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 has held the top spot in our sector rankings for consecutive weeks.
Risk appetite is clearly on the rise. Alongside Tech, other offensive sectors like Industrials, Financials, and Consumer Discretionary are crowding the top of our rankings.
Meanwhile, defensive sectors remain stuck in the mud— which is common in the best times of bull markets. .
Here’s a look at our overall industry rankings, which show Electronic Equipment, reaching the second spot.
This is a diverse basket of tech stocks, and right now, leadership is showing up everywhere.
From optical products and lasers to specialized hardware and even quantum computing, this risk-on industry group is breaking out to new highs
Below are the Top 10 names in the Electronic Equipment, subsector, ranked by relative strength.
Quantum stocks are obviously the stand out following an incredible performance this week.
Most of the popular names are breaking out of tight coils and surging to new highs, setting the stage for a fresh leg up.
This week’s spotlight stock is Quantum Computing $QUBT:
The stock is pressing up against the top of a multi-year base as buyers look to take control and absorb the remaining overhead supply at this resistance zone.
If QUBT is above 23, I like it long with a target of 37 and a secondary objective of 60.
These stocks have been as good as any this cycle, and when they go the moves have been massive. I think we’ve just entered the next big mark-up phase for quantum and QUBT should be a great vehicle to take advantage of it.
We anticipated this coil resolution and bought $QUBT 10/17 $20 calls for $0.73 back in August.
Yesterday, they traded as high as $5.40— a 640% gain from entry… And if QUBT sticks the breakout, they are going to pay a lot better before they expire
Our other preferred vehicle for quantum has been Rigetti. We’ve been long RGTI calls since August as well, and are currently up about 1,500% on those.
