Stocks gapped to new all-time highs across the board this morning. Gianni just flagged a problem hiding underneath the rally.
The Mag 7 turned negative on the day while semiconductors ripped almost 5% to fresh records.
That’s not the kind of leadership you want to see when the S&P is fading off its highs into the close.
Here’s the rotation story Gianni is tracking. Last week, utilities were the top performing sector in the market. That’s traditionally a warning sign that money is hiding in safer, dividend-paying names instead of chasing growth.
This week, that flipped hard. Tech is dominating every other sector on positive geopolitical developments and a potential US-Iran deal.
The catch is that the strength is not coming from where it usually does.
In tonight’s video, Gianni breaks down the exact rotation setup he’s watching:
- The Philadelphia Semiconductor Index hit a new all-time high, up nearly 5% on the day, while the Dow flipped into negative territory. That kind of split tells you capital is concentrating, not spreading out.
- AMD ripped another 6.5% and is now up over 100% on the year. Gianni expects rotation into beaten-down Mag 10 names like Tesla, Palantir, Microsoft, and Meta to sustain the bull case.
- Dell is sitting near his $310 exit target ahead of earnings in a couple of days. He bought it in early March before the market bottomed and is ready to book the rest of his profits.
- Crude oil gapped below 90 on the geopolitical news. Gianni wants to see it drop back to 80 before stepping in as a buyer.
- Bonds rolled to the September contract and look set to rally toward the 114 to 115 zone over the next few months. He’s not betting on it lasting, but he wants the trade now.
Precious metals are dead money for now. Silver went up 4X in eight months last year. Gianni wants a sideways base before the next leg.
He thinks the rally extends into mid-June or mid-July. Then things get interesting heading into the midterms.
