Trade Alert: From FUD To Filters
Bullish options bets on four stocks from our Market Watchers and Multibaggers lists that pass our new, tighter technical screens.
From FUD To Filters
In yesterday’s trade alert, we wrote about why we’re still bullish on the AI buildout despite the latest wave of Fear, Uncertainty, and Doubt hitting the market.
The short version: the AI infrastructure thesis is still intact, but the tape has changed.
That matters for how we screen new trades. A calmer tape gives us room to accept a decent technical setup when the theme and pricing line up. A sharp momentum correction requires more.
Tightening The Screens
So we’ve tightened our technical screens again.
One of the tools we use is ADX/DMI, a technical indicator that helps measure trend strength and directional pressure. In plain English, we’re looking for evidence that buyers are taking control, not just that selling pressure has temporarily eased.
On the charts we use, the green directional line represents buying or upward pressure, and the red line represents selling or downward pressure. In calmer markets, green above red can be enough when RSI and setup scores line up. In this tape, we want a wider gap.
For fresh high-beta entries now, we’re looking for stronger confirmation: the green line at least 8–10 points above the red line, preferably with the green line above roughly 25. When a setup is otherwise marginal, we want even stronger evidence of buying pressure before acting.
What We’re Looking For Now
We’re still looking for names tied to strong themes.
Today’s alert has exposure to:
AI / data-center / humanoid-robotics sensing,
AI networking infrastructure,
distributed power / data-center power / military power,
advanced materials / defense / semiconductor-adjacent small-cap upside.
Each setup passed the tighter screen we’re using in this momentum correction.
That’s the point of the adjustment. We’re still willing to put money to work, but the bar is higher now.
Using Volatility To Our Advantage
We’re also continuing to use volatility to our advantage.
When volatility rises, option premium often rises with it. That can give us a way to define our downside while keeping attractive upside exposure.
That’s especially useful in a market like this one, where fear can move prices quickly in both directions.
The trades below are designed for that environment: tighter technical confirmation, defined downside, and meaningful upside if the setups work.
Today’s First Market Watchers Trade
AI / data-center / humanoid-robotics sensing theme
