Did Jerome Powell finally blink? After today’s Jackson Hole speech, it sure looks like it. Powell made it crystal clear: interest rate cuts are finally coming. Why do we care? Interest rates define the cost of money. When that changes, everything downstream shifts with it. Keep in mind, I’m still incredibly bullish on tech. But with rate cuts now all but guaranteed, we need to prepare for new market leadership.  Here are the three sectors I’m watching closely: 1. Small Cap Stocks Many small caps are drowning in debt. They pay interest that eats up huge chunks of their cash flow. But Lower rates? That’s their lifeline.  Companies can refinance at lower rates, reducing their interest payments. The unprofitability problem doesn’t disappear overnight, but it becomes much more manageable. 2. Healthcare & Biotech COVID crushed healthcare stocks. They have yet to recover, despite being the market’s second-largest sector.  That creates

We saw new all-time highs across the board last week, which is, on its own, a bullish sign. After all, let’s not forget that new all-time highs only happen in bull markets. But we can’t lose sight of the fact that stocks have been straight up for over four months now. The last thing we can afford is to become complacent after this epic rally. Bulls have had it good lately, but as I’m about to show you, there could be some complacency creeping into the tape. Here’s what I mean… A Reshuffling of the Sector Deck The worst-performing sector of the year, healthcare (XLV) has just come alive. There are a couple of ways to dissect this, so hear me out. The bullish interpretation is that sector rotation is the life blood of bull markets. Healthcare has pretty much done nothing this year, and it’s the second-biggest sector of

The Treasury Department just found a backdoor to solve their biggest problem – and it might create an even bigger one. Scott Bessent has been watching foreign governments back away from U.S. debt faster than ever. His solution? Use crypto to trick the world into financing our debt through the back door. Here’s the Crypto Trojan Horse: Stablecoins are backed by U.S. Treasuries → Global crypto demand explodes → People buy stablecoins → Stablecoins buy Treasuries → Instant artificial demand for U.S. government debt. By positioning America as crypto’s global headquarters, we’re essentially forcing global crypto adoption to subsidize our deficit spending. Brilliant? Absolutely. Dangerous? Even more so. We’ve Made Bitcoin Systemic Risk Remember 2022? TerraUSD collapsed and took a chunk of crypto with it. That was contained damage. Now we’ve built a four-step recipe for financial disaster: Bitcoin crashes (it’s happened before) Stablecoin confidence evaporates (domino effect) Treasury market

Lost in the headlines last week was the fact that the market was all about re-pricing the state of the consumer. Just six months ago, we were facing hysteria about how a recession was imminent, but stocks continued to display their resiliency last week by closing at record highs. So, what are we really facing? Recession, inflation, stagflation, an economic depression? Honestly, I wouldn’t waste your time worrying about that. Of course, I’m assuming your intent is to make money in this market rather than brag to others about how “right” you were. Anyways, I have some very interesting updates to share with you this week, and it’s something the bears may not like seeing very much…  A Reshuffling of the Sector Deck In previous weeks, we noted some of the bearish money flows taking place within the market, but last week, we saw consumer discretionary (XLY), of all sectors,

Good News, Bad Flows? Not Exactly… New tariffs on pharmaceuticals, semiconductors, and even countries like India hit the tape this week — the kind of headlines that should’ve rattled Wall Street. But instead of panic selling, stocks kept climbing. Tech even had a decent week. The problem? It still wasn’t good enough for me… and if you’ve been reading Sector Leader Bullseye, you know why. Under the surface, money flows aren’t screaming “all clear.” In fact, we’re likely staring down a market correction — just not the kind most traders expect. Corrections don’t have to come with a gut-wrenching plunge. Sometimes the market just… pauses. Gains consolidate. Weeks — even months — of sideways action bleed off the excess without the drama of a crash.  Right now, my read is this: 65% chance we correct through time — sideways chop that frustrates the impatient. 35% chance we correct through price

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