Key insights
- The author notes a strong but crowded market, particularly in tech and semis, with diminishing risk/reward for new entries. Early gains are significant, making it difficult to chase momentum. The market is bullish short-term, but many traders are already positioned, suggesting a potential need for resets before entering new positions. This indicates a cautious, slightly bullish outlook.
Today’s session had that familiar feeling where everything looks strong on the surface, but entries are getting harder. A lot of names pushed higher early, especially in tech and semis, but chasing after the first move didn’t feel great.
Some stocks were already up 2–4% within the first hour, and after that it turned into a game of either catching continuation or waiting for a pullback that never really came.
This is usually where I struggle the most. The market is clearly bullish short term, but risk/reward gets worse the later you enter.
Feels like we’re in that phase where momentum is still there, but a lot of traders are already positioned.
Are you still chasing strength in this kind of market, or mostly waiting for resets before entering?
Not financial advice.