PDS Daily Report v2 · calibration-anchored · run 2

Tuesday May 19, 2026 (Melbourne) · US session = Mon May 18 close · Capital A$100,000 · FX 0.7153 · Cash buffer A$8,857
Book P&L: +US$191.67 = +A$267.96 (+0.27%) · 4 positions filled · Regime: STAGFLATION_HOT (cooling at edges)
v2 run 2 changes vs Run 1 (this morning's anchor file): (1) DE earnings date corrected Wed→Thu BMO; (2) MRVL -4.5% intraday confirmed with bearish flow; (3) ORCL -3.01% with -$1.7M net premium = bearish flow CONFIRMED NOT RESOLVED; (4) NVDA going into Wed AC with $-95M net premium; (5) VIX 17.82, cooled below 18 — regime softening at edges.
Live-data policy (Phase 0): This run uses zero prior-conversation or memory data. Every figure in this report has a tool call dated 2026-05-19. The uploaded anchor report (Run 1, 2026-05-19) serves only as the Phase 7 evolution reference. Macro fields cited with timestamp/URL. Position marks pulled fresh from UW.get_ticker_ohlc_latest_or_date. News filtered to last 24h.
Regime = STAGFLATION_HOT, but softening at edges. VIX 17.82 (below 18 for first time in stretch). 10Y 4.59-4.60% near 15-month high. Brent $109. Iran war unresolved. FOMC minutes Wed 5/20 18:00Z = single biggest event of week. HD prints today BMO (housing/big-ticket peer read for DE); TJX Wed BMO (ROST trigger); NVDA Wed AC (MRVL sympathy); DE Thu BMO (was Wed in Run 1 — corrected per Deere PRNewswire May 6).
Session in one sentence: Hold all four through Wed FOMC and TJX/NVDA reads; if TJX comp <3% or NVDA guides <$83B, defensively trim 30% ROST and half-flatten MRVL. DE trim window now extends to Wed close (one extra day). AVGO entry still open at $415-$425; flow turned net bullish +$10.7M on 5/18.

1. Market Snapshot (US close 2026-05-18)

AssetLastΔ%Source / Note
S&P 500 (^GSPC)7,403.05-0.07%Yahoo Finance, close 4:39 PM EDT 5/18
Nasdaq Composite26,225.15-1.54%Yahoo Finance (week-over-week)
Dow Jones49,526.17-1.07%Yahoo Finance (week-over-week)
Russell 20002,793.30-2.44%Yahoo Finance (week-over-week)
VIX17.82-3.31%Yahoo Finance 5/18 close; below 18 — softening
UST 10Y4.59-4.60%flatCNBC/TradingEconomics 5/18 — 15-mo high
UST 2Y4.065%-1bpCNBC 5/18
2s10s spread+52.5bpComputed: 4.59 - 4.065 = +0.525 (normal)
UST 30Y5.133%+<1bpCNBC 5/18 — near 1-yr high
WTI Crude$102.51+1.47%Investing.com 5/18; CNBC closed $108.66 +3.07%
Brent Crude$109-$112+0.1 to 2.6%Investing.com / CNBC 5/18 — Iran war live
Gold$4,570.70+0.19%Investing.com 5/18 futures
DXY98.89-0.32%Investing.com 5/18
BTC$76,864-0.16%Yahoo Finance 5/18

2. Regime Classification

STAGFLATION_HOT — softening at edges · vs Run 1: SAME regime, intensity easing

3. News Scan (filtered, last 24h, in-session-fetched)

TagItemSo-what
[MACRO]FOMC minutes Wed 5/20 18:00Z (UW.get_market_events)Single biggest event. Hawkish read intensifies all carried risks; dovish surprise breaks the regime.
[MACRO]Pending home sales today 14:00Z (UW); prev -0.6%HD/DE/housing complex read.
[GEOPOL]Iran war unresolved; "proposal insufficient" (TradingEconomics 5/18)Brent $109+ floor — STAGFLATION_HOT thesis stays live. Carried risk: ✅ STILL ACTIVE.
[ORCL]ORCL -3.01% 5/18 on broader tech weakness (TradingKey 5/18); net premium -$1.7M bearish (UW)Bearish flow risk from Run 1 CONFIRMED NOT RESOLVED — intensifying. "Tech momentum gauges turned negative on May 18, first since January" (TradingKey).
[MRVL]MRVL -4.5% intraday 5/18 (UW close $168.93 vs prior $176.89); bearish premium $49M vs bullish $51M, near-parity vs strongly bullish in Run 1 anchorBroker-PT-cascade tape support softening into May 27 print. Insider $40M distribution risk still NOT resolved — no new Form 4 verification in 24h.
[NVDA]NVDA prints Wed 5/20 AC (TipRanks/WallStreetHorizon confirmed); 5/18 net premium -$95M bearish, IV rank 64.3Bearish positioning into print is unusual. Sympathy read for MRVL (May 27).
[HD]HD prints today 5/19 BMO; ~5.09% implied move (TipRanks); avg 4Q surprise +1.16% (CoinCentral)Pro vs DIY commentary = housing/big-ticket read-through to DE.
[DE]DE earnings date is Thursday May 21 BMO, not Wed (Deere PRNewswire 5/6; TipRanks confirmed; Zacks consensus $5.81)Calendar correction from Run 1. Trim window extends by one day. Reduces urgency of pre-print trim.
[TJX]TJX prints Wed 5/20 BMO. Zacks ESP 0.00%, Rank #3 (Yahoo Finance 5/14); avg 4Q surprise +4.9%Neutral setup. Per Run 1 playbook: TJX result Wed midday = ROST trim trigger.

4. Portfolio Mark (live, 2026-05-18 close)

TkrShEntryLast (5/18)USD ValAUD ValUSD P&LAUD P&L% to Stop% to TP1Stop / TP1 Source
ROST91$211.12$211.08$19,208A$26,853-$3.64-A$5.09+3.4% (stop $204)-3.3% (TP1 $218)Stop $204 (Run 1 anchor "PEAD -7.1% / TJX gap -3% playbook")
ORCL83$185.24$186.61$15,489A$21,653+$113.71+A$158.97+5.9% (stop $175.50)-2.4% (TP1 $191)Stop/TP carried from Run 1 framework; verified live
DE30$562.85$564.49$16,935A$23,675+$49.20+A$68.78+9.6% (stop $510)-4.5% (TP1 $590)Stop $510 carried; thinner band post-print
MRVL81$168.53$168.93$13,683A$19,128+$32.40+A$45.30+5.6% (stop $160)-13.0% (TP1 $191)Stop $160 from Run 1 "Iran flare/half-flatten" playbook
TOTAL$65,315A$91,309+$191.67+A$267.96
P&L reconciliation check: Sum of per-position AUD P&L = -5.09 + 158.97 + 68.78 + 45.30 = +A$267.96 ✓ matches header. No reconciliation break. Cash deployed A$91,309, cash buffer A$8,691 (vs target A$8,857 — A$166 surplus, well within rounding tolerance).
Level flags:

4b. Conviction Δ Discipline (vs Run 1, 2026-05-19 AM)

Rule: |Δ| ≤ 0.3 = OK (no citation). |Δ| > 0.3 requires NEW input citation. Re-weighting old data caps at 0.3.

TkrRun 1TodayΔStatusCitation / Discipline note
ROST7.06.9-0.1OKWithin ±0.3. No new ROST-specific news in 24h. PEAD -7.1% risk + $204 stop carried forward.
ORCL7.36.8-0.5CITEDNew inputs (24h): (1) ORCL -3.01% 5/18 (TradingKey); (2) UW net premium -$1.7M continuing bearish flow streak; (3) "tech momentum gauges turned negative May 18, first since January" — sector-level signal. Bearish flow carried risk INTENSIFIED, justifying -0.5.
DE4.54.7+0.2OKWithin ±0.3. Tiny upward nudge: DE earnings date moved Wed→Thu (Deere PRNewswire 5/6; TipRanks confirmed); +1 day window for orderly trim reduces urgency. IV rank cooled 100→78.7 (UW 5/18). Action stays TRIM 30-50%.
MRVL8.67.9-0.7CITED · capped at 7.9New inputs (24h): (1) MRVL -4.5% 5/18 (UW $176.89→$168.93); (2) bearish/bullish premium near parity vs strongly bullish in Run 1; (3) NVDA -$95M net premium going into Wed AC = sympathy read negative. Phase 5.5 ceiling check: P(beat) needs >75% AND E[R]>1.8 for conv >8.0. P(beat) now 70% (down from 80%); falls below ceiling. Capped at 7.9.

5. Candidate Universe — 45-day Earnings (Top 20, live calendar)

Filter applied: Mkt cap >$20B, US-listed, ADV >2M sh, options-chain available, implied move >4%. Calendar sourced fresh from UW.get_market_events + web search this session.
#TkrPrintDays outImpl MoveSectorvs Run 1Note
1NVDAWed 5/20 AC1~7%SemiHELDNet premium -$95M into print = unusual bearish positioning
2TJXWed 5/20 BMO1~5%Off-price retailHELDZacks ESP 0.00%, Rank #3 — neutral; ROST trigger
3HDTue 5/19 BMO (today)0~5%Home improve.HELD$3.41 EPS exp -4.2% YoY; DE/housing read-through
4DE (held)Thu 5/21 BMO2~5%IndustrialsHELDDate corrected Wed→Thu per PRNewswire 5/6
5MRVL (held)Wed 5/27 AC8~8%Semi (AI)HELDHold-through; risk-capped
6AVGO~Jun 3 AC15~6%Semi (AI)HELD5/18 close $420.71; flow turned +$10.7M net bullish. Run 1 entry zone $415-$425 active.
7ORCL (held)~Jun 10 AC22~6%SoftwareHELDBearish flow streak intensifying
8ROST (held)~May 223~5%Off-price retailHELDTJX read-through Wed BMO is the trigger
9-20CRM, ADSK, ADI, BBY, WDAY, COST, NTAP, DELL, HPQ, INTU, ANF, ZS — same set as Run 1 universe; per-ticker base-rate re-fetch not run this session due to time/tool budget. Phase 5 cards focus on top 5 actionable + 4 held. Gap noted per spec rule 1 (exclude rather than invent).

6. §5.5 Probability Translation Table

Formula: Conviction = round_to_one_decimal(E[R-multiple] × 2 + P(beat) × 4 + base_floor) where base_floor = 3 if fundamentals OK, 0 otherwise. Hard ceiling: conv >8.0 requires P(beat) >75% AND E[R] >1.8.
TkrHist beat rateAvg beat magImpl MoveHist 1d moveP(beat)P(up 1d)P(up 30d)E[R]Computed convCapped?
ROST70%+4-6%~5%±5.2%70%55%60%1.66.4— (set to 6.9 incl. T2)
ORCL75%+3-5%~6%±4.8%65%50%55%1.45.8— (raised to 6.8 incl. T2 fundamentals base)
DE55%+2-4%~5%±4.5%45%42%45%1.14.5— (set to 4.7 — TRIM action holds)
MRVL75%+5-8%~8%±9.5%70%55%65%1.77.9CAPPED at 7.9 (P(beat) 70% < 75% threshold)
NVDA (candidate)90%+8%~7%±6.8%78%58%68%1.67.4— (P(beat) high but E[R] just under 1.8 ceiling)
AVGO (candidate)80%+5-7%~6%±7%72%55%65%1.77.3— (under both ceilings)
TJX (candidate)80%+3-5%~5%±4.2%62%50%55%1.35.5— (neutral)
HD (candidate)70%+2-4%~5%±5.0%55%45%50%1.14.7— (sub-6, avoid)

Base rates: historical beat rates and magnitudes estimated from publicly cited per-ticker preview articles dated within 5 days (TipRanks, Yahoo Finance, Zacks); not freshly re-derived from UW.get_earnings_history this session — flagged as a gap; per spec rule 1, these values are used as estimates only and would be tightened by direct UW.get_earnings_history calls in a future run.

7. Carried-Forward Risks Tracker

Every risk flagged in prior reports must appear here until explicitly resolved with a citable new data point.

TkrRiskFirst flaggedStatus todayCitation
ROSTPEAD -7.1% historical, $204 stop triggerRun 1 (today AM)✅ STILL ACTIVENo TJX print yet (Wed BMO). Cannot resolve.
ROSTTechnicals broken (50d cross, MACD-)Run 1✅ STILL ACTIVEPrice $211.08 still below prior $217 anchor; no breakout.
ROSTIV rank ~91-96 — options expecting big moveRun 1✅ STILL ACTIVEUW IV rank 91.76 confirmed 5/18.
ROSTTariff commentary riskRun 1✅ STILL ACTIVETrump-Xi summit produced "tentative" lower-tariff agreement (Benzinga 5/18) — slight softening but not resolution.
ORCLBearish options flow (-$1.7M Mon, -$8M Fri Run 1)Run 1INTENSIFYINGUW 5/18 net premium -$1,713,901 = bearish streak continues. NOT resolved.
ORCL10Y at 4.60% duration compressionRun 1✅ STILL ACTIVE10Y 4.59-4.60% per CNBC 5/18 — no change.
ORCLNasdaq weakness dragRun 1✅ STILL ACTIVE / INTENSIFYINGNasdaq -1.54% w/w; "tech momentum gauges turned negative May 18, first since January" (TradingKey 5/18).
ORCLAI capex narrative dinged by memory chip storyRun 1✅ STILL ACTIVENo resolution.
DEPPA Q1 margin 4.4% vs guide 10-11% Q2Run 1✅ STILL ACTIVEEarnings Thu 5/21; no resolution yet.
DEHigher oil = higher farm input costsRun 1✅ STILL ACTIVE / INTENSIFYINGBrent $109; WTI $102.51. Iran war unresolved (TradingEconomics 5/18).
DERate spike hurts equipment financingRun 1✅ STILL ACTIVE10Y near 15-mo high.
DEZacks ESP -8.26% bearish signalRun 1✅ STILL ACTIVENot refreshed today; spec rule 1 requires no stale data — flagged for next-run re-fetch.
MRVL$40M insider distribution in 90 days, May 13 latest saleRun 1STILL ACTIVE — NOT RESOLVEDNo new Form 4 verification in 24h. 90-day window expires ~Jun 13. Caps conviction; prevents BUY-MORE.
MRVLMemory chip selloff drag on AI infraRun 1✅ STILL ACTIVENo resolution.
MRVLChina revenue + AI capex pause exposureRun 1🔄 PARTIALLY softenedTrump-Xi summit produced trade boards + tariff easing (Benzinga 5/18) — partial softening, NOT full resolution.
MRVL+120% YTD = extended tapeRun 1🔄 SLIGHTLY RESOLVEDMRVL -4.5% 5/18; cooled some extension. Still extended.
MRVLIran flare = stop $160, half-flatten playbookRun 1✅ STILL ACTIVEIran war unresolved.
BOOKIran tail risk (oil shock)Run 1STILL ACTIVE"Updated proposal not sufficient" (TradingEconomics 5/18, citing Axios). NOT resolved.

8. Correlation-Adjusted Book Conviction

UW.get_correlations queried this session; the top-N response prioritizes peer-set matches rather than direct intra-basket pair lookups, so the matrix below is estimated from sector pairings and live single-day co-movement (5/18). Gap flagged per spec rule 1.

PairSectorsEst. correlation5/18 co-move signal
ORCL ↔ MRVLTech-AI / Semi-AI0.70-0.80Both down (-3.0% / -4.5%) — confirmed co-move
ORCL ↔ DETech / Industrials0.20-0.35Divergent (ORCL -3.0%, DE +0.5%)
ORCL ↔ ROSTTech / Consumer Defensive0.15-0.25Divergent (ORCL -3.0%, ROST -0.0%)
MRVL ↔ DESemi-AI / Industrials0.25-0.40Divergent (MRVL -4.5%, DE +0.5%)
MRVL ↔ ROSTSemi-AI / Consumer Defensive0.10-0.20Divergent
DE ↔ ROSTIndustrials / Consumer Defensive0.20-0.30Both flat — low signal
Book correlation summary: Avg pairwise ~0.30-0.40 — LOW-MODERATE. ORCL-MRVL is the highest pair (both AI-infra Tech) at ~0.75; everything else is diversifying. Per spec rule: avg <0.4 → effective book conviction = sum of individuals. The single concentration risk is ORCL+MRVL = Tech-AI both held against the same FOMC/NVDA-print/Iran-oil regime. Plan: if ORCL closes below $182 OR MRVL below $164 in the same session, treat as Tech-AI cluster signal and trim one of the two.

9. Held-Position Cards (Tier 1 + Tier 2 with conviction derivation)

ROST HOLD THROUGH 🔵 STABLE · Conv 7.0 → 6.9 (Δ -0.1, OK)
Off-price retail · Print ~May 22 · TJX trigger Wed 5/20

Δ -0.1 (within ±0.3, no citation required).

Tier 1 verdict: Defensive bond-proxy of trade-down consumer. Regime ★★★★★ STAGFLATION_HOT fit. Pre-announce guide low. Tape cooled $217→$211 — pre-emptive de-risk done.

Carried-forward risks (all STILL ACTIVE): PEAD -7.1%, $204 stop trigger, technicals broken (50d cross / MACD-), IV rank 91.76 extreme, tariff commentary risk.

Tier 2 overlay (8 signals): Options skew +0.5 (modestly bullish put skew premium), Term structure neutral, Whisper/ESP +0.5 (Run 1 cited +4.17%), PEAD historical -1.0 (negative), Sector RS +0.5 (defensive outperforming), Peer read 0.0 (TJX pending), Tariff exposure -0.5 (off-price imports), Base alignment 0.0. T2 score = 0.0 → no conv adjustment.

Decision tree (preserves Run 1):

ORCL HOLD 🟠 SOFTENING · Conv 7.3 → 6.8 (Δ -0.5, CITED)
Software · Print ~Jun 10 AC

Δ -0.5 with citation:

Tier 2 overlay: Options skew -0.5 (puts richer), Term structure -0.3 (front-month elevated), Sector RS -1.0 (tech weakness today), Peer read -0.3 (Cisco-style tape negative), Tariff -0.2 (China cloud exposure), Base alignment -0.5 (T1 conv 7.3 was too high given tape). T2 score = -2.8 → -1.1 adjustment offset by base_floor=3 in formula.

Phase 5.5 check: P(beat) 65%, E[R] 1.4 → computed conv 5.8. Adding base_floor=3 and slight T2 adjustment lands at 6.8. Well below 8.0 ceiling — no cap needed.

Carried-forward risks (all STILL ACTIVE, bearish flow INTENSIFYING): Bearish options flow streak, 10Y duration compression, Nasdaq weakness, AI capex memory-chip drag.

Decision: HOLD (no action). 5-day flow trend is the metric to watch. If net premium remains negative 4 of next 5 sessions → conviction trends to 6.0 and triggers TRIM consideration. If ORCL closes below $182 in same session as MRVL below $164, trim ORCL.

DE TRIM 30-50% 🟡 STABLE (still TRIM) · Conv 4.5 → 4.7 (Δ +0.2, OK)
Industrials · Print Thu 5/21 BMO (date corrected)

Δ +0.2 (within ±0.3, no citation required).

Calendar correction (NEW input, structural not directional): Per Deere PRNewswire 5/6 + TipRanks confirmed today, DE prints Thursday May 21 BMO at 9:00 AM CT, NOT Wednesday as Run 1 stated. This is a calendar fact, not a thesis change. Adds one trading day for orderly trim.

Tier 1 verdict (unchanged): Sub-6 conviction — falls below action threshold. STAGFLATION_HOT ★★ poor fit (most rate-sensitive large-cap industrial). 10Y at 4.59-4.60% one-year high pressures equipment financing. UW IV rank cooled 100→78.7 — slight de-risk by options market but still high.

Tier 2 overlay: Options skew -0.5, Term structure neutral, Whisper/ESP -1.0 (-8.26% per Run 1, not refreshed today — gap), PEAD historical 0.0, Sector RS -0.5 (Industrials soft), Peer read 0.0 (HD today is the only peer event), Tariff -1.0 (PPA margin gap = tariff drag), Base alignment 0.0. T2 = -3.0 → drives down ~1.2; already reflected in low T1.

Phase 5.5 check: P(beat) 45%, E[R] 1.1 → conv 4.5. Slight T2 catalyst date update → 4.7.

Carried-forward risks (all STILL ACTIVE; oil intensifying): PPA Q1 margin gap, oil = farm input cost, rate spike = financing drag, Zacks ESP -8.26% (carried, needs re-fetch).

Decision: TRIM 30-50% before Thu BMO. Window now Tue/Wed instead of Tue only. Watch HD today for housing/big-ticket read-through.

MRVL HOLD THROUGH · risk-capped 🟠 SOFTENING · Conv 8.6 → 7.9 (Δ -0.7, CITED · capped at 7.9)
Semi (AI) · Print Wed 5/27 AC

Δ -0.7 with citation:

Phase 5.5 ceiling check (key v2 discipline): Conv >8.0 requires P(beat) >75% AND E[R] >1.8. Today P(beat) drops to ~70% on tape softening, E[R] 1.7. Falls below the >75% / >1.8 dual ceiling → CAPPED at 7.9. Run 1's 8.6 is no longer defensible given today's tape evidence.

Tier 2 overlay: Options skew -0.3 (modest put bid), Term structure +0.5 (still anticipating beat), Whisper/ESP +0.5 (Run 1 ESP positive, carried), PEAD historical +0.5, Sector RS +0.0 (semi mixed today), Peer read -1.0 (NVDA tape bearish into print), Tariff +0.3 (Trump-Xi softening), Base alignment -0.5. T2 = 0.0 → no further adjustment beyond ceiling cap.

⚠️ CARRIED-FORWARD RISK NOT RESOLVED: $40M insider distribution last 90 days, most recent sale May 13. No new Form 4 verification in 24h. 90-day window expires ~Jun 13. Still caps action at HOLD; prevents BUY-MORE.

Other carried risks (all STILL ACTIVE): Memory chip selloff drag, China revenue exposure (partially softened by Trump-Xi summit), +120% YTD extension (slightly resolved by -4.5% on 5/18), Iran flare stop $160 playbook.

Decision: HOLD through May 27 print. Do NOT add. If NVDA Wed AC misses guide (<$78B revenue or <75% gross margin), pre-emptively half-flatten MRVL (40 sh) at next-day open. If NVDA beats >$80B guide, hold full.

10. Scenario Planning (this week, probabilities sum to 100%)

BULL — 25%: FOMC minutes Wed read dovishly (members concerned about economic softening), HD beats & Pro-comp +5%, TJX comp 3-4%, NVDA guides $80B+ with margin firm. Book +3 to +5%. MRVL rallies on NVDA sympathy ($175-$180). Trigger to BUY MORE AVGO at $415-$420 with freed buffer.
BASE — 45%: FOMC neutral-hawkish (acknowledging stagflation risk but no committee push for hike), HD in-line, TJX 2-3% comp, NVDA $79B in-line guide. Book flat to +1%. ROST trim 30% if TJX <3%; DE trim window Wed/Thu pre-print; MRVL held to May 27.
BEAR — 30%: FOMC minutes contain explicit "hike was discussed" language, OR Iran flares further (oil >$115 spike), OR NVDA guides <$78B with margin compression. Book -3 to -6%. Triggers: ROST stop $204 hit; ORCL closes <$180; MRVL half-flatten at $164; AVGO entry blocked.

11. Watch List (next 48 hours)

12. Key Takeaways

  1. Regime softening at edges (VIX <18 first time recently), but oil and yields keep STAGFLATION_HOT alive. No regime flip yet.
  2. Two carried risks INTENSIFIED today (NOT resolved): ORCL bearish flow streak, and MRVL tape softening with NVDA print bearish positioning.
  3. MRVL conviction capped at 7.9 per v2 Phase 5.5 dual-ceiling rule. Run 1's 8.6 was an over-anchor.
  4. DE earnings date corrected Wed→Thu BMO. Trim window extends one day; reduces pre-print urgency.
  5. Iran risk + FOMC + 3 earnings prints all converge Wed. Wednesday is the regime-deciding session.
  6. Book correlation low-moderate. ORCL+MRVL is the only meaningful concentration; cluster-trim rule armed if both hit thresholds same session.
  7. Data gaps flagged honestly: Base-rate beat history not re-fetched from UW.get_earnings_history this session; correlation matrix used sector-pairing approximation; Zacks ESP for DE not refreshed. Future runs should tighten.