A.I. Timing Webs Has Launched
Markets have been all over the place this week, but there’s been a true diamond in the rough amidst the turmoil - biotech. As a reader of Sector Leader Bullseye, you’ve been in the loop as to what’s transpiring in this sector, and the good news is that it’s still early. Yesterday, I unveiled…
Why We’re Following Relative Strength Closely
I hope you paid attention to my warnings in the past week about the market's abrupt shift to “risk-off” status. This was plainly evident by the flight-to-safety trades in the stock market, and capital seeking refuge in defensive sectors. With that being said, our strict adherence to relative strength principles has allowed us to weather…
Stocks Are Chopping Near Highs… And Looking for a Leader
The recent massive selloff in tech should prove what I’ve been saying for weeks now: The one-time leadership sector is slowing down. Nature abhors a vacuum and the stock market’s not all that different. The hunt for a new leading sector is on, and like some other groups I could mention, there are suddenly new…
TheoTrade’s Tale of the Tape: Sector Risks Are Reflecting Political Risks
Hello TheoTrader, Stocks were mostly lower last week, with only the Dow Jones Industrial Average finishing in positive territory. This blue-chip index’s outperformance in recent weeks is a testament to capital seeking areas of safety right now. The biggest risk I see in markets right now isn’t coming from the Fed, monetary, or even…
Risk-Off Signals Mount as Flight to Safety Intensifies
After stocks were bid for about three months straight, we finally saw our first bit of real selling this week. Semiconductors and technology led the selloff, which is a concern given the tendency of those sectors to act as leading indicators. This led to the Nasdaq suffering the brunt of the selloff, as it…
The Dow, the Russell, and the Biotech Sector Are Storming Higher - Here’s What to Do About It
It’s a bull market, alright… and our playbook has helped us to take full advantage. XBI, an ETF that tracks biotech, is up 8% in five sessions. The gold ETF, GLD, is up 3.5% in the same timeframe, while Bitcoin is up more than 13% in five days. The Dow Jones Industrials have come up…
TheoTrade's Tale of the Tape: Events Make a Dovish Pivot
What a week it was. Between failed assassinations and lower-than-expected inflation reports, it appears that markets are now on a one-way road to September rate cuts. Stocks are at new all-time highs, and the consensus on rate cuts being bullish for stocks continues to grow. I’m pleased with the sector performance rankings that I’m seeing…
How We Made 26% on My Latest Tesla Trade
It’s no secret that the “Magnificent Seven” stocks have been a significant driver of returns to the upside in the indexes. I do, however, take issue with the notion that those are the only stocks pushing this market higher. Of the “Magnificent Seven,” there had been only one real laggard - Tesla. But, in case…
TSLA Hit Our Target - Here’s What’s Next
Traders following along with us were able to bank some significant swing-trading profits on TSLA - around 26% in a week. To do that in a timeframe where the broader market has tacked on around 3% is no mean feat. That said, what’s coming around the corner - in an entirely different sector - could…
TheoTrade's Tale of the Tape: What to Do About Last Week’s Risk-On Surprise
Markets are back in full swing this week, and I have to say I was pleasantly surprised by the price action last week. Both the Nasdaq and S&P 500 exploded to new all-time highs, but the Dow continues to lag behind. We also saw a notable rally in precious metals, which together with stocks, has…