The S&P 500 and the NASDAQ both closed at record highs today. Gianni Di Poce traced the buying to a source few traders are watching.
Money is pouring into the US from Europe and Asia. Gianni says those funds have nowhere else to go.
The timing gives it away. Gianni points to heavy buying overnight and early in the morning, when Asian trading peaks and European markets wrap up.
The currency market backs him up. The dollar has turned higher against the yen in recent weeks. The euro just fell to its lowest level in months.
Picture a fund manager in Europe sitting on billions of dollars. The bond market is a bloodbath right now, and that capital still needs a home.
Only the largest US companies can absorb orders that size. Gianni explains that a fund can buy $50 million of Apple without leaving much of a mark on the stock.
That’s why the Mag 7 and the Mag 10 keep outperforming. They’re also the only companies growing at a significant rate.
Gianni added a sharp filter for earnings season. If a company’s earnings aren’t growing more than 4% a year, he says you’re better off buying Treasury bills.
Doubt about this rally still runs high. Gianni treats that skepticism as fuel, and he says the market remains far from the point where bullishness becomes consensus.
Here’s what Gianni laid out in tonight’s video:
- Gianni booked a 149% gain on SpaceX calls in six days for the Million Dollar Challenge and Trinity Trades crews. He sees SpaceX reaching $300 a share, likely in 2027.
- Gianni’s conservative S&P 500 target sits at 8050. He isn’t ruling out 8200 before this move is done.
- The NASDAQ could reach 34,000. Gianni thinks that level could mark the high of the year if it hits.
- Technology (XLK) is the strongest sector over the last week, month, and year. Energy (XLE) is the only sector contending with it in the near term.
- Crude oil holds the key to market breadth. A drop in oil could spark a sharp, short squeeze in bonds that lifts the Dow in the final phase of this rally.
If a high forms in the next few weeks, Gianni expects it to set up a dip buying opportunity before year end. He’s mapping exactly where that could happen.
