Before you rush to buy a stock that's down 15-20% after earnings, understand one important rule: The 3-Day Rule! What is the 3-Day Rule, and why does it matter? Let me explain. When a stock gaps down sharply after earnings or bad news, wait at least 3 trading days before considering buying. Why? Large institutions managing millions of shares may need several sessions to reduce their positions. The initial gap down might be just the beginning of the selling pressure. Day 1: An initial bounce could be driven by short covering and aggressive dip buyers rather than sustained institutional demand. Days 2 and 3: Selling pressure may continue, and the stock could make new lows as investors reassess the news. After Day 3: Look for signs that selling pressure is fading and price is beginning to stabilize. Before buying, check: - Selling volume is shrinking - Price is holding above the recent low - You understand why the stock dropped - The fundamental thesis remains intact Remember, three days don't guarantee a bottom. Some stocks need several weeks or even months to build a proper base before beginning another sustained uptrend. If the business is fundamentally broken, the stock isn't necessarily on sale. It may simply be getting repriced. The market doesn't reward you for catching the exact bottom. Let the selling pressure fade, let the stock build a base, and let the trend confirm itself. Missing the bottom is far better than getting caught in a downtrend

Lumentum $LITE with a massive cup. NVIDIA backing + EPS expected to grow from $8 in FY26 to $34+ by FY28, nearly a 4x jump as AI optics demand explodes. The numbers behind this cup are hard to ignore.

Some of the cleanest cups in semi land aren’t the obvious names. $ASX - Advanced packaging + chip testing $IMOS - Memory packaging + testing $COHU - HBM + AI chip testing $SMTC - High-speed optical connectivity. Different parts of the AI chip stack. Same powerful theme.

$ASX - AI Advanced Packaging with a massive cup! World’s largest OSAT with 2.5D/3D + HBM integration + next-gen packaging. Q2 revenue +27% YoY while EPS nearly tripled. AI chips are getting more complex. Packaging becomes more valuable.

OpenAI DevDay is today One stock you should be watching closely: Cerebras $CBRS Cerebras already powers OpenAI’s Ultrafast inference + has a massive 750 MW partnership As AI shifts toward reasoning + real-time agents, inference speed becomes critical Cerebras is built for it

Want to find potential market leaders BEFORE their major moves? Study CAN SLIM. CAN SLIM is one of my favorite frameworks for finding potential market leaders, introduced by legendary William O’Neil. C - Current earnings growth A - Annual earnings growth N - New products, catalysts or new highs S - Supply + demand L - Leaders, not laggards I - Institutional sponsorship M - Market direction I spent some time screening AI + Tech names using this framework, while also looking for strong relative strength + stocks still building bases rather than chasing extended breakouts. A few names on my radar: $NVDA $ANET $PLTR $CRWD $MU $RBRK $NET $FTNT $PANW $LITE $SMTC $AMD $CLS $NOW $SNOW $DDOG $CRDO $FORM $HPE $COHU $VICR $FPS $IMOS $ASML $TSM Not every name will check every CAN SLIM box at the same time - and even the best company can be a bad entry if you’re chasing it after a major move. The real edge is finding companies where earnings are accelerating + relative strength is improving + institutions are accumulating while the stock is still building a healthy base. That’s when I want the name on my radar Fundamentals tell me WHAT to own. Technicals tell me WHEN to build the position.

The market will do its best to make you focus on rising yields, oil prices and everything that can go wrong. Your job is to find where new Stage 2 uptrends are starting + which names are showing relative strength during a weak tape. Bitcoin + Ethereum are perfect examples of where relative strength has been hiding lately.

The market hasn’t been easy since June - but that doesn’t mean there haven’t been opportunities. You have to realize that we usually only get a couple of windows each year where the market gives us the opportunity to make outsized returns. One already happened from April-June, and another one can open up at any time. Instead of constantly asking why breadth is weak or focusing on everything that isn’t working, pay attention to what is actually holding up well. At least from what I’m seeing, Cybersecurity, Biotech + selective Semi and Software names continue to show strong relative strength while building solid bases. This is the time to dig deeper into fundamentals. Look for companies with explosive EPS growth over the next 2-3 years that are still building bases rather than chasing names after they’re already extended. 2025 and 2026 have still offered incredible opportunities if you were able to identify the leaders with exponential growth and, more importantly, stay with them. Like I mentioned earlier this year, patience + discipline have probably been the two most important skills in 2026. You don’t need the market to give you opportunities every week. You just need to be prepared when the window opens.

Most cybersecurity names are looking ready for Round 2. $PANW - Flat base $RBRK - Series of higher highs + higher lows with bull flags $NET & $CRWD - Flagging near new ATHs Cybersecurity continues to show strongest relative strength.

ServiceNow $NOW finding support at the 50-day SMA + VWAP from the lows for the first time since the new uptrend began Early in a new uptrend, the first pullback to the 50-day SMA often offers an attractive risk/reward spot We’re still in early stages of this Stage 2 uptrend.

Rubrik $RBRK is one of the strongest leaders in the market. Young IPO + cybersecurity leader + breaking out of a massive 14-month base into new ATHs. Series of higher highs + higher lows. Pullbacks to the rising 21-day EMA have been the sweet spot for adding exposure.

Nebius $NBIS - a cup worth watching. Back-to-back price hikes + demand extending into 2028 + 4 recent $1B+ customer wins + Palantir naming Nebius its preferred sovereign AI infrastructure partner. Meanwhile, $NBIS keeps tightening inside this massive cup. Don't sleep on it.

Cup formations are among the most powerful continuation patterns in technical analysis. They allow leaders to digest a major move, build a new base + prepare for the next leg higher. Here are 10 of the best cup formations in the market right now.

Cup formations are among the most powerful continuation patterns in technical analysis. They allow leaders to digest a major move, build a new base + prepare for the next leg higher. Here are 10 of the best cup formations in the market right now.

Semi equipment is a critical layer of the AI buildout - a massive amount of AI capex ultimately flows into the equipment needed to manufacture more advanced chips. $LRCX $AMAT $KLAC $ASML are finding support around their 200-day MAs. $ASML remains the strongest of the group.

MaxLinear $MXL makes high-speed connectivity chips that move data between CPUs/GPUs, servers + switches inside data centers. EPS is expected to grow from $0.31 in 2025 → $3.31 by 2028E - more than 10x. Technically, breaking out of a base and resuming its Stage 2 uptrend.

Cerebras $CBRS deserves more attention. > +103% core revenue growth > +287% cloud + services > $25.4B RPO > $20B+ OpenAI deal > AWS + AMD partnerships > Heavy institutional support IPO base + Potential double bottom Fast inference will become a critical layer of AI.

Since the market is going up, naturally we all look like geniuses again. Just remember to be kind to others and don’t dunk on someone just because your favorite stocks went up more than theirs. There’s enough room for everyone to win. Let the good times roll! ❤️