If any builds a tight inside-day on Day 5–7 above the 6/1 breakout level, that’s the second-entry trigger.
- **The risk-on breadth is the bigger signal than any single ticker.** 35 SP_ACTIVE industries means the market is in trend-extension mode, not rotation mode. Trade direction is up, position sizing is the discipline.
- **Mania cluster identification matters.** When 5+ names in the same industry are RSI 80+, that industry is at terminal velocity. Don’t initiate new positions in the leader — wait for the cluster to reset.
## The Read
- **Best risk-adjusted**: **UMAC** — perfect fundamentals + confirmed volume + RSI 74 + multi-week trend setup. Mid-conviction tag (STRONG-borderline) reflects the velocity ceiling but the qualitative setup is the cleanest of the night.
- **Highest-upside speculative**: **RCAT** — the +8.50/day velocity is the asymmetric reward, drone-defense cluster has multi-week runway, but FQ 16/30 means it’s a momentum trade not a quality trade. Tight stops mandatory.
- **Best two-week compounding**: **HBM** — copper macro story is structural (AI data center copper demand + supply tightness), FQ 30/30 supports the hold, position-build over a week with three tranches.
- **Don’t chase**: **MRVL** at +10% intraday on Day 5 of a parabolic run. **HPE** at the open without confirmation it’s done cooling. **SNOW** until the software-app cohort resets. Any of the 13 mania-tier names.
**Lesson banked**: when top-quartile RS reaches 85+ across 35+ industries simultaneously, the trade isn’t sector rotation — it’s trend-extension. The screen should bias toward newer Phase 2 entrants (RCAT, UMAC, HBM) over leaders that have already pushed into mania (semis cluster). Fastest-climber + quality combo > absolute RS leader.
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