📈 Broad-Based Rotation

This is what institutions are buying.

Broad-Based Rotation

In yesterday’s newsletter, we talked about how earnings are becoming more important than ever, and the stocks that are blowing out earnings are being rewarded for it, while mediocre earnings are being punished.

A lot of this is happening because institutions are moving on from AI hyperscalers to the next group of companies that are poised to reap the benefits of AI.

Let’s dive a little deeper into some of the names because while they have already moved a lot, they still have huge potential going forward.

One name to watch is Affirm, which blew out earnings guidance and made a higher high on the earnings bar yesterday.

This has the potential to continue to grind higher.

SMCI is another name that has a massive short position going into their earnings report. Some of that short position is being unwound and we are seeing a massive squeeze.

This still has legs, and if earnings are better than expected, this stock has huge potential.

RDDT has been acting incredibly well, grinding higher each day. The stock is up over 100% from its last earnings announcement which gives me pause going into this quarter’s earnings.

Even if they have a great quarter it’s possible the event is treated as a “sell the news” event.

For more names that I am watching for entry, watch this video: