Don Kaufman here.
The sector rotation game is getting dangerous.
While everyone’s watching the S&P bounce around breakeven, here’s what’s actually happening: We’ve got a 50/50 advance-decline line with tech getting hammered underneath. That’s not healthy market action—that’s the setup for something bigger.
And frankly, after 48 hours of trillion-dollar AI spending announcements, I think we finally jumped the shark.
I’m making three bearish trades today.
First one’s Broadcom. Everyone’s still buying the AI dream, but I’m seeing something in the options market that has me backing up the truck on the downside. There’s an extreme condition developing that historically doesn’t end well for tech stocks.
Second is Eli Lilly. The GLP-1 gold rush just got a lot more crowded, and there’s a fundamental shift happening that most people are missing. The chart’s telling a story about what’s coming next.
Third one has me seething bearish: Goldman Sachs. Up 40% year-to-date on what exactly? The math doesn’t work, and there’s a technical setup forming that’s screaming “big move coming.”
Three different stocks, three different reasons, but they’re all pointing to the same underlying market condition that’s about to shift everything.
The problem is timing these entries.
When correlation starts spiking and rotation stops working, markets get extreme fast. But there’s a specific sequence of signals I’m watching that tells me exactly when to pull the trigger…
Don’t trade these conditions without seeing the full picture. The difference between profit and pain is in the details most traders miss.
To your success,
Don Kaufman
