April 10, 2026
Hello Five Star Traders,
Yesterday, I joined Charles Payne on Fox Business to break down some of my highest-conviction ideas in the most explosive areas of the market right now: Neocloud / AI infrastructure, Space, Photonics, and Semiconductors.
These aren’t random names — they sit at the very center of the AI build-out, next-generation data centers, high-speed connectivity, and the new space economy. The revenue forecasts for Neocloud alone are eye-popping, and we’re seeing that momentum translate straight into stock prices.
NBIS is Breaking Out Today
NBIS (Nebius Group) — one of the Neocloud names we highlighted — is up another 7% today as it heads into earnings. That’s exactly the kind of follow-through I look for when a ticker goes up against all-time highs, and then breaks it on high volume, squeezing short sellers before earnings.
Stocks & Themes We Covered on Air
- Photonics (Seeing the Light): $COHR (Coherent Corp) and $LITE (Lumentum)
Optical components and silicon photonics are critical for moving massive amounts of data inside AI data centers at lightning speed. These names are direct beneficiaries of the AI infrastructure boom. - Semiconductors (Chips Powering Everything): AMD, MU, NVDA, AVGO, TSM, and the $SMH Semiconductor ETF
From AI accelerators to memory, the chip sector continues to drive the broader indices higher. We discussed how semis are demonstrating relative strength and hit new, all-time highs, meaning the low is likely in place in the market. - Space Stocks (Out of This World Opportunities): Names like $LUNR, $BKST, $PL, $ASTS, and $RKLB, with ASTS and RKLB specifically at a much better spot for entry for a rally into earnings
Satellite communications, space infrastructure, and low-Earth-orbit connectivity are advancing rapidly. The space economy is moving from science fiction to investable reality. - Neocloud / AI Infrastructure: $NBIS and related plays
Specialized cloud providers built for the GPU/AI era are seeing explosive demand. NBIS, in particular, has a high short float and posted a 16% average move during the pre-earnings period, as seen in the hot zone, along with a daily squeeze.
Watch the full segment here:
Technical Support Zones
Check out NBIS on a weekly chart. On a daily chart, this stock looks very volatile, but on the weekly chart, you can see the perfect pullback and buy entry that goes along with the squeeze.
New, unproven sectors are always volatile, especially during periods of extreme market volatility. These sectors are volatile but trend strongly when the narrative is intact. Even when tickers are volatile on the daily chart, they can still look very strong on a weekly chart. So long as tickers remain above the 50 SMA on the weekly chart and in a strong trend, I still consider them a solid long-term technical buy.
In this case, I use clean weekly charts to identify long-term key support/resistance, and trade them with directional options strategies (long calls, call spreads, or defined-risk setups) using the shorter-term time frame charts (daily and 195-minute charts) for short-term trends. Always size properly and respect the levels — momentum can shift quickly.
Sharpen Your Trading Edge
My new book, Sharpen Your Trading Edge: Mastering Directional Options Trading, is coming soon! I lay out my exact step-by-step process for finding these high-conviction setups.
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For real-time alerts, my live options trades, and daily market analysis, keep reading Five Star Trader, which is published every Wednesday and Friday.
Trade smart,
Danielle Shay
VP of Options, Simpler Trading
