Growth Themes Leading the Market | Week of June 22
Where the strength is, before the week opens.
None of this is financial advice. This is one trader’s read on where leadership sits right now.
Three groups are leading this market. Keep your eyes on the leadership within these groups for potential entries into market leading moves.
Theme One: The AI trade, and it lives in the chips.
When people say the AI trade, they mean four things wearing one jersey: semiconductors, memory, neoclouds, and energy. They tend to move together.
The chart that matters is SMH, the semiconductor ETF. It carries a 98 relative strength rating, which tells you plainly where leadership sits. Semis are the cleanest read on where this market wants to go.
The swing factor this week is Micron. MU reports Wednesday, and memory sits right inside this theme. A weak print is a speed bump for the whole AI trade. A strong one could be the trigger that sends these names straight up. It is the most important event on the calendar this week.
If leadership stays here, and right now it is here, you want a plan for how you would get exposure if the group keeps running.
Theme Two: Biotech is quietly setting up.
The chart here is XBI. It spent most of the year going sideways, basing and building, the same patient consolidation the AI names did before they ran. On Wednesday the 17th it broke out of that flat base to new highs on good volume.
For a while the assumption was that software would be the second engine of this market. Software is showing its hand a little, and it needs more time. Biotech is the group actually shaping up.
What we want now is follow-through. A breakout is a claim. Follow-through is the proof. Watch XBI to see if the move holds and whether the leading names confirm it.
Theme Three: Quantum found its footing.
The ETF to watch is QTUM. The major quantum names had a meaningful end to the week, several of them bouncing right off the 50-day moving average. When a whole group finds support at the same logical level, the market is telling you something.
Some of these names carry real earnings and sales growth underneath a story that already gets people excited. That is a rare combination.
QTUM is shaping up for potentially higher prices. The thing to confirm is whether the real leaders in the group follow through, because the ETF can only take you so far.
That is the map. Chips leading, biotech setting up, quantum waking up, and a Micron report Wednesday that could shift the whole tone.
If you want the specific names inside these themes, the pivots, the entries, and exactly how we are managing risk on each one, that is what the Weekly Trading Plan is for. It goes out with the charts and the levels.
Have a great week. Watch the leaders!
Understood! Thank you, Ghost Alpha. Always appreciate the knowledge and info.
nicely written