This Former Market Darling Just Earned a Spot in My Portfolio
You’ve probably heard of this tech company before — under a different name — and it has formed a bullish chart pattern.
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We have an odd mix of market action on Monday, with breadth running slightly negative while some big-cap technology and banking names lead the way.
Pockets of speculative momentum are narrow, and Bitcoin (IBIT) is trying to bounce back from a rough weekend. Precious metals continue to shine, but they are looking like a parabolic blow-off top. Even so, they are likely to be a very difficult short.
Patience During a Routine Shift
I’m seeing profit-taking in some of my best stocks, including Eos Energy (EOSE) , NeoVolta (NEOV), Electrovaya (ELVA) , Ondas Holdings (ONDS) , and PureCycle Technologies (PCT) . These are all names that I would buy on pullbacks to support levels.
To be honest, I’m not feeling in sync with this action right now, which is probably due in part to the impact of the snowstorm on my normal routine. When that occurs, I stay patient, watch what is going on, and don’t do much. Eventually, I’ll find an edge again.
New Addition: Viavi Solutions (VIAV)
One stock I added today is Viavi Solutions (VIAV) . The primary reason is that I like the technical setup with a shallow cup-and-handle pattern. Old-timers will remember VIAV under its previous name, JDS Uniphase (JDSU).
Viavi is involved in two interesting business segments:
- Network and Service Enablement: They provide the hardware and software tools used to build and optimize telecom and data networks. This includes testing equipment, 5G, wireless, and various software platforms.
- Optical Security and Performance: This includes specialized thin-film optical coating technology for applications that go beyond traditional networking. This segment also covers anti-counterfeiting; VIAV produces high-security pigments and holographic features used in currencies (including the U.S. dollar) and many brand protection labels. They are also involved in optical filters used in consumer electronics for facial recognition (like Apple's AAPL Face ID), 3D motion sensing, and specialized optics for defense, space, and industrial instrumentation.
The company saw revenue grow 26% last quarter and is targeting EPS growth of 43% for the fiscal year ending June 2026. Viavi is projected to earn $0.83 in FY 2027, giving the stock a forward P/E of 23.
The Outlook: Strong Rotation
I remain unconcerned about a major market top. I expect rotational action to stay very strong, which will cause elevated volatility. That may make holding large positions difficult, but it should offer solid trading opportunities.
At the time of publication, Rev Shark was long EOSE, NEOV, ELVA, VIAV, ONDS and PCT.
