Weekly Market Report 7/12/26
Mega short squeeze candidate, America's solar gem, the Memory + AI trade, the next HOOD esque movers, my portfolio, and much more.
The bears are licking their chops as the AI trade is called into question and AI stocks finally come under some pressure.
Was the past weeks revival in the AI trade a blip, or the start of something more?
Is this finally The Big Short 2.0?
We’ll get into that below, but one thing is clear:
It wasn’t until the AI trade was declared dead that it bounced.
And there’s a lesson in there. Could it resume lower? Yes, but the lowest risk buy spots often come when things look grim.
If you bought earlier this past week, you can put a stop at breakeven and sit comfortably. Low risk adds into key areas on pullbacks when everyone is sure the trade is done often mark the best risk/reward adds.
That’s why I notified subscribers in real time that I added a few AI stocks this past week, including everyones new favorite CBRS around $175.
The market feels close to making a decision about the broader direction from here as we’ve now spent the past 10 weeks chopping around in a range. This market has done nothing besides consolidate and build a big multi month base after a massive run.
A well deserved rest, some would say.
There’s been opportunity in this market, but we’re getting very close to the floodgates opening on that opportunity…
If you’re not already in the subscriber chat, I strongly suggest paying attention to it.
This is where I post all of my new trades as I enter them. I walk through the trade idea entirely including my thesis, risk level, cost basis, and more.
The subscriber chat is also where I post a daily thread with my thoughts on the day ahead, relevant headlines and macro events, my main focus names, notable upgrades and downgrades, and anything else I’m watching.
It’s basically become a live market group chat. We have a ton of smart people sharing ideas, setups, headlines, and observations throughout the day, and there’s a lot of genuine alpha in there.
I honestly believe it might be one of the most (if not the most active) subscriber chats on Substack.
Come join us!
In the remainder of this article, I’m going to discuss:
A mega short squeeze candidate in software
America’s under-discussed solar gem
The stocks that resemble HOOD and RDDT from a few weeks back, before they broke out
The Magnificent 7 stock that looks like it might lead from here
The AI trade
The rotation trade
The overall market
My favorite charts
Leading themes + sectors
Major upcoming catalysts
My portfolio + focus list
And more.
The market is inching closer to a decision point and I think major opportunity is near. Let’s get into it.