Hello TheoTrader, Stocks hit a new all-time high last week. Underneath the surface, there was a bit of ducking and covering. The big picture hasn’t changed. Bulls are still running the tape. The question remains whether enough new all-time highs have accumulated to finally convince the skeptics. Once again, we face the key question of whether stocks will correct through price or time. I’ve been talking up the healthcare sector quite a bit lately. Biotech in particular has caught my attention. The biotech story remains very bullish. The healthcare story, however, suggests a bit of caution is creeping into the tape. Healthcare has a reputation as a more defensive sector. Healthcare has done virtually nothing since April. All of its gains came in the last few sessions. This could represent a healthy rotation into a downtrodden sector. Alternatively, smart money might be taking some cover near term as the indices

Hello TheoTrader, The second-largest sector of the S&P 500 came back to life last week. If you didn’t know already, that sector is healthcare. It’s effectively been on life-support since the April lows, and it’s not surprising when you consider so many of the negative headlines circulating within the industry. But is this turning out to be a classical contrarian signal? To be honest with you, I’m not even that excited about healthcare’s rebound, although it would definitely help technology, which has been leading, carry this market higher. There’s a smaller sector within healthcare, however, that has my attention… Biotech’s Big Bid Every now and then, I like to remind people, “When in doubt, zoom out.” This applies immensely to biotech right now. Have a look at the monthly chart of the index below. This sector is literally now just coming back to life. The sector thrives on lower interest

Everyone keeps talking about inflation. I get it – the Fed’s cutting rates, printing money again, and at some point inflation will probably return. But if you’re using that as your trading thesis right now, you’re missing where the actual money is being made. Here’s the thing: you need to trade the market in front of you, not the market you think ought to be. The Inflation Crew Is Grasping At Straws Last week’s energy surge has the inflation crowd pumping their fists. “See! Energy’s leading! Inflation’s coming back!” Look, I get why they’re excited. Energy was the top performer last week, and historically, energy outperformance signals late-cycle inflationary pressure. But they’re celebrating one week of performance like it’s a victory lap. That’s chump change analysis. Here’s what the data actually shows: You see the problem? Energy had one good week. Communications has dominated everything else. Why I’m Not Buying

Hello TheoTrader, Being away from home for several weeks isn’t easy. Similar to trading certain setups, I have routines across different time frames. Certain things need to be done regularly. I grew up playing team sports like soccer and basketball. I was the odd man out in a real midwestern hockey town. All my friends played ice hockey except me. I did participate in street hockey games as a kid. Team sports differ from individual sports. You can’t blame a teammate for losing in individual sports. It’s important to know how to work with a team. When it comes to trading, your biggest battle is yourself. Like Professor Bierman, I trained in Hapkido as a youth. I quit when I was one degree away from black belt. I started at 5 and continued until middle school. Those are awkward years. In 2021, I picked up martial arts training again. I

Hello TheoTrader, We’re days away from Q4 in what’s been a wild 2025 ride.  I’m expecting Q4 to launch us into 2026 spectacularly.  And today I want to review one of 2025’s best trades…Mining stocks. Both gold and silver have crushed the S&P in 2025. Gold is having its best year in over four decades.  Let’s talk about the best strategy going forward. Returns and Liquidity Matter The precious metals sphere overflows with emotional content.  One pundit tells you to convert your entire IRA to gold. Another says stuff silver coins in your mattress. I take a balanced approach. Silver is starting to outrun gold short-term. This often happens before pullbacks occur. When the pullback comes, I want to buy the dip. You won’t see me buying physical gold or silver. Physical metal premiums are steep. We’re talking 20-30% premiums. Prices need to rise that much just for you to

We’re living through a Great Tech Reset right now. And here’s the kicker – the Fed is cutting rates into a period where tech earnings estimates aren’t decreasing. They’re expanding. The last time we saw this setup was the dot com bubble. Look, I know everyone’s tired of dot com comparisons. But the data doesn’t lie. Check out this week’s For the second straight week, tech (XLK) is leading on the 1-week timeframe. Communications (XLC) is dominating everything else – 30-day, YTD, and 1-year performance. This isn’t something you see in bear markets. Tech makes up around 30% of the S&P 500. When it’s leading across multiple timeframes like this, with the Fed cutting rates behind it, you’re looking at a very specific setup. The trend is undeniable. We’ve got two parallel tech resets happening: 1) The Great American Tech Reset – Fed easing into expanding earnings estimates 2) The

Every now and then, I like to remind readers that sentiment follows price, not the other way around. Which is why I’m more bullish on Solana than I’ve ever been. Back in April, I started pounding the table on Ethereum while everyone was calling it useless, too expensive, outdated. As it turns out, it’s been the best-performing asset off that low – blown stocks and gold (which is having its best year in over four decades) completely out of the water. Now I’m seeing identical criticism leveled at Solana. Here’s the thing about pattern recognition: when the crowd hates what you like, that’s not a warning sign – it’s a buy signal. Fresh rate cuts from the Fed mean new sector rotations. Accelerations into some areas, decelerations into others. While everyone’s chasing the obvious plays, I’m watching the asset getting the exact same hate Ethereum got six months ago. My

My relationship with money is a peculiar one.  I wasn’t born rich, nor was I born poor. I really was raised as middle-class as it gets. Both of my parents always worked. My father was a union laborer in the cement business. My mother was a secretary in the automotive industry. They worked long hours. After school, my grandparents took care of me and my brother until my parents came home in the evenings. Gramps drove me to soccer practice until I got my license. It wasn’t an easy life. But we made it work. My family emigrated to the U.S. before I was born. Back in Italy, my grandfather raised cattle. We never wanted for anything, but never took what we had for granted. Seeing my parents dedication to building a life here in the U.S., listening to the stories of my family back in Italy all helped shape

Everyone declared the AI bubble dead. Headlines screamed overvaluation. Tech analysts warned of crashes. I was watching something completely different unfold in the semiconductor space. The Big Picture They Missed The AI death crowd missed fundamental demand drivers that haven’t disappeared. Data centers still need memory. Cloud infrastructure requires massive processing power. AI applications create unprecedented chip demand. Companies like Micron don’t benefit from AI hype. They benefit from AI reality. Every major tech company races to build AI capabilities. That requires hardware. Memory chips, processing units, storage solutions. The entire semiconductor ecosystem benefits from this technological arms race. But markets don’t move in straight lines. Corrections happen. Sentiment swings from greed to fear and back. Smart traders use fear to position for the next wave. The semiconductor space showed strength while everyone panicked. NVIDIA held key support. AMD built bases. Taiwan Semi attracted fresh institutional interest. Charts told a

Have you noticed how stocks are at all-time highs while there’s a never-ending laundry list of reasons to think why we’re about to crash? There’s a reason why the saying, “A bull market climbs a wall of worry,” exists. I’m one of those traders that think the market knows best. And so when it talks, I like to listen (especially when it comes to this sector)… Here’s what caught my attention.  The Signal is Very Clear   The message from the market is remarkably clear right now. Communications (XLC) are absolutely dominating this tape across the board. This is not something to be taken lightly. Communications (XLC) have a lot of overlap with the tech sector, and by extension, the whole artificial intelligence theme.  Remember a couple of weeks back when various pundits were calling for the end of the “AI bubble?” I do. We were happy to take the