With the markets still extended, now is the time to scale down in position sizing, while still focusing strictly on the cleanest setups (in the strongest sectors) of the market.
While technology is the clear leader at this point, the extended charts of AMZN, MSFT, and others in the technological sector do not offer attractive entries at these levels.
The semiconductors, however, do look like attractive entries here. SMH has our favorite combo: a weekly and daily squeeze, both of which have the bullish structure we’re looking for in this market.
Over the next handful of weeks, we’ll be scoping out opportunities in the semiconductor space in setups like AMD, TSM, and others. Check out the video below to get a full rundown of our trading plan for next week.
Stay Focused!