Big index such as QQQ/SPY is market direcitonal signal, and as long as we are in a major uptrend (such as the one since April), we maintain the overall asset allocation to the market at higher than normal percentage.
After that, each individual stock has its own wave pattern. And when one stock is at extreme wave extension, some percentage of rotation or hedge is necessary. A good recent example of this is AVGO and NVDA --- AVGO was traded above 44 its projected earning within an extended 5th wave since April, and NVDA at 25. It is a no brainer to shift some 400+ AVGO shares to 175 NVDA shares. This is the moment you ignore "all" news and just do it
