Something Wicked Is Coming - Here’s How to Get Ready
On February 18, 2025 I walked through a signal I got back on Valentine's Day… The signal indicated a 5% to 10% correction in the market. How did I arrive at that figure? It's simple. The selloff was of the severity you’d typically get following the signal given. Now, expecting a correction is one thing,…
How to Track a Capital Rotation Event in Three Charts
“Are we in a capital rotation?” I think I’ve been asked that question more in the past week than at any time in the past 20 years. Most investors just aren’t typically attuned to seismic shifts in sentiment, but maybe the retail investor community is finally catching on! The idea of a capital rotation event…
TheoTrade’s Tale of the Tape: Making Bets on the Money
The market’s turbulence continued last week, although we wrapped up the week with a split tape. Only the Dow finished higher, while the S&P 500 and Nasdaq were down. That isn’t exactly my definition of a “risk-on” market environment. Nonetheless, bulls made some modest strides last week, which I’ll share in just a moment. The…
Wild Swings and Dark Signals in an Edgy Market
The other day I showed everyone just how on-edge the markets really are. It’s very dicey, at least for buy-and-hold bulls. (For us, it’s dynamite; we made 254% on our SPX butterfly) Now, after the NASDAQ tanked yesterday, you might be thinking, “Hey, we’ve had a selloff. The worst is over. That’s the bottom.” And…
The DOGE Effect: Five Stocks Set for Big Moves Courtesy of Musk and Trump
By now, the Department of Government Efficiency (DOGE) is a household name; however you feel about it, it’s an undeniable force shaping government right now. This week in TheoChat we cut through the noise and got straight to what really moves markets. Let’s get one thing straight: DOGE is not just another bureaucratic reshuffle—it’s a…
How to Do What I Do When the Market Drops
For a while there, it appeared as though all the negative market sentiment was unfounded, but then last Friday, we saw the market’s internals deteriorate quickly, which forced me to shift my market outlook to the defensive. To be clear, I don’t think this is going to last long, but time is only one part…
Two Sectors Stand Out in a Divided Market
One of my biggest themes heading into 2025 was that Magnificent Seven stocks would lag the market. Their heyday was marked by massive Fed and U.S. government stimulus, shutdowns and closures, and they generally benefited from conditions brought on by the COVID pandemic. The new administration seems to mark the end of that mindset as…
When Bad News Isn’t: 10 Great Stocks In Two Sectors
Over the past few weeks, we’ve looked into disparate corners of the economy and come to the conclusion that… It’s complicated. There are signs of trouble ahead, like economic slowdown and resurgent inflation, but also signs of strength, like healthy demand - at least in some places. Today we’re going to look at two mixed…
Change Is In the Air for Markets - Here’s What to Do About It
Spring is nearly upon us, and you start to see changes happening, like plants beginning to sprout, or a warmer day amidst the cold. Essentially, there are signs that something is changing out there in the world. The market’s not a bit different. The response to NVDA Corp (NVDA) earnings was just that type of…
The Market’s Right on the Edge of the Abyss
I’ve been pounding the table about the volatility “box” stocks have been pinballing around since the 2024 election. The “box” is just a 200-point range, basically. It’s between two critical levels at 5900 on the lower end and 6100 on the upper. We’ve poked our heads above that 6100 level about five times, including one…