The headlines belong to AI and semiconductors right now. Chips are soaring, data center buildout stocks are making new highs, and the momentum crowd is firmly in control. But underneath the surface of a market that looks healthy, something odd is happening. The new-low list has been outrunning the new-high list even as the S&P 500 pushes above 7,500. That's not a healthy market. That's a narrow one.
Jeff Clark of TradeSmith has seen this setup before. His read: when gains concentrate in a thin slice of the market, the rotation trade is coming. And when it does, the money that rushes out of the hot names has to land somewhere. He thinks it lands in stocks that have already been left behind—and he has three specific names in mind.
