[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] Now this was a trading session! Today had it all – the Fed, economic data, volume… I’ve been at this for more than 25 years, and I have never seen the kind of trading in individual products that we’ve seen today. Let that sink in for a second. The markets exploded on cooler inflation numbers – just a hint of selling activity but it didn’t last at all. We rode the upper edge of the SPX’s expected move for most of the last hour of trading. Shorts are squeezed outside of that. But… like I hinted a second ago, today’s order flow was highly significant. It’s dried up from all but the Big Tech stocks. I’ll tell you why that’s important and what I think is the best way to move forward…

[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 are facing some formidable headline risk right now… The FOMC will make a decision on rates (Europe and Canada have already cut) – and Jerome Powell will speak after the minutes are released. That alone would be enough to make anyone think twice, but to top it off, we’re getting some very important inflation data tomorrow. But under the surface, the environment looks… not half bad. There’s a lot here for the bulls to work with. Tech and communications stocks continue to outperform and there’s not much headwind blowing there. Apple is heading to new all-time highs despite lukewarm reception of its AI initiatives and, one of our top plays right now, Crowdstrike, just got a spot on the venerable S&P 500. Here’s what you need to know before the market opens – to all that headline risk

[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] If ever there was a week that should be wracked by volatility, this is it… Market-leading AI/chip stock Nvdia just concluded a 10-for-1 stock split – if you owned one share last Thursday, you own 10 now. Historically, these splits aren’t all that kind to stocks. The AI stock is said to be “priced to perfection,” but we’ll just see about that this week. AI might not be enough to save Apple right now. At the company’s Worldwide Developers Conference corporate honchos announced new AI initiatives and product integrations. AAPL shares sank like a stone. I’m old enough to remember when the letters “AI” and “WWDC” were reliable intraday profit catalysts for this stock… but it seems AI doesn’t have the cachet it did just a few months ago. Then again, releasing similar features as your competitors doesn’t add much

[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] NVDA’s 10-for-1 stock split is in motion – traders who held as share at the close yesterday will get nine additional shares at the close today, and come Monday morning, the price will be split-adjusted down from $1200 to $120 or so. But that’s not the big story here, not by a longshot. The gamma squeeze (essentially market makers gobbling up shares) that helped push the price higher over several sessions now looks to be coming to an end. Today, I’m going to talk about whether NVDA at $120 can still drive the market the way it did at $1200. That’s not just FUD – Nvidia has essentially made up 50% of the S&P 500’s returns year-to-date. If it doesn’t have the juice to keep doing that… watch out. We have to look at today’s jobs data, too – it

[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] Tiff Macklem and the Bank of Canada moved to cut overnight rates 25 basis points this week. Then, today, Christine Lagarde’s European Central Bank cut Eurozone rates 25 basis points. So now everyone and their mother wants to know if Jerome Powell and the Federal Reserve are going to follow suit – sometime soon. Fed funds futures suggest a cut is likely in September (but watch out if jobs numbers are weaker than expected). But something’s off. The dollar should be ripping in this environment; it isn’t. In fact, if you look at movements in commodities and emerging markets, it looks like the greenback is weakening. That’s the real consequence of poor, debt-driven policy and a decade of artificially low interest rates. Whatever you think you’re going to gain by lower rates is taken away by higher costs. Then again,

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”]<img src=”https://theotrade.com/wp-content/themes/optimizePressTheme/lib/images/video_placeholder.png” alt=”PGlmcmFtZSB3aWR0aD0iNjQwIiBoZWlnaHQ9IjM2MCIgc3JjPSJodHRwczovL3d3dy55b3V0dWJlLW5vY29va2llLmNvbS9lbWJlZC82SWFGbzMyMFBWND9zaT1lTzVTUEN2THBUdW1YS19YIiB0aXRsZT0iWW91VHViZSB2aWRlbyBwbGF5ZXIiIGZyYW1lYm9yZGVyPSIwIiBhbGxvdz0iYWNjZWxlcm9tZXRlcjsgYXV0b3BsYXk7IGNsaXBib2FyZC13cml0ZTsgZW5jcnlwdGVkLW1lZGlhOyBneXJvc2NvcGU7IHBpY3R1cmUtaW4tcGljdHVyZTsgd2ViLXNoYXJlIiByZWZlcnJlcnBvbGljeT0ic3RyaWN0LW9yaWdpbi13aGVuLWNyb3NzLW9yaWdpbiIgYWxsb3dmdWxsc2NyZWVuPSIiPjwvaWZyYW1lPg==” width=”1″ height=”1″ />[/video_player] A trillion dollars here, a trillion dollars there, and pretty soon you’re talking serious money. On the surface, Nvidia is a massive success story… A semiconductor stock few had even heard of ten years ago takes the market by storm and rides the AI boom to the Trillion-Dollar Clubhouse. It has a $3.01 trillion market cap, to be precise. In terms of market cap, it’s neck and neck with Apple as of today. As an optionable stock, its options pack around two- to two-and-a-half times more implied volatility 30 days out than its fellow big boys like Apple and Microsoft. In fact, as I’ll show you in a second, if you volatility-weight those three, you see Nvidia behaves more like a $7 trillion stock. It’s a systematic (not systemic) risk to the markets; it practically

[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 tape is still mixed. Tech-sector stocks and cryptocurrency look good – I like it – and they could well lead stocks to new all-time highs in the weeks ahead. Utility stocks seem to have snuffed out any strength in bonds, and if rates keep falling, we could see a boost in the two worst-performing S&P 500 sectors this year: real estate and consumer discretionaries. A nice comeback there wouldn’t surprise me. Energy-sector stocks and bonds do not look good, though. There’s an ominous warning there, and we’ll talk about that and more right now…

[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] This evening, I’m going to show you exactly how you can take advantage of this unfolding opportunity. 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] I’m traveling today, back to the island, with a loooong layover in Miami.  Fitting after a week like this. IN/OUT just closed out its eighth winner, but the markets closed out a short week-long losing streak that somehow managed to feel even longer. Of course, it caps a month of 4% to 6% gains for both indexes, but I won’t be awarding any style points. Normally, I could care less about what happens on the Dow Industrials – for traders, the one to watch is the S&P 500. But… when there’s smoke… when there’s excitement brewing… I’ve got to keep my eye on it. And that’s what’s happening right now. The Dow and the S&P 500 are actually diverging right now… Not only that, but there are significant rotations playing out right now, which we’ll get into.  Like I said,

[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]   Conditions are looking good for the move I have in mind today… Crude futures spiked yesterday, up to $80.62… and then sold off today, pretty much erasing the gains of the previous two sessions. From a technical perspective, and I’ll show you the charts in just a second, this pushes us, bearishly, toward the lows. Now, interestingly, there happens to be an inverse correlation between oil prices, energy, and utilities. See where I’m going with this? I’ll show you…