Andrew@CANSLIM RESEARCHThe US Stock Market on September 4, 2026, is witnessing a decisive rotation into high-growth technology infrastructure, with Computer Software-Hardware (Rank 6, Composite 88) leading the charge. This group’s explosive +7.0% day and +245% YTD performance is anchored by AI-driven server and edge computing demand. Leading US-listed stocks include Super Micro Computer (SMCI) and Dell Technologies (DELL), both benefiting from accelerated enterprise spending on accelerated computing clusters. The strength here is fundamental, driven by hyperscale capital expenditure, not just speculative momentum.
Supporting this rally, the Electronic-Semiconductor Manufacturing group (Rank 33, +57% YTD) and Semiconductor Equipment (Rank 51, +68% YTD) show robust institutional accumulation. Key players like Nvidia (NVDA) and Applied Materials (AMAT) are seeing strong order books, while the Internet-Network Solutions group (Rank 28, +28% YTD) benefits from AI networking demand, with Arista Networks (ANET) as a prime leader. The Telecom-Equipment group (+97% YTD) also confirms this infrastructure supercycle, with names like Ciena (CIEN) surging on optical connectivity needs.
On the downside, the Red groups reveal clear defensive and rate-sensitive weakness. Medical-Revenue Bio (Rank 14) and Medical-Professional Bio (Rank 39) are pulling back despite high composite scores, suggesting profit-taking after strong runs. More telling is the sector rotation out of Financial-Credit Card (Rank 29) and Consumer Loans (Rank 34), which are falling on fears of consumer credit deterioration. The weakness in REITs (Rank 73) and Retail-General (Rank 136) confirms that investors are abandoning yield plays and discretionary spending models to chase pure tech growth. This is a classic “risk-on” rotation where capital is flowing from laggards into the highest relative strength leaders.
CAN SLIM Takeaway: The current tape screams “L” (Leader) and “A” (Annual Earnings). Focus exclusively on stocks in the top Blue groups with high Composite ratings, like NVDA and SMCI, which are breaking out on massive volume. Avoid the Red groups entirely, as their relative weakness signals distribution. The market is rewarding innovation and punishing debt-sensitive financials. Stay disciplined, buy breakouts from proper bases in the leading tech hardware and semiconductor names, and cut any position that fails to hold its 50-day moving average. This is a momentum-driven bull phase for secular growth.
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