I increased my investment levels on Monday and Tuesday of this week for the following reasons:
1) I like the tight consolidation in the S&P 500 over the past four weeks. I discussed it in this past weekend’s video (9/6/25). Tight consolidation in index and stock charts shows institutional accumulation beneath the surface. Overall, the major indexes continue to hold their key moving averages and there’s very little distribution in this market.
2) We continue to see major AI infrastructure deals and CapEx announcements. Microsoft announced a $17.4B deal with NBIS this week, and Oracle expects their Cloud Infrastructure revenue to grow 8x in the next five years. Many people keep wanting to call the AI trade “dead.” Yes, there will be some slowdowns and many shakeouts along the way, but please keep in mind that we are only a couple hundred billion dollars into a multi-trillion-dollar infrastructure build out.
3) Many stocks that I have been patiently waiting for safer entry points are starting to show up on my screens. Here are some examples (with brief commentary).
RKLB (low volume, tight consolidation on Tuesday 9/9/25. On watch to move out of its recent 8-week consolidation that’s had many tight weekly closes and held its 10-week MA).
MRUS (Biotech on watch to move out of its recent 7-week consolidation. It also has tight weekly closes, held its 10-week MA, and saw bullish January options positioning this week).
RDDT and RBLX (on watch to move out of their cup and handle formations).
ANET (on watch to move out if its cup with high handle).
NFLX (mentioned in last weekend’s video and still near a proper buy point).
METC (speculative and volatile name, but holding its 21-day and saw some put writing on Tuesday).
VSAT (also speculative but could be moving out of a high tight flag. Monday’s low would be a suggested stop or a light position with a percentage stop).
AMSC, KTOS, GEV (stocks that have pulled back on light volume with 10-week moving average support. All of them are possible pull back buys).
LASR, SHOP, TTMI, CW, CVNA (consolidating well on light volume and on watch to move out of their recent ranges).
I will review this further in Wednesday’s MidWeek Video. Thank you and good luck.