Our only official pick of the Morning Note on Friday was cash but for our more active traders we suggested several names which performed well including PLTR HOOD AVAV RIVN and ABVX with several of those names hitting their targets on the day.

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There was an extremely sharp pullback in the Nasdaq on Thursday following concern in the AI infrastructure sector we wrote about last week primarily driven by META’s plan to sell excess compute, and Apple’s plans to seek cheaper memory chips in China.

However, the SPY and IWM stayed mostly steady suggesting a rotation rather than risk-off behavior. Further, QQQ bounced almost perfectly off the 50 DMA on Thursday and is back near the 20 DMA this morning.

Given this index-level analysis we are maintaining a green signal; however, we think the sell-off in the AI infrastructure sector may not be over despite the significant rebounds we are seeing in the sector this morning. Individual charts in leaders like MU, AAOI, and AEHR suggest further downside (perhaps not today) is possible.

We therefore suggest looking for leadership in names outside AI infrastructure such as PLTR, HOOD, RIVN, ABVX and others.

There are no significant earnings or economic events on the calendar this week.

Today’s Signal: 🟢

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