[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 past few U.S. Treasury auctions have attracted weak demand, particularly from foreign buyers. That’s dragged bond prices lower and pushed yields higher. This has upset the tenuous balance the market has achieved over the past few weeks, and we’re beginning to see the likelihood of the market’s worst fears being realized: higher for longer! That weak demand, coupled with intractable debt and inflation fears, and a relatively tapped-out U.S. consumer means the rise in equity prices is becoming more labored. The options market tells us that, if we’re long, we’d better be hedged. Let’s look at some signals of the underlying stress and uncertainty throwing higher equity prices into doubt…

[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] Stick around the markets long enough and you’ll hear it: “Sell in May and go away.” It’s an old saying, dating from when Wall Street’s white-shoe stockbrokers (once the only game in town) fled Manhattan for a summer in the Hamptons… and volumes hit the floor. I’m sure brokers are still taking vacations, but times have changed. May’s almost over, and stocks, led by Nvidia’s recent breakout, are hitting all-time highs right now. In fact, the people following along in my chatroom and my Sector Leader Bullseye research are profiting from my bullish NVDA strategy as we speak. And make no mistake: Nvidia is not the only bullish opportunity right now. The energy sector, for instance, has potential right now – we’ll talk about that in a second. A change in yields, too, could mean a different environment heading into

[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] There’s an old (but usually true) cliche for times like we’re in now: “Bad news is good news,” meaning, terrible economic news is great for the markets, because it could lead to looser policy at the Fed. Well, if that’s true… you don’t have to be Warren Buffett to figure out what good data could mean. Look at the way markets behaved this week – starting with the SPX, the Mother of All Products. For the week’s first two sessions, we got nothing. A test pattern. Completely stagnated. Low volume, zilch. Wednesday, we got the FOMC minutes which, for the first time in a while, indicated a willingness to raise rates because inflation is still too damn high. This at a time when the market is still anticipating one cut (though the big boys like Goldman have said they expect

[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] Today, the media was watching (and writing) about Nvidia, which yesterday reported dynamite earnings and announced a 10-for-1 split. But I was watching… a steep bond breakdown; a surging dollar; and crashing commodities. There’s a lot to talk about this evening, and I’ll show you my charts in a second. For now, you need to know that this situation is where the danger, the opportunity, and the action are right now. We’re going to talk defensive plays, too – getting long in healthcare in tickers like BMY and more. 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] While everyone and their mother was waiting for Nvidia’s quarterly earnings, the Fed Open Markets Committee meeting minutes hit the street. Oooh boy… The report wasn’t good at all. Seems plenty of folks at the central bank are feeling really hawkish. Forget about that weak “higher for longer” song ‘n dance we usually get… …because some of these Fedheads are saying they’re willing to raise rates again. So immediately the S&P 500 dropped 8%, trading was halted, the oceans boiled… dogs and cats living together… Oh, wait – no. That didn’t actually happen. Nothing much happened, in fact. A small sell-off… and a rally right back. Now, I don’t necessarily believe the Fed is going to raise rates – the really “yikes!” thing is that the market cares more about… AI… than it does about the central bank. And while

[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 doesn’t lie: The bullish thesis I’ve developed over the past few weeks has been vindicated. Ever since late April, I’ve been pounding the table about it. The way higher is wide open. Although, I’m a bit concerned as we move deeper into summer. What is it that makes me uneasy? Utilities, and the high degree of relative strength they’re exhibiting right now. We’ll talk about exactly why in just a minute. But in general, there’s a lot to like right now. I’m particularly excited by what I see happening in the crypto space as we speak… I think it could be an excellent way to generate alpha even in the late stages of this bull market. Here’s why…

[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 S&P 500 finished barely in the green and was led by the technology sector ahead of a pivotal earnings announcement from $NVDA on Wednesday after the close. With an $82 expected move for this week, expect some significant volatility! Aside from NVDA lifting the market today, it was gold, silver and Bitcoin miners seeing significant call activity today. Their role as the anti-dollar is pivotal during a melt-up and is a potential signal that the market isn’t healthy.

[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] –nothing but CPI –NVDA a defining moment for the AI trade –gold and silver –bond markets –cocktail for volatility –do not be a vol starved animal SPX Expected Move — –last week — 67.29 (5–day expected move) –next week– (5–day expected move)

[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] All three major indexes closed at all-time highs… but the way I see it, today’s breakout is a little questionable. I’ll show you why in a second. But the fact is, the S&P 500 is moving higher; some sectors are getting weaker, others are getting stronger. The next session or two will really tell the tale about whether the breakout will fail… or stocks will power on to even higher levels from here. Today, I want to look at where those strengths and weaknesses are because we can capitalize on them both. Let’s get going…

[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 SPX was up around $58 just before the close today. The market loved the CPI numbers (I don’t see what there is to love about them; they came in as expected but 3.4% is still high) and took us right to the upper edge of the expected move. Now, if you remember, last week we actually breached the expected move – mildly – to the upside. I think we’re dealing with something similar right now. The upper edge of the expected move is the market’s happy place, and if we punch through it, we can expect the market’s big players to take us higher with their hedging. You read that right – I’ll explain how it works and how to get ready for it right now.