Weekly Stock Market Watchlist: Sector Rotation & Top-Down Analysis

What's up, Studs? If you look at the Nasdaq today, you might think the market is dead. We are down four days in a row on the Mega Caps.

But if you use Top-Down Analysis, you will see that the "Lame 7" Tech stocks are dead, but the "Hidden Market" is on fire.

I have been trading since 2008, and this is a classic rotation. Money is leaving tired tech names and flowing into Solar, Steel, and Space.

The "Day Trader Liquidity" Rule

Before we get into the tickers, a warning for Day Traders: Check your liquidity.

• The Trap: You see a hot sector like Steel ($SLX). You want to day trade it.
• The Reality: Most steel stocks like Gerdau ($GGB) or Sid Nacional ($SID) trade under 2 million shares a day.
• The Rule: If it's illiquid, you Swing Trade it. You do not Day Trade it. You can't flip 10,000 shares of a stock that barely moves. Stick to liquid names like Western Digital ($WDC) for day trading.

Sector 1: Solar ($TAN)

The Solar ETF ($TAN) is heating up. It looks exactly like the SanDisk breakout pattern we loved last week.

• First Solar ($FSLR): A "Hottie with a Body." Breaking out of a massive weekly base.
• Shoals ($SHLS): Back-testing its breakout spot.

Sector 2: Space & Drones

This theme continues to deliver.

• Rocket Lab ($RKLB): Had a morning flush on Friday and reclaimed. That is a bullish signal.
• Redwire ($RDW): Level break setup. Fantastic look.
• Ondas ($ONDS): Pulling back to test the $10 level. I am watching for a bounce here.

Sector 3: Uranium & Metals

• Energy Fuels ($UUUU): This stock fell from $30 to $11. It is now putting in a bottoming pattern. "You, You, You" need to watch this one.
• Silver ($EXK): Still watching the $10 breakout spot.

The "Lame 7" Avoid List

I am staying away from Google ($GOOGL) and Palantir ($PLTR). Every spike in these names is getting sold. That is "Distribution Behavior." Do not fight the flow.

Disclaimer: This is for educational purposes only and not financial advice. Trade at your own risk.\

If your having some trouble with your mental game. CHECK out my new trading pyscholoogy video we do a deep dive into the mental game: How To Beat Trading Psychology (After trading for 20 years)

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About the Author: Kunal Desai

Kunal Desai is the CEO and Head Trader at Bulls on Wall Street. A day trader since 2008, Kunal specializes in momentum trading and Top-Down market analysis.

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