Stocks Fight to Hold Support While This AI Supply Chain Leader Hits Highs

Here's a summary of the update:

• The speaker is providing a special midweek video update, aiming to make these short, frequent updates a habit.
• Market Overview: The market is described as being in a "path of most frustration" due to short-term choppiness. It started the week with a gap up instead of a capitulatory gap down, leaving it unresolved. Despite being oversold, significant hedging persists, creating a "chop zone" where the market is waiting for something to break. The speaker suggests that if Friday's lows hold, the market might begin to recover.
• Key Indicator for Capitulation: For a significant market "whoosh down" or capitulation, the speaker believes the semiconductor sector needs to break. Semiconductors, currently a resilient leadership group, would need to fall below 375 to signal a broader market breakdown.
• Trade Idea (Flex - FLX):
  • The speaker highlights Flex (FLX) as an interesting trade idea from their momentum model, despite the difficult environment for swing longs.
  • Flex is involved in designing power and cooling systems for AI data centers, alongside automotive and health industrial applications, benefiting from the AI buildout.
  • They initiated a long position around $64.60 on March 18th.
  • The current exit zone is around $61 (updated daily), with a first target at new highs between $72-$74.
  • Caution is advised due to the messy macro environment, suggesting smaller position sizes or tighter risk management.
• Conclusion: The speaker invites feedback on whether to continue these midweek updates and wishes viewers good luck with the choppy session, with the next update planned for Friday's weekend recap.