Just wrapped my segment on Schwab’s Big 3 and something is seriously broken in this market.
Here’s what should terrify you: 70 stocks in the S&P 100 are trading higher today. Yet the S&P is down.
That’s not rotation. That’s panic.
Fund managers can’t put money into the mega-cap tech that carried markets for two years. So what are they doing instead?
Panic-buying random industrial names. Avoiding bonds entirely. Creating what I call “manic rotations” – capital being forced into places not because of opportunity, but because of desperation.
This dysfunction is creating three massive contrarian opportunities I just shared on Schwab:
The “overcooked turkey” play – One industrial giant up 24% year-to-date on pure forced flows. When fundamentals don’t support the move, the snapback can be brutal.
The “safe haven that isn’t” trade – For the first time in history, bonds aren’t catching flight-to-safety money. I’m betting against that dysfunction.
The “mother of all rotation plays” – One energy name exploded 19% year-to-date on desperation buying. Time to fade the madness.
These aren’t your typical trades. These are tactical positions for when markets completely lose their minds and traditional correlations break down.
WATCH THE FULL SCHWAB BREAKDOWN HERE
To your success,
Don Kaufman
