Hi Everyone,
As you’ve likely noticed, we are currently navigating a sharp drawdown across semiconductor and AI-related holdings. Broad tech pullbacks are never comfortable, but the proprietary quantitative indicators and market metrics we follow suggest that a potential reversal is building.
Here is what we are watching and why patience is critical right now:
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Upcoming Earnings Catalysts: Major earnings reports over the next week could act as significant volatility triggers and trend-reversal catalysts for the sector. Keep an eye on:
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Seagate (STX): July 28
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SanDisk / Western Digital (SNDK & WDC): August 5
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The Ultimate Contrarian Signal: On a slightly lighter note, we’ve observed a textbook pattern among retail capital over the last few weeks—buying right at the absolute peak and panic-selling at the bottom. Market history tells us that retail capitulation is often one of the reliable contrarian indicators for a local bottom.
Exiting a systematic strategy during a cyclical dip—especially for those who entered near the top—is usually the single worst execution error an investor can make. Market cycles reward discipline over emotional timing.
We remain fully committed to our quantitative framework and are positioned to capture the recovery as conditions turn.
Thank you for your continued trust.
Best regards,
