Bounce Back Was Fast – Now I’m Pivoting Here…

This week’s update at a glance

• Why the “mini correction” looks done. Short, sharp selling now looks more like classic bull market shakeout than the start of a major top – with breadth and price action confirming it.
• What last week’s bounce really signals. Strong moves in the Nasdaq, semiconductors and the Russell suggest the trend is intact – but leadership is shifting under the surface.
• 2026 fund flows and the metals opportunity. Why I see the clearest path for future capital heading toward quality gold, silver and copper developers rather than crowded producers.
• The practical pivot. Trimming expensive, crowded trades and rotating into stronger balance sheets, select AI names and under-owned developers – while staying close to fully invested.

What you’ll learn

• How to read the difference between a normal bull market shakeout and the early stages of something far more serious.
• Why the recent bounce has changed where I see the best risk–reward, even though the overall market trend remains up.
• The key signposts I’m watching across AI leaders, small caps, precious metals and the Aussie market.
• A simple framework for trimming crowded winners and redeploying into higher-quality, better-positioned opportunities.

The thinking shift (in plain English)

Short, sharp pullbacks are a feature of bull markets – not a bug. The key shift is to stop asking “Is this the top?” and start asking “What is the probability outcome here, and how do I manage it?” When you work from a repeatable process – position sizing, entries, exits and risk levels defined in advance – these episodes become opportunities to upgrade your portfolio rather than reasons to panic.

What history shows (with important caveats)

Across prior bull markets, violent shakeouts have often occurred mid-trend as leverage and options activity exaggerate every move. Indices can recover quickly, but the internal leadership frequently changes – expensive favourites cool off while new areas quietly take over. That’s why simply “buying the dip” in yesterday’s winners is not a plan. History rewards those who stay invested and rotate toward improving risk–reward, rather than those who try to trade every headline.

Where I’m focused now

• Leadership & momentum: The Nasdaq, semiconductors and the Russell have bounced strongly. I’m watching for follow-through that confirms this was a shakeout, not a top – and preferring quality names over crowded “story” stocks.
• Precious metals: Silver has surged and gold remains in a strong uptrend. I’m favouring higher-quality producers and using the strength to plan entries into names with leverage to the AUD gold price.
• Developers in gold, silver and copper: Producer valuations in some areas look stretched. I see better medium-term upside in well-funded developers with standout projects, strong management and a clear path to first production.
• Select AI and growth names: Genuine earnings growth and more reasonable valuations still exist beyond the obvious mega-caps. I’m targeting businesses where cash flows can justify the story – and avoiding social-media favourites with poor risk–reward.

Important information

_{Any advice in this video is general information only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any comments, consider whether they are appropriate for you and seek professional advice where necessary. Garry Davis (AR No: 317590) is an authorised representative of Primary Securities Ltd (AFSL No. 224107).}

_{Note to traders: The publishers of this article, information or promotion may hold positions in the securities mentioned. Any decision to buy or sell should be made only after you have conducted your own research and, where appropriate, obtained independent advice.}

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