🚨 I’ll be live at 9 a.m. ET🚨
What’s next for the S&P 500, Trump and Big Tech CEOs meeting in China, prepping for next Friday’s OPEX, nice winners and more [tap to join us for the Daily Profit Plan]!
I’ve been watching something unfold in the semiconductor space that’s got me thinking differently about where to park my capital for the rest of this run.
Semiconductors have run so far, so fast — names like VanEck Semiconductor ETF (SMH), iShares Semiconductor ETF (SOXX) and even Intel (INTC) have been absolutely ripping. But here’s the thing: I’m actually hoping we get a violent pullback.
I know that sounds contrarian, but this kind of speed run usually ends with the kind of sharp, commodity-like correction that clears the air. If we get a flashy drop and maybe one more pump back to the highs, that’s probably all the juice I want out of semiconductors before rotating into steadier ground.
Trading Semiconductors Like Commodities
I’m not interested in chasing up here. When something stretches this far, this fast, the smarter play is to let the pullback come to you. This setup actually reminds me a lot of last year when the Magnificent Seven (MAGS) sold off hard, ripped back, broke out to new highs and then kept running another 18-20%.
A lot of traders doubted the breakout then too, but the trend still powered higher. This year’s move has the same rhythm, which is why calling tops has been such a losing game.
And while everyone focuses on the latest surge, tech valuations have quietly improved. Forward PEs are lower than they were before the early spring breakout because earnings have been that strong. It’s pretty remarkable to see sentiment screaming “frothy” while the fundamentals have become more reasonable on paper.
That brings me to how I prefer to trade this environment…
I’m not trying to short strength or fight the tape — buying dips is still the easier, smarter trade. When volatility is elevated and the market is drifting to highs, forcing a top call isn’t worth it.
Let price come to you.
What Has to Happen for This Market to Keep Climbing
For the market to keep pumping out these grindy all-time highs, the Magnificent Seven needs to stay stable. Thursday was a great example — MAGS was green early in the day and that alone is enough to carry the indices higher.
The leadership is narrow but it has been narrow for months and it’s still working.
What most traders miss is that even as we hit new highs, more than half of stocks are actually declining. That’s how concentrated this leadership has become. When the generals keep marching, the market can go up even while the troops fall back.
At some point we’ll need breadth to improve, and one of the ways to see that shift is through the equal-weight indices. If Invesco S&P 500 Equal-Weight ETF (RSP) or Direxion Nasdaq 100 Equal-Weighted Index Shares (QQQE) breaks out, that’s a sign of genuine broadening rather than just a handful of mega caps dragging everything higher.
The other form of breadth is the ugly kind — dispersion, where everything drops together — so I’d much rather see the equal-weight benchmarks start leading.
While semiconductors and MAGS dominate the current trend, the next leg up could easily come from smaller, high-beta areas. I’m watching small-cap AI stocks and small-cap semiconductors as potential rotation plays if this rally extends. Big money likes to push into those smaller pockets when the leaders get stretched.
Meanwhile, I’ve been taking profits from the hot areas and parking them into more stable names and income setups. That includes deep-in-the-money call structures, poor man’s covered calls, butterflies and condors on the boring stuff most traders ignore.
I even put on a sizable position in iShares Silver Trust (SLV) recently — a long-dated bullish structure paired with a short June 26 expiration, $80 strike — because those types of asymmetrical plays are a great place to stash gains after big runs elsewhere.
And yes, I’m still selling a lot of puts on Nvidia (NVDA). Collecting premium on pullbacks keeps me involved without forcing me to chase highs. With how this market trades, waiting for dips has been a huge edge. I’m not chasing a single high here — we wait, we let price come to us and then we strike when the levels make sense.
I’ll see you in the markets.
Chris Pulver
Chris Pulver TradingÂ
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram:https://t.me/+av20QmeKC5VjOTc5
- YouTube:https://www.youtube.com/@FinancialWars
- Twitter:https://x.com/realchrispulver
- Facebook: https://facebook.com/therealchrispulver
Important Note: No one from the ProsperityPub team or Chris Pulver Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.Â
P.S. Retail Folks Can Now Ride Billions in Forced Momentum
We’re on the brink of a new era in the stock market…
The SEC just made an update that’s bound to unlock a brand-new way to ride billions of dollars in forced momentum in the S&P 500 each day…
I call this massive development a Flashpoint…Â
A predictable moment where capital is forced to flip sides in a matter of minutes, thanks to the SEC’s update…
Giving us the room to target more income in the market. I’ve been on this ever since the SEC update came in…
Brainstorming with the team, canceling some of my routine plans, staying up late and waking up unusually early…
Just to find a special way to take advantage of the billions of dollars in forced momentum and align with the capital flow right as it happens.
The good news is, I’ve found the exact way to do just that!
I’ll be live with former hedge fund trader Lance Ippolito at 7 p.m. ET this Sunday to give you the details…
We’ll show you what the latest SEC update means for folks like us…
You’ll see how this move has unlocked a brand-new way for folks like us to ride billions of dollars in market force momentum each day.
PLUS I’ll show you my No. 1 way to take advantage of the massive Flashpoint we’ll be seeing.
As always, we can’t make reckless guarantees here when trading’s involved. But this shift is so massive…
Lance will travel to join me at my home in Utah for this private event.
If you’re ready for the action and want to be among the few that get an inside look at this massive SEC update…
