Speculative Growth Is Heating Up

The stock market just closed higher for 9 straight sessions.

We’re seeing a textbook V-shaped recovery unfold, especially with major indexes and sectors reclaiming key levels and repairing the damage from last month’s selloff.

When we look under the surface, the more speculative, high-beta areas of the market are starting to wake up and look ready to catch higher.

We call that risk appetite. And that’s exactly what our custom speculative growth index was designed to track. 

After a sharp pullback, the riskiest stocks in the market are bouncing right where they should.

Former resistance has turned into support. It’s the polarity principle at its finest. 

But the most important takeaway from this chart is the illustration of a full market cycle trend reversal.

On the left side, we see a falling 200-day moving average, pointing out a textbook downtrend. 

Then comes the transition to a trendless environment, with a flat moving average as the base builds out. 

And for the past year, we’re in a fresh uptrend, confirmed by a rising moving average.

This successful retest might be the final step before we finally see these stocks embark on a strong leg higher.

We want to be overweight this theme. 

Today, I want to spotlight one of our internal scans—and some of my favorite trade ideas from it.

We pulled together all the tickers from 10 of the most speculative ETFs out there (think ARK funds, QTUM, UFO, IPO, etc.), and ranked them based on two simple but powerful metrics: performance off recent lows and 14-day RSI.

This gives us a clean view of which names are leading the charge in speculative growth—and which ones are quietly gaining momentum under the surface.

Let’s dig into the standouts.

First up, we have Rigetti Computing $RGTI:

After an explosive move last year, RGTI has been consolidating in a tight range, digesting gains in a healthy, constructive way.

Now, price is testing a critical shelf of former highs that align with the IPO level—an important battleground between buyers and sellers.

Any decisive move above this area could trigger the next leg higher.

During this corrective wave, the stock has never once flashed an oversold reading, suggesting the bulls remain in charge.

We're long above 10, with an initial target of 16 over the next 1–3 months, and a secondary objective near 25.50.

We’re also watching the anchored VWAP from the all-time high as a key level to add conviction to the trade.

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