The retest strategy is built on patience. Instead of chasing the surge, you let the breakout happen and allow the excitement to cool off. Then you wait for price to pull back to the level it just broke.

Earnings season risk is defined not by volatility, but by the "gap risk" of overnight moves that bypass stop-losses. With massive AI earnings ahead, success depends on position sizing and managing the probability of a "volatility crush."

The recent market rotation toward small caps and value has also extended toward sectors, with Technology, which was one of the top-performing sectors of 2025, turning from a leader into a laggard in January.