Good News, Bad Flows? Not Exactly…
New tariffs on pharmaceuticals, semiconductors, and even countries like India hit the tape this week — the kind of headlines that should’ve rattled Wall Street.
But instead of panic selling, stocks kept climbing. Tech even had a decent week. The problem? It still wasn’t good enough for me… and if you’ve been reading Sector Leader Bullseye, you know why.
Under the surface, money flows aren’t screaming “all clear.” In fact, we’re likely staring down a market correction — just not the kind most traders expect.
Corrections don’t have to come with a gut-wrenching plunge. Sometimes the market just… pauses. Gains consolidate. Weeks — even months — of sideways action bleed off the excess without the drama of a crash.
Right now, my read is this:
- 65% chance we correct through time — sideways chop that frustrates the impatient.
- 35% chance we correct through price — fast pullbacks that scare out the weak hands.
Either way, knowing which is unfolding gives you a huge edge. Time-based corrections let you position quietly before the next push higher. Price-based corrections require quick strikes to scoop up bargains before they rebound.
With the rally from April still fresh, bulls are looking emboldened into year-end. And if this summer correction plays out through time, it could be setting the stage for an even bigger surge in Q4.
On Monday’s Tale of the Tape, I’ll walk you through the 3 sectors I expect to lead the next leg higher — no matter which correction path wins out.
Enjoy the weekend,
Gianni Di Poce
TheoTrade
