Hello TheoTrader, Volatility crept back into the market last week as the rout in the tech sector accelerated. Defensive sectors within equities are maintaining their near-term momentum, but last week, the Trinity model picked up on an even bigger shift – in a completely different asset class. It’s an asset class that has been largely

Hey trader, Year-to-date, software stocks are down +20%. 5% was lopped off in a single session.  We are back to levels not seen since April of last year. The entire 2025 rally in software just got erased. I’m excited. This selloff is setting up the best buying opportunity of 2026. Why Software Is Getting Destroyed

Hello TheoTrader, Picture this: you’re deep in the forest, it’s the dead of winter, and you find a bear snoring peacefully in its den.  What do you do? Walk away quietly, right? This market chose violence. If you were out in the forest in the middle of winter and came across a den where a

Hello TheoTrader, I have been bullish on stocks since late April 2025.  Don and Professor Bierman like to tease me and call me a perma-bull, but the truth is, I am far from that. I like to focus on leadership, cycles, and technical setups.  Right now, the first two of those are flashing serious warning

Hello TheoTrader, The market is sending mixed signals. Most traders are watching the wrong ones. Stocks finished lower last week, but the Nasdaq held up best. That sounds like good news for growth investors. It isn’t. Beneath the surface, sector leadership is shifting in ways that typically precede major market turns. Late-cycle sectors are surging

Hello TheoTrader, Every time regional banks sell off, the doomsayers come out of the woodwork.  The 2023 banking crisis isn’t over… Another shoe is about to drop… Waiting for that shoe means you missed one of the quietest rallies in the financial sector. Regional banks just hit their highest level since early 2022.  The same

Hello TheoTrader, It was another choppy week for stocks as we come into a shortened trading week with earnings season in full swing. The leadership over the past few weeks has been rather rocky. Growth sectors aren’t leading across the board anymore, and that’s causing disturbances in the market’s near-term trend. But last week’s sector

Hello TheoTrader, The last time small caps broke out of a multi-year base like this, they crushed large caps by over 20% in the following year. That same setup is forming right now. And almost nobody is paying attention. I get it. Big tech has been the easy trade for so long that looking anywhere

Hello TheoTrader, Something clicked for the bulls last week. The first full week of 2026 saw both the S&P 500 and the Dow register new all-time highs. The Nasdaq still hasn’t reclaimed its October peak, but it led the charge with the strongest weekly gains. The real story isn’t just that stocks went up. It’s

Hello TheoTrader, The indices are hitting new highs. The real story, however, is the battle raging underneath the surface. This week, the Dow, S&P 500, and Russell 2000 all reached new all-time highs. The Nasdaq continues to lag behind. These mixed signals reveal something important about the current market environment. Since the start of the