The market dropped 1.5% yesterday after Trump threatened massive tariff increases on China. Tech stocks got hammered. Nvidia fell 2%, AMD dropped over 5%, and Tesla shed more than 3%. The bubble callers are out in force right now, claiming they were right all along. Here’s the problem. The S&P 500 just posted its worst decline since August, but the index is still sitting near record highs after a clean uptrend over the past few months. The traders screaming about bubbles didn’t make money on this drop. They’ve been sitting on the sidelines or worse, bleeding capital on short positions while the market climbed higher week after week. Now they’re pointing at one red day as vindication for missing months of gains. I call this “Big Short Syndrome.” It’s destroying trading accounts across the market right now. Traders have been screaming about bubbles everywhere lately. They claim we’re in a

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