I know everybody is excited about the PDT rule change coming in June.
It’s going to unshackle millions of accounts.
That could create unprecedented liquidity and opportunity.
But there’s also added risk.
Why?
Because we’ve come so far, so fast.
This market just continues to offer opportunities.
But you have to be really careful.
And you need to have perspective about where we are…
The Spring Semiconductor Surge
The Nasdaq just hit new all-time highs (AGAIN).
We’ve had a crazy, crazy run-up just since April (only a month and a half).
This is the Invesco QQQ Trust (QQQ). It tracks the Nasdaq composite…
Source: Stocks To Trade
QQQ climbed from the mid-500s to over 714 in barely a month and a half.
That run is insane, right?
And look at these charts focused on the moves from the beginning of April to now.
Source: Stocks To Trade
Intel triples and Micron doubles in a matter of weeks.
Intel Corporation (INTC) is finally fading a little bit. But it’s a giant company that has tripled.
Micron Technology, Inc. (MU) has more than doubled.
And there are more…
Advanced Micro Devices Inc. (AMD) is another one.
Check it out…
Source: Stocks To Trade
AMD and Sandisk’s ascent from 4/26 to 5/13.
AMD went from roughly $200 to $447. That’s 2.5X!
And then, of course, Sandisk Corporation (SNDK) is just crazy.
It came up from roughly $600 to nearly $1,500 now (nearly a triple).
These are massive, established tech giants acting like penny stock supernovas.
So, have perspective.
We’ve had a crazy, crazy month.
And we still have three weeks until the PDT rule changes.
It’s good to trade momentum plays right now, but you have to be really careful.
How to Beat the S&P 500
Look, roughly 90% of traders lose.
Fund managers aren’t much better (seriously).
Over 90% of professional large-cap fund managers fail to consistently beat the S&P 500 over a 10-year period.
That’s crazy, right?
But that’s EXACTLY why you have to be careful about listening to “experts” who predict the markets…
Do you want to know how to beat the S&P 500?
Study hard.
Practice. Keep practicing. Trade with a small account and cut losses quickly.
Invest in yourself and put in the effort.
Not sure where to start?
NVIDIA Corporation (NVDA) reports earnings next week (May 20).
I didn’t include NVDA in the charts above. I probably should have.
Its GPUs are like the backbone of AI and this semiconductor rally.
Earnings winners have been hot this season.
So, even if you don’t trade them, watch and learn.
And if it’s a sector leader, like NVDA, pay close attention.
Sector leaders create sympathy plays.
So, again … Study HARD!
Every single one of my millionaire students will tell you they studied their butts off.
There is no shortcut.
You might get it faster than someone else.
But there’s no guarantee.
The only guarantee is that the ONLY way to gain freedom through trading is to build your knowledge account first.
Have a great Friday!
If you have any questions, email me at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
