We're watching a market setup that could define the decade: a new "Roaring '20s" for stocks, powered by the AI trade and technology sector earnings. Right now, the numbers show a sector catching its breath, and we see that pause as an opportunity rather than a warning. The SPY exchange-traded fund shows a 60-day price change of -0.32%, while the technology-heavy XLK shows a 60-day price change of -2.66%.
These numbers tell a clear story for traders holding chip stocks and software companies. We believe this signals a prime opportunity to overweight technology stocks. This earnings season should keep the bull market strong.
The Number: Over the last 60 days, SPY is down just -0.32% while XLK has pulled back -2.66%. We read this as consolidation, not reversal.
What Is the Roaring '20s Stock Market Setup?
The Roaring '20s stock market setup is a sustained bull market driven by the AI trade and strong technology earnings. Despite recent dips in the XLK, our strategy calls for traders to overweight technology stocks and stay committed to artificial intelligence companies through this earnings season.
Our analysis points to earnings season carrying the bull market forward. We're tracking specific metrics to guide our portfolio decisions, and the data we're watching suggests tech will continue to lead the broader indices.
The SPY performance of -0.32% over the last 60 days shows minor consolidation. We view this as a healthy pause, not a trend reversal.
What Does the Current Market Sentiment Data Show for Tech Stocks?
Here's what the latest market data tells us. The fear and greed index currently sits at a solid 68, indicating positive market sentiment. This high reading supports the thesis that the bull market remains intact.
Retail trader chatter remains active across social platforms. We're tracking WallStreetBets sentiment at 0.03, with total WSB mentions hitting 2,748. This data shows retail traders are still participating.
How Will This Affect the Market?
This market environment forces traders to decide whether to abandon or stay with the AI trade. Because the SPY is down just -0.32% over 60 days, the broader market remains stable. We expect technology stocks to rebound and lead the next leg of the bull market.
The setup we see demands strict discipline. Institutional money is positioning for the next earnings wave.
We believe the slight -2.66% pullback in the XLK offers a strategic entry point. The AI trade is not over. It's simply digesting recent gains before the next major move.
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Join Traders AgencyWhich Screens Should Traders Watch During This Earnings Season?
The real action is on the trading terminal. You should be watching the XLK technology ETF and the SPY index to track the health of the AI trade during this earnings season.
We track retail sentiment closely. WallStreetBets mentions sit at 2,748.
Our team is analyzing the technology sector. The AI trade requires constant attention to earnings reports and price action.
What Should Traders Do With the AI Trade?
Traders should stay with the AI trade and overweight technology stocks in their portfolios. This earnings season should keep the bull market strong, making it essential to hold positions in top-tier technology companies despite recent minor pullbacks in the XLK index.
Here are the specific actions our team is taking:
- Overweight technology: We're increasing tech exposure to capture the upside of the AI trade.
- Watch the SPY: We're monitoring for any drop below its current 60-day performance of -0.32%.
- Track sentiment: We're keeping the fear and greed index in view to ensure it stays near the 68 level.
The data we're watching confirms the Roaring '20s stock market narrative remains intact. Traders need to stick to the strategy.
The Bottom Line for Tech Stocks
Our read on this is straightforward. This earnings season should keep the bull market strong, and traders should stay with the AI trade. By overweighting technology stocks, we're positioning for the next major market move.
We'll continue to monitor the XLK and broader market sentiment as this Roaring '20s stock market unfolds. The numbers support a bullish stance on technology.
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Join Traders AgencyKey Takeaways
- SPY is down just -0.32% over the last 60 days, while XLK has pulled back -2.66%, a gap the article reads as sector consolidation rather than a trend reversal.
- The strategy calls for overweighting technology stocks specifically through this earnings season, with AI-related companies as the core position.
- The article treats the XLK underperformance versus SPY as a buying opportunity in chip stocks and software companies, not a warning to reduce exposure.
- RSI on the broader market is holding near 68, which the analysis cites as confirmation that bullish momentum remains intact.
- The core thesis is that AI-driven earnings will carry the bull market forward, keeping the 'Roaring 20s' setup alive despite short-term price weakness in tech.
DISCLAIMER: Traders Agency does not offer financial advice. The information provided is for educational purposes only and should not be considered financial advice. Traders Agency is not responsible for any financial losses or consequences resulting from the use of the information provided. Trading carries inherent risks and may not be suitable for all individuals. You are advised to conduct your own research and seek personalized advice before making any investment decisions, recognizing the potential risks and rewards involved.
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