Hi YXI friends,

Thursday’s charts tend to cover sectors that are currently extremely downbeat, except for cybersecurity. However, it is important to monitor the decline of the names in software and digital assets, as they could become lucrative opportunities down the line.

The hot AI trade generally follows the bottleneck pattern. Where there are bottlenecks (GPUs a couple of years ago, and Memory today), hot money tends to rush in to capture forward returns. However, bottlenecks can and do get solved over time, and that hot money will find the next stage of bottlenecks. It is important to position just ahead of that transition, rather than either chasing parabolic moves that have already happened or continuously buying into heavier dips.

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