[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] DeepSeek sent the big indexes anywhere from -1.5% to -3.1% “deeper” yesterday, but as we approach the closing bell today we’re now well into a recovery. At a time like this it’s important to remember that one day doesn’t break a trend. It doesn’t make one, either. In fact, there’s a lot to like in tech at the moment, especially since a great deal of froth and dead wood have been cleared away. I particularly like the strength I see in the software segment, and I think it’s likely software will emerge as a leader in the wider tech tech sector. Looking further afield, I think precious metals are irresistible right now. Gold quietly closed at its highest levels in history this past Friday – a 5,000-year high looks great on any chart. We’ve been building positions here already and

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] We’re all adults; we all know there are no “sure things.” Just the same, for the past two years, all the talking heads out there have been sure AI was set to revolutionize, well, everything. Sure – AI has been revolutionary and has transformative potential, but its reliance on infrastructure is a hurdle on the road to almost-guaranteed profits for investors. Now, to be fair, the incredible amount of capex spending companies have been throwing around has led to some increased scrutiny, but few if any mainstream media voices have questioned the need for infrastructure… …until now. The introduction of the new open-source DeepSeek AI from China has changed that entire narrative, at least for today. It’s prompted awkard questions: Is it really possible to generate the kind of performance as the big, resource-hungry American AI models with a fraction

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] So we got a nice bump for the week, for the most part, as the market gets more and more comfortable with the new administration. I can’t say it’s all good, though. I’d be doing you a disservice if I didn’t point out that there are a few reasons not to get too comfortable here. I’m not trying to freak you out; I’m not trying for perma-bear cred. You know me. If the trend’s bearish, I don’t cry about it – I just trade it. But the fact is that the big, professional traders out there are hedging. They’re hedging heavily. We’ll be able to track that with my charts here in a second. But these guys only do that because they think there’s considerable risk out there. We’ll look at what they’re looking at and then run through some

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Plenty of traders and investors, particularly new ones, tend to want to avoid the bond market, with its emphasis on debt, not equity, and its sensitivity to interest rates. That’s understandable, but bonds are easier – and, with the income they bring – more lucrative than you might think. What’s more, you don’t even need to own bonds to play along. I’ll show you what I mean; I’m watching a very bullish setup here as we speak. Speaking of income, I think investors should be in the dividend aristocrats now, too. These are companies who’ve hiked their dividend every year for 25 years. For income, these can be even bigger than bonds, and they’re also some of the best-run companies on the planet. And we’ll look at utilities, too, home to another bullish setup. These are classic defensive plays that

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] In a bullish opening salvo, the new Trump administration announced the opening of the Stargate project. Now, this isn’t the Stargate that exported people from earth to an extragalactic planet, but rather a portal opening the way to artificial intelligence infrastructure investment in the United States. In this unveiling, Japan’s SoftBank announced a $100 billion investment, with OpenAI taking operational responsibility and other tech giants throwing in for the AI infrastructure plan. The news helped bolster an otherwise listless market; tech names like Microsoft (MSFT), Nvidia (NVDA), Arm Holdings (ARM), and Oracle (ORCL) moved sharply higher following the announcement. These tech companies may have SoftBank CEO Masayoshi Son to thank for today’s shot in the arm, but Netflix (NFLX) should be thanking their subscribers for lifting the stock nearly 10%. The streaming giant’s earnings report indicated subscriber growth exploded in

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] We’ve been through the “Trump rally,” the “Trump slump,” the “Trump bump,” and now… just Trump, as the first full trading day of the new administration comes to a close. Space stocks, which are in the Million-Dollar Challenge portfolio, did well, with big moves underway. Broadly speaking, many stocks responded well, with the big index up nearly 0.8% in very late trading. But, like I always say, we should be taking the long view here; a day’s gains are nice, but we want to keep our eyes on the months, quarters, and years ahead. With that in mind, if Trump’s “drill baby, drill” soundbite becomes “drill baby, drill” as a matter of national policy, we can likely look forward to a very bullish run for stocks. And not just American stocks – keep your eyes on Sector Leader Bullseye for

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] We got strong rallies in the S&P 500 and NASDAQ today; a little less power on the Dow and Russell 2000, but they came along for the ride. Seeing as this is the last trading day of the Biden administration, I’m seeing some talking heads out there calling this the “Trump Rally 2.0.” Thing is… that’s not the right call. I love a rally as much as the next guy – stocks went ballistic during Trump’s first term… but this is not “it.” That’s not just a hunch. The charts from the bond market and the dollar do not confirm the rally. I’ll show you what I mean in a second. Of course I’ll also show you where the real action is…

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] Some weeks, you see it all… and this is one of those weeks. What had been a tape on life support roared back – violently – the second traders perceived inflation was cooling off. (Whether that perception is accurate… well, that’s a different story.) Bonds have staged a recovery, as well, which means savvy folks should be thinking of fixed income – or fixed income proxies like utilities. We’ll talk more about that in a second when I run down the top utilities to own right now. I’ve got bullish targets, dividend yields, and a lot more to show you for each ticker, so let’s get started…

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] We got a rally today. Not the rally, but a rally. The S&P was up nearly 2% when I recorded this, and the NASDAQ was rockin’ more than 2.5% to the upside. We can chalk this up to CPI this morning; traders read the tea leaves and decided inflation had cooled off and it was safe to come out. Stocks are on fire. Enjoy it, but don’t get too comfortable. Rip-your-face-off rallies like this are a sign that the market is still really volatile. What we’re seeing right now is a violent, reflexive bounce. Like I told everyone this weekend, the expected move was +/- 117 – that’s a big number. I’ll show you in my charts, though, that this has actually taken us… exactly where we’re supposed to be in terms of the expected move. I’ll draw you some

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”][/video_player] The markets’ mood has soured – that much is obvious. There are worries about inflation – also obvious if you look at the bond market. That makes tomorrow morning’s CPI data release critical. It could make or break the action in the bond market but in stocks as well. Crude oil is at a critical level but I’m encouraged by what I see in crypto right now. See, if the mood had gone completely risk-off, Bitcoin would be plunging, but that’s not what’s happening. More than that, earnings season (and Don’s earnings flip trade!) is right around the corner – this could be a massive profit catalyst. So tonight, let’s run through what I’m seeing out there, where the opportunities are, and what’s ahead for the markets…