Our #1 pick of the day, RKLB, hit the $106 target from the Morning Note and the #1 pick from the morning show, META, hit the $124 target set live on stream. Top picks UMAC and VOYG also hit their targets. However, most other top picks did not perform well.

_{*This newsletter does not constitute investment advice. Past performance is not indicative of future results. StoryTrading contributors may buy, sell, or liquidate positions discussed at any time without notice. See storytrading.com/disclaimer for important disclosures. Our exclusive Discord Edition is delivered to Discord members before 7:00 AM ET every trading day.}

Indices continue to perform well, above key moving averages. However, short-term trading continues to be very challenging due to severe volatility and violent sector rotations.

Yesterday, a sudden and sharp sector rotation out of AI infrastructure and into software and SaaS occurred after Bloomberg reported that META plans to sell “excess” AI compute capacity. This triggered the violent rotation as a sentiment prevailed that there has been over-building of AI infrastructure. We absolutely believe this not to be the case. META is simply giving themselves flexibility to sell compute just like AMZN GOOGL and SPCX do in case the economics make sense. However, it appears the market is ready to jump on any catalyst to justify these violent rotations. Further feeding the narrative, panic hit the memory sector as it was reported that Apple is in talks with Chinese companies to buy cheaper memory chips. This news wasn’t exactly new as it was suggested over this past weekend, but it added fuel to the sudden sector rotation.

Indices remain constructive ahead of the three-day weekend so we are keeping our green signal.

However, this mostly applies to the health of the indices and for diversified long-term portfolios. When it comes to short-term trading, the violent intraday volatility and sector rotations have made trading incredibly difficult.

We therefore will not issue any top trade ideas today.

Today’s Signal: 🟢

Get access to the complete Morning Note, featuring our macro outlook, Trump World developments, proximal catalysts, and high-conviction trade ideas before the opening bell.

Start your 7-Day Free Trial today and experience the full Morning Note before making any commitment.

👇 Click below to unlock your free access.👇