Stocks hit new all-time highs last week, but we were hit with our first real barrage of selling in months. Markets are stable this morning, although I hesitate to give the “all clear” signal just yet. Last Monday, we noted how bears crept back into the tape by bidding up the healthcare sector, which is rather defensive in nature. Bulls may be disappointed to hear that the bears’ momentum continued into Friday’s close. The question now is whether it will continue this week – I get the sense that it will – but let me explain how I see this playing out… (JUMP) Near-Term Pain, Long-Term Gain A few weeks back, we noted how cracks started to emerge in the rally. Bulls pressed on and bid the market back to new highs, but the momentum behind the rally wasn’t as convincing. Now we have another situation where, for two weeks

We’re fresh off a couple new trade deals, but stocks are merely limping to new all-time highs today. There’s quite a bit of froth in this tape as the rally approaches the four-month mark. At this point, we’ve got to ask: Can bulls keep this momentum going? Underneath the surface, we saw a new sector pop into the leaderboard last week. I have to say, it’s not the most bullish signal, but it could simply be part of a broader rotation. After all, it’s what keeps bull markets alive.  The Long-Term Trend is Getting Stronger Healthcare, which has been the worst-performing sector year-to-date, finally showed signs of life last week. It’s traditionally considered as a defensive sector, so naturally, the question is whether this is a sign money is starting to take cover, or whether we’re just seeing a healthy rotation. I must admit, I’m only interested in healthcare from

Stocks hit fresh all-time highs this past week, and although technology wasn’t the top-performer in recent days, we didn’t exactly see it break down either. If you’ve been reading the Sector Leader Bullseye newsletter long enough, you’ll understand that sector rotation is the life blood of bull markets. Yes, we want to see the tech sector lead, and we have. It’s why we’ve been dubbing it the Great Tech Reset. But there’s a legitimate question as to whether this bull market sustain itself without tech leading week in and week out. Every Important Stock Is Tech-Related Right Now Let’s just be realistic for a moment. Virtually every company out there with the greatest potential for growth has some connection to tech. Clothing company? Uses AI to help make their online sales more efficient. Energy company? Using AI and other software to be more efficient with their oil production. You get

Stocks capped off another strong week, and we saw a notable rebound in the technology sector too. This is a very bullish development in and of itself, especially after we saw materials and energy lead during the previous two weeks. But can this rebound be trusted at this stage of the rally? If anything, it was an attempt by bulls to repair the initial cracks in the rally, and they deserve applause for their efforts. While the short-term picture is getting a little fuzzy, I want to take a moment today to appreciate how the longer-term outlook is shaping up.  The Long-Term Trend is Getting Stronger Can we just take a moment to appreciate the bullishness of this leaderboard? It’s been around a year since we last saw a leaderboard this bullish. There’s not a single defensive sector in sight. The picture gets even more bullish if you go back

Another week has passed, and I’m once again bringing Ethereum to your attention. I won’t apologize for being a broken record on this market, because it continues to display the most upside momentum. Ethereum is shaping up to be the asset to own in the second-half of 2025. Members in Theo chat, the Trinity Trade, and even the Million-Dollar Challenge have been long since late-April and the rewards are being reaped right now. About a month and $1,000 ago, I shared an article on how you probably don’t own enough Ethereum. I doubled down last week, when Ethereum was still below $3,000.  So now, the biggest question is – what comes next?  Crypto Week and Ethereum’s Supply Shock Congress was able to advance three key bills related to crypto this past week, and we have a situation where there are record shorts in the futures market, along with record ETH

Stocks finally pulled back last week, but it wasn’t the most convincing reversal back lower. That said, I’ve been monitoring some of the emerging cracks in this rally over the past two weeks. We have another leader that popped up last week that suggests upside momentum is running out of gas. Does that mean it’s automatically time to bail on this rally? Far from that. It just means that the priorities in our approach to this market needs to be different.  Here’s what I mean…  Is Growth Accelerating, Or…? Two weeks ago, the top-performing sector was basic materials (XLB). Last week, energy (XLE) emerged as the top-performer. To be clear, this is not the type of short-term leadership we’d see if upside momentum was accelerating. But let’s take a step back for a moment and give credit where it’s due – bulls had an incredible run over the past three

A few weeks ago, I published an article on Ethereum, and how you probably don’t own enough. I wanted to use today’s column to double-down on this call, especially as we head into “crypto week” in Washington. Do you remember how Bitcoin reserve companies were all the rage in recent years? Just think of Michael Saylor’s MicroStrategy (MSTR) and all the attention it’s attracted. But now, we’re seeing companies shift to Ethereum reserves, and it’s leading to absolutely monstrous intraday moves. These are the types of things you see going into a market mania. So, where do we go from here?  I think we’re headed this way…  The Ethereum Bull Market Is Young and Strong One of the hallmarks of true crypto manias over the years has been Ethereum outperforming Bitcoin. And then, an “alt-season” inevitably follows. I’m not a fan of the majority of alt-coins, although there are some

We saw a very strong finish last Thursday for stocks as we went into the long holiday weekend. We’re seeing market breadth and participation remain resilient, but you know me – I’m always on the lookout for cracks in this rally. A few weeks back, some cracks surfaced when energy was outperforming. If you recall, that was around the time of the peak tensions between Israel and Iran. But then technology came roaring back, the crack was mended. Last week, we saw another sector assume leadership. What does this mean for the state of the rally going forward? Ease Up on the Growth? The best-performing sector last week was basic materials (XLB). This is an interesting short-term leader, because it can mean one of two things, or both. We just passed a bill that’s basically worth $5 trillion dollars in stimulus. Plus, we have the Fed that’s likely to lower

[images style=”0″ image=”https%3A%2F%2Ftheotrade.com%2Fwp-content%2Fuploads%2F2024%2F07%2FSector-Leader-Bullseye-Thumbnail-1024×576-1.jpg” width=”1024″ align=”center” top_margin=”0″ full_width=”Y”] Last week delivered what bulls have been waiting for since February: fresh all-time highs in U.S. stock indices, with the Nasdaq blazing the trail higher. This isn’t just any rally—it’s a growth-driven surge that signals the market’s real appetite for risk is back. The outperformance of growth sectors since the April 7 low has been building momentum for weeks, and after last week’s breakout, this trend is accelerating into what could be a powerful third quarter. Take a look at this… Growth is Accelerating into Q3 [images style=”0″ image=”https%3A%2F%2Ftheotrade.com%2Fwp-content%2Fuploads%2F2025%2F06%2FScreenshot-2025-06-30-115911.png” width=”639″ align=”center” top_margin=”0″ full_width=”Y”] The sector leaderboard tells the story perfectly. Communications and technology are leading the charge, with industrials and financials close behind. Take a moment to appreciate what’s missing from this list: not a single defensive sector in sight. That’s pure bullish conviction. Tech came roaring back last week, slightly outpaced by