AI is already handling large parts of execution. That shift is not coming later. It is happening now.

What is left, and becoming more valuable, is the ability to design systems, apply AI thoughtfully, and own outcomes in production. That is the work strong teams expect from senior engineers in 2026.

Gauntlet is built for engineers who want to operate at that level. In a single week, 15 hiring partners conducted 246 interviews with challengers onsite in Austin. Apply now.

Apply to Cohort 6

_{Must be a US citizen to qualify.}

Both charts showed weakening momentum, failed continuation attempts, and downside pressure building near important support levels. What made these setups interesting was not a single indicator, but the combination of multiple signals aligning together.

The indicators I primarily use during screening are:
• 14 Day ATR
• 8 and 21 Moving Average Cross
• RSI
• MACD
• Compression and expansion behavior
• Support and resistance zones

The goal is not predicting the market perfectly. The goal is identifying higher probability situations while controlling risk.

Ticker: TSLA
Stock Price: 396.88
Type: Put Spread
Strikes: 390 / 385
Entry: 390
Expiry: June 24
Option Cost: 3.85
Potential Profit: 5
Actual Profit:
Outcome:

TSLA began showing signs of momentum exhaustion after struggling near resistance levels.

Several things stood out immediately:
• RSI weakened toward the mid-range
• MACD histogram continued expanding negatively
• Momentum candles lost strength
• Price struggled near the moving averages
• Support zones started getting tested repeatedly

One thing I pay close attention to is failed continuation after strong rallies. When momentum stocks stop reacting aggressively to bullish movement, downside pressure can appear quickly.

The 8 EMA and 21 EMA also started tightening, which often signals uncertainty before expansion moves.

What I’ll watch next:
• Whether TSLA breaks below nearby support
• Whether RSI loses the 45-50 range
• Whether MACD continues accelerating lower
• Whether volatility expands after compression

Because TSLA still has elevated ATR movement, spreads made more sense to me than directional naked puts.

Ticker: AVGO
Stock Price: 392.16
Type: Put Spread
Strikes: 385 / 375
Entry: 385
Expiry: June 22
Option Cost: 6
Potential Profit: 10
Actual Profit:
Outcome:

AVGO showed a much sharper momentum shift.

The stock had a strong move higher previously, but the recent breakdown changed the structure significantly:
• RSI dropped aggressively from overbought conditions
• MACD rolled over sharply
• Price lost support near the moving averages
• Selling pressure increased rapidly
• Recent candles showed momentum expansion lower

One thing I have learned is that strong trending stocks can reverse violently once momentum breaks. The market often moves from confidence to fear very quickly when leadership stocks lose support.

The combination of ATR expansion and momentum deterioration made AVGO one of the more interesting bearish setups from my screen this week.

What I’ll watch next:
• Whether AVGO can reclaim support
• Whether momentum stabilizes
• Whether sellers continue controlling volatility
• Whether the 8 EMA stays below the 21 EMA

I do not rely on predictions alone.

I try to combine:
• momentum,
• volatility,
• structure,
• and trend alignment

to build a probability-based approach instead of emotional trading.

Sometimes setups work.
Sometimes they fail.

What matters most is:
• defined risk,
• consistency,
• and having a repeatable process.

I’ll continue publicly documenting:
• stock screens,
• trade setups,
• wins,
• losses,
• mistakes,
• and lessons

as I continue improving my process over time.

Disclaimer: This content is for educational and informational purposes only and does not constitute financial advice. Trading stocks and options involves significant risk and may result in loss of capital.