Yesterday’s strong gains across the S&P 500, Nasdaq, and Dow were hard to ignore. After nearly two weeks of chop and fear following the "Trump Pump" regarding the 90-day pause of tariffs, we finally saw a full day, broad-based rally with real thrust behind it.

While I would’ve preferred to see overwhelming volume — something that just blows the 50-day average out of the water — we did get a clear uptick in volume versus the previous day. And according to the framework laid out by William O’Neil and Investor’s Business Daily, that technically qualifies as a follow-through day.

So, what exactly is a follow-through day, and why does it matter?

William O’Neil, founder of IBD and author of the classic trading book How to Make Money in Stocks, coined the term to help identify potential market bottoms. The idea is that true, lasting bottoms are rarely identified by a single day’s bounce. Instead, the market needs a few days to digest the low — then show strength, in the form of a powerful rally on increased volume.

Here’s how IBD typically defines a follow-through day:

“A follow-through day is a...

Yesterday, we saw large gains in the S&P 500, Nasdaq, and Dow Jones Industrial Averages. While I would've preferred to see these big rallies come on overwhelming high volume that far exceeds the average, we did close on an increase in volume, which technically qualifies as a "follow-through day." 

While this isn't a guarantee that we've seen the bottom of recent price action, it does add some credence to the idea that the recent lows may be a little more durable and hold for a while.

If the market turn is here, then now would be a good time to take some fliers on previously high-flying names that took a dip with everything else in the recent morass.

Today's trade is that.

In today’s Daily Digest, we’ll review the following:

1. Adding new position in XLE.
2. No adjustments are needed today.
3. Closed XLB position.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!