BY MARK SEBASTIAN
July 6, 2025
Hey Traders,
Every Monday, my team and I gather for the Ticker Highlight Show – where we share our favorite and least favorite stocks of the week and give away a FREE, simple directional trade based on one of them.
This week’s show is on Tuesday at 10 a.m. ET – add it to your calendar here so you don’t miss it!
Let’s take a look at the market:
The S&P 500 is at an all time high on the back of chips, AI, and banks.
You might think there is no opportunity out there – you would be wrong. There are a TON of opportunities to find underpriced stocks that have to play some catch up.
While I don’t have anything specific I am shorting, I continue to think SMH and the chips are fully valued and would be at a minimum NOT buying them. The ones I own I am taking some profits.
That said, in the tech space there are opportunities. Take a look at RDDT – it might be about to play some catch up with META:
Over the last 6 months it is trailing META by almost 25%, I am looking for it to move toward 200 again.
I also like oil, gas, and midcap banks like FITB.
If I had to short anything, I would be looking at Defense names:
RTX and LMT have had a run … that might be getting long in the tooth.
So there you have it: I love RDDT and names like CVX and XOM (I also still love the Russell 2000). I think tech is mostly fully valued, and defense might actually be primed for a short.
Be sure to join us for our Ticker Highlight Show on Tuesday at 10 a.m. ET!
See you then,
Mark
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