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Market Scan Deep Dive: High-Momentum Outliers vs. Semiconductor Pullbacks
Our latest custom quantitative algorithmic scan flagged a total of 17 key assets from a pool of 174 evaluated securities. The board presents a clear divide in market structure: extreme relative strength in standalone momentum leaders versus coiling and deep pullbacks across the semiconductor sector.
Market Sentiment & Setup Breakdown
1. Standalone Relative Strength Leaders
The top hit on the board is LF (Lumentum Holdings Inc.), scoring an 89 SCR with a momentum RSI of 78 and sitting +6.2% above its trigger structure. While the broader tech and semiconductor sectors are experiencing pullbacks, LF continues to exhibit persistent buying pressure, making it a primary focus for high-tight flag consolidations or continuation breakouts.
2. Semiconductor & Tech Coils
The semiconductor thematic group features a cluster of setups coiling just under key pivot levels:
- RIXF (Rigetti Computing / Quantum-Semis): 77 SCR, perfectly flat (0.0% distance) with neutral RSI (56), offering a tight coiling pivot setup.
- XPI (Semiconductor / Tech Focus): 76 SCR, down -3.7% from local peak with 52 RSI, sitting in a healthy shallow consolidation phase.
- DI (Diageo / Tech-Semis): 69 SCR, showing a tight contraction pattern (-5.3% dist, 52 RSI).
3. Oversold / Filtered Out Exclusions
Assets like U (Unity Software), TX (Ternium), and DC (Daktronics) registered deep drawdowns ranging from -22.5% to -43.2% with heavily depressed RSI levels (22–30). The scanner's rules-based engine correctly moved these below the minimum score threshold (`min_score=35`), preventing false breakout entries during high-volatility falling knife scenarios.
Trade Setup Execution & Risk-Reward Matrix
Below is the actionable playbook for the top scanner hits, featuring defined entry pivots, stop-loss invalidation points, profit targets, percentage risk vs. return, and calculated Risk-to-Reward Ratios (R:R).
| Ticker | Theme | Setup | Close | RSI | Trigger Entry | Stop Loss | Target Exit | Max Loss % | Potential Gain % | R:R Ratio |
|---|---|---|---|---|---|---|---|---|---|---|
| LF | Strength | Strong | $14.10 | 78 | $14.25 | $13.25 | $16.50 | -7.02% | +15.79% | 2.25 : 1 |
| RIXF | Semis | Near | $10.54 | 56 | $10.60 | $9.85 | $12.50 | -7.08% | +17.92% | 2.53 : 1 |
| XPI | Semis | Near | $240.06 | 52 | $242.00 | $229.00 | $270.00 | -5.37% | +11.57% | 2.15 : 1 |
| RNA | Breakout | Momentum | $226.89 | 58 | $230.00 | $211.00 | $275.00 | -8.26% | +19.57% | 2.37 : 1 |
| DI | Semis | Coil | $401.62 | 52 | $405.00 | $380.00 | $460.00 | -6.17% | +13.58% | 2.20 : 1 |
| ITB | Strength | Near | $52.49 | 66 | $53.00 | $50.25 | $59.50 | -5.19% | +12.26% | 2.36 : 1 |
| MT | Strength | Near | $116.94 | 80 | $118.00 | $111.50 | $132.00 | -5.51% | +11.86% | 2.15 : 1 |
| CC | Strength | Near | $7.63 | 78 | $7.75 | $7.20 | $9.00 | -7.10% | +16.13% | 2.27 : 1 |
| EY | Strength | Momentum | $19.92 | 44 | $20.20 | $18.60 | $24.00 | -7.92% | +18.81% | 2.38 : 1 |
| OOGL | Strength | Coil | $340.85 | 43 | $345.00 | $322.00 | $395.00 | -6.67% | +14.49% | 2.17 : 1 |
| U | Semis | Watch (Filtered) | $904.90 | 30 | $920.00 | $840.00 | $1,080.00 | -8.70% | +17.39% | 2.00 : 1 |
Key Execution Guidelines
- Confirmation over Anticipation: Do not front-run trigger entries on coiling setups (`DI`, `RIXF`). Wait for price action to break above the trigger level with volume backing.
- Respect Invalidation Points: Hard stop-loss orders should be set upon entry. A close below the specified stop invalidates the setup thesis.
- Position Sizing: Size positions so that total dollar risk does not exceed 1% to 2% of total capital per trade based on the calculated Max Loss percentage.
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