This week in the market was a pleasant surprise. We had a big change in character in the original AI stocks that led us in April as they started to participate again. This is extremely constructive.... a strong uptrend needs broad growth participation and it looks like that is whats happening.
The first week stunk
The rest of the week was pretty choppy after we got our follow through day. It was hard to make progress for me atleast. We had some broad participation from growth on the follow through day then each day started being led by Oil and Energy stuff that isn't growth and can't lead the market. I think that is why the market remained so difficult and choppy the only participation in growth was Software/Cybersecurity.
What changed this week
This week we had Semiconductors and AI infrastructure come back in a big way. Many that were correcting have now clearly cleared their downtrend lines and are definitely acting different. A week or 2 ago it was unsure or not if the recent strength in them was an oversold bounce, but now its clear its much more than that.
NBIS an AI infra stock & leader from April had a massive earnings move. It went from a stock that was pretty much beaten down to going up 35% on earnings and almost 50% for the week. That looks like renewed interest, real institutional demand.
Along with that Memory was the leading growth group last week. That surprise reaction in NBIS and change in character in Memory reignited those groups. That is going to broaden out the growth participation and creates the best environment to trade in.
Software and cybersecurity
Software and cybersecurity have led out of the correction and they were the first stocks to follow through before the market did.
They had a weakish close and pulled back off highs last week but they had big recent moves and it seems like normal action. The best thing that could happen while they pulled back was to see other growth start participating.
What the broadening means
I see many more charts from real growth groups setting up and more opportunities than last week. If we continue to see this participation I'd imagine we keep seeing more and more stuff start to shape up and join as this uptrend progresses. It should feel much stronger more wind behind it.

