»  FOUNDERS SCHOLARSHIP — APPLICATIONS CLOSE JUNE 15  »

Issue No. 3  •  Tuesday, May 26, 2026

THE TRADING ADDICT

NEWSLETTER

by Maria Helmick

→ Click here to read this newsletter online

Memorial Day Setup: Short Week, Big Data, Big Earnings

THIS UP COMING week is a shortened trading week, but it could still be one of the more important weeks of the month.

The market is closed Monday, May 25, 2026, for Memorial Day, so trading really starts on Tuesday. That matters because any headlines from the long weekend — oil, geopolitics, rates, inflation, or earnings — will not get priced in until traders come back. Sometimes shortened weeks look quiet on the calendar, but they can actually create more pressure because everything gets squeezed into fewer trading days.

The market is also coming into the week with strength. Stocks have rallied into the holiday weekend, helped by AI optimism, easing geopolitical pressure, lower oil prices, and strong earnings. That is good for momentum, but it also raises the bar. When stocks have already moved higher, the market usually needs more than “okay” news to keep going.

PCE and Other Reports

The biggest event of the week is Thursday morning, when traders get a heavy batch of economic data. The most important report is PCE inflation because it is one of the Fed’s preferred inflation measures. The market wants to see inflation continue cooling without growth falling apart.

At 8:30 AM ET, traders get the GDP second estimate and Personal Income and Outlays, which includes PCE inflation. Durable goods also comes out at 8:30 AM ET, followed by new home sales at 10:00 AM ET. That gives traders a lot to digest in a very short window.

If inflation comes in hot, yields could move higher and stocks could get pressured. If inflation cools while the consumer and the economy still look stable, the market may have a cleaner setup into June.

The best case for bulls is simple: inflation cools, growth holds up, the consumer keeps spending, and yields do not spike. If that combination shows up, risk assets could stay supported. If it does not, traders may start questioning whether the recent rally moved too far too fast.

Oil Is the Wild Card

Oil is the wild card sitting underneath the inflation story.

If energy prices stay calm, that helps the market. Lower oil pressure can ease inflation concerns, help sentiment, and give the Fed a little more breathing room. But if oil spikes again, the mood can change fast. A decent inflation report can lose its power if traders suddenly start worrying that energy prices are about to push inflation back up.

That is why oil matters this week. It may not be the headline event, but it can still affect how the market reacts to Thursday’s data. Inflation is not just about one report. It is also about where prices may be heading next, and oil can change that story quickly.

AI’s Power Problem Is Becoming a Market Story

AI is still one of the strongest themes in the market, but the story is starting to move beyond the usual winners.

At first, traders focused on the obvious names: chips, software, cloud, and data centers. Now the market is starting to pay attention to what all of that AI growth actually requires behind the scenes — power, cooling, water, land, equipment, and a stronger grid.

That is where utilities come in. Every new data center adds more demand to the system. That can create long-term opportunity for utility companies, but it also brings real pressure. More power demand can mean more spending, more regulation, and more stress on infrastructure that was not built for this kind of AI boom.

That is why the NextEra Energy (NEE)–Dominion Energy (D) deal matters. NextEra’s move to buy Dominion shows that the AI trade is starting to reach into the utility sector. Dominion has major exposure to Virginia, one of the biggest data-center markets in the country. That makes this more than just a utility deal. It is a signal that power demand is becoming part of the AI investment story.

For traders, this is important because AI may still drive tech higher, but the next layer of the trade could be energy, utilities, and grid infrastructure. The companies powering the AI boom may start getting more attention right alongside the companies building the software and servers.

Higher power demand may help some utilities, but it does not automatically make every utility an AI winner. These companies still have to deal with the cost of building more capacity, getting projects approved, handling regulators, and protecting margins. The opportunity is real, but so is the expense.

That is what makes this part of the AI story worth watching. The market is starting to look beyond the companies selling the chips and software, and toward the companies that have to power the whole thing. AI is not just changing tech anymore. It is starting to change the infrastructure behind the market.

Retail and Dell Will Test the Rally…

Dollar Tree, Best Buy, and Costco each show a different side of spending. Dollar Tree tells us how the bargain shopper is holding up. Best Buy gives a look at discretionary spending, where consumers can delay purchases like electronics, appliances, and TVs. Costco shows whether value shoppers are still showing up and renewing memberships.

Costco may be the most important retail name because Walmart already gave the market a clue: consumers are still spending, but they are becoming more selective. That can help Costco, but the stock still has to deliver. Traders will be watching traffic, margins, renewals, and whether shoppers are buying more than just the basics.

Dell is the AI hardware test. The company reports Thursday after the close, and the focus is AI server demand. The stock has already rallied hard, so expectations are high. Dell needs to show strong demand, healthy backlog, stable margins, and confident guidance. A strong report could keep the AI hardware trade moving. A weak margin or guidance comment could bring a quick pullback. The setup is there, but the numbers have to justify the move.

What 0dte SPX Traders Need to Watch

For 0dte SPX traders, this is the kind of week where even a tested back-tested robot can get thrown off by oddball market moves. The setup may look good on paper, but with PCE, retail earnings, Dell, oil, and AI momentum all hitting in a short week, SPX can move both ways before choosing a direction. That is the MM move — a fast push up, a sharp reversal down, and enough chop to knock out trades placed too close to price. That matters because the robot may be following the rules, but the market can still punch through short strikes if volatility expands or the first move is a fake-out. This is a week to try and give trades more room, to respect the chop, and avoid chasing premium too close to the market. Back-tested does not mean bulletproof.

Phil — The AI Robot Math Makes Money Through Day 151 — May 22, 2026 • Since Oct 1, 2025 STRATEGY 1 — 0DTE SPX MEIC + EMA Iron Condors +$679,551 $1M MAIN +$658,485 (+65.8%)   $30K SMALL +$21,065 (+70.2%) 24,369 trades • 54.7% win rate • $4,361 avg/day STRATEGY 2 — THE CRAZY IVAN Naked NQ Puts • 45–60 DTE • 12 Delta +$482,613 58 wins • 1 loss • 98.3% win rate COMBINED REALIZED P&L — 0DTE SPX + CRAZY IVAN +$1,162,163 Thank you, Phil. Get a fill, Phil.