@jfsrev@Qullamaggie Hi Jeff! I'm really intrigued by your ATR concept of taking partial profits depending on how far price is from its 50MA. I always seem to sell to late and I would like to learn more. If I may ask, where could I find a more detailed explanation of this concept?
@TaPlot@marketsurge GM TA! I agree. I was sorting through my screens last night and a number of bio stocks kept popping up. If I may ask, what's your take on IMMX? This one seemed poised for a move up. ๐ค Thanks!
@RichardMoglen@Deepvue $ROK looks very similar and it's only 5 multiples from its 50MA vs 12 for $STRL. I'll be keeping a close eye on both ๐. Thanks for sharing, Richard.
@TamasPeter7@TaPlot One thing Iโve started doing is selling half my position at 2R and moving my SL to breakeven. Best case: price keeps running and I still have skin in the game. Worst case: I get stopped out at breakeven on the remainder. Helps me manage risk better. ๐
@TedHZhang Countries that seem to be at or nearing an energy crisis seem to be willing to pay the toll to Iran in order to get the oil they need. I wonder how long this type of extortion will last.
@TedHZhang Interesting read. I read George Noble's take on AI and it also makes for an interesting read, although from a contrarian point of view. I wonder how it will eventually actually pan out. ๐ค https://t.co/NwVFzgq23C
I've been saying it for months: The AI hype will die.
And I'm watching it happen in real time.
Let me tell you something about market cycles after 45 years on Wall Strett:
When everyone believes the same story, when valuations price in perfection, when "this time is different" becomes consensus...
That's when the trade is OVER.
The Mag 7 spent $380 billion on AI infrastructure in 2025.
CFOs across America can't point to measurable returns.
No productivity gains. No labor savings. No revenue acceleration.
Just massive capex and promises of transformation "coming soon."
I've seen this play out before.
Dotcom 2000. Everyone knew the internet would change everything.
They were RIGHT about the technology.
They were WRONG about the timing and the valuations.
The companies that survived took 15 years to make new highs.
Here's what's happening now:
The Mag 7 has already started underperforming.
Since October 2025, the S&P 493 is outperforming the Magnificent 7.
Small caps are waking up.
The Russell 2000 is finally showing signs of life after years of underperformance.
This is the rotation I predicted.
And it's just getting started.
Why small caps now?
Because they're trading at decade-low valuations relative to Big Tech.
The P/E spread is 10+ points.
But earnings growth is only 5 points lower.
You're getting 95% of the growth at 50% of the valuation.
The Mag 7 is priced for AI transformation happening NOW.
But Goldman says measurable GDP impact doesn't start until 2027.
That's a 2-3 year gap between expectations and reality.
Markets don't wait politely when they realize they're wrong.
I ran the #1 mutual fund in the country at Fidelity and worked under Peter Lynch.
And I'm telling you: This is what a market top in a narrow leadership group looks like.
Not a crash. Not a crisis.
Just a slow realization that the future takes longer to arrive than the stock price assumed.
Meanwhile, small and mid-caps are trading like it's 2008.
Except we're not in a financial crisis.
We're in a market where everyone is crowded into seven stocks and ignoring 2,500 others.
That doesn't last.
The AI infrastructure build is real.
But infrastructure builders get paid first.
Productivity beneficiaries get paid later.
Much later.
And the market is finally starting to figure that out.
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@FinFreedom414 If I may sheeplesly ask, why not just wait for a close above the 200WMA before entering? It seems you would likely avoid all the sideways chop and place your self at the start of the upward trend. Thanks for your response and your post.
@TedHZhang Hi Ted! If I may ask, how do I find strong sectors/themes? Should I scan the different sectors and sort them according to their RS rank; and only focus on trading the top ranking sectors? I'm just wondering if there is something I might be missing? Thanks in advance, my friend.
@TmarketL Thank you for sharing. This has helped bring some clarity to help me line up my entries with the up-trend. Looking back at my recent trades, if I had waited for 9>21 I would not have been stopped out.
@PeterLBrandt Go do something else with your time. Your life is too valuable to spend it here on X. I'm sure you can find a better activity for you to partake in.