Public trading strategy
Micron proves AI demand is booming while tech sells off — buy the dip in semis
Thesis
Despite Micron confirming that AI demand is stronger than ever, large-cap tech stocks are tumbling. This divergence — great fundamentals but falling prices — signals that investors are fatigued by big tech valuations and are looking elsewhere. With small caps simultaneously experiencing their strongest run since 1991, this creates a textbook rotation setup. When mega-cap tech stumbles on good news while small caps hold their ground, money usually flows downstream to catch the next wave of growth.
Strategy approach
Build a rule-based rotation strategy on D1 timeframe. Enter long IWM when QQQ drops >1.5% in a single session AND IWM closes positive or flat on the same day. Exit when IWM makes a 10-day low or after a 30-day max hold. Include a 5% trailing stop.