Welcome back for another Top Down Trade of the Week.
This one’s a classic leadership scan.
We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it.
This week, Technology is the big standout—climbing seven spots in our sector rankings.
While Energy maintains the top spot, Industrials and Communications have also gained ground.
Here is a look at our overall industry rankings, which shows semiconductors jumping into the top 5.
Semis just failed to complete a top relative to the broader market and are now reasserting their leadership.
If this risk-on group is in good shape, then stocks are likely to perform well in the future. So this is a positive development from a broader market perspective.
These are the Top 10 semiconductor names, sorted by relative strength.
My favorite setup from the list is Credo Technology Group Holding Ltd $CRDO:
The stock has been carving out a base for most of the year. After a big move recently it looks like all the overhead supply at this resistance zone has been absorbed. .
If and when it breaks above 86, I want to be long with a target of 121.
Our team at ASC is constantly running these kinds of top-down scans. If you want access to our research and the trade ideas that come out of it, join us today—risk free.
