Tech Is Consolidating and the Market’s Seeking New Leadership
The tape tells the tale, just like it always does: The tech sector is clearly in consolidation mode right now. Don’t get me wrong - I still like the price action I’m seeing there in the sector as tracked by, for instance, XLK, the Technology Select Sector SPDR ETF. But this means the market is…
The Only Stock That Matters…. And The Only Sector That Counts
The S&P 500 had trouble lifting off today, courtesy of a thousand-pound weight: NVDA. Today’s price action shows once again that this is the stock. Nine other sectors actually finished higher for the session. The rally that counts today is the energy sector - largely the result of the fundamentals of oil and even energy.…
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 $5.5 Trillion Option Expiration Could Change Everything
There’s a lot talk about tonight. There are around $5.5 trillion worth of derivatives expiring as I write this - massive positions are coming off the books. That’s bigger than Japan, bigger than France - bigger than all but two world economies. That’s big. The SPX hit its $65 expected move, no sweat, this week.…
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.…
Tech Tanks and the Flight to Safety Is On
The Magnificent Seven oftentime market leaders were, collectively, down more than 1% by midday. The broader NASDAQ-100, around 55% of which is tech, was off around 0.06% over the same timeframe. That doesn’t sound like much, because it really isn’t, but the selling is important because it’s a sign of the times: The appetite for…
New Highs Follow Through on “Fibonacci Day”
Tech stocks continue to lead the market higher - a bullish sign given the sector’s tendency to lead. But there’s a setup I’ve been talking about lately; it’s beginning to taking shape and could be even more bullish for the foreseeable future. There’s a global flight to safety underway right now. The world’s investors are…
Stocks and the VIX Rise Ahead of a Week of Fedspeak
Another day, another all-time high… Traders seem to have largely shrugged off the FOMC statements of last week - might as well have been 100 years ago. That press conference didn’t exactly deliver the goods for the bulls. Then again, this week features a number of speeches from Federal Reserve members; maybe the bulls are…
TheoTrade's Tale of the Tape: June 17, 2024
Another week is upon us, so it’s time to take the measure of the markets’ behavior we might expect over the next sessions, based on recent sector performance rankings. I have a really cool “risk-on/risk-off” indicator that I’m looking forward to sharing with you shortly, but for now, I’m going to keep it simple and…
The Market Is a Story of “Big Tech vs the S&P 500”
Just a few minutes before the close this afternoon, the SPX was grinding right up against its expected move - a level we called days ago. So, no surprise there. The upside “grind” isn’t really the big story here. The thing that’s got my attention is divergence. It just keeps on widening. Tech is leaving…