"...Buy Yom Kippur", is Still In Play - But The Wrong Sectors Are Leading

The trade I pointed to a couple weeks ago [link]: "Sell Rosh Hashana, buy Yom Kippur". I had my doubts - at the time - ... but the selling did - in fact - continue right though triple witching Friday OPEX (options expiration), and that probably completes the cycle. 

Yet the same sectors that rallied last week are still leading - Not Financial, not the healthy, broadening-out rotation trade, not Aerospace, not even small-caps. 

Speculative Buying in Semiconductors & Crypto Continues 

Tim Seymour (producer @ CNBC) claims semiconductors are vastly "over-sold" - my charts dispute that claim, but let's ask Grok/ai, for a totally unbiased take on the technicals. 

3Xtraders Prompt: You know a little about stock charts/technicals. Is the semiconductor sector oversold, and if so, by what measure?

Grok's response: The semiconductor sector (SMH/SOXX) is not oversold. Daily 14-period RSI sits in the mid-50s—well above the classic <30 oversold threshold—and price remains above both the 50-day and 200-day moving averages after a 13–15% mid-year pullback from June highs that had followed extreme overbought readings (weekly RSI >80). That correction reset some excess but left the group in a neutral technical posture rather than a washout.

Semis Are Oversold Thesis Debunked 

What is the real reason Fast Money traders are piling into highly speculative trades rather than buying financials, and industrials. Here's the direct transcript from Thursday's the show [link to free muckrack/podcast] - Tim Seymour in his own words: 

Yup, he actually said that. Crypto's on fire too - but smart money isn't touching it

Cutting Through The BS 

CNBC Guest Katie Stockton nailed it:  08:06.469 --> 08:14.213

Well, the banks do look somewhat vulnerable, but everything has seen a pullback pretty much outside of the mega caps over the last two - three weeks.

A magic act so clever that most retail investors don't even notice.... but I cut though that mirage on Sept.10th [link]: 

"More *Broadening Rotations - More Broken Charts  

In hindsight while they've been levitating the market using the usual magic act (driving MAGS - including the only stocks that really matter ($NVDA, $AAPL, MSFT) higher, they were quietly unwinding the software-maggedon squeeze. Just as the msm told you the coast was clear?  

...but what may have flown under your radar (pun intended) is the great unwind in Aerospace (including Wall Street darling $GE - the one to watch) - and Airlines." 

Add to that home builders, retail (consumer discretionary) and every other sector they've unwound as earnings season approaches, and what becomes very clear is that we're about to see each one of these sectors window dressed (in Q4), as earnings come in miraculously, better than expected. 

That sets up for some of the Best Swing Trading in 20 Years [link]  

Best Swing Trading in 20 Years

How good was yesterday's swing trading? 15% in one day - kind of good - thanks in part to the abolition of the old day trading rules. I think it's taken a couple months to get used to day trading like a HFT hedge fund, after years of paying as much as $7 per trade, and then being forced to sit on your hands...- waiting for cash trades to settle. 😅

Reviewing The Tape 

• Stocks rallied into the FOMC  
• No sooner than Warsh started talking the VIX spiked to nearly 18.95, and stocks sold off - precisely at the red line I provided, yesterday morning. 👇
• Nasdaq rallied back to close about unchanged. 

$SPX claws back most of today's losses. Snap reaction, followed by an overly - enthusiastic - FOMO response. pic.twitter.com/DzC2nYnJZI

— Veteran Market Timer (@3Xtraders) September 16, 2026

Here's Where The Real Money Was Made: 

• Gold miners - the trade I called out in yesterday's update was immediately dumped. 
• I subsequently bought the dip, and sold $GDXU for a second time (+4% off the lows).
• 5 different sectors traded - I must have made 30 trades in all, guesstimating    
• Buy The Dip Sell The Rip continues to work - investing in the major indices not so much. 

Apple & NVIDIA, both closed higher - bet you didn't know that! Lost in the shuffle. 

This morning it was announced that the new Apple CEO is attending the Trump Xi meeting - insider trading - explains the Apple rebound. 

I've been monitoring Apple closely, and I've called out the trade, several times.   

I think I've only found one breakout stock today. $IYF Financials were sold at the 20 day. Several other sectors continue to be crushed. eg Airlines ($TRAN), Healthcare. Apple is dead in the water after all the hype... $AAPL. https://t.co/udD6suFTj2

— Veteran Market Timer (@3Xtraders) September 11, 2026

Time Is Money And The Golden Age Of Swing Trading Has Just Begun 

I'm not going to suggest that the average retail investor should roll their 401k into a Roth, so you can swing trade the hell out of it (like I do) - because most people lack the proper instinct, discipline, and the tools, which are necessary - in order to cut though the noise and trade the casino side of the market. 

The short list of stocks and sectors that should have been faded, when the talking heads were trying to sell you a healthy broadening out - narratives - is long, and time is short. Short list: $TRAN, Industrials - including names like $CAT, $DE, $CMI, Healthcare, several others still unwinding. 

 If you took yesterday's advice to chart sectors, then you're already seeing past smoke and mirrors. 

If you haven't had a chance to even get started - and that's understandable after yesterday's volatile session -  here's a glimpse of what you're missing. 

$NYP - Healthcare Index - currently testing 2024 levels. The annotations are self explanatory. I suspect this is a canary in the coal mine - the sector that finally bankrupts an entire nation. 

    

Last week I offered access to the best (bullish) stock - setup - I've seen in months , and nobody took me up on my offer.  The stock has since been upgraded, and is on track for another break out.

 The actual stock is now officially pulling out of the harbor. Boat missed, I'm afraid!