Welcome back for another Top Down Trade of the Week.
This is 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’s standout is Technology, which climbed to the top position in our sector rankings.
Tech now makes up nearly 30% of the S&P 500, and with the sector breaking out to new all-time highs, it’s about as bullish a setup as you can get for a year-end rally.
Here’s a look at our overall industry rankings, which show Semiconductors breaking into the top 10.
Semis are breaking out to record highs, kicking off what looks like a new leg higher.
This group is the ultimate risk-on gauge. As they go, so does the market.
Below are the Top 10 names in the Semiconductors subsector, ranked by relative strength.
This week’s spotlight stock is SiTime Corp $SITM:
The stock has been carving out a 3.5-year base and is now pressing up against key resistance near 360.
This level has served as a brick wall for prior rallies, making it a logical spot to define risk.
If we’re above 260, I like SITM long with a target of 510.
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.
