In this video, I breakdown the recent weakness in semiconductors, including how new AI compute headlines from Meta and Nvidia may be changing the way traders view chip demand. While the long-term AI story may still be intact, many semiconductor and memory chip names have gone nearly vertical, and the risk-to-reward on the long side may not be as attractive as it was earlier in the move.
In this video, I walk through three stocks on my watchlist: Snowflake, Robinhood, and eBay. Each setup has bullish qualities, but I’m not looking to chase them right here. Instead, I’m watching for a little weakness into next week that could bring price back toward key moving averages or support. That kind of pullback could create a cleaner entry and a better risk/reward setup.
SPX is trading back toward the top of its range, and holiday-week sentiment could give bulls a short-term edge. Instead of chasing price, I break down a risk-defined broken wing butterfly setup that targets the 7550–7600 zone, with a built-in “forgiveness factor” if SPX pushes higher than expected.
With earnings coming up on August 4th, a prior 15.3% gap, and a daily squeeze now in play, this could be one of the stronger semiconductor setups heading into earnings. The only problem? AMD has not offered an easy entry yet.
