Bearishness spiked at last week’s all-time highs. Not after a selloff. At the highs.
That is the exact contrarian setup Gianni Di Poce has been waiting for.
We are three days off those highs right now. When the next sentiment surveys drop later this week, Gianni expects bearishness to climb even higher.
That is how textbook higher lows are built. And NVIDIA earnings tomorrow could be the catalyst that confirms it.
Here is the line in the sand: Gianni refuses to call any meaningful market top until NVIDIA hits $250.
That target is projected off a monster eight-month base the stock broke out of in late April. Higher highs. Higher lows. Until NVIDIA delivers, the bull market stays intact.
In tonight’s video, Gianni walks through the specific rotation plays he is stalking while the herd piles into chips:
- Microsoft is his top rotation pick. Hedge funds are overweight semis and have zero love for software. The broader software ETF just broke out of a bottoming pattern. A close above $432 to $435 unlocks substantially higher prices.
- Meta has an alert set at $618.43. A close above that level changes the entire chart structure. Palantir is still down 20% year to date and rounds out the Mag 10 laggards worth watching.
- Uranium is the hybrid AI trade nobody is talking about. A higher low in URA above the March 30th low ties the sector directly to the data center buildout.
- The yield curve is steepening hard. Long-term yields are rising faster than short-term yields. That signals growth, not 2022-style recession. The complete opposite of an inverted curve.
One warning sign Gianni flagged: energy was the strongest sector in two of the last three weeks. That is not what bulls want to see heading into NVIDIA.
A sell-off in XLE through the back half of the week would clear the runway for the next leg higher.
