Why Mag 7 Weakness Creates Perfect Reversal Setups
Leaders aren’t really leading right now. Perfect.
When the SPY hits new highs but the QQQ can’t follow, and Mag 7 names like Microsoft look ugly while Apple forms topping patterns – that’s when you hunt reversal setups in forgotten names.
It’s pattern recognition – not hope, not wishful thinking.
CELC just printed a textbook TPS setup while everyone’s obsessing over whether NVIDIA can save tech. Stacked EMAs, bull flag breakout, momentum shift confirmed, and here’s the kicker – 20% short float sitting on a name making new highs.
This isn’t about predicting which sector rotates next.
It’s about finding mechanical setups that work regardless of what the Mag 7 does. The algos know it, the reversal traders know it, and now you know it too.
In today’s video, I break down:
- Why leaders not leading creates the perfect reversal hunting environment
- The exact TPS framework that spotted this setup before the breakout
- How 20% short float turns a good setup into a potential rocket ship
- My simple if-then entry strategy that removes all emotion from this trade.
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YOUR ACTION PLAN
I’m targeting February $105 calls at around $7 if we get any pullback to the 100-102 zone. Entry is mechanical – stacked EMAs plus momentum shift plus pattern breakout equals buy signal.
Stop is clean: any close below $99 and I’m out. No exceptions.
Target is the Fibonacci extension around $117 – but here’s the key: if this thing rips on short covering before we hit target, don’t be greedy. Take profits. The market doesn’t owe you the full extension.
The beauty of this setup? It’s binary. Either we get the reversal breakout exactly when the TPS pattern says we should, or we break support and I’m stopped out with defined risk.
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