This week, those two things are starting to come together.

My Top Pick of the Week is Taiwan Semiconductor Manufacturing Company .

TSM has been on my radar because I believe the stock is undervalued.

Based on Morningstar’s rating, they estimate fair value around $534 per share, compared with TSM trading around $439 on my chart, but valuation isn’t what pushed TSM to the top of my list this week.

→ Price did.

Technology has been improving. Semiconductors just broke out and now TSM has confirmed a breakout of its own.

That gives us something I always want to see:

→ The business, valuation, sector, industry, and chart are starting to point in the same direction.

Let’s break down why.

Here’s the setup →

First: What Does TSMC Actually Do?

Before I invest in a company, I want to understand how it makes money.

TSM is the world’s largest dedicated semiconductor foundry.

Instead of primarily designing chips under its own brand, TSM manufactures semiconductors designed by its customers.

→ That distinction matters.

In 2025, TSM manufactured 12,682 different products for 534 customers, serving markets including high-performance computing, smartphones, automotive, internet of things(IoT), and consumer electronics.

Advanced technologies, 7 nanometers and smaller, accounted for 74% of total wafer revenue.

Think about what that means.

→ There are companies competing to design the next generation of processors.

TSM helps manufacture them and that puts the company directly in the path of one of the biggest technology trends I’m watching: Artificial intelligence.

Is TSM Actually An AI Investment?

Yes, but I think calling TSM an “AI stock” actually undersells the story.

→ TSM is part of the infrastructure underneath AI.

AI requires enormous amounts of computing power. That means increasingly advanced processors. Those processors require leading-edge semiconductor manufacturing and TSM is one of the companies making that possible.

The company is also investing heavily in advanced packaging and 3D chip-stacking technologies such as CoWoS, InFO, and SoIC, which help connect increasingly complex chips while addressing power and performance demands Ad management isn’t being shy about what it sees coming.

TSM entered 2026 expecting AI-related demand to remain robust.

Earlier this year, management was guiding for AI accelerator revenue to grow at a mid-to-high 50% compound annual growth rate through 2029.

By the July earnings call, management said the AI opportunity was coming in even stronger than its previous expectations.

That gets my attention because I don’t have to predict which AI application becomes the next household name to understand something much simpler:

→ More AI requires more computing. More computing requires more advanced chips. Someone has to manufacture them.

TSM sits right in the middle of that chain.

Why Invest in TSM Now?

Being positioned in front of a major trend is nice.

Making money from it is better and TSM’s financial results are showing that demand in the numbers.

In 2025:

• Revenue reached $122.42 billion, up 35.9%.

• Net income reached $55.21 billion, up 51.2%.

• Gross margin increased from 56.1% to 59.9%.

• Operating margin increased from 45.7% to 50.8%.

And the growth hasn’t stopped in 2026.

Through July, TSM reported NT$2.872 trillion in cumulative revenue, up 37% year over year. July alone grew 44.7% from the prior year.

So I’m not looking at AI hype and trying to manufacture an investment thesis around it.

The growth is already showing up in the business.

Then we add valuation.

My fair-value estimate for TSM is approximately $534, while the stock is currently around $439 on my chart.

Does that mean the stock has to go to $534?

Nope. Fair value isn’t a promise.

→ It’s a reference point that helps me ask whether the price I’m paying makes sense relative to what I believe the business is worth and right now, my valuation tells me TSM remains undervalued while the technical picture is improving.

That’s where things get interesting.

The Top-Down Setup

This is probably my favorite part of the trade.

I don’t want to look at a stock in isolation.

I want to know what’s happening around it.

And this week, TSM gives us a clean example of my top-down process:

Market → Sector → Industry → Stock

The Nasdaq-100 has moved back above its 20-day SMA.

Technology has also broken above and closed above its 20-day SMA.

Then we go one level deeper.

Semiconductors have broken out.

And finally, TSM has confirmed its own breakout.

That’s a very different setup from buying a stock simply because it looks cheap.

We’re seeing strength move down the chain and THAT is confirmation I can work with.

TSM chart markup →

What The TSM Chart Is Telling Me

TSM closed around $439 on the chart I’m using.

Price is above the 20-day, 50-day, and 200-day SMAs, with the shorter-term moving averages beginning to turn higher.

Momentum is improving too.

The MACD histogram has moved positive, TSI has turned higher, and RSI has climbed to roughly 62.

That last one matters.

TSM has momentum behind the breakout, but it hasn’t reached my 70+ RSI area yet.

If it does?

My thinking changes.

I’m not looking at an extreme-high RSI reading and thinking:

BUY MORE.

I’m thinking about locking in some profits.

There’s also an obvious area overhead that I’m watching: TSM’s previous highs around the upper-$460s to roughly $470.

That’s where the chart gets another test.

• Can TSM push through that area?

• Does it consolidate underneath it?

• Or does the breakout fail?

Price gets to answer that question. I don’t.

In other words:

→ this is an amazing buy & hold opportunity to pick up shares of RDDT, an undervalued / semiconductor dividend-paying stock to hold for the long-term, if not forever.

→ we can also position trade TSM back to true value and beyond and make massive gains.

→ we can take a 2x leveraged swing trade in TSMX for quicker price movements, cheaper share prices, smaller position sizes, and amplified gains (and, losses).

→ if you’re an experienced, astute trader, you can write option contracts on TSM and do what you do and make exponential gains.

Link to TSM chart

The Bigger Lesson: Confirmation Has A Price

Here’s something newer investors sometimes struggle with:

Waiting for confirmation can mean paying a higher price.

That’s okay. I’m not trying to buy the exact bottom.

I’m trying to find the point where the evidence becomes strong enough that I’m willing to put capital behind the thesis.

Think about our RDDT setup from the last Top Pick.

I liked RDDT’S fundamentals. I liked the valuation and I liked where the stock was beginning to set up, but it was still below its 200-day SMA.

The business had my attention. The chart still had something to prove.

TSM gives us the other side of that lesson.

The business is growing.

I believe the valuation is attractive.

The semiconductor industry is strengthening and now the stock is breaking out.

Would buying TSM earlier have given me a cheaper entry?

Sure, but today I have more information.

Sometimes paying a little more for confirmation is the trade-off for having more evidence that your thesis is working.

That’s not chasing. That’s waiting for the market to show its hand.

What About TSMX?

There’s another way experienced traders may choose to trade the TSM setup.

TSMX provides leveraged exposure tied to the daily performance of TSM.

However, this is where I want to draw a VERY thick line between the investment thesis and the vehicle used to trade it.

My thesis is about TSM.

→ Choosing leverage is an entirely separate risk decision.

Leveraged ETFs reset their exposure daily, which means their performance over periods longer than one trading day can differ significantly from simply taking the underlying stock’s return and multiplying it by the stated leverage.

That can work for you. It can also work against you.

Fast.

So TSMX isn’t simply “TSM with more upside.”

It’s a different trade with different risk.

→ For experienced traders who understand leverage, daily resets, compounding, position sizing, and risk management, it can provide another vehicle for expressing a TSM trade.

For everyone else?

You don’t need leverage to have a thesis.

What Could Go Wrong?

Now for the part that doesn’t fit neatly into the AI bull story.

TSM has real risks.

The semiconductor business is highly capital intensive.

The company is spending heavily to expand leading-edge manufacturing and advanced packaging capacity, including new facilities outside Taiwan.

There is also semiconductor cyclicality, customer concentration, export restrictions, competition, execution risk around new manufacturing technologies, and the obvious geopolitical risk surrounding Taiwan, and then there’s AI itself.

The market is placing enormous expectations on AI-related spending.

If those expectations come down, semiconductor companies exposed to that buildout won’t magically get a hall pass.

That’s why I don’t marry the narrative.

I watch the evidence.

What Would Change My Mind?

The first thing I’m watching is whether TSM’s breakout holds.

A breakout that immediately fails and falls back into the previous range tells me something.

So does deterioration in SOXX.

If semiconductor strength disappears while TSM starts losing its short-term moving averages, I’m going to reassess the setup because liking the company doesn’t give me permission to ignore what price is telling me.

The thesis doesn’t get to overrule the chart.

Bottom Line

TSM is my Top Pick of the Week because I see several pieces coming together at the same time.

→ The company is growing.

AI and high-performance computing are creating significant demand for the advanced manufacturing and packaging technologies TSM provides. R

evenue continues to grow rapidly. My valuation still puts fair value around $534.

And now?

The chart is confirming the story.

• Technology (XLK) has improved.

• Semiconductors (SOXX) have broken out.

• TSM has broken out with them.

That’s what takes TSM from a company I like to a stock I want to pay closer attention to right now.

However. the bigger lesson isn’t about TSM.

→ It’s about process.

• Fundamentals tell me what I want to own.

• Technical analysis helps me decide when.

• And top-down analysis helps me see whether the market around the stock is supporting the move.

I don’t need to predict the exact bottom and I don’t need to chase the exact top.

I need enough evidence to make a decision and enough discipline to change that decision when the evidence changes.

Know the Big Picture. Focus on the Edge. 👑

Following a systematic approach, reading market structure, and staying disciplined compounds over time.

Let me know what you’re watching and thank you so much for reading! 🙌

-Nurse Jess 🤝

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📌 Bookmark this post. Track these setups through the week and see how they play out. This is how you develop an edge—by studying real-time trade ideas and learning what works.

Financial Disclaimer: This is not financial advice. All trades carry risk. Biotech stocks are highly volatile and speculative. Always do your own due diligence and consult with a financial advisor before making investment decisions.

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I hope you had a great week!

ICYMI, you can see the latest Top Pick of the Week here →

Let’s dig into last week’s market recap and the playbook for the week ahead →

The major indexes held together this week, but the strongest move happened somewhere else.

Oil jumped 9.45% over the past five days, making it the strongest asset in the Market Pulse by a wide margin. USO is now up 22.61% over the past month and has broken out above its 20-day SMA.

That’s a sharp reversal from last week, when Oil’s breakout momentum was cooling.

Bitcoin ($BTCUSD) remained another clear leader, gaining 2.59% for the week and bringing its one-month gain to 24.00%.

BTC tagged an extreme-high RSI reading during the week, so while momentum remains strong, I’m watching whether BTC can continue higher or needs time to cool off.

The major indexes were much quieter.

The Nasdaq gained 0.35%, the S & P 500 gained 0.11%, and the Dow Jones declined 0.18%.

More important than those relatively flat returns though is where they finished technically:

SPY, QQQ, and DIA all closed above their 20-day SMAs.

Last week, SPY was holding its 20-day SMA while QQQ and DIA had closed below theirs.

This week, all three are back above.

So the question has changed:

Can the major indexes break out from here?

Long-duration Treasuries declined 0.43% over the five-day period, but broke out above their 20-day SMA.

→ That’s another short-term technical development I’m watching.

Gold fell another 0.52% and closed below its 20-day SMA while also trading below its 200-day SMA. GLD remains up 8.72% over the past month, but technically, it’s moving in the opposite direction of Oil right now.

The Bigger Picture

Last week, we were waiting for confirmation.

This week, we got some.

The major indexes reclaimed their short-term trends. Oil broke out. TLT moved above its 20-day SMA. BTC remained strong. GLD weakened technically.

For the major indexes, holding the 20-day SMA was step one.

Now I want to see what they do with it.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. Bitcoin ($BTCUSD)

2. Oil

3. The S&P 500

4. The Nasdaq-100

5. The Dow Jones 30

6. 20 Year Bonds Treasury ETF

7. Gold

♥️Market Pulse: 4/7

• 4/7 assets are up.

• BTC, USO, SPY, and QQQ are up.

• DIA, GLD, TLT are down.

II. Section Rotation (11 SPDR S&P 500 Sectors)

Energy moved to the top of the SPY sector rankings, gaining 2.20% over the past five days.

That confirms the strength we saw in Oil, but there’s another side to the setup: XLE also reached an extreme-high RSI reading.

The momentum is strong, but this is also where I’m thinking about locking in some profits rather than chasing the move.

Technology remained near the top, gaining 0.86%. More importantly, XLK broke above and closed above its 20-day SMA. Friday ended with a doji bar, so I’ll be watching whether XLK builds on that move or pauses here.

Utilities gained 0.82% and are beginning to set up in an accumulation zone, although the sector remains below its 200-day SMA. Healthcare finished slightly positive at +0.17%, while Financials were flat.

Further down the rankings, some different setups are developing.

Industrials fell 1.06%, but the pullback has moved the sector into an accumulation zone.

Consumer Staples declined 1.02% and have entered a decline, while Communication Services and Consumer Discretionary are both trading below their 200-day SMAs.

XLY was also the weakest sector this week, falling 1.96%.

What This Tells Me

Only four of the 11 S&P 500 sectors finished positive, with XLF flat.

That creates an important test for the breakout question from Part I:

If the major indexes move higher from here, does more of the market start participating?

Right now, the indexes are improving faster than the breadth underneath them.

III. Important Secondary Assets & Sectors

The secondary ETFs give us more detail about where momentum is actually developing.

Energy had the clearest confirmation.

Brent crude ($BRENT) gained 6.40% and Oil & Gas Exploration & Production gained 2.57%. Combined with USO’s breakout and XLE leading the S&P 500 sectors, the move is showing up across multiple parts of the Energy trade.

Technology is more complicated.

Semiconductors gained 2.21% and are beginning to set up in an accumulation zone.

Meanwhile, last week’s standout went the other direction.

Software fell 4.5%, making it the weakest secondary ETF I track this week after gaining 5.9% the week before. IGV may be starting to roll over here.

Technology stayed near the top, but what led underneath it changed.

Elsewhere, Regional Banks gained 1.31% and are setting up in an accumulation zone. Small Caps remained essentially flat at +0.09%, but they’re also beginning to set up in an accumulation zone.

Biotech gained 1.42% and continues to show strong intermediate performance.

Gold miners are worth keeping on the radar as well.

fell 0.39% while gained 0.18%, despite GLD itself weakening technically. Both mining ETFs remain up more than 26% over the past month.

What This Tells Me

There’s a difference between a move happening in one ticker and a move spreading across a group.

Energy is spreading and technology is rotating.

And with SOXX, KRE, and IWM moving into accumulation zones, there are now potential setups developing outside the market’s current leaders.

That’s where my attention starts moving next.

IV. What Assets & Sectors I’m Watching

Here’s what I’m focused on heading into the new week:

Read more

I hope you had an amazing week!

ICYMI, you can see the latest Top Pick of the Week here →

A quick highlight from last week →

Airbnb Inc. printed a doji bar on Friday and hit an extreme-high RSI reading! This usually signals a top is in and a reversal may be underway here. ABNB was one of our Top Picks of the Week back in June. If this was a swing trade for you, you could close the trade. If this is a position trade, you could lock in some profits and leave the rest to run! ABNB is trading fairly valued here.

Congratulations to you in the ABNB trade!!

Let’s dig into last week’s market recap and the playbook for the week ahead →

The major indexes stabilized this week, but the bigger picture remains mixed.

Bitcoin ($BTCUSD) continues to show the strongest overall momentum. BTC gained 1.38% over the past five days, is back above its 200-day SMA, and is now tagging an extreme-high RSI reading.

The trend is strong, but after the recent run, I’m watching for signs that momentum is becoming stretched.

The S&P 500 gained 0.47% and continues to hold its 20-day SMA. That makes SPY the strongest-looking major equity index technically.

The question now is simple: Can buyers keep defending that level?

The Dow Jones gained 0.53% and the Nasdaq-100 gained 0.42%, but both closed below their 20-day SMAs. That matters. The indexes finished the week with similar returns, but their technical setups aren’t equally strong.

Meanwhile, long-duration Treasury Bonds gained 1.01% and broke above its 20-day SMA. TLT remains below its 200-day SMA, so I’m treating this as an improving short-term setup rather than a confirmed long-term trend change.

The previous strength in hard assets also cooled. Gold fell 3.42% after reaching an extreme-high RSI reading and closed Friday back below its 200-day SMA.

Oil fell 3.67%, giving back some of its breakout momentum, although it remains above its 20-day SMA.

The Bigger Picture

Last week, money was aggressively moving toward Bitcoin, Gold , and Oil .

This week?

That trade cooled.

Bitcoin (BTC) held its leadership, but Gold (GLD) and Oil (USO) pulled back while stocks stabilized and bonds improved.

So I’m heading into the new week watching one thing above everything else:

Do the major indexes hold their short-term support—or does this pause turn into something bigger?

→ The SPY is still holding its 20-day SMA. The DIA and QQQ have already slipped below theirs. That divergence has my attention.

Biggest Takeaway: The major indexes stabilized, but the technical picture is splitting. The SPY is holding its 20-day SMA while the DIA and QQQ closed below theirs, so the question is whether the indexes can defend short-term support.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. Bitcoin ($BTCUSD)

2. Gold

3. The S&P 500

4. Oil

5. The Dow Jones 30

6. The Nasdaq-100

7. 20 Year Bonds Treasury ETF

♥️Market Pulse: 5/7

• 5/7 assets are up.

• BTC, TLT, DIA, SPY, and QQQ.

• GLD, USO are down.

II. Section Rotation (11 SPDR S&P 500 Sectors)

Sector leadership changed this week.

Communication Services led the S&P 500 sectors with a +1.43% five-day gain, followed closely by Technology at +1.30% and Financials +1.08%.

That’s notable because Technology was last week’s weakest sector. It didn’t exactly rip higher, but its return to the top of the rankings tells me growth hasn’t disappeared from this market.

The bigger reversal happened at the bottom.

Healthcare fell 1.98%, going from last week’s strongest sector to this week’s weakest. Energy also reversed course, falling 1.51% after recently showing strong momentum alongside Oil .

Industrials declined 1.73%, while Real Estate , Consumer Discretionary, Materials, Consumer Staples, and Utilities also finished the five-day period lower.

What This Tells Me

This wasn’t broad sector strength.

Only three of the 11 S&P 500 sectors finished positive over the five-day period: Communication Services , Technology , and Financials and that gives us another piece of the puzzle from Part I.

The SPY held up, but underneath the index, most sectors declined and leadership rotated again.

→ The market is still making progress in places. It just isn’t doing it together.

That’s exactly why I want to see what the specialized ETFs tell us next.

Biggest Takeaway: Participation is narrow and leadership changed again.

III. Important Secondary Assets & Sectors

The specialized ETFs tell an even clearer story this week: Software stood almost entirely alone.

Software (IGV) gained 5.93%, making it the strongest secondary ETF I track by a wide margin. That fits with Technology returning toward the top of the sector rankings, but the strength wasn’t universal across growth.

ARKK fell 1.88% and Semiconductors lost 2.20%.

→ That distinction matters. Money wasn’t simply rushing back into everything growth-related.

Small Caps declined 1.40%, while Homebuilders fell 1.78% and Regional Banks lost 0.75%.

→ That adds to the narrow-participation picture we saw in Part II.

Energy / also cooled. XOP fell 1.90% and Brent crude ($BRENT) declined 2.30%, confirming some of the momentum loss we saw in USO.

→ However, Gold may be the more interesting setup.

Gold (GLD) closed below its 200-day SMA, while Gold Miners and Junior Gold Miners remain above theirs.

GDX fell 3.09% and GDXJ lost 2.86% this week, but both remain up more than 33% over the past month.

→ That’s a divergence I’m watching,

Do the miners eventually follow Gold below their long-term trend. Or does Gold reclaim its 200-day SMA and confirm the miners’ relative strength?

What This Tells Me

The headline is NOT simply that growth returned.

→ Software returned, semiconductors didn’t, growth didn’t, and small caps didn’t.

At the same time, some of the market’s recent leaders, Gold miners, Energy, and Biotech (IBB) pulled back.

That’s a market with pockets of strength, not broad leadership.

→ Going into next week, I care less about finding another winner than seeing which of these moves actually gets confirmed.

Biggest Takeaway: The market is giving us pockets of strength, not broad confirmation.

IV. What Assets & Sectors I’m Watching

Here’s what I’m focused on heading into the new week:

Read more

I scan sectors, compare valuations, study breakouts, and search for companies trading below what I believe they’re worth.

Naturally, I’m always looking for something new.

A new ticker, a new setup, and a new opportunity.

However, after years of trading, I’ve learned something: The best opportunity isn’t always a new stock.

Sometimes it’s one you’ve already done the work on.

• One you’ve owned.

• One you’ve traded.

• One you’ve watched long enough to know when something about the setup has changed.

→That’s where familiarity starts to matter.

When you follow the same companies over time, you learn their personality.

You know what normal volatility looks like. You recognize how aggressively the stock tends to move.

You’ve seen what happens around earnings. You know when a pullback looks ordinary—and when something deserves a closer look.

None of that lets you predict what happens next, but it gives you context and when you’re putting real money at risk, context matters.

That’s exactly what brought me back to this week’s pick.

I didn’t discover a new company.

I returned to one I already know.

→ A company that’s already in my portfolio and stock I’ve watched through big rallies, sharp pullbacks, changing expectations, plenty of volatility, and after its recent decline, the business, valuation, and setup caught my attention again.

This week’s Top Pick of the Week is Reddit Inc.

Here’s the setup →

Why Reddit Is Back On My Radar

I’m not interested in RDDT because it’s familiar.

That alone would be a terrible reason to buy anything.

The business still has to earn the trade and RDDT’s latest results gave me a reason to look again.

In Q2 2026, RDDT generated approximately $805 million in revenue, up 61% year over year. It marked the company’s eighth consecutive quarter of revenue growth above 60%.

RDDT also reported approximately $253 million in net income, a 31% net margin, while adjusted EBITDA reached roughly $343 million with a 43% margin. Operating cash flow increased 135% to approximately $262 million.

That’s what caught my attention.

RDDT isn’t simply growing its user base and asking investors to wait around for profitability later.

→ The company is already showing that rapid growth can translate into profits and cash flow.

Then the stock pulled back and that’s where the story became interesting again because sometimes the business keeps improving while the stock price tells a much uglier story.

That doesn’t automatically make the stock a buy, but it absolutely earns another look, especially when it’s a company I’ve already spent years getting to know.

The Business Keeps Getting Better

RDDT’s growth isn’t coming from one place.

→ The platform is attracting more users, expanding internationally, and getting better at turning that attention into revenue.

Daily Active Uniques reached approximately 130 million, up 18% year over year, while Weekly Active Uniques climbed 24% to approximately 515 million.

More than half a billion people (500,000,000 people) are now visiting RDDT every week, but the number that really caught my attention was international growth.

International Daily Active Uniques increased approximately 28%, considerably faster than U.S. growth.

→ That’s important because RDDT’s international audience remains less monetized than its U.S. audience.

The opportunity isn’t necessarily about finding millions of new users.

It’s about getting better at monetizing the enormous audience RDDT already has and that’s where advertising comes in.

→ Advertising revenue reached approximately $762 million in Q2, up roughly 64% year over year.

Also, RDDT has something advertisers care deeply about:

→ Intent.

Think about how people actually use RDDT.

• Which laptop should I buy?

• Is this hotel actually worth the money?

• What’s the best running shoe?

• Has anyone tried this product?

• What do people think about this stock?

Those aren’t passive scrolling questions.

→ They’re often questions people ask while researching a decision.

RDDT sits on millions of communities where people openly discuss what they’re considering buying, what problems they’re trying to solve, and what they actually think about products and services.

That’s valuable to advertisers.

As RDDT gets better at monetizing those conversations, especially outside the United States, I think there’s still considerable runway ahead.

RDDT’s AI Paradox

Then there’s the part of the RDDT thesis I find even more interesting →

Artificial intelligence could make RDDT more valuable and more vulnerable at the same time.

AI companies need enormous amounts of data, but RDDT’s value isn’t simply the volume of content sitting on its servers.

It’s the kind of content.

• Questions.

• Arguments.

• Recommendations.

• Personal experiences.

• Niche expertise.

• People explaining why they loved something, hated something, bought something, fixed something, or changed their minds about something.

In other words:

→ Human conversation.

RDDT already has data-licensing relationships with major AI companies, including Google and OpenAI, allowing certain uses of RDDT content for AI-related purposes.

I don’t need data licensing to become RDDT’s primary business for the investment thesis to work.

→ Advertising is already doing the heavy lifting.

→ AI gives RDDT another way to potentially monetize something it has spent years accumulating.

There’s also a bigger idea here.

As more online content is created by machines, authentic human conversation could become increasingly scarce, and increasingly valuable.

RDDT has a hell of a lot of it, but AI creates a risk too.

Historically, someone searching Google for an answer might click a RDDT result to see what real people had to say.

Now an AI-generated answer can potentially summarize that information directly on the search page.

The user gets the answer. RDDT may not get the visit.

→ That’s the paradox.

AI can increase the value of RDDT’s data while simultaneously making it easier to consume some of that information without ever visiting RDDT.

So I’m watching both sides.

1. Can RDDT turn its enormous archive of human conversation into another meaningful source of value?

2. Can it continue building direct relationships with users if traditional search sends less traffic its way?

I don’t know the answer yet, but that’s why AI belongs in the RDDT thesis as both an opportunity and a risk, not a buzzword slapped onto the bull case.

Why I’m Interested Now

A strong business doesn’t automatically make a stock a good buy at any price.

→ Price matters. 👑

RDDT delivered another quarter of rapid growth.

• Revenue increased 61%.

• Advertising grew more than 60%.

• Profitability improved.

• Cash flow surged.

• Weekly users crossed half a billion.

• And then the stock pulled back sharply.

• Price is trading undervalued here.

Investors focused on softer U.S. daily-user growth and disappointment around the pace of additional AI licensing agreements.

That’s when I started paying closer attention because the question isn’t simply:

Did the stock fall?

It’s:

→ Did the business change enough to justify the decline?

So far, I don’t see the fundamental story deteriorating in the same way the stock price did.

Undervalued? Maybe. Cheap? Nope.

There’s an important distinction here.

According to the Morningstar valuation I’m using, RDDT is trading approximately 22% below estimated fair value.

That makes RDDT interesting to me.

But let’s be clear: This isn’t a cheap stock.

RDDT still trades at premium earnings and revenue multiples compared with the broader market. Investors are paying for substantial future growth and RDDT has to deliver it.

So when I call RDDT undervalued, I’m not saying its multiples are low.

I’m saying:

I believe the long-term earnings power of the business may be worth more than what the market is currently pricing.

That’s a very different argument and it comes with expectations.

→ RDDT needs to keep growing its audience, improve monetization, international revenue needs to catch up with international user growth, and all of that growth needs to continue turning into profits and cash flow.

If those things stop happening, the valuation argument changes.

RDDT chart markup →

The Technical Setup & Trade Breakdown

This is where the opportunity gets more interesting, but also where I need to stay disciplined.

→ RDDT is currently trading approximately 22% below the fair-value estimate I’m using and has moved into an accumulation zone on my chart.

That gets my attention, but price is also trading below its 200-day simple moving average, which I consider bearish.

So I have two different signals in front of me:

1. The valuation and accumulation zone say pay attention.

2. The 200-day SMA says don’t get ahead of yourself.

And I’m okay with that.

I don’t need every indicator flashing green before I become interested in a stock. I need to understand what the chart is telling me and size my risk accordingly.

For me, this isn’t about blindly buying RDDT because it’s down from its highs.

I’m watching how price behaves inside this accumulation zone and whether buyers begin stepping in.

A move back above the 200-day SMA would give me stronger technical confirmation that the longer-term trend is improving.

→ Until then, RDDT may be an opportunity, but it’s still a bearish technical setup that needs to prove itself.

That’s an important distinction.

1. Fundamentals tell me why I want to own RDDT.

2. The chart tells me whether now is the right time to add.

• Current Price: $153.95

• Sector: Communication Services

• Sub-sector: Internet

• Fair Value: $200 (22% discount here)

• Entry Zone: $152

• Stop Loss Zone: $135-142

In other words:

→ this is an amazing buy & hold opportunity to pick up shares of RDDT, an undervalued / discounted AI / growth stock to hold for the long-term, if not forever.

→ we can also position trade RDDT back to true value and beyond and make massive gains.

→ we can take a 2x leveraged swing trade in RDTL for quicker price movements, cheaper share prices, smaller position sizes, and amplified gains (and, losses).

→ if you’re an experienced, astute trader, you can write option contracts on RDDT and do what you do and make exponential gains.

Link to RDDT chart

What Could Go Wrong?

There are real risks here.

RDDT still carries a premium valuation, which means disappointing growth can get punished quickly.

Advertising is brutally competitive. Meta, Alphabet, TikTok, Amazon, and plenty of others want the same marketing dollars.

→ User growth matters.

→ International monetization needs to improve.

And AI cuts both ways: RDDT’s human-generated content could become increasingly valuable while AI-powered search could reduce some of the traffic that historically reached RDDT through traditional search.

Then there’s the stock itself.

→ RDDT is volatile.

I’ve watched that volatility work in both directions, and knowing the stock doesn’t make me immune to it.

That’s why “trade what you know” should never become “fall in love with what you know.”

If the fundamentals deteriorate or the technical setup breaks, familiarity doesn’t get a vote.

The thesis always outranks the ticker.

My Investment Thesis

RDDT earned my Top Pick of the Week because I’m seeing something I like to look for:

→ A growing business, a discounted valuation, and a stock entering an area where I’m interested in accumulating.

• The business continues to grow rapidly.

• Advertising is expanding.

• More than half a billion people visit RDDT weekly.

• International growth provides another potential runway for monetization.

AI could make RDDT’s gigantic archive of human conversation even more valuable over time, but I’m not ignoring the chart to make the bull case prettier.

RDDT remains below its 200-day SMA. That’s bearish.

So this isn’t a thesis built on everything lining up perfectly.

→ It’s a thesis built on knowing what I like, knowing what I don’t, and knowing what I need to see next.

1. The fundamentals make me want to own RDDT.

2. The valuation makes me pay attention.

3. The accumulation zone creates an opportunity.

4. The 200-day SMA keeps me disciplined.

5. This is a company I already own, follow, and understand, I don’t have to start my research from zero when the opportunity changes.

I already know what I’m looking for.

Final Thoughts: Trade What You Know

One of the biggest lessons I’ve learned from trading is that more isn’t always better.

You don’t necessarily need more indicators, more strategies, more screens, or another 50 stocks on your watchlist.

Sometimes you need more time with the same companies.

• Watch them.

• Study them.

• Learn what normal volatility looks like.

• Know what drives the business.

• Know what would change your thesis.

• And recognize when price gives you another reason to pay attention.

That doesn’t mean a familiar stock owes you the same behavior it showed last time.

Markets change, companies change, and patterns fail.

→ Familiarity doesn’t guarantee the trade. It gives you context for the trade.

That’s the distinction.

I didn’t choose RDDT because I discovered something new this week.

I chose it because something familiar started looking interesting again.

→ The market will always give us another ticker to chase.

You don’t have to know every stock. You need to know your stocks.

Trade what you know and know why you own it and when the market gives you another opportunity in a company you’ve already done the work on?

→ Be ready to recognize it.

Know the Big Picture. Focus on the Edge. 👑

Following a systematic approach, reading market structure, and staying disciplined compounds over time.

Let me know what you’re watching and thank you so much for reading! 🙌

-Nurse Jess 🤝

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📌 Bookmark this post. Track these setups through the week and see how they play out. This is how you develop an edge—by studying real-time trade ideas and learning what works.

Financial Disclaimer: This is not financial advice. All trades carry risk. Biotech stocks are highly volatile and speculative. Always do your own due diligence and consult with a financial advisor before making investment decisions.

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I hope you had a great week!

ICYMI, you can see the latest Top Pick of the Week here →

A quick highlight from last week →

Airbnb Inc. printed a doji bar on Friday and hit an extreme-high RSI reading! This usually signals a top is in and a reversal may be underway here. ABNB was one of our Top Picks of the Week back in June. If this was a swing trade for you, you could close the trade. If this is a position trade, you could lock in some profits and leave the rest to run! ABNB is trading fairly valued here.

Congratulations to you in the ABNB trade!!

Let’s dig into last week’s market recap and the playbook for the week ahead →

Leadership changed in the markets last week.

Last week wasn’t a market where everything moved together.

Bitcoin exploded higher. Gold and Gold Miners continued their run. Oil strengthened. Healthcare took the lead inside the S&P 500.

Meanwhile, the major equity indexes pulled back, Technology went from leader to laggard, and Semiconductors took an even bigger hit.

That doesn’t look like money simply leaving the market.

→ It looks like money moving.

So this week, I’m paying less attention to whether “the market” is up or down and more attention to where capital is actually going.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. Bitcoin ($BTCUSD)

2. Gold

3. Oil

4. The S&P 500

5. The Nasdaq-100

6. The Dow Jones 30

7. 20 Year Bonds Treasury ETF

♥️Market Pulse: 4/7

• 4/7 assets are up.

• GLD, BTC, TLT, and USO.

• QQQ, SPY, DIA are down.

II. Section Rotation (11 SPDR S&P 500 Sectors)

The sector data confirms that leadership changed last week.

Healthcare led all 11 sectors at +4.33%, followed by Energy at +2.79% and Materials at +1.90%.

At the bottom, Technology fell 3.53%, Utilities dropped 3.48%, and Industrials declined 3.36%.

→ Only three of the 11 sectors finished higher, so market breadth was considerably weaker than the week before.

The Rotation

The biggest shift came from Technology.

Last week, XLK was the #1 sector at +7.20%.

This week?

It fell all the way to the bottom at -3.53%.

Meanwhile, Healthcare, Energy, and Materials took over leadership.

That fits what we saw in Part I: QQQ was the weakest major index, while Oil and Gold were among the strongest major assets.

My Read 👑

This looks like sector rotation with narrowing breadth, rather than broad strength across equities.

Healthcare and Energy attracted money while Technology gave back some of its recent gains. Materials participating alongside stronger Gold and Oil adds to the hard-asset side of the story.

→ The question now is whether this is a short-term rotation, or the beginning of a more meaningful leadership change.

Biggest Takeaway: Technology went from first to last while Healthcare, Energy, and Materials took the lead. Money didn’t disappear; it moved.

III. Important Secondary Assets & Sectors

The specialized ETFs reinforce the strength we saw in Gold , Healthcare / , and Energy .

→ Gold Miners dominated the group.

GDX surged 14.29% and GDXJ gained 12.28%, confirming Gold’s move with strong participation from the miners.

Biotechnology also joined the leadership, with IBB up 7.72%, supporting the strength we saw in Healthcare .

Energy confirmed too.

Brent Crude ($brent) gained 6.12% and XOP rose 5.01% but there’s an interesting exception to the Technology weakness.

ARKK gained 6.30%, even as Software fell 0.68% and Semiconductors dropped 5.52%.

So investors weren’t abandoning growth altogether.

They were becoming much more selective about where they took risk.

Where the Weakness Showed Up

Semiconductors were the weakest group at -5.52%, which fits the pressure we saw in Technology and .

Regional Banks fell 3.94%, Homebuilders (XHB) declined 2.31%, and small caps (IWM) lost 1.68%.

→ The rotation wasn’t broad. Leadership was concentrated.

My Read 👑

Parts I–III now tell a pretty consistent story:

→ Gold and its miners were strong. Energy participates. Healthcare and Biotech led. Technology weakened, but speculative growth still found buyers in ARKK.

This isn’t a clean risk-on or risk-off market.

→ It’s selective.

Biggest Takeaway: Gold Miners, Biotech, and Energy confirmed the new leadership, while weakness in Semiconductors showed just how selective the market became.

IV. What Assets & Sectors I’m Watching

Read more

Welcome back to your weekly market checkup!

I hope you had an amazing week!

ICYMI, you can see the latest Top Pick of the Week here →

A quick highlight from last week →

It’s time to lock in some profits in Snap Inc. signaled by price banging an extreme-high RSI reading here!! You could trim some shares to lock in gains and leave the rest of the position to run! Congratulations to you in the SNAP trade!!

Another quick highlight from last week →

Airbnb Inc. popped over 17% on Friday and hit an extreme-high RSI reading! ABNB was one of our Top Picks of the Week back in June. If this was a swing trade for you, you could close the trade. If this is a position trade, you could lock in some profits and leave the rest to run! ABNB is trading fairly valued here. Congratulations to you in the ABNB trade!!

Let’s dig into last week’s market recap and the playbook for the week ahead →

The markets were fun last week!

This week’s message is less about investors choosing between risk and safety and more about capital spreading across several different themes.

Growth came back aggressively and the broader indexes participated.

Bonds improved and gold exploded higher.

Bitcoin joined the rally, although with considerably less strength than the Nasdaq and oil (USO) was left behind.

→ The strongest signal for me is QQQ reclaiming leadership over SPY and DIA.

After watching growth struggle for relative strength, seeing QQQ outperform both major indexes is constructive; however, GLD leading everything keeps me from calling this a straightforward “risk-on” week.

There are still competing messages beneath the surface and that’s exactly why the sectors and other major secondary assets matter this week.

If Technology, Consumer Discretionary, Software, Semiconductors, and other growth-sensitive groups confirm the QQQ’s strength, we’ll have stronger evidence that investors are moving back toward growth.

If Gold miners and other defensive or hard-asset groups dominate instead?

Then the story gets a hell of a lot more interesting.

The Nasdaq (QQQ) was the top performing index of the Big 3, while the Dow Jones (DIA) was the worst.

Biggest Takeaway: Growth (ARKK) came roaring back, but Gold (GLD) led everything, telling me investors were willing to take risk without completely abandoning protection. Oil (USO) was the clear loser, making this a broad rally with one major exception.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. The S&P 500

2. Gold

3. The Dow Jones 30

4. The Nasdaq-100

5. Bitcoin ($BTCUSD)

6. 20 Year Bonds Treasury ETF

7. Oil

♥️Market Pulse: 6/7

• 6/7 assets are up.

• GLD, BTC, TLT, SPY, QQQ, and DIA are up.

• USO is down.

II. Section Rotation (11 SPDR S&P 500 Sectors)

This week’s sector performance gives us important confirmation of what we saw in the major indexes.

Last week, Consumer Discretionary led while Technology lagged.

This week, Technology went from laggard to leader, while Consumer Discretionary remained strong in third place.

At the other end, Energy , confirming the weakness we saw in oil, with USO down 8.66%. Utilities declined another 1.67%, while Consumer Staples barely moved.

→ And that helps put Gold’s huge week into perspective.

Despite GLD gaining 7.25%, the sector data doesn’t look like a broad flight to safety.

→ Technology (XLK) led, Consumer Discretionary (XLY) stayed strong, Industrials (XLI) participated, and Utilities (XLU) declined.

My Read 👩🏻‍⚕️

Risk appetite improved.

→ Technology (XLK) reclaimed leadership, participation broadened, and several growth and cyclical sectors outperformed defensive areas.

→ GLD’s surge adds another layer to the macro picture, but underneath the SPY, the message was much clearer:

→ Investors were willing to take risk and that risk was spreading beyond one corner of the market.

Biggest Takeaway: Technology (XLK) reclaimed leadership, Consumer Discretionary (XLY) stayed strong, and 8 of 11 sectors finished higher. That's the broader participation I want to see behind a healthy market rally.

III. Important Secondary Assets & Sectors

This week’s specialized ETF performance gave us two very clear leaders: gold miners and growth .

Gold miners dominated the leaderboard. GDXJ surged 23.30% and GDX gained 21.31%, confirming the strength we saw in Gold ($gold) itself.

→ However, underneath that precious-metals rally, investors were also taking considerably more risk.

ARKK jumped 11.50%, Software (IGV) gained 8.57%, and Semiconductors (SOXX) rose 7.60%. Homebuilders, Biotechnology, and small caps also finished firmly higher.

That breadth matters.

Gold Miners Confirmed Gold

This wasn’t a situation where Gold rallied while miners refused to participate.

Quite the opposite.

Junior miners actually outperformed the larger miners, which adds another layer of strength to the precious-metals move.

→ Gold isn’t just on my radar anymore.

It’s one of the strongest themes in the market right now.

Growth Confirmed Technology

Part II showed Technology leading the S&P 500.

Now we know what was happening underneath it.

→ Software rallied, semiconductors rallied, and speculative growth, represented by ARKK, rallied even harder.

That’s much stronger confirmation than XLK alone could give us.

Energy Was The Clear Weak Spot

The bottom of the table tells the opposite story.

Brent Crude fell 3.99% and XOP dropped 6.20%.

That confirms the weakness we already saw in USO and XLE.

→ For now, energy has lost leadership.

Biggest Takeaway: Gold miners (GDX & GDXJ) dominated, growth (ARKK) broadened, and Energy (XLE & XOP) broke the other way. The market is rewarding both precious metals and risk assets at the same time.

IV. What Assets & Sectors I’m Watching

Here’s what’s at the top of my screen heading into next week.

Gold and the gold miners remain at the top of my watchlist. GLD gained 7.25%, while GDX and GDXJ surged more than 20%.

After moves that large, I’m watching whether they can hold their breakouts or need time to cool off. For me, this is a manage strength, don’t chase strength situation.

I’m also watching Technology and Growth, including QQQ, XLK, IGV, SOXX, and ARKK. Growth came back hard across multiple areas last week.

→ Now I want to see whether that leadership sticks or quickly fades.

Small caps are another important piece.

IWM gained 3.56%, but lagged the major growth indexes.

Stronger participation from small caps would give me another sign that risk appetite is continuing to broaden.

I’m keeping long-term Treasuries (TLT) on my screen as well. TLT gained 1.03% after recent weakness, so I’m watching whether this was simply a bounce or the beginning of improving momentum in bonds.

Finally, there’s Oil and Energy. USO, $brent, XLE, and XOP all weakened, making this one of the clearest areas of relative weakness.

I’m watching for stabilization or a potential bottom, but I want price to prove it before treating Energy as a leadership candidate again.

V. Individual Stock Highlights & Winners From Last Week

Profit-Taking Opportunities:

• GDX, GDXJ, IGV

• AMGN, PFE, MMM, JD, NUE

• AMZN, ABNB, DASH, CART, PLTR, MSFT, SNOW, RACE, SNAP, SHAK

• GDXU, NUGT, JNUG, AMZU, MSFU, SNOU

Congratulations to everyone in these trades!

VI. Nurse Jess’s Weekend Market Notes

VII. Nurse Jess’s Trade Ideas

Here are the setups I’m watching heading into next week:

1. Main Trade Ideas This Week

• TLT

• SOXX, ARKK

• UBER, TSLA, IBM, META, RDDT

• MCD, PEP, HSY, ALB, LHX, CRSP, LVMUY

• VKTX, MBLY, ENVX

2. Buy & Hold Undervalued Opportunities

These are trading below fair value or set up for long-term entries:

• HSY, PEP, PG, DVN, LHX, NKE, MCD, SEB

• UBER, TSLA, META, RDDT, IBM, LVMUY, CRSP

• RIVN

3. Spec Trade Ideas

• VKTX, MBLY, ENVX

4. Leveraged Trade Ideas

• TMF

• SOXL

• UBRL, TSLL, FBL, RDTL

5. My Watchlist

• $BRENT, USO

• XOP, XLE, XLU, XLRE

• D, FE, AAPL, CVX, NKE, DVN, MELI, TTD, SEB, KDP, CMG

6. New Tickers

• TTD, MELI, SEB

VIII. Trade Breakdowns

Let’s take a closer look at each setup.

1. Mobileye Global Inc. (MBLY)

Mobileye Global Inc. is entering a breakout here signaled by price closing above its 20-day SMA.

I’m looking to add shares to my MBLY position trade here.

Profit targets:

• An extreme-high RSI reading

• First target zone: $10.50

• Fair value target: $11.10

• Previous high target zone: $14.00

MBLY engages in the development and deployment of advanced driver-assistance systems (ADAS) and autonomous driving technologies and solutions.

It’s building a portfolio of end-to-end ADAS and autonomous driving solutions to provide the capabilities needed for the future of autonomous driving, leveraging a comprehensive suite of purpose-built software and hardware technologies.

The company's reportable operating segment are Mobileye and Moovit.

According to Morningstar, MBLY has a fair value of $11.10 and is currently trading fairly valued.

MBLY is part of the Technology sector (XLK) of the S&P 500 (SPY) and the Electronic Equipment sub-sector.

Link to MBLY chart

2. Viking Therapeutics, Inc. (VKTX)

Viking Therapeutics, Inc. is in an accumulation zone along its 200-day SMA and currently trading 22% undervalued here.

This is a great opportunity in a speculative biotechnology play as a swing trade or a buy and hold add.

Profit targets:

• An extreme-high RSI reading

• Previous high target zone: $39-42

• Fair value target: $44.09

• Stop loss zone: $30

VKTX is a healthcare service provider.

The company specializes in the area of biopharmaceutical development focused on metabolic and endocrine disorders. The company's clinical program pipeline consists of VK2809, VK5211, and VK0214 products.

According to Morningstar, VKTX has a fair value of $44.09 and is currently trading undervalued.

VKTX is part of the Health Care sector (XLV) of the S&P 500 (SPY) and the Biotechnology sub-sector.

Link to VKTX chart

IX. The Bottom Line

Last week gave us a much healthier picture beneath the surface.

→ Growth came back and market participation broadened.

→ Gold and the miners showed exceptional strength.

And while Energy moved sharply in the opposite direction, weakness there didn’t stop the broader market from advancing.

For me, the question heading into next week is simple:

→ Can the new leadership hold?

I’m watching whether Technology (XLK) and growth (ARKK) can build on their momentum, whether Gold (GLD) can hold its breakout after such a powerful move, and whether small caps begin participating more aggressively.

At the same time, I’m keeping an eye on Oil and Energy for signs of stabilization rather than trying to call the bottom.

→ There are plenty of opportunities on the board right now, but after a week with moves this large, I’m not interested in chasing them. I’m interested in seeing what holds.

That’s where next week’s opportunities will start to separate themselves from last week’s winners.

Don’t force any trades. Let the setups come to you.

I really like RDDT, TSLA, UBER, MBLY, VKTX, and ENVX here.

Let me know what you’re watching and thank you so much for reading! 🙌

See you Wednesday for the Top Pick of the Week. 🫶

-Nurse Jess 🤝

Know the Big Picture. Focus on the Edge. 👑

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Previous Articles & Episodes →

Scan the QR code below to subscribe to Nurse in the Market→

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I hope you had a great week!

ICYMI, you can see the latest Top Pick of the Week here →

A quick highlight from last week →

Amazon.com, Inc. rallied into one of my key target zones, reaching its previous highs while pushing the RSI back toward a near extreme-high reading. For long-term investors, the story remains intact, but for traders, this is the type of setup where I begin thinking about protecting profits instead of chasing the move. Congratulations to those of you in the AMZN / AMZU trade!

A quick update from last week →

Before we get into this week’s market action, I wanted to share a milestone.

Last week, Nurse in the Market officially surpassed 200 subscribers!!

Thank you for reading, sharing, asking thoughtful questions, and helping grow this community. Every article, podcast, and Sunday Market Playbook is created with one goal in mind: helping busy professionals become more confident investors.

Here’s to the next 200. We're just getting started.

Let’s dig into last week’s market recap and the playbook for the week ahead →

The markets were fun as always last week!

The major indexes finished the week in positive territory, but the gains weren’t evenly distributed.

The S&P 500 and Dow Jones led the way, while the Nasdaq lagged behind.

That tells me investors were willing to own stocks, but they weren’t aggressively chasing higher-growth names.

Outside of equities, the picture was mixed.

Oil gave back 5.50% after last week’s surge, long-term Treasuries fell another 1.20%, Bitcoin ($BTCUSD) declined 2.41%, and Gold finished essentially flat.

My take: This wasn’t a risk-on or risk-off week.

→ It was a selective participation week.

Investors continued buying stocks, but they weren’t buying everything. Leadership wasn’t as aggressive, and several alternative assets failed to confirm a broad move higher.

That’s why, heading into next week, I’m less focused on whether the indexes continue climbing and more interested in who leads the next leg of the market because sustainable rallies aren’t defined by higher prices alone.

→ They’re defined by expanding leadership.

Let’s get into the Playbook!!

The S&P 500 (SPY) was the top performing index of the Big 3, while the Nasdaq (QQQ) was the worst.

Biggest Takeaway: The major indexes moved higher, but leadership remained selective rather than broad-based.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. Oil

2. The Dow Jones 30

3. The S&P 500

4. The Nasdaq-100

5. Gold

6. Bitcoin ($BTCUSD)

7. 20 Year Bonds Treasury ETF

♥️Market Pulse: 3/7

• 3/7 assets are up.

• SPY, QQQ, and DIA are up.

• USO, BTC, GLD, and TLT are down.

This was a “selective participation” week.

II. Section Rotation (11 SPDR S&P 500 Sectors)

When it come to the 11 sectors of the SPY, don’t ask:

“Which sectors were green"?

Ask:

“What is the market rewarding?”

→ This week’s sector performance tells a very different story than last week.

Consumer Discretionary led all 11 S&P 500 sectors with a gain of 6.11%, followed by Communication Services and Financials .

Meanwhile, Utilities , Real Estate, Materials , and Industrials finished near the bottom of the leaderboard.

→ That’s a meaningful shift.

Last week, investors favored Energy , Utilities, and other hard-asset sectors.

This week, money rotated back toward consumer-focused and economically sensitive areas while several defensive sectors lost momentum.

Biggest Takeaway: Consumer Discretionary (XLY) reclaimed leadership while Utilities (XLU) fell to the bottom, signaling a shift back toward cyclical risk.

III. Important Secondary Assets & Sectors

The specialized ETFs reinforced the message we saw in the broader sector data.

Software (IGV) led the group with a 7.50% gain, followed by Retail (XRT) and Oil & Gas Exploration (XOP).

On the other end of the spectrum, Brent Crude Oil ($BRENT), Homebuilders (XHB), and Semiconductors (SOXX) finished among the week’s weakest performers.

That tells me this wasn’t a broad-based rally across every industry.

→ It was a targeted rotation.

Investors favored software, retail, and selected cyclical businesses while stepping away from areas that had previously led, including crude oil, gold miners, and semiconductors.

One relationship stood out to me.

Brent Crude Oil fell nearly 9%, yet XOP still gained almost 2%.

→ That’s an important divergence.

It suggests investors weren’t abandoning energy companies altogether. Instead, they continued rewarding well-positioned exploration and production businesses even as oil prices pulled back.

The same selective behavior showed up inside Technology .

Software surged and Semiconductors declined.

→ That’s a reminder that leadership can change within a sector, not just between sectors.

My Take: The market rewarded selective growth, not speculative buying.

Software and retail regained leadership, while Energy remained resilient despite lower oil prices.

At the same time, defensive themes such as gold miners failed to attract meaningful capital.

The biggest lesson this week wasn’t simply that stocks moved higher.

→ It was that investors became much more selective about where they wanted exposure.

→ That’s exactly the type of environment where individual stock selection matters more than simply buying the entire market.

Biggest Takeaway: Leadership returned to growth, but not all growth. Software (IGV) led, semiconductors (SOXX) lagged, and stock selection mattered more than sector selection.

IV. What Assets & Sectors I’m Watching

Here’s what’s at the top of my screen heading into next week.

1. Russell 2000 (IWM) →

Small caps barely finished positive last week, even as the major indexes pushed higher.

That’s worth watching.

→ If investors start embracing risk again, IWM should begin outperforming.

→ If it continues lagging while SPY grinds higher, it tells me this rally is still being carried by a relatively narrow group of stocks.

→ I’m watching for relative strength to return.

2. Long-Term Treasury Bonds (TLT) →

TLT continues to struggle.

Bond prices fell another 1.20% last week, pushing yields higher and keeping pressure on rate-sensitive areas of the market.

Growth stocks can still rally while yields rise, but it becomes a much harder environment.

→ If TLT starts finding support, it could become a tailwind for technology and other long-duration assets.

3. Oil (USO) →

Oil finally cooled off after last week’s explosive rally.

USO pulled back 5.50%, but one down week doesn’t change the bigger trend.

I’m watching to see whether buyers step back in around support. If they do, Energy could reclaim leadership very quickly.

4. Software (IGV) →

This is probably my favorite chart heading into next week.

IGV finished as the strongest specialized ETF I track, gaining 7.50% over the past five days.

→ Software leading while semiconductors lag is an interesting shift.

If buyers continue rotating back into high-quality software names, this could become one of the cleaner momentum trades on my watchlist.

5. Retail (XRT) →

Consumer Discretionary was the strongest S&P 500 sector last week.

Retail confirmed that move.

XRT gained more than 3%, suggesting investors are becoming more comfortable owning consumer-facing businesses again.

I’m watching for follow-through.

6. Energy Producers (XOP / XLE) →

Oil pulled back and energy stocks didn’t.

XOP still finished the week higher despite crude giving back ground.

That’s exactly the kind of relative strength I like seeing.

If Oil ($BRENT) stabilizes, XOP could continue leading.

7. Semiconductors (SOXX) →

This one is getting interesting.

SOXX lost more than 4% last week after being one of this year’s strongest groups.

I’m not looking to chase weakness.

But if price holds support and buyers step back in, semiconductors could offer another opportunity.

I’m watching the chart; not trying to predict it.

8. ARK Innovation (ARKK) →

ARKK remains one of the highest-beta ETFs in the market.

It struggled again last week, but that’s exactly why I’m paying attention.

→ The best trades often come from groups nobody wants to touch—once buyers start returning.

→ Not yet, but it’s getting close enough to stay on my radar.

What I’m Watching Most →

The macro picture hasn’t changed.

Money is starting to rotate back toward selective growth, but the leadership still isn’t broad enough for me to call this a full risk-on market.

• Software is improving and retail is improving.

• Small caps still need to prove themselves.

• Bonds remain weak.

• Oil is trying to decide whether last week’s pullback was simply profit-taking—or the start of something bigger.

That’s where my attention will be.

I’m not interested in predicting next week’s winners.

→I’m interested in seeing where money actually shows up because that’s usually where the next trade begins.

V. Individual Stock Highlights & Winners From Last Week

Profit-Taking Opportunities:

• XLF

• JPM, BAC, AMGN, SOLV, MMM, LMT, GD, NUE

• AMZN, MSFT, SNOW, VZ

• FAS, AMZU

Congratulations to everyone in these trades!

VI. Nurse Jess’s Weekend Market Notes

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I hope you had an awesome week!

ICYMI, you can see the latest Top Pick of the Week here →

Let’s dig into last week’s market recap and the playbook for the week ahead →

The markets were volatile last week.

The major indexes didn’t do much this week.

Underneath them though? A lot changed.

The S&P 500 slipped 0.59%, the Dow lost 0.39%, and the Nasdaq fell 1.60%. Those numbers alone make the week look relatively uneventful.

However, that’s not where the interesting part of the market was.

Oil surged more than 10%. Energy became the strongest S&P 500 sector.

Gold miners jumped. Utilities, Industrials, and Materials moved higher while Software , Consumer Discretionary , and other growth-sensitive areas struggled.

In other words, money didn’t disappear.

→ It moved and that’s the part I care about.

When the indexes get all the attention, it’s easy to miss what’s happening underneath them.

→ Sector leadership can change before the headline numbers make that shift obvious.

So this week, I’m paying less attention to whether the SPY was up or down half a percent and more attention to where investors were actually putting their money because right now, the market looks “increasingly selective.”

Let’s get into the Playbook!!

The Dow Jones (DIA) was the top performing index of the Big 3, while the Nasdaq (QQQ) was the worst.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. Oil

2. Bitcoin ($BTCUSD)

3. Gold

4. The Dow Jones 30

5. The S&P 500

6. The Nasdaq-100

7. 20 Year Bonds Treasury ETF

♥️Market Pulse: 3/7

• 3/7 assets are up.

• BTC, GLD, and USO are up.

• QQQ, DIA, SPY, and TLT are down.

This week, I’m watching one question:

Does the leadership broaden—or become even more defensive?

The money underneath them tells you where investors are preparing to go.

II. Section Rotation (11 SPDR S&P 500 Sectors)

One of the clearest themes last week was sector rotation.

Leadership moved away from the usual growth engines.

Energy led all 11 S&P 500 sectors over the past five days, followed by Utilities , Industrials , Materials , and Real Estate .

Meanwhile, Technology barely finished positive, while Communication Services and Consumer Discretionary brought up the rear.

💡 My Takeaway

This doesn’t look like a simple flight to safety.

If it were, I’d expect defensive sectors to dominate across the board. Instead, we’re seeing strength in Energy, Industrials, Materials, and Utilities—a mix of hard assets, infrastructure, cyclicals, and defense.

That tells me investors are becoming more selective about where they’re putting money.

And it confirms something else I’m seeing beneath the indexes:

→ Leadership is changing.

That’s what I’m watching next week.

Does this rotation continue—or does money move back into the growth sectors that have been leading this market?

III. Important Sectors & ETFs

The Lesson: Follow The Money 👑

This week’s leadership wasn’t what I’d expect from a full-throttle risk-on market.

Gold miners and energy led, while software , speculative growth , small caps , regional banks , and retail lagged.

Semiconductors managed to stay positive, which tells me investors aren’t abandoning technology—they’re becoming more selective about where they’re willing to take risk.

💡 My Takeaway

This looks less like investors running from the market and more like money rotating toward hard assets, cash-generating businesses, and areas with stronger near-term catalysts.

That doesn’t automatically make the move bullish or bearish.

It makes it selective and that distinction matters.

If small caps, regional banks, retail, and other economically sensitive areas begin participating, that would tell me the rotation is broadening and market participation may be getting healthier.

But if gold and energy continue leading while those groups weaken, I’d read that very differently. It could be a sign that investors are becoming more defensive beneath the surface.

So this week, I’m watching one question:

Does the leadership broaden—or become even more defensive?

Because sometimes the indexes tell you where the market went.

→ The money underneath them tells you where investors are preparing to go.

IV. What Assets & Sectors I’m Watching

Here’s what I’m focused on next week:

Oil (USO): This is at the top of my screen. USO surged 10.27% over the past five days, dramatically outperforming every other major asset I track.

After a move that large, I’m not interested in chasing it. I want to see whether oil can hold its gains, consolidate, or begin giving some of the move back.

Energy (XLE & XOP): Energy confirmed the move in crude. XLE gained 3.36%, making Energy the strongest S&P 500 sector, while XOP gained 2.27%. If crude holds and these groups continue participating, Energy remains one of the strongest areas on my radar.

Gold (GLD) & Gold Miners (GDX/GDXJ): GLD gained 0.95%, but the miners were considerably stronger. GDX rose 5.48% and GDXJ jumped 6.07%.

→ That relative strength has my attention. I’m watching whether gold itself begins confirming the enthusiasm we’re seeing in the miners.

The Nasdaq (QQQ): fell 1.60%, making it the weakest of the three major equity indexes I track. That lines up with weakness in Software and other growth-heavy areas.

→ I’m watching whether buyers return to growth or whether QQQ continues losing relative strength.

S&P 500 (SPY): declined 0.59% over the past five days. The headline index didn’t have a dramatic week, but the action underneath it certainly did.

For me, sector participation matters more here than the relatively small decline in SPY.

Dow Jones (DIA): fell just 0.39%, outperforming both SPY and QQQ.

That relative strength fits the broader rotation toward more traditional, industrial and value-oriented parts of the market.

Long-Term Treasuries Bonds (TLT): lost 1.50%. That’s important because stocks weren’t simply selling off while investors rushed into long-duration government bonds.

I’m watching yields and bonds closely because continued weakness in long-duration Treasuries could remain a headwind for rate-sensitive growth stocks.

Bitcoin (BTC): BTC was basically flat at +0.07%. With several other assets making meaningful moves, crypto gave us very little directional information this week. I’m watching for the next decisive move rather than trying to manufacture a signal that isn’t there.

What I’m Watching Most →

This week gave me a much clearer message than the headline indexes alone would suggest.

Oil surged. Energy led. Gold miners rallied. Industrials and Materials participated. Meanwhile, QQQ weakened, Software sold off, Consumer Discretionary struggled, and long-duration Treasuries declined.

That isn’t a market where everything is moving together.

→ It’s a market making choices.

So, again, I’m heading into next week with one question:

Does money continue moving toward energy, hard assets, and the physical economy—or does growth reclaim leadership?

I’m not trying to predict the answer. I’m following the money.

V. Individual Stock Highlights & Winners From Last Week

Profit-Taking Opportunities:

• USO, $BRENT

• XOP

• CVX, XOM

• MMM, UNP, LMT, GD, AAPL

• GUSH

Congratulations to everyone in these trades!

VI. Nurse Jess’s Weekend Market Notes

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It’s asking questions.

The market has a funny way of rewarding curiosity.

You start researching one company, which leads you to another industry, which leads you to an entirely different investment idea you never expected to find.

Sometimes the best opportunities aren’t hiding in plain sight. They’re hiding just one question beyond where everyone else stops looking.

That’s exactly what happened to me this week.

I wasn’t looking for an oil and gas company.

I was looking for another way to invest in artificial intelligence.

More specifically, I wanted to find a utility company.

The logic seemed straightforward.

Artificial intelligence is driving an explosion in data centers.

Data centers consume enormous amounts of electricity. If electricity demand continues to grow over the next decade, utility companies should be among the biggest beneficiaries.

On paper, the thesis made perfect sense.

So I started researching and I found a lot of businesses I genuinely admired.

Companies with predictable cash flows. Strong balance sheets. Long operating histories. The kind of businesses I’d be happy to own for years.

There was just one problem.

Many of them already looked fairly valued.

The opportunity wasn’t as compelling as I had hoped.

That’s when I stopped asking one question.

→ “Who delivers the electricity?”

And started asking another.

→ “Where does the electricity come from?”

That single question completely changed where my research led me.

Instead of following the AI story directly, I followed the energy behind it.

Not to another utility, but to one of the largest independent oil and natural gas producers in the United States.

A company that Morningstar currently estimates is trading at roughly 20% below its fair value.

A company that gives investors exposure to both traditional energy demand and one of the fastest-growing themes in the market.

The growing energy needs of artificial intelligence.

That’s why this week’s Top Pick of the Week is Devon Energy Corp. .

Here’s the setup →

What Is Devon Energy Corp?

Unlike many of the companies I’ve written about recently, Devon Energy Corp. isn’t building artificial intelligence, it isn’t designing semiconductors, it isn’t manufacturing servers, and it isn’t constructing data centers.

Instead, DVN produces something every one of those businesses depends on before any of them can do what they’re designed to do.

→ Energy.

DVN is one of the largest independent oil and natural gas producers in the United States, with operations spanning some of the country’s most productive shale basins, including the Permian, Eagle Ford, Anadarko, and Bakken.

Following its merger with Coterra, the company will also expand its footprint into the Appalachian Basin, strengthening its exposure to natural gas.

At the end of 2025, the company reported approximately 2.4 billion barrels of oil equivalent in proved reserves and produced roughly 840,000 barrels of oil equivalent per day.

About 73% of that production came from oil and natural gas liquids, while the remaining 27% came from natural gas.

Those numbers matter because they tell us what kind of business DVN has become.

This isn’t a small exploration company hoping to strike its next big discovery.

It’s an established producer with diversified operations, high-quality assets, and a meaningful position across several of North America’s most important energy regions.

Oil continues to fuel transportation, manufacturing, and industrial activity around the world.

Natural gas plays a different, but increasingly important role.

It has become one of the primary fuels used to generate electricity in the United States, providing reliable, dispatchable power whenever homes, businesses, manufacturers, and data centers need it.

That diversification gives DVN exposure to multiple sources of long-term energy demand.

That’s what caught my attention because I was searching for the businesses making artificial intelligence possible.

The Hidden Layer

Artificial intelligence has become one of the defining investment themes of this decade.

Mention AI, and most investors immediately think of companies like NVIDIA , Microsoft , Alphabet , Amazon , or Broadcom .

That makes sense.

They’re building the chips, software, cloud infrastructure, and platforms driving the next generation of technology.

However, every major investment theme creates an ecosystem.

The companies making headlines are rarely the only ones benefiting.

Sometimes the most interesting opportunities exist one layer deeper.

That realization completely changed the way I approached my research.

Instead of asking which companies were building artificial intelligence...I started asking what artificial intelligence needed before it could exist.

The answer wasn’t another semiconductor.

It was electricity.

• Every AI model has to be trained.

• Every prompt has to be processed.

• Every cloud server has to stay online.

• Every data center has to operate twenty-four hours a day.

None of that happens without power.

That part of the story is obvious.

The better question is this:

→ “Where does that electricity come from?”

For the United States, the answer isn’t one energy source.

It’s a combination of natural gas, nuclear, hydroelectric power, wind, solar, and other renewables working together to support an increasingly complex electrical grid.

Natural gas remains one of the largest and most reliable sources of electricity generation because it can provide consistent, dispatchable power whenever demand increases.

As artificial intelligence continues expanding, so will the infrastructure supporting it.

More infrastructure requires more electricity and more electricity requires dependable sources of energy.

That’s where DVN entered my thinking.

Not because it’s an AI company and not because I believe artificial intelligence alone will determine its future.

The connection is much simpler than that.

→ If artificial intelligence increases electricity demand...and natural gas remains an important part of producing that electricity...then companies helping supply that fuel may benefit from a long-term trend extending well beyond traditional oil and gas demand.

That’s not a prediction.

It’s a thesis.

One built on asking one more question after everyone else believes they’ve already found the answer.

Why Devon Energy Caught My Attention

One of the biggest mistakes investors can make is falling in love with a theme.

The theme may be right.

The investment may not be.

I think that’s an important distinction.

Artificial intelligence is one of the most compelling long-term investment stories of our generation.

I don’t think that’s a controversial statement anymore. The amount of capital flowing into AI infrastructure, cloud computing, semiconductors, and enterprise software speaks for itself.

However, believing in a trend isn’t enough and the price you pay still matters.

That’s what surprised me during my research.

I expected to find compelling opportunities among utility companies.

The logic was sound, and many of the businesses I reviewed were exactly the kind of companies I’d be comfortable owning for years.

Strong balance sheets, predictable cash flows, and reliable businesses.

There just wasn’t enough of a discount to get me excited.

That’s an important lesson.

A great business doesn’t automatically make a great investment.

Valuation matters and sometimes the market recognizes a great business long before we do.

When that happens, future returns often depend less on the quality of the company and more on the price you paid to own it.

That’s why I changed my question.

Instead of asking:

“Who benefits from AI?”

I started asking:

“Where else might the market be looking?”

That shift led me away from the companies everyone was already talking about and toward an industry that wasn’t receiving nearly as much attention.

Energy.

That’s where DVN stood out.

Morningstar currently estimates the company is trading at roughly 20% below its fair value.

For me, that immediately made the story more interesting.

Here was an established company with diversified operations, meaningful exposure to both oil and natural gas, and what appeared to be an attractive valuation.

More importantly, it wasn’t dependent on a single outcome.

If AI continues increasing electricity demand, DVN could benefit from stronger long-term demand for natural gas.

If traditional energy demand remains resilient, the business continues serving the markets it already knows well.

I like investments with multiple paths to success. DVN appeared to offer exactly that.

Why Invest in DVN Right Now?

Finding a company you admire is only part of the equation.

Timing matters, valuation matters, and for me, technical analysis matters too.

The strongest investment opportunities often appear when multiple pieces of the puzzle begin fitting together at the same time.

That’s what I believe I’m seeing with Devon Energy Corp. today.

Morningstar’s estimate of roughly a 20% discount to fair value first caught my attention because it suggested the market might be pricing the business more pessimistically than its long-term fundamentals justify.

Of course, valuation alone isn’t enough.

A stock can look cheap for months—or even years—if investors continue finding reasons to sell it.

That’s why I also pay attention to the chart.

When I’m evaluating a company, I ask myself a few simple questions.

• Is the long-term trend improving?

• Is momentum beginning to shift?

• Is the stock showing signs of accumulation?

• Is the broader sector becoming stronger?

Technical analysis doesn’t tell me what to buy.

It helps me decide when I want to buy it.

→ Fundamental analysis answers the question, “Is this a business I want to own?”

→ Technical analysis helps answer, “Is now the right time?”

I don’t need every signal to line up perfectly.

Markets rarely work that way, but when valuation, fundamentals, and technicals begin pointing in the same direction, my confidence usually increases.

That’s the combination that encouraged me to take a closer look at DVN.

Technical Analysis & Chart Markup

DVN is entering a breakout signaled by price closing above its 20-day SMA.

The TSI has curled & crossed and the MACD histogram flipped to the bullish side signaling the momentum is in favor here.

• Current Price: $44.10

• Sector: Energy

• Sub-sector: Exploration & Production

• Fair Value: $55 (20% discount here)

• Entry Zone: $41-45

• Stop Loss Zone: $39.50-40.00

In other words:

→ this is an amazing buy & hold opportunity to pick up shares of DVN, an undervalued / discounted dividend-paying stock to hold for the long-term, if not forever.

→ we can also position trade DVN back to true value and beyond and make massive gains.

→ if you’re an experienced, astute trader, you can write option contracts on DVN and do what you do and make exponential gains.

Link to DVN chart

The Risks

Every investment comes with uncertainty.

DVN is no exception.

→ Unlike software companies that generate recurring subscription revenue, DVN operates in a cyclical business where earnings and cash flow are heavily influenced by commodity prices.

Oil prices fluctuate and natural gas prices fluctuate.

Economic slowdowns can reduce energy demand, while geopolitical events can cause sudden price swings in either direction.

→ Those risks are simply part of investing in the energy sector.

There’s also execution risk.

DVN still has to allocate capital wisely, control operating costs, integrate acquisitions successfully, and continue producing energy efficiently across its portfolio of assets.

Finally, while I believe artificial intelligence could become an important long-term driver of electricity demand, there’s no guarantee that every energy producer benefits equally.

Themes don’t play out in straight lines and markets don’t reward every company the same way.

That’s why I try not to build an investment thesis around a single narrative.

Instead, I look for businesses that can succeed for multiple reasons.

For me, that’s what makes DVN interesting.

Artificial intelligence isn’t the whole story.

It’s simply another reason to pay attention.

My Investment Thesis

One of the reasons I enjoy writing these Top Pick of the Week articles is that they force me to think beyond the obvious investment narrative.

It’s easy to follow headlines.

It’s much harder to understand what’s happening beneath them.

Artificial intelligence may become one of the defining technological shifts of our lifetime. Most investors naturally focus on the companies building the chips, writing the software, or operating the cloud infrastructure that powers it.

Those businesses deserve the attention they’re receiving.

However, I don’t think they’re the only opportunities worth studying.

Sometimes the market rewards investors who take one more step, who ask one more question, and who look one layer deeper.

That’s exactly what happened during my research.

I didn’t begin this article looking for an oil and natural gas producer.

I began by looking for a utility company.

That search led me somewhere I didn’t expect.

It led me to a business with diversified operations, meaningful exposure to both oil and natural gas, high-quality assets across some of North America’s most productive energy regions, and a valuation that Morningstar currently estimates is roughly 20% below fair value.

Just as importantly, it led me to a company that appears positioned to benefit from more than one long-term trend.

Traditional energy demand isn’t disappearing.

At the same time, the infrastructure supporting artificial intelligence is increasing the need for reliable electricity, creating another potential source of long-term demand for natural gas.

That doesn’t make DVN an AI stock and it doesn’t mean artificial intelligence alone will determine the company’s future.

It simply means I believe the market may be overlooking one part of the story.

That’s the kind of opportunity I enjoy researching most.

Not because I think I’ve found a hidden gem, but because I think asking better questions often leads to better investment ideas.

For me, Devon Energy Corp. represents exactly that.

Final Thoughts

When I first started researching this week’s Top Pick, I thought I was writing an article about utility companies.

Instead, I ended up writing about curiosity.

I don’t think that’s a coincidence.

The longer I invest, the more convinced I become that curiosity is one of the most valuable assets an investor can have.

The market encourages us to chase headlines, to react to the latest news, and to buy whatever everyone else is talking about.

Sometimes that’s the right decision and often, it isn’t.

The investors I admire most rarely stop at the obvious answer.

They keep asking questions.

When everyone was talking about artificial intelligence, I asked what powers it.

When I started researching utility companies, I asked where their electricity comes from.

That single question changed where my research led me.

More importantly, it reminded me of something I never want to forget.

Great investing isn’t about finding all the answers.

It’s about asking better questions.

The best opportunities don’t always come from predicting the future.

Sometimes they come from looking one layer deeper.

This week, that led me to Devon Energy Corp. .

Next week...who knows where curiosity will lead.

Know the Big Picture. Focus on the Edge. 👑

Stay one step ahead of the market.

Following a systematic approach, reading market structure, and staying disciplined compounds over time.

Let me know what you’re watching and thank you so much for reading! 🙌

-Nurse Jess 🤝

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What does a black leather jacket have to do with one of the world’s most valuable companies?

In this episode of The Trading Desk, I share why Jensen Huang’s signature “uniform” resonated with me, how it influenced the evolution of Nurse in the Market, and why NVIDIA CORP. became my Top Pick of the Week.

We also break down the company’s valuation, technical setup, leadership in AI, and the long-term investment thesis behind the trade.

In This Episode

• Why Jensen Huang wears the same black leather jacket.

• The psychology behind creating a personal uniform.

• How this inspired the evolution of Nurse in the Market.

• Why NVDA is trading near an important technical level.

• My long-term investment thesis for NVDA.

• Key risks every investor should understand.

• The biggest takeaway from this week’s Top Pick.

Connect with Nurse in the Market

📈 Sunday Market Playbook

🎯 Top Pick of the Week

🎙️ The Trading Desk

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The Trading Desk

• Click below to access The Trading Desk on Spotify →

Today’s Takeaway

Great investing isn’t just about finding exceptional companies. It’s about understanding the people, leadership, and stories that make those companies exceptional.

Know the Big Picture. Focus on the Edge.

Continue The Conversation

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Helping busy professionals understand the stock market through stories, strategy, and education—so you can build long-term wealth without needing a translator.

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Nurse in the Market

Helping busy professionals understand the stock market through stories, strategy, and education—so you can build long-term wealth without needing a translator.

By Jess, The Creator

Scan the QR code below to subscribe to Nurse in the Market →

It isn’t artificial intelligence, it isn’t data centers, it isn’t chips, and isn’t even the company he built.

→ It’s the jacket.

If you’ve ever watched Jensen give a keynote, you’ve probably noticed it.

The black leather jacket. Always.

At first, I assumed it was just his style, but the more I watched him, the more I realized it was something else.

It was a uniform and that idea has always stayed with me.

I spent my entire childhood wearing a uniform.

• Catholic school.

• Elementary through high school.

• Ice hockey.

• Same structure.

• Same routine.

• Same decision removed every morning before the day even started.

At the time, I couldn’t wait to graduate.

I thought freedom meant finally choosing what I wanted to wear every day.

Then graduation came and I realized something annoying, I hated it.

Every morning started with the same question:

“What am I going to wear today?”

It sounds small, but small decisions add up.

• What shirt?

• What shorts?

• What shoes?

• Does this match?

• Is this clean?

• Do I need something different today?

Eventually, I realized I didn’t want more choices.

I wanted fewer.

So without really planning it, I created my own uniform.

Black shirt and Nike shorts. That’s it.

Simple, comfortable, and most importantly...I never have to think about it.

The older I’ve gotten, the more I’ve noticed how many high-performing people do the same thing.

• Steve Jobs had the black turtleneck.

• Mark Zuckerberg became known for the gray T-shirt.

• Jensen Huang has the black leather jacket.

At first glance, it looks like fashion.

I don’t think it is. I think it’s focus.

Every decision you eliminate is one less decision stealing energy from the things that actually matter.

The goal isn’t the jacket. The jacket is just the symbol.

→ The goal is protecting your attention.

That idea followed me all week.

Not just because of Jensen, but because of Nurse in the Market.

Last weekend, I redesigned the publication homepage.

For months, it had a clean white background.

It was fine, professional enough, and simple enough.

However, something always felt off and I couldn’t explain it.

It didn’t feel bad. It just didn’t feel like me.

So I made one change.

I switched the background to black.

Then I refreshed the page and I just sat there looking at it.

For the first time...it didn’t feel like I was building a newsletter.

It felt like I was building a brand.

Not because the writing changed, not because the research changed, and not because the charts changed.

Because the identity changed.

The black background made everything feel sharper, more confident, more grounded, and more aligned with the world I’ve been building.

The Basquiat-inspired thumbnails finally looked like they belonged there.

• The green crown stood out.

• The charts felt more intentional.

• The whole thing had more edge.

Suddenly, I wanted to write, I wanted to publish, and I wanted to keep building.

And that’s when I started thinking about Jensen again because great leaders build recognizable identities.

People recognize them before they even speak.

Great companies do the same.

• Consistency creates trust.

• Identity creates recognition.

• Focus creates execution.

And while I was thinking about Jensen Huang’s uniform, I started looking at his company again.

I had several names on my watchlist this week.

→ Archer Aviation looked good here.

→ L3Harris had a strong setup.

A few others almost made the cut, but one chart kept pulling me back.

One valuation stood out, the company kept separating itself from the rest, and once again, it was led by the man in the black leather jacket.

This week’s Top Pick of the Week is NVIDIA Corp .

Here’s the setup →

Read more

I hope you had an amazing week!

ICYMI, you can see last week’s top play of the week here →

A quick highlight from last week →

DoorDash Inc. hit its first target signaling its time to lock in profits here! Price is also trading at a near extreme-high RSI reading. Price is also trading fairly valued here. Make sure to respect your profit targets and indicators and lock in some gains, but also leave some to run.

Let’s dig into last week’s market recap and the playbook for the week ahead →

The markets were fun last week.

The biggest move wasn’t the indexes—it was the rotation happening underneath them.

A softer-than-expected June jobs report helped calm fears of additional Federal Reserve tightening, giving investors confidence to broaden their exposure beyond mega-cap technology.

Money didn’t leave the market.

It simply changed direction.

Capital rotated into undervalued sectors like Financials , Industrials , Healthcare , and other cyclical businesses that had spent months sitting in the shadows of the AI trade.

Energy markets also kept investors on their toes.

Early in the week, rising tensions in the Middle East pushed oil prices higher on fears of supply disruptions.

However, as peace negotiations progressed later in the week, those concerns eased, sending crude oil back below $70 per barrel and weighing on energy stocks.

That shift rippled across the broader market. Lower oil prices helped ease inflation concerns, influencing everything from Treasury bonds to cryptocurrencies.

While long-term bonds remained under pressure, Bitcoin ($BTCUSD) caught a fresh bid as investors became more comfortable taking on risk again.

Overall, the week felt less like a market correction and more like a healthy broadening of participation.

Rather than relying on a handful of AI leaders to carry the market, investors began looking for opportunities in sectors that had lagged behind.

It’s exactly the kind of rotation I’d expect to see in a maturing bull market, where leadership expands beyond a small group of high-flying stocks.

The Dow Jones (DIA) was the top performing index of the Big 3, while the Nasdaq (QQQ) was the worst.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. The Dow Jones 30

2. The S&P 500

3. Bitcoin ($BTCUSD)

4. The Nasdaq-100

5. Gold

6. 20 Year Bonds Treasury ETF

7. Oil

♥️Market Pulse: 4/7

• 4/7 assets are up.

• BTC, GLD, DIA, and, SPY are up.

• QQQ, TLT, and USO are down.

The biggest story last week wasn’t the market—it was the rotation happening beneath the surface.

Investors weren’t selling stocks and heading for the exits. They were simply changing where they wanted to own them.

After months of leadership from mega-cap technology and AI, money began rotating into undervalued sectors like financials, industrials, and other cyclical businesses that had largely been left behind.

Meanwhile, many semiconductor and AI stocks pulled back as traders took profits after an impressive run.

To me, that looks less like a warning sign and more like a healthy broadening of the market.

II. Section Rotation (11 SPDR S&P 500 Sectors)

One of the clearest themes last week was sector rotation.

Money flowed into areas of the market that had been largely overlooked while many of this year’s biggest technology winners took a breather.

Financials led the market, climbing 3.54% as investors rotated into banks and other value-oriented companies. That strength helped lift the Dow Jones Industrial Average , which gained 1.39% for the week.

Materials followed closely, rising 2.66%, while Health Care finished as the third-best performing sector, advancing 1.87%.

Healthcare’s biggest move came on Thursday after FDA advisors unanimously backed Moderna’s new mRNA-based seasonal flu vaccine. The positive regulatory news sent MRNA shares sharply higher and helped fuel a broader rally across biotechnology and healthcare.

Technology , meanwhile, took a well-deserved pause.

After leading the market for much of the year, Technology slipped 0.29%, while the Nasdaq-100 finished slightly lower as investors locked in profits and rotated into sectors offering more attractive valuations.

To me, this wasn’t a sign that investors are abandoning AI or technology.

It was a healthy reminder that bull markets rarely rely on one sector forever.

As leadership broadens, opportunities often begin appearing in places the market had previously overlooked.

💡 My Takeaway

I actually view this rotation as a positive development.

Healthy bull markets don’t depend on a handful of mega-cap technology stocks carrying the entire market. They broaden over time, with leadership expanding into financials, healthcare, industrials, and other sectors as investors look for value and diversify their exposure.

If this trend continues, I think we’ll start seeing more opportunities outside of AI and semiconductors.

That doesn’t mean the AI story is over—it simply means investors are becoming more selective and looking for quality businesses trading at attractive valuations.

That’s exactly the kind of environment where some of my favorite investment ideas begin to emerge.

III. Important Sectors & ETFs

Beyond the main sectors, here’s what stood out this week:

The biggest story beneath the surface wasn’t investors leaving technology—it was where they chose to stay invested.

One of the clearest examples was the sharp difference between software and semiconductors.

The iShares Expanded Tech-Software ETF climbed 4.09%, while the iShares Semiconductor ETF fell 7.82%.

To me, that’s a sign investors weren’t giving up on technology altogether. Instead, they rotated away from some of the market’s biggest AI and semiconductor winners after an incredible run and into software companies with recurring revenue, stable cash flow, and more attractive valuations.

Outside of technology, investors continued looking for defensive opportunities.

Silver was the week’s best-performing ETF, gaining 4.44%, followed by Gold Miners , which rose 3.63% as precious metals benefited from easing interest rate expectations.

Healthcare also attracted fresh capital, with the iShares Biotechnology ETF hit a new record high after climbing 3.11% after positive regulatory news surrounding MRNA’s seasonal flu vaccine.

Meanwhile, The Russell 2000 Index and Homebuilders struggled as investors favored larger, higher-quality companies with stronger balance sheets.

💡 My Takeaway

To me, this wasn’t a “risk-off” week. It was a selective rotation.

Investors didn’t abandon technology—they became more selective within it. They also broadened their exposure by adding positions in financials, healthcare, precious metals, and other sectors that had been overshadowed by the AI trade.

That’s exactly what I’d expect to see in a healthy market.

Leadership begins to expand and when leadership expands, new opportunities often emerge where few investors have been looking.

I like ARKK and IGV for trade ideas this week. I also like GDX and GDXJ if price confirms the accumulation zone here. NUGT, GDXU, and JNUG for leveraged plays. I’m looking for any pullback on the IWM for small-cap trade setups.

IV. What Assets & Sectors I’m Watching

Here’s what I’m focused on next week:

• Oil (USO): Will price keep continuing lower here or find a bottom.

  • XLE and XOP both put in doji bars last Thursday, I’m watching for price to put in a bottom.

  • Brent Crude Oil ($BRENT) fell even more and is trading below its 200-day SMA.

• Dow Jones (DIA): Price is trading at a near extreme-high RSI reading. Use caution here and lock in profits when necessary and leave some to run.

• The S&P 500 (SPY): Held its breakout. Let’s see if price holds above its 20-day SMA or not here.

• The Nasdaq (QQQ): The breakout failed. Price closed below its 20-day SMA and came back into an accumulation zone.

• Bitcoin (BTC): Price has entered a breakout here below its 200-day SMA.

  • CoinShares Bitcoin Mining ETF fell over 10% last week and is trading at a near extreme-low RSI reading.

• Gold (GLD): Price is an accumulation zone giving us a potential trade idea this week.

  • Price is trading below its 200-day SMA which is considered bearish.

I’m watching USO for a bottom and watching to see if the QQQ holds here.

V. Individual Stock Highlights & Winners From Last Week

Profit-Taking Opportunities:

• DIA

• XLV, XLF

• IBB, KRE

• JNJ, AMGN, MRK, LLY, MRNA, AXP, BAC

• DASH, AIR, VKTX, ETSY

• UDOW, CURE, FAS, PILL, DPST

Congratulations to everyone in these trades!

VI. Nurse Jess’s Trade Ideas

Read more

Now it feels unusual when I don’t see one.

The other morning alone, I counted three.

One was black, one was white, and one was wrapped in a colorful mural.

Somewhere along the way, I stopped looking at them as a novelty.

I started looking at them as evidence.

Evidence that autonomous driving is quietly moving from experiment to everyday life.

Last week, that observation led me to Alphabet Inc. .

Waymo was the obvious story, but after publishing that article, I couldn’t stop thinking about a different question.

Not:

Who wins autonomous vehicles?

But:

Who wins because autonomous vehicles become mainstream?

I think that’s the more interesting investment question.

Every major technological revolution creates an ecosystem.

The smartphone didn’t just create Apple, Inc. .

It created semiconductor companies, app developers, cloud providers, payment processors, and accessory manufacturers.

Entire businesses that didn’t exist before smartphones became part of everyday life.

Artificial intelligence is following the same pattern.

There won’t be one winner.

There will be an ecosystem of winners and I believe autonomous driving may follow that same path.

→ Waymo may become one of the most recognizable names.

→ Uber Technologies, Inc. may become one of the largest demand platforms.

→ Tesla Inc. may continue pushing the industry forward.

However, behind every autonomous vehicle is another layer.

• The companies building the intelligence.

• The software.

• The vision systems.

• The mapping technology.

• The safety infrastructure.

Those companies may end up benefiting just as much as the names making headlines.

That’s where I found this week’s Top Pick of the Week— Mobileye Global Inc. .

Here’s the setup →

Why Mobileye Is Different

Most people have never heard of Mobileye (MBLY).

Ironically, they’ve probably benefited from its technology without realizing it.

MBLY develops advanced driver-assistance systems—commonly called ADAS—as well as autonomous driving technology that helps vehicles understand the world around them.

Think of it this way.

A human driver constantly processes information.

We recognize traffic lights, we notice pedestrians, and we judge distance.

We stay inside our lane and we predict what the driver ahead of us might do next.

Autonomous vehicles have to learn how to do all of those things.

That’s where MBLY comes in. Its technology helps vehicles see, interpret, and respond to the road in real time.

That includes identifying:

• Lane markings

• Pedestrians

• Cyclists

• Traffic lights

• Stop signs

• Road edges

• Construction zones

• Other vehicles

• Unexpected hazards

And then making safe driving decisions within fractions of a second.

That’s incredibly difficult and it’s one reason autonomous driving has taken longer to develop than many people expected.

What I like about MBLY is that it isn’t a speculative company hoping autonomous driving eventually becomes important.

Its technology is already deployed in millions of vehicles around the world through relationships with major automakers.

In other words...the company isn’t waiting for autonomy to arrive.

It’s already participating in it.

That gives MBLY something many autonomous driving companies don’t have.

Real-world experience, real-world driving data, and years of experience solving safety problems long before fully autonomous vehicles become common.

To me, that’s an edge and a meaningful competitive advantage.

Every Technology Revolution Has Layers

One mistake investors often make is assuming the biggest opportunity is always the company everyone can see.

History says otherwise.

When smartphones became mainstream...AAPL won; however, so did companies making chips.

• Cloud infrastructure.

• App marketplaces.

• Digital payments.

• Accessories.

• Mobile software.

The same thing happened with the internet and we’re watching it happen again with artificial intelligence.

Autonomous driving won’t be any different.

There won’t be one winner.

There will be an ecosystem.

Some companies will build the vehicles.

• Others will provide the software.

• Others will manage fleets.

• Others will build mapping systems.

• Others will provide mobility services.

And that’s exactly why MBLY caught my attention.

It sits underneath much of the technology making autonomous driving possible.

That isn’t always the flashiest position; however, sometimes the companies building the infrastructure become some of the most valuable businesses over time.

Why This Trade Matters

For years, MBLY has primarily been known as a technology supplier.

It built the systems that help automakers make vehicles smarter and safer.

That’s already a meaningful business, but something is beginning to change.

MBLY isn’t simply trying to supply autonomous technology anymore.

It’s preparing to become an operator and I think that’s a much bigger story.

Instead of only selling technology to automakers, MBLY wants to prove its autonomous driving platform can power its own robotaxi operation.

That changes the investment thesis.

→ A supplier earns revenue by selling products.

→ An operator has the potential to generate recurring transportation revenue, manage fleets, build rider relationships, and participate directly in the economics of autonomous mobility.

That’s a completely different opportunity and that’s when MBLY became much more interesting to me.

The Robotaxi Catalyst

One of the biggest reasons MBLY caught my attention is that the company is preparing to move beyond supplying autonomous driving technology and into operating its own robotaxi business.

Management recently announced plans to launch a vertically integrated robotaxi service in a major U.S. metropolitan market beginning in 2027.

The initial deployment is expected to start with approximately 100 vehicles.

Now, let’s be honest.

One hundred robotaxis isn’t going to change the world overnight, but every major technological rollout starts somewhere.

Amazon.com, Inc. didn’t begin with nationwide fulfillment centers.

UBER didn’t launch in every city.

TSLA didn’t produce millions of vehicles in its first year.

Successful businesses prove the model first.

Then they scale.

That’s why I find this announcement interesting.

For the first time, investors have a real milestone to watch.

Not a vague promise and not a futuristic concept.

→ A planned deployment with a timeline.

Execution risk absolutely remains.

Launching a robotaxi business is difficult and scaling one is even harder.

However, I would rather evaluate a company working toward a measurable goal than one simply talking about what might happen someday.

Another Piece Of The Puzzle: Moovit

As I continued researching MBLY, I found another piece of the story that most investors probably overlook.

MBLY owns Moovit.

At first glance, it doesn’t seem that important.

Then you think about what the company actually does.

Building autonomous vehicles is only half the challenge.

Someone still has to manage the fleet.

• Coordinate routes.

• Optimize trips.

• Reduce wait times.

• Balance supply and demand.

• Integrate with cities.

• Support riders.

That’s exactly the type of problem Moovit helps solve.

Suddenly this isn’t just a company building autonomous driving technology.

It’s building pieces of an entire mobility ecosystem.

That caught my attention because the companies that win major technological shifts often solve more than one problem.

They build platforms.

Link to Moovit site

Link to Moovit video above

The AI Story Most People Miss

When people hear “AI,” they usually think about chatbots.

• Image generators.

• Virtual assistants.

• Large language models.

MBLY is using AI in a completely different way. Its AI has to understand the physical world.

Every second, autonomous vehicles need to recognize lane markings.

• Traffic lights.

• Cyclists.

• Construction zones.

• Pedestrians.

• Road debris.

Then they need to predict what those objects might do next and then they need to make safe driving decisions almost instantly.

That’s an entirely different level of artificial intelligence.

The consequences aren’t a bad chatbot response and the consequences are happening at highway speeds.

That’s what makes MBLY interesting.

This isn’t AI creating text.

It’s AI making real-world decisions and I think that becomes increasingly valuable as autonomous driving continues to mature.

Why Invest In MBLY Right Now?

1. The Stock Has Already Been Through A Reset

One thing I try to avoid is buying into excessive excitement.

MBLY isn’t trading like the market’s favorite AI stock.

It’s a company that has already disappointed investors, reset expectations, and spent time rebuilding confidence.

That’s often where I begin paying attention.

Not when everyone is optimistic, but when expectations have become more realistic while the long-term opportunity still exists.

2. The Core Business Is Improving

One encouraging sign is that MBLY’s core ADAS business continues showing signs of strength.

The company recently reported improving revenue trends and raised its full-year outlook after stronger-than-expected demand.

That tells me this isn’t a story built entirely on robotaxis.

The business people often forget about is still growing and that’s important because future opportunities are much easier to pursue when today’s business remains healthy.

3. A Clear Robotaxi Catalyst

One thing markets like is visibility.

Investors now have a specific milestone to watch.

A planned U.S. robotaxi launch in 2027 gives the market something tangible to evaluate.

Will it succeed?

Nobody knows, but successful investing isn’t about certainty.

It’s about identifying opportunities before everyone agrees.

4. Valuation

Another reason MBLY stands out is valuation.

The stock appears to be trading below several fair value estimates, suggesting investors may still be discounting much of its long-term autonomous driving opportunity.

I like finding companies where expectations have already cooled while the long-term thesis remains intact.

Those setups don’t always work, but when they do, they can be rewarding.

5. Multiple Ways To Win

What I like most about MBLY is that the investment thesis doesn’t depend on a single outcome.

The company has exposure to:

• Advanced driver-assistance systems (ADAS)

• Autonomous driving software

• Computer vision

• Mapping technology

• Mobility operations through Moovit

• Planned robotaxi deployment

• Artificial intelligence

That’s a lot of optionality inside one company.

6. Technical Setup

MBLY is entering a breakout and trading fairly valued here.

• Current Price: $9.68

• Sector: Technology

• Sub-sector: Electronic Equipment

• Fair Value: $12.18

• Entry Zone: $8.40-8.50

• Stop Loss Zone: $7.50

In other words:

→ this is a nice opportunity to pick up shares of a speculation play to buy and hold for the long-term, if not forever.

→ we can also position trade MBLY to true value and beyond and make massive gains.

→ if you’re an experienced, astute trader, you can write option contracts on MBLY and do what you do and make exponential gains.

Link to MBLY chart

The Risk

This isn’t a low-risk investment and I think it’s important to acknowledge that.

MBLY is much more concentrated than GOOGL.

GOOGL has Search.

• YouTube.

• Google Cloud.

• Android.

• Gemini.

• Advertising.

• Waymo.

MBLY doesn’t have that level of diversification.

Its future depends much more heavily on continued adoption of autonomous driving technology.

• If robotaxis take longer than expected...

• If competition intensifies...

• If execution falls short...

The stock could remain under pressure.

That’s the reality.

I don’t view MBLY as the conservative way to invest in autonomous vehicles.

I view it as the higher-risk, higher-upside infrastructure play inside the ecosystem.

My Thesis

Last week, I wrote about one of the companies everyone can see.

This week, I’m writing about one of the companies many investors haven’t thought about yet.

That distinction matters.

→ Waymo represents what autonomous driving looks like on the surface.

→ MBLY represents much of what makes it possible underneath.

I believe autonomous vehicles will create an ecosystem of winners rather than a single dominant company and MBLY has positioned itself in several important parts of that ecosystem.

The company has years of experience developing advanced driver-assistance technology.

• It has relationships with global automakers.

• It owns mobility infrastructure through Moovit.

• It has a planned robotaxi deployment.

And it continues applying artificial intelligence to one of the most complex engineering problems of our generation.

Could the market still be underestimating that opportunity?

I think it’s possible.

That’s why MBLY earned this week’s Top Pick of the Week.

Final Thoughts

The best investment ideas don’t always begin with a stock screen.

Sometimes they begin with paying attention.

Last week, I couldn’t stop noticing Waymo vehicles driving around Miami.

That observation led me to Alphabet , but it also led me to a bigger realization.

Every technological revolution creates the companies everyone talks about and the companies quietly building the infrastructure behind the scenes.

Those quieter companies don’t always receive the headlines.

Sometimes they become the opportunity.

Autonomous vehicles are no longer a futuristic concept.

They’re operating on real streets in real cities with real passengers.

The question isn’t whether autonomy is beginning to arrive.

I think it already is.

The question is which companies will quietly become essential as that future continues unfolding.

For me, Mobileye Global Inc. is one of the answers worth watching.

Stay one step ahead of the market.

Following a systematic approach, reading market structure, and staying disciplined compounds over time.

Let me know what you’re watching and thank you so much for reading! 🙌

-Nurse Jess 🤝

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Previous Articles & Live Episodes

📌 Bookmark this post. Track these setups through the week and see how they play out. This is how you develop an edge—by studying real-time trade ideas and learning what works.

Financial Disclaimer: This is not financial advice. All trades carry risk. Biotech stocks are highly volatile and speculative. Always do your own due diligence and consult with a financial advisor before making investment decisions.

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I hope you had a great week!

ICYMI, you can see last week’s top play of the week here →

A quick highlight from last week →

Viking Therapeutics, Inc. popped over 25% last week!! Price broke out and tagged an extreme-high RSI reading signaling it was time to lock in profits. The stock surged when the company announced the initiation of a Phase I clinical trial for its new investigational weight-loss drug. If you would have entered the trade on Monday you would have been taking gains by Wednesday!! Congratulations to those of you in the VKTX trade!

Let’s dig into last week’s market recap and the playbook for the week ahead →

The markets were volatile last week and experienced an aggressive flight to safety driven by geopolitical tensions in the Middle East, new transatlantic tariff threats, and sticky inflation.

This forced a massive rotation out of speculative growth assets and into defensive, value-oriented positions.

The three major U.S. stock indexes posted a difficult week, marked by five consecutive days of declines and heavy sell-offs in mega-cap technology and chip stocks.

Bonds (TLT) continued to climb higher and break through its 200-day SMA.

The Dow Jones (DIA) is still trading above its 20-day SMA while both the Nasdaq (QQQ) and the S&P 500 (SPY) closed below their 20-day SMA and put in doji bars on Friday.

Bitcoin (BTC) didn’t hold its previous breakout attempts and looks to be rolling over into a decline here.

Gold (GLD) may have found a bottom here. I’m looking for confirmation of an accumulation zone this week.

Oil (USO) continued to sell-off even more and is trading at an extreme-low RSI reading. Despite the sudden naval conflict in the Strait of Hormuz, crude oil faced a heavy sell-off.

Brent Crude Oil ($BRENT) is now trading below its 200-day SMA, which is considered bearish. Price put in an imperfect doji bar signaling a potential reversal is underway and a possible bottom is in.

The Dow Jones (DIA) was the top performing index of the Big 3, while the Nasdaq (QQQ) was the worst.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. 20 Year Bonds Treasury ETF

2. The Dow Jones 30

3. The S&P 500

4. The Nasdaq-100

5. Gold

6. Bitcoin ($BTCUSD)

7. Oil

♥️Market Pulse: 5/7

• 2/7 assets are up.

• TLT and DIA are up.

• QQQ, SPY, BTC, USO, and GLD are down.

This a “selective risk-off” environment here.

Stock market participants are selling high-multiple mega-cap technology stocks due to geopolitical and tariff anxieties, but they aren’t leaving the stock market altogether.

Instead, they are pushing money down the market-capitalization spectrum. Speculative technology and growth stocks (ARKK) and small-caps (IWM & IWC) are showing strength here.

II. Section Rotation (11 SPDR S&P 500 Sectors)

Health Care was the top performing sector of the S&P 500 , while Technology was the worst.

The top three performing sectors were Health Care (XLV), Real Estate (XLRE), and Utilities (XLU).

The worst three performing sectors were Technology (XLK), Communication Services (XLC), and Consumer Discretionary (XLY).

Health Care was the big winner last week! Price is trading at an extreme-high RSI reading along with other health care stocks like JNJ, LLY, and MRK.

Utilities is trading at a near extreme-high RSI reading.

Consumer Staples broke out! Large-cap food, beverage, and household product manufacturers served their traditional role as a safe place to hide during geopolitical crises.

There’s been a sector rotation from technology stocks to defensive and industrial stocks.

III. Important Sectors & ETFs

Beyond the main sectors, here’s what stood out this week:

The Russell 2000 Index continues to climb higher and reached another new record high last week! The RSI isn’t extreme yet so price has room to keep running.

SPDR S&P Regional Banking ETF also reached a record high and hit an extreme-high RSI reading. It’s time to lock in some profits in KRE/DPST.

iShares Nasdaq Biotechnology ETF reached a new record high and is also banging an extreme-high RSI reading giving us the signal to lock in profits in PILL.

iShares Semiconductors ETF plummeted over 7% and closed below its 20-day SMA signaling a decline may be underway.

Ark Innovation ETF was looking like it was going to roll over at the beginning of the week; however, price closed back above its 20-day SMA and the MACD histogram started ticking upwards on Friday displaying bullish momentum.

Many ARKK components are small-to-mid-cap growth companies that have been beaten down for a long time. They are benefiting from the same "anti-mega-cap" rotation lifting IWM.

Gold Miners and Gold Miners Junior may have put in a bottom here as price is holding its previous support point and put in a doji bar last Thursday signaling a potential reversal.

The iShares Expanded Tech-Software Sector ETF looks to be forming an accumulation zone here.

iShares Silver Trust tanked over 10% last week and is trading below its 200-day SMA.

I like ARKK and IGV for trade ideas this week. I also like GDX and GDXJ if price confirms the accumulation zone here. NUGT, GDXU, and JNUG for leveraged plays. I’m looking for any pullback on the IWM for small-cap trasde setups.

IV. What Assets & Sectors I’m Watching

Here’s what I’m focused on next week:

• Oil (USO): Will price keep continuing lower here or find a bottom.

  • XLE and XOP are both in declines and I’m watching for price to put in a bottom.

  • Brent Crude Oil ($BRENT) fell 8% and is trading below its 200-day SMA.

• Dow Jones (DIA): Price still hasn’t tagged an extreme-high RSI reading indicating it still has more room to run. Price is also above its 5-day EMA signaling the trade is still on.

• The S&P 500 (SPY) & The Nasdaq (QQQ): Both indexes didn’t hold their breakouts last week. Both closed below their 20-day SMA and put in doji bars on Friday signaling a possible price reversal.

  • I’m watching to see if price holds here or not. Or rolls over.

• Bitcoin (BTC): Price was unable to hold its previous breakout moves and looks to be breaking support and its accumulation zone.

• Gold (GLD): I’m watching to see if price holds here or continues lower.

  • Price put in a doji bar on Thursday with an extreme-low RSI reading indicating a bottom could be in here.

  • Price is trading below its 200-day SMA which is considered bearish.

I’m watching GLD and USO for bottoms.

V. Individual Stock Highlights & Winners From Last Week

Profit-Taking Opportunities:

• XLV, IBB, KRE

• SNDK, AIR, MMM, AEP, LLY, MRK, VKTX, ETSY

• CURE, PILL, DPST

Congratulations to everyone in these trades!

VI. Nurse Jess’s Trade Ideas

Here are the setups I’m watching heading into next week:

1. Main Trade Ideas This Week

• DIA, IWM

• XLP, XLB

• ARKK, IGV, GDX, GDXJ

• MSFT, AMZN, UBER, CRM, ADBE, SHAK

• VZ, NKE, LMT, MDT, HSY, PEP, CPB, CE

• ACHR, JOBY, TREE, ENVX

2. Buy & Hold Undervalued Opportunities

These are trading below fair value or set up for long-term entries:

• ET, NKE, VZ, HSY, PEP, LMT, MDT, PFE, MCD, BX, CE

• MSFT, AMZN, UBER, CRM, ADBE

• CRSP, ENVX, TREE

3. Spec Trade Ideas

• TREE, FUBO, JOBY, ENVX

4. Leveraged Trade Ideas

• UDOW, URTY

• UYM, GDXU, JNUG, GUSH, ERX

• UBRL, MSFU, AMZU

5. My Watchlist

• QQQ, SPY, USO, $BRENT, GLD, SLV, BTC

• XLB, XLE, XLK, XLC, XLY

• SOXX, XOP, GDX, GDXJ

• AAPL, GOOGL, META, NVDA, TSLA, SPCX

• NUE, CVX, COP, XOM, NKE, MCD

• JOBY, ENVX, ACHR, BARK

6. New Tickers

• GS, SHAK, SPCX

VII. Trade Breakdowns

Let’s take a closer look at each setup.

1. Uber Technologies, Inc. (UBER)

Uber Technologies, Inc. is on the move and in a breakout!

Typically when the RSI is greater than 50 the trade is past a buy point so you could look to add on any price weakness or RSI pullback below 50.

UBER is also trading fairly valued here, but I think the stock is worth much more so its still not a bad place to add shares for a trade or a buy and hold position.

I’m looking to add to my leveraged position trade in UBRL.

Profit targets:

• An extreme-high RSI reading

• 200-day SMA: $81.50

• Second target zone: $93

• Previous high target zone: $100

UBER is a technology provider that matches riders with drivers, hungry people with restaurants and food couriers, and shippers with carriers.

The firm's on-demand technology platform is currently utilized by traditional cars as well as autonomous vehicles, but could eventually be used for additional products and services, such as delivery via drones or electronic vehicle take-off and landing (eVTOL) technology.

UBER operates in over 70 countries, with over 202 million users who order rides or food at least once a month.

According to Morningstar, UBER has a fair value of $85 and is currently trading fairly valued.

UBER is part of the Industrials sector (XLI) of the S&P 500 (SPY) and the Transportation Services sub-sector.

If you like leverage you could look to put on a double-leveraged swing trade in UBRL. Remember, when trading leveraged funds to use the un-leveraged chart for your trade analysis and plan.

Link to UBER chart

2. Energy Transfer LP (ET)

Energy Transfer LP is entering a breakout here signaled by price closing above its 20-day SMA.

Price has been in an accumulation zone and trading undervalued.

This is a great opportunity to add to or start a buy and hold position.

Profit targets:

• An extreme-high RSI reading

• Previous high target zone: $20.50

• Fair value target: $24

ET is a diversified midstream firm operating from wellhead to consuming demand.

It handles natural gas, natural gas liquids, crude oil, and refined products.

Commodities are moved through its network of field-level gathering and processing to refineries and demand centers.

According to Morningstar, ET has a fair value of $24 and is currently trading undervalued.

ET is part of the Energy (XLE) of the S&P 500 (SPY) and the Pipelines sub-sector.

Link to ET chart

VIII. Nurse Jess’s Weekend Market Notes

IX. The Bottom Line

This a “selective risk-off” environment.

We never know where the markets are going to go. Price can only go three ways—up, down, or sideways.

Don’t force any trades. Let the setups come to you.

I like the DIA, GDX, IWM, IGV, and ARKK for trade setups this week!

I’m watching the SPY, QQQ, oil (USO) and gold (GLD) here.

I really like UBER, MSFT, AMZN, SHAK, CRSP, ET, CE, PEP, and HSY here.

Let me know what you’re watching and thank you so much for reading! 🙌

See you Wednesday for the Top Pick of the Week.🫶

-Nurse Jess 🤝

ICYMI, Previous Articles →

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I hope you had an awesome week!

ICYMI, you can see last week’s top play of the week here →

A quick highlight from last week →

DoorDash Inc. broke out of the box and popped over 12% last week! This is a beautiful breakout move! I'm watching for price to hit my first target of $190 or tag an extreme-high RSI reading for a profit taking opportunity. On any price weakness or RSI pullback, I would look to add shares.

Let’s dig into last week’s market recap and the playbook for the week ahead →

The markets were fun last week!

The Federal Reserve decided to hold interest rates steady at 3.50% to 3.75%. The U.S. and Iran announced a peace deal fully reopening the crucial Strait of Hormuz waterway.

Bonds (TLT) continued to climb higher and break through its 200-day SMA.

The Dow Jones (DIA) also climbed higher and reached a new record high! Both the Nasdaq (QQQ) and the S&P 500 (SPY) broke out and are back in play here.

Bitcoin (BTC) is in an accumulation zone with a possible breakout underway. Price already attempted its first breakout, but failed, which is typically bearish. Let’s see if price is able to hold the next breakout here.

Gold (GLD) is in an accumulation zone. I’m watching to see if price holds here or rolls over.

Oil (USO) continued sell-off even more and is trading at a near extreme-low RSI reading. The sharp drop in crude back into the mid-$70s heavily weighed on oil producers and exploration companies, driving the broad energy sector selloff

The massive drop in oil prices acted as a tailwind for growth and cyclical sectors like Technology (XLK) and Industrials (XLI).

Lower projected energy costs mitigated broader inflation concerns, facilitating a "risk-on" environment for equity investors

The Nasdaq (QQQ) was the top performing index of the Big 3, while the Dow Jones (DIA) was the worst.

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I. The Market Vitals (Best to Worst)

Here’s how the 7 major asset classes ranked this week:

1. 20 Year Bonds Treasury ETF

2. The Dow Jones 30

3. The Nasdaq-100

4. The S&P 500

5. Bitcoin ($BTCUSD)

6. Gold

7. Oil

♥️Market Pulse: 5/7

• 5/7 assets are up.

• QQQ, SPY, DIA, TLT, and GLD are up.

• BTC and USO are down.

Risk-on environment.

II. Section Rotation (11 SPDR S&P 500 Sectors)

Technology was the top performing sector of the S&P 500 , while Energy was the worst.

The top three performing sectors were Technology (XLK), Industrials (XLI), and Consumer Discretionary (XLY).

The worst three performing sectors were Energy (XLE), Financials (XLF), and Health Care (XLV).

The increase in Technology was driven by massive capital inflows into semiconductors and AI beneficiaries.

Consumer Discretionary was boosted by stronger-than-expected retail sales data showing resilient consumers.

Consumer Staples is entered a decline right above its 200-day SMA.

Communication Services and Consumer Discretionary are both setting up in accumulation zones below their 200-day SMA. This gives us some potential ideas this week.

Energy plunged as a historic U.S.-Iran peace deal reopened the Strait of Hormuz.

All 9/11 SPDR sectors are trading above their 200-day SMA here, which is typically a bullish sign. The two sectors trading below their 200-day SMA are the XLC and XLY. I really like XLY stocks for trade ideas here.

III. Important Sectors & ETFs

Beyond the main sectors, here’s what stood out this week:

The Russell 2000 Index reached another new all-time high last week!

iShares Semiconductors ETF also reached a new all-time high and is back on the move!

Ark Innovation ETF is also on the move and broke through its 200-day SMA displaying the momentum for growth stocks is in favor here.

Gold Miners and Gold Miners Junior both went for a breakout and failed, which is typically bearish.

The iShares Expanded Tech-Software Sector ETF is in a decline below its 200-day SMA.

I like URTY and SOXL for leveraged trades in small-caps and semiconductors here. I also like ARKK to for growth plays setting up.

IV. What Assets & Sectors I’m Watching

Here’s what I’m focused on next week: