Public trading strategy
Market tanks on Fed news but chip gear stocks hit record highs — buy the strengt
Thesis
When a specific industry goes up on a day the rest of the market is crashing, it shows extreme investor confidence in that sector. The artificial intelligence boom is clearly keeping demand for chip-making equipment sky high, acting as a shield against the broader fear of higher interest rates. Buying the companies hitting all-time highs on a down-market day is a strong way to follow the money.
Strategy approach
Build a rule-based strategy that enters long ASML, AMAT, and LRCX on D when price closes within 2% of a 52-week high and SPY is down more than 0.5% on the same day, with a 21-day max hold and an 8% trailing stop.