Market Review for the Week of Feb 18-21
Industry rotation is a coming!
For anyone following my journey, one of my biggest hurdles is not taking risk and being afraid to do so! Where most traders have FOMO, I have the opposite, fear of taking risk (FOTR), which has its pros and cons.
That said, by using tiny size, I can experience the market without this fear (or at least a reduction in it). I still have moments of FOTR but it is reduced to the point where if I find a trade that looks promising, I am taking it, 60-80% of the time, which is great in my eyes.
Okay, so what am I seeing this week…! Let’s jump in!
If I missed any noteworthy themes or industries, OR just want to chat, leave a comment 😀
SUMMARIZED
Hot Themes:
Data Centers
Internet of Things (IoT)
Aerospace & Defense
Nuclear
Cybersecurity
Other Themes to Note - AI healthcare, China education, credit services, logistics, gambling
Mild Themes:
Gold (Precious Metals)
Airlines
Electric Vertical Take-off and Landing (EVTOL)
Robotics
Battery Tech
Quantum
Cold Themes:
Uranium
Drones
Homebuilders
Solar
OVERALL MARKET:
SPY 0.00%↑ → US Large Caps (Market Weighted)
SPY breaking out of its range is a great sign. I lean neutral long, currently, and am more confident in pushing longs this week, if I find setups.
IWM 0.00%↑ → US Small-Caps
Small caps still chopping around.
QQQ 0.00%↑ → Large Cap Tech
Compared to SPY, QQQ had a clear breakthrough. This solidifies my thesis of pushing longs this week.
HOT THEMES:
Data Centers
Data Center tickers remain front and center as the hottest theme! Last week I caught a great breakout on BBAI. Helped boost my confidence a bit.
TSSI 0.00%↑ - Great setup forming
INOD 0.00%↑ → Previously broke out. Missed but good to keep watch
And many others!
Internet of Things (IoT)
I am going to caveat this theme and tickers within this theme, as I have been combining a lot of the AI, cloud, data centers, and IoT themes all in one. It is hard trying to classify certain tickers because normally companies that operate in one of these industries will operate in others.
A few clear IoT tickers stand out to me:
GRRR 0.00%↑ → No clear setup for me but a definite mover
AIOT 0.00%↑ → Pending further consolidation
IOT 0.00%↑ → No clear setup for me but a definite mover
Aerospace & Defense
Second to the data center theme, A&D comes in second as a top theme I am watching. Key leaders like PLTR are holding strong after earnings while small names are in my cross hairs.
Nuclear
I am not as strong as I was a few weeks back for nuclear names. I thought they would recover quickly but a lot of tickers are still choppy or slowly grinding higher.
Cybersecurity
Still a strong theme but difficult to find good RR or setups that are clean enough to consider for me!
CIFR 0.00%↑ → ETF
Other Themes to Note
AI Healthcare
China Education
Credit Services
Logistics
Gambling
MILD THEMES:
Gold (Precious Metals)
Gold prices have been rising and have gotten out of their range from Dec 2024. Which means there are a few tickers that are setting up. I would have imagined that more tickers are setting up but it’s been a struggle finding clean charts with clear risk-reward (RR). Note, even silver and copper, as well as other precious metals prices are moving higher.
Also, last week, a handful of metal names had huge swings down that caused some panic!
For now, I am keeping an eye on this theme but I need cleaner setups.
Airlines
What I thought was a hot theme, turned out to be a bust. Earnings on ULCC killed my hopes as there was a nice gap up but failed. The airline ETF is holding but the tickers that I’ve been looking at are chopping around.
JETS 0.00%↑ → Airline ETF
Electric Vertical Take-off and Landing (EVTOL)
ACHR is the only name that has some potential but the theme as a whole doesn’t look promising.
Robotics
Still a mixed bag. Only Richtech Robotics looks decent (tight consolidation) but a lot of chop from this theme!
Battery Tech
Mostly chop and ranging stocks now. Momentum and volume in this theme have dropped significantly in the past few weeks.
Quantum
Again, just like most themes in the mild category. A lot of CHOP! In order to trade this theme, a catalyst/volume is needed.
QTUM 0.00%↑ → ETF
COLD THEMES
Uranium
I want to put this on my radar as uranium keeps dropping. An example of a clear setup (in hindsight) is UEC and the clear breakdown on Friday. Even the ETF junior miners have broken down. Could see further setups in the coming weeks.
Drones
Because most of the drone names have collapsed, it is going in the cold section. I don’t think I would trade any of these names short but, I don’t want to be long, that’s for sure!
EH 0.00%↑ → The only ticker that has bullish movement!
Homebuilders
Homebuilders have been hit hard since Dec 2024. Most names are too slow (ADR%) for me to play.
NAIL 0.00%↑ → ETF
Solar
Solar showed some strength last week with a handful of tickers moving higher.
TAN 0.00%↑ → ETF
RUN 0.00%↑ → Potential bounce and decline from its upper trend line
DQ 0.00%↑ → Potential bounce and decline off resistance
Happy trading friends,
F4VS
Good stuff. How do you scan for themes like Data centers or IoT’s?