Market Milestones: The Skynet Six

[Image] Good morning ! This market is mega bullish on The Megas. Everyone is laser focused on Artificial Intelligence also known as AI for us time savers. The mega caps used to be referred to as FAANG, but that is old, outdated and included NFLX which is so 2021. I am proposing we rename this group of market movers The Skynet Six. The Skynet Six are driving this market higher and are leaning heavily into AI. We saw that play out in the most extreme fashion with NVDA on Thursday. NVDA gapped up $80 and closed up 24.37% at an all-time high! We are not talking about some low float penny stock or a random biotech, we are talking about the 5th biggest company in America at a 929.29-billion-dollar valuation and a 5.57% allocation in the QQQ. NVDA’s earnings were great, their positioning in AI is very strong and it is an amazing stock to own and trade. In fact, our Traders Plan Newsletter has been positioned heavily in NVDA since January 17th and is now up 125% on the position. That does not make this a prime time to get into NVDA. In fact, this is the time to be locking in profits. The very best time to buy a stock is when it is scary, uncomfortably low, sentiment is against it and not everyone and their brother is talking about buying and naming their dog after the stock. This time on NVDA was any time between July 2022 and February 2023. The best times to sell a stock are when you are up over 100%, it hits a new all-time high and everyone, everywhere is talking about it. NVDA [Image]( [Learn About The Traders Plan Newsletter]( If we look away from The Skynet Six for just one second, we can see that the rest of the market is not participating in this mega bull run. In fact, the IWM, DIA, RSP, and XLF are all looking very weak and on the verge of a break down, instead of a breakout as the QQQ is doing. While The Skynet Six which includes MSFT, AAPL, AMZN, NVDA, GOOGL and META continue to drive the Nasdaq, and to a lesser extent the S&P 500, higher and higher, the rest of the market continues to underperform. There is not broad participation in this bull market and without AI this market would more than likely be quite a bit lower, see the RSP as evidence. A hot story, a bull trend, and the power of these multi-billion-dollar companies, is nothing to scoff at as the bears have learned with NVDA. This bullish push can continue, but the underlying market needs to start participating for it to continue much higher. I will be watching for a larger retest of 8-10% on the QQQ and SPY before getting back into sizable bullish positions. QQQ Daily [Image]( RSP Daily [Image]( IWM Weekly [Image]( DIA Weekly [Image]( XLF Weekly [Image]( ETF of the Week For this week’s ETF of the Week we are sticking to the artificial intelligence theme and going with First Trust Artificial Intelligence and Robotics ETF (ROBT). First of all, it has a pretty great ticker, and it also holds everyone’s favorite AI ticker, AI. Second of all, it looks like it could be trying to break out of a very nice ascending triangle pattern that has been building since October 2023. There is also a pretty solid inverted head and shoulders that would be confirming with a breakout and retest of the $43 level. This trade could be taken with a breakout of that level or buying the retest after it closes strong above the resistance. ROBT Daily Chart [Image]( Enjoy your weekend, Yates Craig, RLT & TPN Market Analyst Disclosure: You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We trade ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do your own research before buying any securities. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221