Hey, Ross here:
Semiconductor stocks have pulled back 15% from their recent peak.
As a whole, they’re still up nearly 70% for the year.
So it’s no surprise that, even as it looks like momentum continues to deteriorate…
People are still clinging on to them.
Chart of the Day
This chart shows the results of Bank of America’s survey of fund managers – aka the “smart money”.
And as you can see…
Despite the selloff in semiconductor stocks…
82% of fund managers still rank them as the most crowded trade in July.
In fact, the numbers are even higher compared to May and June – before the selloff began.
Now let’s keep in mind that this is just an opinion of what they think the most crowded trade is.
In other words, where they think other fund managers are putting their money.
And if everybody thinks the trade is crowded (which is not a good thing)…
It stands to reason that a lot of them are already shifting their money out.
The question is – where to?
Well, take a look at another fund manager survey below.
It shows which sectors the “smart money” is bullish or bearish on for the next 30 days.
While everybody and the entire news media is seemingly focused on tech and memory stocks…
Healthcare has emerged as the top sector the “smart money” is most bullish on.
Here’s what that tells us.
Insight of the Day
Surveys can tell you where to look. But price tells you when to act.
Fund managers may be souring on semiconductors.
And they may be turning bullish on healthcare.
That gives us a clue.
But it does not give us a trade.
Fund managers can talk up a sector for weeks before their money actually moves in.
So I’m not buying healthcare just because it topped a survey.
I want price to prove it.
The survey points me toward the opportunity.
The chart tells me when it’s ready.
That’s why tomorrow morning…
I’ll be sharing exactly what you want to be looking for on a chart to target these explosive opportunities…
So keep an eye out for that.
In the meantime, click here to see what the “smart money” has been buying before the Anthropic IPO.
Customer Story of the Day
“Best service available, and I have tried them all.
Ross is the only one who spends his time trying to TEACH you how to do it rather than telling you buy this sell that.
It’s like the old saying, “Give a man a fish you feed him for a day, Teach a man to fish, you feed him for life.”
As a lifetime private trading club member I would Highly, Highly recommend TA to anybody, and I have recommended it to several of my friends and family.”
Ross Givens
Editor, Stock Surge Daily
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