My Investment Diary [Day 2] – Adding to AAOI

Action: Added AAOI at 111 - Buying on dips.

Insights: Another fundamentally sound and technically strong name. I have been tracking AAOI after my due diligence in networking stocks in the AI supply chain brought her up. Other names looked up were Credo, COHR and Lite. Inititally I was heavily positioned in Credo but the recent technical price actions and Nvidia’s upcoming Rubin specifications made me pivot away from Credo which was copper based towards the optical networking components. Decided on AAOI when she was in the low 30s range after seeing what seems to be institutional accumulation and after rigorous Elliot wave and Wyckoff analysis.

AAOI is in a huge ongoing third wave and my targets has her reaching the 200 levels and beyond. Not overnight of course but over time! To those who are laughing at me, I let time prove my thesis!

And to those who read this far, I have been hinting at AAOI when I was accumulating around the 30 levels. Look back at my technical analysis posts and you will see AAOI on the other tab beside the tab of the stock I am analysing. I left it there to benefit my followers who actually read my posts! If you have not followed, follow me for my views. I am not perfect and human so do your own due diligence. These are just my own views. 😊

My focus is to remain defensive in this high realised volatility period with selective stock picking on names which are resilient in this environment. And to be clear, the environment is no longer similar as previously. Money no longer flows into staple defensive names in this era of AI. So my picks reflect the new defence!

Having said that, I am still leaning towards a high cash position which I have repeatedly emphasised in my earlier other posts and will remain defensive until the coast is clear. Stay safe!

@Bridge Buzz SG

#MyInvestmentDiary