Out of Chips, Into Software: Reading The 2026 Sector Rotation

July 19, 2026
I Know First SOXX Price vs 1-year Signal chart showing the semiconductor rollover

Summary

  • Micron posted the best quarter in its history on June 24 and the stock is down more than 28% since; the I Know First 1-year signal peaked at 1,045 on June 4, three weeks before the print, and now reads below 100.
  • The algorithm turned on memory, not semiconductors: Nvidia carries the highest 1-year signal in the universe at 1,577 while Micron sits at 88 and Western Digital at negative 137, and Korea's signal went negative as Taiwan's held positive.
  • Software and cybersecurity caught the bid, with IGV now leading the sector table and the 14-day signal reading SOXX outright negative while CrowdStrike and Palo Alto lead the individual names.
  • The major banks confirmed the rotation from the sell side, as equities revenue roughly doubled across the group while fixed income went nowhere.
Algorithmic Articles