Following a monster nine-week rip higher, a rally in tech stocks has slowed this week.
Earnings season is over. There’s no more good news for investors to use as an excuse to push stocks higher. Or, investors have gone all-in, and there’s nobody left to buy!
Memory stock Sandisk (SNDK) started trading this year at around $200. After the past nine weeks, shares closed in on $1,800 – a whopping 9X gain in six months:
With a relative strength index (RSI) of 99, Sandisk (SNDK) is one of the most overbought assets not just for today’s market, but for all history. (Source: Barchart)
More interesting? Sandisk’s relative strength (RSI) hit 99 – on a scale of 1 to 100 – earlier this week, an historic feat.
SNDK is now one of the most “overbought” assets… not just in 2026… but in all of history. The stock’s RSI is higher than poster-child Cisco’s at the height of the dotcom boom in late 1999 and early 2000.
If this were a move in just one stock, it could possibly be explained as its own story. But Sandisk is just one of many tech stocks pushing the market higher.
Caveat emptor: Throughout history, stocks making parabolic moves higher, from tulips to tech stocks, often crash in equally spectacular fashion.
Right now, the AI trade is levitating the entire market. Wise investors will take some profits off the table before euphoria gives way to vertigo.
For better returns from here, look at more slow-and-steady plays – especially with uncertainties like the Strait of Hormuz and interest rates remaining.
For a specific way to stay invested in markets even amid this massive push for tech stocks, become a member of Grey Swan Pro — details here.
~ Andrew
P.S. This afternoon on Grey Swan Live!, Mark Jeftovic will join us as we cover the latest developments in the crypto space – including the Clarity Act and the Fate of Dollar 2.0.
Crypto has taken a back seat to the AI trade in recent weeks, but those lamenting crypto’s poor performance may not have much longer to wait, with so many positive catalysts on the horizon.
If you have any questions for us, send them to Feedback@GreySwanFraternity.com.
