A Screaming-Deal Sector You Must Buy Today By Lucas Downey, Contributing Editor, TradeSmith Daily Markets are in turmoil over the tariff drama… The news media can’t even keep track of the tit-for-tat action that keeps changing by the day. And this uncertainty has caused stocks to drop hard. Last week I told you about the Nasdaq dropping below the 200-day moving average (200DMA) and how bullish that is historically. That’s still the case today. But in case you’re not convinced that now’s a great time to be buying stocks with both hands, today’s signal study should help. We’re diving into the mega-meltdown that’s shaking the investment world: semiconductors. The supercharged sector of 2024 has taken a backseat in 2025, plunging into correction territory. But underneath the surface, something ultra rare is happening… And it’s telling us to load up the truck on these beaten-down stocks. Before you hit the sell button on high-quality semiconductors, understand that there’s a great chance you’ll regret it soon… | Recommended Link | | | | On March 18th, an event is taking place that could completely shock the market. Stocks could go ballistic… Businesses could get blindsided… The gold market could get rocked… And one man, millionaire trader Jeff Clark is pounding the table on one single stock before this event. Because this one single stock has shown his readers gains of 85% in 14 days, 120% in under 3 months, and even 222% in just 8 days. While the past is no sure indicator for the future… Those gains could pale in comparison to what’s coming. Click here now to see what’s going on. |  | | Semiconductors Are Now in Correction Territory Few stocks have been spared the last few weeks. With the S&P 500 down 6% from its peak, it masks how much pain is occurring everywhere else. To give you a better sense of what forced selling looks like, check out the following returns of the Russell indices, Nasdaq, and PHLX Semiconductor Index (SOX) since Feb. 19. Russell Growth has been hammered. The Nasdaq is off 9%. Semiconductors have fared far worse, falling -13.14%: 
Now, check out the chart of SOX over the past year. There are things that stick out with the eyeball test: - First, the basket has gone straight down since Feb. 19
- Second, notice how the index appears to be at a support level reached a couple of times before
A quick look tells you this is a good setup. But when you investigate the data further, you’ll learn that this is a GREAT setup that hasn’t surfaced since 2022… A Breadth Collapse in Semiconductors It’s been years since markets fell below their 200DMA. The last time was October 2023, another time when we encouraged you to buy. When indices breach this level, you can be assured that many stocks in those respective baskets are under that benchmark as well. After running a few reports this morning, I stumbled across something wildly rare for the semi-space. As of March 6, just 1 stock out of 30 in the SOX index was above its 200DMA. Just 3.33% of the SOX index has been spared. Now, look at this… Below plots the percentage of stocks in the SOX index >200DMA since 2022. This breadth reading is the lowest going back to October 2022. 
Without question, stocks are washed out. Manic investors are liquidating positions. Is that a great opportunity to take the other side? ABSOLUTELY! Don’t take my word for it… Let’s review the data. Since 2009 there have been 102 instances where 3.33% or less constituents were above their 200DMA. Here’s what comes next: - A month later, semiconductors ramp 7.4%
- Three months later, they lift 11.7%
- Six months after, the gains are 25.4%
- Be bold with a 12-month hold, and it’s a stunning 47.8% rally
Here’s the kicker: This signal is undefeated out to 12 months: 
Look, don’t think too hard about things out of your control. Tariffs will work themselves out. Wars will eventually de-escalate. And great stocks will bounce like fresh lacrosse balls. Take advantage of this rare sell-off. We haven’t seen this many semiconductor stocks below their 200DMA since October 2022… My bet is the window will close faster than you expect. Find the stocks that are going to blast higher once this sell-off ends. Regards, Lucas Downey
Contributing Editor, TradeSmith Daily Note from Michael Salvatore, Editor, TradeSmith Daily: Nvidia’s first-ever “Q Day” is now less than two weeks away. And over at InvestorPlace, senior analyst Louis Navellier believes Nvidia is about to make a huge announcement that could affect industries worth a combined $46 trillion. I just interviewed Louis about Q Day and the latest breakthroughs in AI. You can catch that interview in tomorrow’s morning edition of TradeSmith Daily. You won’t want to miss it! In the meantime, make sure you mark your calendar for Louis’ urgent briefing on Thursday, March 13, at 1 p.m. ET… just one week before Nvidia’s big Q Day. According to Louis, one tiny small-cap company is positioned to be crucial to Nvidia’s big reveal… And that’s where the really big gains will be. Click here now to register your spot for this free event. | 
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