Trade Alert: Not Chasing The Light
We were already positioned for last week’s photonics surge. Monday’s fresh risk moves elsewhere.
The Rally Changed The Next Trade
Photonics and other AI-stack names ripped higher last week. AXT (AXTI 0.00%↑) and Sivers Semiconductors (SIVEF), two names we have positions in, were among the winners. We had already traded them before successfully, as you can see below.
• 3-leg combo on AXT (AXTI 0.00%↑). Entered at a net debit of $2.45 on 12/29/2025; exited the February $15/$10 put spread at a net debit of $0.20 on 2/9/2026; sold the August $20 call for $28.50 on 3/2/2026. Profit: 1,055% (return on max risk: 338%). Signal: Market Watchers.
• Shares of Sivers Semiconductors (SIVEF). Bought for $2.24 on 4/15/2026; sold half for $6.75 on 5/14/2026; sold one-third of the remaining shares for $7.61 on 5/28/2026; sold the remaining shares for $4.20 on 7/8/2026. Profit: 170%. Signal: Market Watchers.
Then we reentered both on July 31st:
From when our July 31st trades filled through Friday’s close, AXTI had gained about 53% and SIVEF had gained about 38%.
The rally rewarded the bottleneck thesis. It also weakened the case for fresh entries at Friday’s prices. AAOI finished with a Chartmill Setup Rating of 3; the other U.S.-listed optical names we reviewed ranged from 1 to 3. None cleared our Trend & Consolidation Screen.
Existing positions give us plenty of participation if the rally continues. Fresh capital can demand cleaner setups elsewhere.
Two Signals Away From The Crowd
Monday’s alert follows two independent signals. The first came from Friday’s Portfolio Armor Top Names; the second revisits an earlier Multibaggers biotech after its prior order never filled (as regular readers know, our Multibaggers are a subset of accounts from our Market Watchers X list with multiple, documented, 100% winners).
Both candidates cleared Trend & Consolidation Friday with Chartmill Technical Ratings of 9, Setup Ratings of 8, and prices above rising 50-day exponential moving averages. That alignment offers better timing than chasing the AI-stack names that just ran.
The structures match their risks. One uses simple calls with several months of runway; the other sells shorter-dated volatility while retaining exposure beyond a later clinical catalyst. Paid subscribers will find the names, exact structures, maximum entry prices, payoff estimates, and exit plans below.
Today’s Top Names Trade
Food and facilities services / recurring contracts / earnings catalyst
RSI: 46; Chartmill Technical Rating: 9; Setup Rating: 8; Fundamental Rating: 4.
