Why would you avoid taking longs in the same sector when many stocks show the same issue?

I can't know whether Dell will have a failed breakout; it could even gap up. I consider the market condition, breadth, and sector. The semiconductor sector had already run up very high, and names such as Dell had risen about 250% in three months. The odds of another 100% move were relatively low compared with buying after a correction. A lot of buying power had already been consumed during the uptrend, especially the last few gap- ups, and some peers were slowing down or falling off. The probability that Dell would stand out from the crowd and keep pushing higher was therefore quite low. It might rise another 25% or even 50%, but the odds seemed low to me.

Source: $SKHY short and many takeaways | 15 Jul 2026