Weekly Thoughts: 8/8/26

Here comes the boom

As I sit here and scan this morning to review the action over the last week, I can’t help but notice the plethora of setups and leading groups with awesome looks. As I’ve been tweeting about and writing about over the last few weeks, software has continued to provide the largest subset of opportunity in the market. Names that were killed on Claude Code fears continue to re-rate higher, such as TEAM, which gapped 30% on ER. Names like RNG 0.00%↑ U 0.00%↑ PLTR 0.00%↑ RBRK 0.00%↑ have said “what volatility?”. My focus will continue to be here as we set up a sick next leg on the QQQ.

QQQ continues to set up nicely above the 50d SMA, with supportive action from MAGS and firm ups from semis. Would like to see this begin to push again after a bit more sideways to confirm the beginning of a new move.

Aerospace and defense is another area I am closely watching for adds. Names like AVAV 0.00%↑ ATI 0.00%↑ KRMN 0.00%↑ KTOS 0.00%↑ have all been incredibly strong as of late. We found out this week that the U.S. is suffering an extreme munitions shortage of missiles from the Iran war. This is a real bottleneck that could force government action to spur weapons production. I’ll be looking to add a setup on DFEN 0.00%↑ the 3x basket for exposure if we can get a nice setup on it.

Photonics also continue to look incredible again as names like AAOI, LITE, AXTI etc have been leading higher through their 50d SMAs. The LYTE 0.00%↑ ETF went live which I think is an interesting buy if these names have more in the tank. They’ve been consolidating for months so I think another leg makes sense.

Paid members know I was absolutely slamming the table on gold and it did not disappoint. Gold has been on an absolute tear on news that Korea would resume physical purchases as well as weak economic data putting the Fed in a bind that likely doesn’t give them the flexibility to hike. Don’t see how this doesn’t continue as governments continue to print money. Gold miners as beta to gold should be in high focus.

Readers will remember my strong focus on genomics, ARKG 0.00%↑ continues to outperform as more and more positive news on AI’s impact on gene editing and viral creation hits the internet. I would expect this and XBI 0.00%↑ to continue to outperform

Here is my full current momentum scan by industry.

Overall, I’d say we’re setting up for another strong leg in the market. Hard to be bearish with as many names looking as good as they do. If you enjoyed this article, consider subscribing as I post daily watchlists, stream daily, and post additional alpha that has made me successful.