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…
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…
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…
Metals Rally - Pet Rocks Have Overtaken Digital Rocks
Coming into this year, very few traders and analysts were talking about precious metals. But a few of us here at TheoTrade, myself included, found the prospects in precious metals irresistible. Now, here we are, on the cusp of a potential continuation in the bull trends in both gold and silver. The backdrop of this…
TheoTrade's Tale of the Tape: This Sign Warns of Inflation
It’s a holiday week for markets, with exchanges closing at 1PM Eastern on Wednesday, and closing completely on Thursday for Independence Day in the United States. But nonetheless, the market remains on the move. Be sure to take some time away from the screen this week. Admittedly, I have a problem with it too, but…
I’m a Big Biotech Bull - And You Should Be Too
I’m always looking for the next potential market leader. Anyone paying even the slightest bit of attention knows that semiconductors and technology have been the main drivers of this bull market… so far. But for any bull market to sustain itself, there needs to be expanding participation - this market can’t just be a one-trick…
TheoTrade's Tale of the Tape: How We’ll Make Money in the Next Six Months
It’s June 24. Can you believe it’s already the last week of the second quarter? The winds are blowing our way, too. Stocks are up nicely year-to-date, and we continue to see all the right things when it comes to sector leadership rankings. I’m scouring the markets for a new potential theme going into…
The Flight to Safety Has Begun - Here’s What to Do
My regular daily TheoTrade chat participants will know we’ve entered the exact market environment I wanted to see. Here’s the thing - a lot of pundits out there make it seem like “nobody ever saw it coming” whenever a market pullback occurs. I’m here to tell you that there is nothing further from the truth.…