Situation Awareness: Bullish. The market executed a textbook “buy-the-dip” recovery, shrugging off a hawkish Fed pivot to rally on semiconductor leadership and geopolitical de-escalation. Trade mode: Aggressive breakout on technicals, selective on macro-sensitive names. The tape is driven by a massive rotation back into growth and tech after yesterday’s FOMC-induced air pocket, with the Strait of Hormuz reopening acting as a secondary catalyst. Regime context — 56.78% of stocks trade above their 40-day SMA, a significant expansion from yesterday’s 53.37%, and the 4% Bull/Bear gauge shows 558 bulls vs. 194 bears, signaling a decisive shift in sentiment. The 5-day trend turned up sharply today, confirming a recovery sequence after the mid-week volatility.
SIP: INTC MU AMZN ACN
- What’s working: Continuation breakouts are firing with 17 signals, led by the CHIPS sector. The “Buy The Dip” (BTFD) narrative is the dominant strategy, validated by the 2.1% surge in the Russell 2000.
- Leading sectors: Information Technology (+2.7%), Consumer Discretionary (+1.8%), Communication Services (+1.1%); leading themes: Semiconductor manufacturing, AI infrastructure, and Geopolitical de-escalation.
- Key event: President Trump signed a 60-day MOU with Iran, reopening the Strait of Hormuz and stabilizing energy supplies.
- Market read: Yesterday’s selloff was a liquidity flush driven by rate fears; today proved the market’s resilience. The “Warsh Fed” is being priced in as a “hawkish pause” rather than a hike cycle, allowing risk assets to breathe.
- DEP watchlist: ALGM, DIOD, TSM (All showing strong continuation setups in the CHIPS sector).
- SIPS: BE, COMP (High RVOL continuation signals in Energy and Software).