Surprise, Surprise – It Happened Again

Hey trader, Stocks ripped higher last week, with both the S&P and Dow soaring to new all-time highs. This came just days after another of typical media antics at the market bottom. We live in the Age of Information. There’s hardly an issue with the quantity, only the quality. I’m pleased to say that the market’s internal price action over the past two weeks was straight out of a textbook, but only for those that knew what to look for. Don’t worry. I’m going to lay out the roadmap for the next five days in this week’s Tale of the Tape. Tech Domination Returns Performance Leader 1-week 30-day YTD 1-year Sector Technology (XLK) Basic Materials (XLB) Technology (XLK) Technology (XLK) The strongest performing sector in the market last week was technology. Frequent readers of the Sector Leader Bullseye newsletter saw that one coming. I can’t tell you how many times

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Growth Beat Defense In Every Sector This Week

The battle inside tech Something is happening under the surface of the technology trade and most people are still watching the wrong half of it. Software is trying to take the leadership away from semiconductors. I have written about this in previous letters and the evidence keeps building. Chips carried this market for a year and a half, and every one of those runs eventually hands the baton to a different corner of the sector. Watch where the money goes inside tech over the next few weeks, not just whether tech is up or down. The rotation inside a sector tells you more than the sector does. Metals already turned Gold and silver have bottomed. I said it in the third quarter forecast at the end of June and the setup has played out. The dollar breaking down was the catalyst, and the miners have been leading spot for weeks

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Growth Surges With Fear – Who’s Right?

  Hey trader, Consumer Discretionary was the best sector last week. Energy leads on every other timeframe. A growth sector taking the one-week column while everyone is calling for collapse is the thing I’ve been waiting on. Here’s why that combination matters more than the Warsh headlines did. Consumer Discretionary Surges as Economy Teeters on Collapse? There’s a lot of negativity out there right now, understandably so. The momentum trade has gone through a historic collapse, and it took some money managers with it. Ask yourself this question – is that the type of thing you’d see at a market bottom or a market top? Both the S&P and Nasdaq have corrected for about 2 months. The S&P has been going sideways more than anything, but the Nasdaq managed to drop 11% from its all-time high. That’s a standard, run of the mill correction. Now, amidst all the chaos, you

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3 Trade Ideas for the Back Half of 2026

Hello Trader, I grew up in Michigan watching the auto industry get left for dead more than once. Every time the experts announced the funeral early, they were wrong on timing. They were also wrong on the size of what came next…. That same setup is sitting in front of me right now, spread across three sectors that almost nobody treats as related. Software, biotech, and consumer discretionary all run on one shared engine, and that engine is artificial intelligence. Watching any one of them in isolation hides the actual trade. By the end of this piece, you’ll know where the flywheel spins fastest. We’ll also look at how the catalysts line up for the back half of 2026, and where I’m playing defense. Positions matter more than opinions, so I’ll show you both. Three Sectors, One Flywheel Software spent the better part of two years getting punished on one

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It’s Too Late to Chase Energy, Do This Instead

Hey trader, Stocks kept correcting last week. It has been almost two months since the Nasdaq and S&P 500 last printed new all-time highs. Pessimism is climbing because the logical reasons for a pullback keep stacking up. Markets have never paid much attention to logic. Big tech earnings continue this week. Fed Chair Warsh also holds his second press conference. Layer in escalating geopolitical tensions, and the bearish laundry list writes itself. Here is what I want to hand you today: I’ll show you why energy’s grip on the leaderboard is closer to its expiration date than its starting line. We’ll also take a look at where I’d rather commit capital while the crowd piles into the obvious trade. Is Energy Refueling or Running on E? Performance Leader 1-week 30-day YTD 1-year Sector Energy (XLE) Energy (XLE) Energy (XLE) Energy (XLE) A clean sweep on the Sector Leader Bullseye leaderboard.

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The 10 Stocks That Decide This Bull Market

Hello Trader, Markets are tense right now. Between geopolitical escalations, AI capex concerns, earnings, and inflation, there are plenty of reasons for traders to be on edge. While it’s showing up in the tape, people keep glossing over the greatest source of weakness… …I’m talking about mega-caps. 10 stocks make up over 40% of the S&P 500. If you include SpaceX, that figure climbs even higher. Owning an index fund means you’re heavily exposed to those 10 names whether you like or not. Their problems become your problems. When they wobble, your portfolio wobbles with them. Yet, most folks don’t realize they carry that much risk nor appreciate the magnitude. Ironically, it’s also where the next opportunity is hiding. That probably sounds ludicrous until you see this chart and the key level that changes everything. The Concentration Cuts Both Ways Take a look at this ratio chart between the Magnificent

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Bears Take Center Stage

Hey trader, The tape flipped hard last week. Stocks closed near the lows with tech and the Nasdaq dragging everything lower. This is the first time these signals have flashed together since the start of the year. That earlier signal led to a multi-week, double-digit pullback in the Nasdaq. This setup deserves your attention. By the end of this, you’ll know whether it points to something ugly or plain old rotation. You’ll also know exactly where I’m hunting for the next entry. New leadership is stepping in, so let’s break down what it actually means. Rise-Off Sectors Rise – For Now Performance Leader 1-week 30-day YTD 1-year Sector Energy (XLE) Healthcare (XLV) Energy (XLE) Energy (XLE) Energy ran the table last week. It was the strongest sector for the second week in a row. Energy rallied so hard it overtook technology both year-to-date and over the past twelve months. Tech

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Chopping Is Not Topping

Hey trader, The market has ground sideways for weeks. The crash callers think they finally caught the top. Every YouTube short in my feed is promising a 50% collapse. That noise always gets loudest right as a cycle runs out of time. Here is what you will walk away with. You will see the exact zone where I expect this low, which sector I expect to lead the next rally, and why falling oil and falling rates set the table for it. Let me show you why this grind is a gift. A Correction Through Time We are 15 weeks into the rally from March. It’s mature, no doubt, but at the same time, the window for a low is open right now. Prices have not collapsed. his is a correction through time. The tape is resting after a long run. Sideways chop drains the energy out of an overheated

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A Wake Up Call for Bulls

Hey trader, Stocks staged a nice comeback going into the weekend. By Friday’s close, the S&P futures hit their highest weekly level in history. That’s breakout mode, technically speaking. Don’t be surprised if new all-time highs start printing in the S&P soon. Here’s why that matters for your week ahead… New highs are only half the story. The other half is who shows up to lead the charge, and last week’s internals are flashing a warning that bulls need to see. The Nasdaq grabbed the biggest bid out of the large cap indices last week. That’s a good sign on the surface. But the real test comes from leadership. Based on what we saw internally last week, bulls still have work to do before I’m ready to call this clean. I’ve watched this movie before. Breakouts without the right sectors leading tend to fail fast, and I’ll show you exactly

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Another Sector Ripe for Rotation

Hello Trader, This market is taking no prisoners. Bears keep waiting for real downside follow-through that never materializes…but why? Peek under the hood and you’ll see rotations accelerating fast. Money isn’t leaving this market…It’s just moving. I’ve already flagged the setups building in biotech and financials over the past few weeks. Both are still working. However, my scans turned up another sector lining up for a serious stretch of outperformance. And it matters more than most: consumer discretionary. You see, it’s a core engine of the U.S. economy, and when it turns on, it tends to drag the broader market into full risk-on mode. But isn’t the consumer struggling? I mean, with a fill up costing a mortgage payment these days, who has money for basic goods, let alone luxury items? Maybe…just maybe…things aren’t what they seem. The Buyers Just Keep Buying Consumer spending makes up roughly 70% of the

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