There are periods in history where more happens in the span of several months than several years. We lived through such a period back during covid, and now it seems like we’re entering another one of those times. And it’s during times like these where markets provide tremendous opportunities to level up one’s station. This is why I, along with the rest of the TheoTrade team, decided it was a good idea to dedicate one full hour per week to analyzing what’s happening in the crypto market. Let me share what I have in mind… A Sector Growing Its Roots The thing to understand when it comes to cryptocurrency is that regulatory clarity is what’s going to bring the technology to the masses. Bitcoin has solidified its position as the “Dow” or legacy coin of the sector, but that doesn’t mean there aren’t other great opportunities elsewhere. That’s why, starting

It’s been a whirlwind week for markets, especially on the tech front. Stocks opened Monday reeling from the DeepSeek news out of China. Even an announcement from Alibaba about a major AI development failed to attract significant media attention. Artificial intelligence has been a dominant theme in the U.S. over the past year, driving much of the strong performance in stocks. The level of capital expenditure (CapEx) in the AI space has been immense. However, as I’ll explain, it seems we’ve reached a critical inflection point. Interestingly, the Chinese stock market (currently on holiday) was already on our radar. In the bigger picture, China’s recent AI advancements are poised to have a significant impact on the U.S. tech sector. Here’s why this could actually be a positive development… New Bull Trends Emerging One important thing to remember about the technology sector is its breadth. It encompasses a wide range of

Hello TheoTrader, As we enter the second full week of trading in 2025, the timeline may have shifted slightly, but the underlying story remains the same: we’re in a bull market. Sector performance rankings saw a notable shake-up last week. While much of the movement is bullish, there’s one minor concern—but only in the traditional sense (you’ll see why shortly). The weekend was dominated by DeepSeek headlines, and this week promises to be action-packed. Between the Fed, key economic data, earnings reports, and headline risks like geopolitics and tariffs, there’s plenty to watch. The big question: will these factors push stocks meaningfully lower, or will the market’s internal capital flows continue to prevail? Let’s dive in… Moving With the Market’s Rhythm There’s some tension in the markets this morning, so let’s focus on where the bad news is coming from at the sector level. Utilities (XLU) have been the top-performing

We’re wrapping up an incredible week in the stock market! The S&P 500 cash index—and its ETF counterpart, SPY—hit fresh all-time highs, with futures indices not far behind. If you’ve been following the Sector Leader Bullseye newsletter closely these past few weeks, this probably doesn’t come as a surprise. But let’s be honest—accurately predicting market moves is just a stepping stone. What really matters in this business isn’t saying, “I told you so,” but growing your account. And trust me, there are plenty of people who care more about being “right” than being profitable. Fortunately, that’s not my style, and I’m guessing it’s not yours either. So let’s skip the patting ourselves on the back and focus on what’s next for the markets… The Good Times Don’t Last Forever—But They Can Last a While It’s easy to forget just how dramatic 2022 was for the markets. That bear market wasn’t

Donald Trump was sworn into office on Monday, kicking off his second term as the 47th President of the United States. There’s a lot of optimism from the business community at the moment, and a lot of the focus is, understandably, on what’s happening in the U.S. But over the past couple of weeks, I’ve been watching the price action in another important market. In fact, it’s the market that’s home to the second largest economy in the world. If you guessed China, you’d be correct. My research shows Trump’s policies might be the best thing to happen to Chinese stocks since 2008. You read that right. So today, I want to show you why I think a Trump presidency could be very bullish for Chinese stocks, and why we shouldn’t forget that it’s a global market out there… The Technological Arms Race for the Future Over the past couple

Last week, when stocks were on the defensive, I pointed out the continued presence of positive money flows within the market.  And as it turned out, Monday was the low of the week. Stocks rallied smartly and then ended up closing at their highest level in four weeks.  So what’s all the fuss about? I’ll be honest here and say it doesn’t bother me one bit. After all, it’s part of what makes a market. My primary purpose isn’t to persuade you to be bullish or bearish, but rather, to point out the nature of the sectors doing well in this tape. And as it turns out, the leadership we’re seeing continues to support the bullish outlook for stocks.  Have a look… When the “Monied” Interests Lead… Banks kicked off earnings season last week, and although there were some warnings about the economy going forward, their results were largely positive.

It never ceases to amaze me – how sentiment follows price. Stocks dropped six weeks’ worth of gains from their all-time highs down into what appears to be a low of significance this past Monday. This was also the longest decline that stocks have experienced going back to the October 2023 low. Ask yourself this question: Was that a good time to be buying stocks? I’ll be honest with you: I think the permabears are in for a lot of pain in the coming weeks. It’s always very telling to me when I start seeing comparisons to “a collapse along the lines of the Great Depression.” It actually gave me this idea: Let’s run the math on how the market behaved during those Roaring Twenties.  I think you’ll be surprised. After all, the numbers never lie, only the anonymous social media permabears do. Check this out… (JUMP) The Numbers Behind

Stocks went out near the lows of the week on Friday, and by now, most of you are well aware of my high regard for closing prices. In other words, when stocks close at the lows of the week, it’s a strong signal that bears were the victor of that five-day period. Over the past month, we’ve seen two downtrodden sectors – energy and healthcare – emerge as leaders. But in the grand scheme of things, not much has changed when it comes to the bull market. In fact, it’s why I’m calling this pullback the “Bullish Correction…” A Healthy Rotation If I Ever Saw One As we finally begin the first full trading week of 2025, there are a couple of new names on our sector leader table. The year-to-date number is especially deceiving here, since we’re only a couple of weeks into the new year. But I would

It’s been a choppy few weeks in the stock market. From now looking back to the election in November, we’re basically unchanged. This in turn is prompting talking heads to declare the “Trump bump” is over. I’ll level with you:  My trading, and more importantly, my risk management, doesn’t change depending on who holds political power. If anything, this type of sentiment I’m seeing and hearing now leads me to believe the market chop is nearing its end. But much of it depends on this one very important sector reclaiming leadership in the stock market.  Check it out… The New Economic Era’s Microscopic “Gears” It’s no secret that the technology sector has been the main driver of this bull market over the past few years. But interestingly, in 2024, tech wasn’t even the top-performing sector. However, there’s a special sub-sector within the broader tech space that is critical to much

For the second week in a row, energy was the top-performing sector in the S&P 500. This is especially interesting because, given the strength of Friday’s rally, it looks like bears may be about to be squeezed again. Whenever energy outperforms, it gives us a clue as to where we are in the market cycle. But the bigger question is whether inflationary pressures are rising… or if the latest pop in energy was a last-gasp rally before a bigger drop back down. Let’s dive deeper into this tape for more clues about where the bull market stands…  Energy Is a Late-Cycle Leader I try to be intentional in all of my actions – not just in this trading business. The name of this newsletter – Sector Leader Bullseye – wasn’t chosen at random. Whenever we see certain sectors out- or underperforming, it tells a much deeper story surrounding the state