(Click on image to enlarge)

Could any more bad news hit the market? 

Of course it can. 

In the meantime, as an active investor, I have lots of cash to put into action. 

Yet, after the warnings on the weakness in the Semiconductor sector SMH and how important it is for Granny Retail XRT to stay alive, there is always an opportunity if you 

1. Know where to look 
2. Know how to look 
3. Have the patience to replace FOMO 
4. Know your risk parameters 

Monday’s Daily talked about Biotechnology IBB. I would continue to keep that on your list 

Adobe is one choice. 

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Creative Cloud plan includes generative credits, which power generative AI features. 

On the Daily chart, Monday’s action was strong, holding the 50-DMA in spite of the sell off. 

Today, we saw follow through with a green day and confirm of the phase change to recovery or recuperation. 

ADBE shows leadership to the benchmark. 

Momentum or Real Motion is in line with price action. 

Do note that the January 6-month calendar range high (green horizontal line) has to clear. 

The other chart is on my ‘Honorable Mention” for a pick in 2025. 

It has definitely experienced challenges.. 

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Advanced Micro Devices AMD’s AI chip revenue failed to meet analysts' high expectations, underscoring its struggle to grab market share from well-entrenched market leader Nvidia. 

As a result, the stock tanked. 

Nonetheless, AMD offers AI solutions for data centers, clouds, PCs, and gaming. They also invest in AI research and development.  

The Daily chart could be the start of a classic reversal pattern. 

First off, it made a new 60 + day low on Tuesday morning. Low 95.89. 

Secondly, momentum (real motion) looks like we just saw a mean reversion (when the red dots return above the dotted lines). 

Third, after 7 days of negative floor trader pivots, today AMD reversed that intraday pattern. 

Now, AMD needs to confirm on Wednesday by holding Tuesday’s gains and closing green. 

This is how we have been successful this year. We have a list of preferred stocks. 

We wait for the ideal setup. 

We wait for confirmation and consider the overall market conditions. 

ETF Summary  

(Pivotal means short-term bullish above that level and bearish below)  

S&P 500 (SPY) Bounce off of support-but can SPY retake 590? 

Russell 2000 (IWM) It would be healthy to see this pop over 214 and hold 

Dow (DIA) 432 pivotal 

Nasdaq (QQQ) Has to hold over 500 

Regional banks (KRE) 60 area support-a move over 62 better 

Semiconductors (SMH) 220 support. 240 resistance 

Transportation (IYT) 67-68 support 

Biotechnology (IBB) 130 support 135 resistance  

Retail (XRT) A move over 72 better 

iShares 20+ Treasury Bonds (TLT) Testing major resistance 

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