Bulls Need This One Sector to Come Alive in 2025
It’s been a choppy few weeks in the stock market. From now looking back to the election in November, we’re basically unchanged. This in turn is prompting talking heads to declare the “Trump bump” is over. I’ll level with you: My trading, and more importantly, my risk management, doesn’t change depending on who holds political…
TheoTrade’s Tale of the Tape: Energy’s Pop Is Likely a Bottom Signal
For the second week in a row, energy was the top-performing sector in the S&P 500. This is especially interesting because, given the strength of Friday’s rally, it looks like bears may be about to be squeezed again. Whenever energy outperforms, it gives us a clue as to where we are in the market cycle.…
I Am Forever a Student of the Market (and I've Beaten It By More Than 4X)
A new year is upon us, which means it’s finally safe to count all those chickens that hatched in 2024. Needless to say, it was a year for the record books. The S&P 500 finished 23.3% higher in 2024 - not bad - but our trading strategies were able to quadruple that performance using stocks…
TheoTrade’s Tale of the Tape: Is Energy’s Pop a Warning?
Despite the mid-week turbulence and holiday trading last week, stocks managed to squeeze out a modest gain. However, there are some interesting details to note in last week's market activity. First, the bullish news - the Nasdaq outperformed the other indices (S&P 500 and Dow), which is typically a strong sign. However, interestingly, the top-performing…
The Seven Days of Christmas: Understanding the Santa Claus Rally
With less than 3 full trading days remaining in 2024, we're entering the final countdown of what has been a memorable year for markets. You might be thinking, "Shouldn't it be the twelve days of Christmas?" While that's true for the holiday tradition, the market has its own special seven-day period. What Is the Santa…
Crude Oil Is Going to Save the Fed
What a week it’s been! Volatility came back into the picture after the Fed cut rates and Fed Chair Powell exclaimed that there is a concern about inflation over at the Eccles Building. But let’s be real here: When is the Fed ever right about anything? I wish I could confidently say that the central…
TheoTrade’s Tale of the Tape: Time for a Little Holiday Entertainment
The performance of stocks at the index level may be causing concern for some market participants, and understandably so. The Dow has sold off for eight days in a row, which is enough to raise the eyebrows of the market’s trend-followers. But last week saw the Nasdaq continue its surge to new all-time highs again.…
How to “Back Up (and Park) the Cyber Truck” for Tesla
Back in late October, I went public with my overweight position in Tesla. Those that have been trading with me here at TheoTrade know that I like to call it “backing up the truck” when I take on a bigger-than-usual position in a stock. The thing is, now the stock looks so good I might…
TheoTrade’s Tale of the Tape: Here’s the Thing About the “State of the Consumer”
If you tune into the mainstream financial news, you’re probably hearing a mixed bag of reports when it comes to the state of the consumer. Some will proclaim that everything is awesome, while others say a Great Depression is imminent. I would take it a step further and say the doom and gloom is even…
This Is the New Emerging Market Economy
If you were around for my live session here at TheoTrade on Thursday, you heard me discuss how the U.S. has grown to account for nearly 65% of the value of the global stock market. Emerging and international markets have been left behind in the dust, and with the U.S. dollar reasserting its dominance as…