Wow, what a week it’s been! The election is now over, with Donald Trump emerging as the victor. The Federal Reserve also cut interest rates another 25-basis points, continuing the trend of monetary easing. I went into the election 100% long. This was not because I expected one particular outcome or another. I was just responding to the conditions presented by the market. I periodically receive emails about how I’m preparing for a particular event – the truth is – the method allows me to sail through both calm and stormy waters. There’s been some big movers in the past week, and I want to recap some of these with you. But if you’ve been following my emails over the past couple of months, you’re probably happy with how positions in crypto and Tesla have been performing. Let’s take a look… The New Era Economy is Blossoming I’ve been talking

Election week is here, but don’t let that you lose sight of the Fed’s upcoming rate cut on Thursday. As traders, we like to operate under the assumption that the market has a better sense of what’s really going on compared to the news or even opinion polls. The good news is that the sector leadership rankings continue to point towards bulls having the advantage of this market. My point is to not let this week’s headlines catch you off balance, or cause you to make a poor decision.  Check out the updated sector box score… Comms Can Thank Google Now that we’re past the bulk of big tech earnings, we can sit back and thank stocks like Alphabet (GOOGL), and even Netflix (NFLX), for their positive responses post-earnings. This sent XLC, the communications sector ETF, to new all-time highs, and cemented it as the top-performing sector year-to-date. I must

It’s been a wild week for markets between big tech earnings, a nothing-burger inflation report, and a very weak jobs number. Even though the presidential election is dominating the headlines now, let’s not lose sight of the fact that another 25-basis point rate cut is coming next week. If anything, the recent economic data between inflation and employment supports the idea that more rate cuts are coming. Plus, I think the Fed wants to be present as a stabilizing force if we see any instability around or following the election. But I want to point out something bigger that’s happening – I think crude oil is about to plummet, and it’s all thanks to the Trinity Trade.  Have a look…  Lower Oil Prices Means Low Inflation  Here’s the thing when it comes to inflation data – the market will always give us a better sense of price pressures than CPI

Tesla stole the headlines last week after their earnings report, and its surge higher sent shockwaves across the entire market. Anyone with a 401(k) or any sort of retirement plan likely owns Tesla in some way, shape, or form. Not only is it part of the Magnificent Seven, but it also is owned by countless fund companies. Think about it like this – every time someone dollar cost averages into a tech or total stock market ETF, some shares of Tesla are being bought. Let’s take a look at what this surge did to the sector leadership rankings… Risk-On Sectors Seek Leadership Last week, we saw consumer discretionary (XLY) recapture the one-week leadership position. Financials (XLF) also came back as the one-month leader. XLY reassuming near-term leadership is a bullish signal. Tesla makes up over 14% of the XLY fund. So, it’s not hard to see why it emerged as

Tesla captured the stock market’s headlines this week after a solid Q3 earnings report that resulted in its shares surging nearly 22% on Thursday. This move caught many traders off guard, as Tesla had been one of the most-heavily shorted stocks in the market. But as my colleague Corey Rosenbloom and I both like to say, surprises tend to happen in the direction of the trend. And when it comes to Tesla, the long-term trend is still up. It’s one of the reasons why I shared an idea with my chatroom members to get long shares of Tesla back on September 12. But now, given the recent developments, I think it’s time to “Back up the Cyber Truck.”  Check this out…  Tesla Will Supercharge Stocks If we step back and look at the Magnificent Seven names, of which Tesla is a component, it’s easy to see that this stock might

If you haven’t noticed already, there’s been some big moves unfolding in the precious metals space. You should be in a great position to take advantage; the bull market in precious metals is something that I’ve been discussing for a while. In fact, some of the top-performing stocks in the portfolio this year have come from metal mining stocks. But now, I’d like to share another reason why precious metals are surging, and particularly silver. Here’s a hint – it’s not just because of the Fed either. Check this out… Silver Surfing the New Economy I’m happy to share that the details surrounding the Trinity Trade will be coming your way very soon. And I would also like to thank those of you that reached out to express your interest already. I think you will be very pleased with the story behind this emerging theme. Believe it or not, the

There was a major reshuffling of sector performance rankings last week, and as always, the story is even bigger than what makes headlines. None of the changes in the ranking warn of imminent doom, but it does increase my suspicions that the market could peak around the election. The best way to handle volatility is to be prepared for it. Let’s take a look at the market’s updated box score… Low-Rate Sectors Find Bid Real estate popped to claim the one-week leader position, which is interesting given the recent uptick in interest rates we saw. If you’ve been following along in Theo’s chatroom, you’ll know that I’m looking for an important low in bonds, or a high in rates. If it’s not happening now, I expect it no later than January.  A rebound in bonds would be a major tailwind for both utilities, which are the new leader year-to-date and

Stocks continued their bid this week and breakouts are happening left and right. Sentiment is growing increasingly bullish as traders and investors see their portfolios hit new all-time highs with the market. I still think this bull market has legs, but with the election less than three weeks away now, I’m urging you to not get greedy and stay true to our risk management principles. In the meantime, I wanted to update you on what I’ve been up to in this market. Take a look… Capturing Profits Is Managing Risk If you’ve been following my trade strategy for any period of time, you’ve probably noticed that a big part of my process is capturing initial profits when upside price targets are reached. This is the case in over 80% of my trades. Have a look at some recent examples in names like PI, VST, and SATS: Why do I do

Last week, I sent over a letter asking if you were ready for the New Economic Era. I asked you to drop me a note if you were interested, and a fair number of you found your way into my inbox. But since I feel so strongly about this emerging “Trinity Trade,” I wanted to give you another chance to consider this generational opportunity that’s still in its very early stages. In fact, I can even tell you that governments around the world will be directly involved in this trend. It’s no longer a question of free market innovation.  Let’s take a deeper look…  The Emerging Economic Arms Race Before the age of free trade came to be, one of the primary ways countries grew their economy was through war or conquest. Thousands of years ago, it was an agricultural revolution that helped nations get the upper hand on their

On Friday, I put a tease out there – that you would be pleased with the updated results in the sector performance rankings. And now that it’s Monday, it’s time to follow up with the Tale of the Tape. We’re seeing capital flow into the right areas of the market now, which signals that the current rally has legs. Don’t forget that, from a seasonal standpoint, we’re about to enter one of the more bullish periods of the year.  Based on what I’m seeing under the surface, there is some real potential for this rally to be one for the record books… It’s Still Early For Technology A quick glance at the updated performance rankings has technology as the top-performing sector on both one-week and 30-day intervals.  I’m going to say this as plainly as possible: This is the most bullish development we’ve had in weeks. Tech is the largest