Don’t Worry, Be Happy, and Buy This on June 29

By Michael Salvatore

Listen to the audio version of this article (generated by AI).

 

In This Digest: 

  • Markets are worried – but our systems are all in the green 
  • Our seasonal playbook for tech stocks is flashing a June 29 buy signal  
  • “Project Heatseeker” has identified these five top investment themes to play right now 

There is no shortage of things to worry about in 2026… 

You could worry about high inflation, with the Consumer Price Index hitting its highest annual pace (4.2%) since 2023.  

You could worry about how this inflationary pressure will affect interest rates, with the market now pricing in no Fed rate cuts in 2026.  

Or you could worry about the world’s largest meme stock, SpaceX (SPCX).  

Since it went public last Friday, it’s soared 25%. It’s trading at a $2.6 trillion valuation, recently eclipsing the valuation of Amazon (AMZN).  

To say expectations are high for growth is an understatement. Over the past year, SpaceX made about $19 billion in revenue, mostly from its Starlink satellite communications technology. Amazon, by contrast, brought in about $743 billion in revenue over that same stretch. 

And this bloated stock is set to be included in the Nasdaq 100, meaning anyone with exposure to this popular tech index in their retirement account will own some – like it or not. 

But as a TradeSmith reader, you have something most investors lack when it comes to navigating today’s market: world-class data analytics.  

So instead of worrying about the world along with most mainstream investors, you can follow what the data says instead. 

And as we’ll cover today, it’s pointing to a strong buying opportunity in the tech sector coming up next week.  

Right now, tech is a sea of green… 

Take a look at this Health breakdown of the Technology Select Sector SPDR Fund (XLK). It holds a basket of the largest tech stocks in the S&P 500.  

Health is TradeSmith’s bedrock momentum indicator. We watch stocks’ trading patterns over short- and long-term timeframes to determine if they’re in healthy uptrends (Green Zones), unhealthy downtrends (Red Zones), or potential transitions between the two (Yellow Zones). 

Right now, more than 70% of XLK’s holdings are in Short-Term Health Green Zones. And 68% are in Long-Term Health Green Zones. Better still, the number of Green Zone stocks has been growing over the past two months, while the number of Red Zone stocks has been shrinking. 

And it’s worth noting that while the Nasdaq 100 is known as the tech index, it’s not exclusively tech. It also holds stocks like PepsiCo (PEP), Starbucks (SBUX), and Costco (COST). XLK holds exclusively technology companies, so it’s a better read on the health of tech stocks.  

It’s also set to enter a seasonally bullish window… 

Take a look at this seasonality chart of XLK from the TradeSmith Finance platform: 

Seasonality is the study of when stocks tend to rise or fall during the year based on historical patterns. It’s not a crystal ball into what will happen this year. But buying in seasonally bullish windows and avoiding seasonally bearish ones is a great way to stack the odds of success in your favor. 

For the past 15 years, XLK has been in a bullish seasonality window from June 29 to July 24 – rising 3.6% on average. And it’s never had a losing year during this window.  

That’s another piece of evidence to support staying bullish on tech stocks. Any dips between now and June 29 could offer a good entry point. 

And there are even stronger patterns set to fire in individual stocks. Take a look at this seasonality chart of Nasdaq (NDAQ) – the company behind the Nasdaq exchange: 

NDAQ has been up every one of the last 15 years during this window for an average return of 6.2% from June 25 to July 29. 

TradeSmith CEO Keith Kaplan is watching these top themes… 

Dedicated readers might recall a few weeks back in TradeSmith Daily when we were testing out an internal tool that scans the market for emerging themes with strong potential. 

We did this by building a report that automatically surfaces the stocks with a Fundamental Quantum Score above 60 – indicating the top 40% of businesses in the market growing their earnings, revenue, and profit margins – that are trading at a one-month high.  

Then we use AI to analyze these companies – many of which are new to us – and figure out how they relate. The result is clusters of stocks in niche businesses participating in important trends.  

We call this “Project Heatseeker” because of how it homes in on the hottest emerging themes in the market. 

And yesterday, our CEO, Keith Kaplan, called out five fresh Heatseeker themes on his X account. 

  1. AI Toolmakers – companies that build semiconductor fabrication equipment like Lam Research (LRCX) and Applied Materials (AMAT) 
  1. The Silicon Supercycle – companies that make semiconductors and memory chips, like Micron (MU) and Seagate Technology Holdings (STX)   
  1. Power Behind the Power – power infrastructure and conversion technology companies like Advanced Energy Industries (AEIS) and Bel Fuse (BELFB) 
  1. Cruise Control – cruise liner companies that provide all-inclusive vacations for consumers like Viking Holdings (VIK) and Carnival Corp. (CCL) 
  1. Engine Room – companies building engines for aerospace and defense manufacturers, like Rolls-Royce (RYCEY) and Woodward (WWD) 

This list is a goldmine of investing ideas. While many of them are connected to the AI datacenter megatrend, others are not. Take the Cruise Control theme… 

It’s hard to be pessimistic on the economy when four different cruise liner companies are fundamentally healthy and trading at one-month highs.  

If the consumer is so stretched by inflation and high fuel costs, could they really afford to be going on cruises? 

What we know for sure is that these stocks – and this theme – are working right now. 

Let’s take a closer look at Viking, the cruise liner with the highest fundamental score of the four that Keith shared in his X post: 

This stock has a Quantum Edge rating of 91.1, putting it in the top 10% of stocks we track.  

As you’ll see below, VIK entered a Short-Term Health Green Zone on May 5, 2025 – about a year after its IPO – and never looked back. It’s up about 118% since then. 

If you’re still anxious about investing in tech even after the evidence we’ve shown you today, you might want to look more closely at cruise liner stocks.  

To building wealth beyond measure, 

Michael Salvatore signature

Michael Salvatore 

Editor, TradeSmith Daily 

Market Notes: 

  • Our Predictive Alpha algorithm is forecasting a 6.2% move in the ProShares Nanotech ETF (TINY) by July 16 with an 86% Historical Target Accuracy rate – an under-the-radar trade setup: 
  • Our June 2 call to buy biotech Veracyte (VCYT) has turned out well, with the stock up more than 8% since while the S&P 500 is down 1.3%. 
  • Congrats to followers of our Seasonal Edge portfolio strategy, which recently closed Lam Research (LRCX) for a 12.5% win in just five trading days.