Public trading strategy
Chip gear stocks hit record highs while the broader market tanks — buy the AI mo
Thesis
While the overall market struggled today due to concerns about interest rates, the companies that build the equipment for artificial intelligence chips are still seeing massive demand. When a specific industry hits record highs on a down day for the market, it shows that investors are prioritizing that sector regardless of broader economic worries. This suggests the momentum behind chip equipment makers is strong enough to weather the broader storm.
Strategy approach
Build a momentum strategy that enters long ASML, AMAT, and LRCX on the Daily timeframe when price closes above the 50-day SMA and the 14-day ROC is positive. Set a 10% trailing stop loss and a 30-day max hold period.