7/16/26 Recap

The SPY believe it or not is still trending just fine, all the pain is contained to the semis and memory trade which unfortunately is where most people are levered long. If you zoom up, most everything else is doing ok but Korea continues to implode every other day with the Kospi nearly down double digits last night. The chaos unfolding in semis is probably overdone, but that doesn’t matter because the sellers are unloading and causing a doom spiral. I do think in the next 2-3 weeks you’re going to hear of increased capex and semis will be fine, but for now, the levered players are getting shaken out.

The SMH, below, is now clearly well below the 50 day, this is a breakdown, you do not add anything here until you see some semblance of a bottom with a bounce over the 50 day at a minimum. Fundamentally these names are sold out, they’re inexpensive, and honestly I don’t even think they’re cyclical anymore as this ai spend is permanent at this point, but that doesn’t matter because for now, these are in the doghouse. The charts are showing you buying and selling and this chart is alot of selling with no buying at the moment.

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I’m going to start posting some of the top large cap scans here everyday for you just for those who don’t spend time in the database, again there’s countless things to scan for in the database but these are the names that are large caps and screen well. How you trade them is up to you but these meet multiple parameters I look for when scanning for strength

My Open Book

Trades I Made Today