Weekly Update: 3 Sectors Leading the Market
Good evening, and welcome to this week’s edition of Stealth Trades!
I talk a lot about finding the “theme” of the market.
That’s because it’s the most important part of the equation.
All the chart patterns in the world won’t help you if you’re focusing on the wrong stocks.
The market is up 100% from the 2022 bear market lows. But if you bought solar stocks, you are instead down 64%. Investing in real estate stocks would have also delivered a loss.
Esports, on the other hand, is up 152%. Crypto stocks have surged over 200%. So even if your timing is off, you will likely do better focusing on the right group.
Right now, there are 3 groups leading this bull market: nuclear, AI and quantum computing.
Nuclear stocks went hyperbolic last week after President Trump announced plans to sign an executive order fast-tracking nuclear development.
Top names in this group – Cameco (CCJ), NuScale Power (SMR), Nano Nuclear Energy (NNE) and Oklo (OKLO) – are all extended. Once they consolidate a bit, however, I will be actively looking for fresh entries to get back in.
Artificial intelligence is another area that continues to outperform.
Nvidia led the pack in the last cycle, but at a market cap of $3.4 trillion, this one is a bit long in the tooth. You won’t be seeing another 100%+ run from this stock any time soon.
Instead, I am watching stocks like C3.ai (AI), IonQ (IONQ), Zscaler (ZS) and Palantir (PLTR) that are demonstrating above average momentum.
Arguably the hottest sector right now is quantum computing. I used last week’s email to highlight this group, and I believe we will see huge opportunities here in 2025.
As of today, there are only about 5 stocks in this sector – 6 if you count IONQ which rides the line between quantum computing and AI.
D-Wave Quantum (QBTS) is the largest and so far, the leader in this space. Other top names are Quantum Computing (QUBT), Rigetti Computing (RGTI) and Arqit Quantum (ARQQ).
Right now, this is where I am focused. I won’t pass up good setups in other sectors, but these three areas are at the center of my attention.
I remain bullish on gold, gaming, defense and a few other areas. But in my opinion, it is nuclear, AI and quantum computing that will deliver the biggest gains of this bull market.
Best wishes for your trading,
