The Semiconductor Boom Is Over... These 3 Stocks Are NEXT

The stock market was a blood bath today. The entire semiconductor sector was down 10% before lunch. But that means stocks are on sale. So what do we buy? Well, today I'm going to show you three stocks I'm looking at buying right now. I'm also going to walk you through what I believe is a rotation taking place in the market. And if I were you, I would consider moving out some money from this group and into a new group emerging as a leader. So let's go ahead and break it down. And if you're not already, make sure to subscribe to the channel. Let's dive into the charts. So this is the SOX, the semiconductor index on a five-minute chart. So this is where the market opened uh Tuesday morning, and this is where it was Tuesday at lunch. And as you can see, that's about I said 12, I guess about 11% drop. But that's the average for the whole sector. You've got MRVL, Marvell, that fell much worse. From its open to the bottom was it 18 and a half percent dip. You had all the big winners, your Microns, your Nvidias, all taking big hits today. And when you go look at some of these stocks on a daily chart, you will see that they are extended. The semiconductor sector has had just an insane rally over the last two months. Big multi-hundred billion-dollar companies doubling and tripling in weeks and months. That is extended. If you want to buy stocks that have already doubled and tripled and quadrupled, in a limited window, you run the risk of these types of days happening. And generally when you get to the top is when when you start seeing this kind of volatility. It's a very, very strong topping sign. So you get this big gap and run, you get another big gap, back-to-back massive up days, that's a topping formation. Then you get this big 16% dip, people buy the dip on Monday, rips back down today. So, I think the semiconductor sector is absolutely topping. If you have exposure here, if I were you, I'd be selling them now and taking my money. Could they go higher? Sure, but all the classic topping signs are in on these right now. And if you own any of them, you've doubled or tripled your money since March. Don't look a gift horse in the mouth. Nail down those profits and move on to the next group. I'm going to show you what it is. So, what we are seeing is massive volatility after just a steady, steady march higher. We had this big nasty bloodbath on Friday. Nasdaq lost 4.8%. Kind of steadied on Monday. Here we go again, dropping another 4 5% in the morning. So, if you're no longer comfortable with this volatility, let me tell you where I would begin to put some dollars, some ETFs that are setting up to lead the market. Okay? Now, look at the difference in this chart, which is the material sector. So, you've got this big, big run higher that took place last year, early '26, followed by a really textbook consolidation. Notice the volatility is shrinking. The pullbacks are getting smaller. It's consolidating. That's what you see before the runs higher. When you compare that to something like SOXX, well, here was the volatility consolidating and getting tighter. Now you're up here. Right? So, you're a little bit late to the party. So, you want to be Look, if you own these, great, but you want to be in them when they're running, not after they've already ran. Now, by the way, there's a link in this video, also in the description, but if you're not already, make sure to sign up my Black Ops trading service. It is $5 for the entire year. We'll get together live Uh, for an hour to an a half every single Monday for an entire year for just $5. You'll get my newsletter all year, every week for the same $5. Access to our indicators, bonus reports, my support team, all of it. It's the best $5 you'll ever spend. Uh, so be sure to uh, click that link. You can even scan the QR code or just go to tradewithross.com to get signed up. So, materials is one sector, another one PAVE, p a v e. This is the infrastructure development. The story here, real simple. We don't have enough power. I don't know who's going to win the AI race. I don't know when those stocks are going to crash, but I do know we need to double if not triple the electrical output of this country in the next 5 to 10 years. And you can't do that with with fairy dust and hope. You got to build some stuff. You got to build the infrastructure. And love him or hate him, Trump is a builder. He has to win and he is going to send spend and he already said he will, hundreds of billions of federal dollars expanding that grid. The big AI companies, the big hyperscalers, they're all going to throw in. So, we know the power's not there. We know we need more generation and these companies are going to get paid off that. So, PAVE, and this is very similar, which is GRID. This is the uh, smart grid infrastructure index, doing a little bit better. But these are all areas that um, are kind of in consolidation, but they're still in good uptrends. But they're consolidating, taking a breath before the next leg higher. So, what I did is I pulled the holdings, the top holdings in all of these. Uh, these are the top holdings of PAVE, p a v e. You can see them down here. All this stuff's always public, so just Google it. Quanta, Eaton Corp, Train, etc. These are the public the top holdings of XLB, which is the materials sector. You got Linde, Newmont, and Nucor and a few others. And then also looked at the uh, smart grid infrastructure index. And so, I tried to find names that were repeating, showing up in all these that are aligned to take advantage of this macro tailwind. And there's a couple of stocks I think that look good to buy right now. So, I know you're sitting there watching going get to it, Ross. All right, sorry. Here we go. First stock, PWR. This is Quanta Services, big holding in the pave fund, big holding in grid, and a perfect textbook first pullback to the 50-day moving average. So, as a swing trader, there's a universal rule that when you get a breakout and this thing runs, you always buy the first pullback to the 50. I'll turn the other two off so you can see it more clearly. And typically a good trending stock coming out of a consolidation will run, you'll get a pullback to the 50, run, consolidate, breakout, pullback to the 50, we're right there again. Okay, so no guarantees here, really straightforward, but big leading stock with the macro tailwind pulling back to the 50-day average, tickers PWR, Quanta Services. Also a decent ADR, this thing moves almost 4% a day, so you know, it's not a crazy penny stock, but it's also not Walmart either, right? Number two, Johnson Controls, JCI. Also in at least one if not two of these ETFs, and this is setting up in a pretty perfect textbook a breakout pattern here. And so you've you see the big strength that came in January, stock coiling in, tightening up, compressing. Markets are falling apart today. This stock hadn't budged. Heck, it's up 2% on the day. That is telling you something. So, I like JCI here. Not a huge mover, about 2.8%, but here's the the deal here. You don't need to risk a lot of money, either. I'd work a stop here at about 141 and 1/2. That's less than 4%. So, if you're taking this at a 4% risk, you can really put some size into this thing if it accelerates higher. Even a small move is really going to move the needle for you. So, that's the two stocks PWR, JCI. There is another one Eaton, ticker ETN, also in multiple of these ETFs. It is a little choppy, but if you kind of zoom out here on the daily chart, you'll notice a a pretty clear trend trend line down here pretty much at the 50-day moving average, that that dash line. Um and any pullback to it has historically been a pretty good spot to add. So, it is a pricier stock. It's almost 400 bucks a share, but Eaton just as good as the others, ETN. Thought I'd share that one with you as well. All right. So, that's my three trades. Now, make sure to subscribe to the channel. I put this video out every single Tuesday. I share in-depth break uh downs of some off-the-radar plays. I think it'll help you out. And if you're not already a member, make sure to click the link, scan the QR code, or go to tradewithruss.com to get signed up for my $5 Black Ops service. Whole year, just five bucks, no strings. I'll see you in the live session on Monday. And if not, I'll see you in the next video.