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

Let me tell you why everyone else is wrong about China… Rate cuts and a weaker dollar are making international stocks competitive again.  No other large country has a tech landscape that can compare to the U.S. except China. They have more power to drive consumers into electric vehicles than we do. That combination creates a setup most traders will never see coming in XPEV. XPeng just broke a three-year downtrend. The pattern is reversing. Momentum has turned up with RSI readings above 70 for the first time since 2021. This isn’t just another international play. This is a chart and a company worth watching closely. The Setup Nobody Sees Coming Take a look at the XPEV chart I’ve been tracking. XPEV endured nearly three years of brutal selling pressure.  Now we’re finally seeing a technical reversal. This has all the hallmarks of a major trend change. Notice that key

By next week, five months will have passed since the market hit that epic bottom in April.  While plenty of naysayers emerged in the months that followed, we stuck to our money-flow model—and it guided us beautifully throughout the entire rally. Recently, I’ve been exercising more caution, and I’ll admit those defensive signals are starting to evolve again. This pattern has been consistent since mid-July: we see a week or two of defensive flows, followed by a strong bull run.  Let me share what this means for us moving forward. Tech is Gathering Momentum… Again Since the April 7 low, technology has remained by far the top-performing sector in this market.  If you’re wondering why the rally has stalled at the index level, it’s because this sector went dormant. But now, after several weeks of slumber, the sleeping giant is ready to wake up again. Take a moment to consider

Stocks headed into the long weekend on uncertain ground.  The cautionary money flows we highlighted previously have only intensified over the past week. So, where does this leave us heading into what could be a volatile September? As always, cooler heads prevail. Here’s why I believe we’re setting up for the best buying opportunity since April… The Rally is Running on Fumes Energy (XLE) topped the charts again last week—a sector that typically emerges as a leader in the later stages of market cycles. Remember, this rally could hit the five-month mark this week. Meanwhile, communications (XLC) dominates across all other timeframes. This is genuinely bullish territory, given how growth-oriented this sector is. The takeaway? We might face some near-term turbulence, but it’s positioning us for substantial long-term gains. Keep those cool heads—be ready to buy the dip. You can bet the press will amplify whatever “cause” they assign to

2025 has been defined by international stocks outperforming U.S. stocks. Many traders and money managers became complacent. They thought the Magnificent Seven could carry them forward forever. We know that nothing in this business lasts forever. There’s just a tendency for things to last longer than expected. I’ve been talking about China all year. Based on what I’m seeing unfold now, I think you’re about to hear a lot more about it. The Freeze Point Cracked – Again Last week, I presented my Freeze Points system. I shared a setup I was tracking in Trip.com, a Chinese stock. It checked off all my boxes. Yesterday, it exploded higher. Today brought another win. Alibaba ripped higher on yet another freeze point setup that paid out nicely. More Chinese names are setting up left and right. Once rate cuts hit in September, I expect this theme to accelerate even more. This is

I’m checking in on markets here as I’m heading back from the beach here in Italy. It was a very relaxing weekend, but it’s time to dive back in head first into these markets now. I was able to complete my weekend analysis before catching my fair share of rays, and I must say that there were some very noteworthy shifts in money flows last week. Will Powell’s Put Hold? Last week, I shared some of the somewhat concerning capital flows in the market. We had healthcare come roaring back, but it was rather quiet for the defensive sector last week. Instead, we saw energy come back alive, as the sector arguably remains the most “on-sale” one in the entire market. Stocks were on parade on Friday following Powell’s pivot, which gave Fed doves exactly what they wanted to hear. But here’s the problem – tech didn’t lead the rally

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,