You Were Told About the Dip

Hey trader,

Last week threw everything at the bulls. Geopolitical tension, a hot inflation print, and a record-breaking IPO all hit at once.

None of it stuck. Stocks closed the week green.

The internals got stronger underneath the surface too. That matters more than the price action by itself.

Here’s the value in the next few minutes. I’ll show you which sectors actually led, why that leadership matters more than the headlines, and where I see crude oil and rates heading into summer.

When bad news fails to produce bad outcomes, the market is telling you it wants to go higher. The crowd kept waiting for the floor to fall out. It didn’t.

Everyone seems terrified right now. I’m not complaining about it.

Someone always has to take the other side of the trade. The fearful crowd keeps handing that edge to the bulls.

Tuning Out the Noise

Almost everything the bulls needed last week played out. I wanted a rebound in tech and a breakdown in crude oil.

Both showed up.

The twist is that tech wasn’t even the strongest group on the week. Basic materials took that crown.

That cuts both ways. Inflation is still the Achilles heel for this market.

Materials leadership tends to run inflationary by its nature. That’s the part bulls have to respect.

The more important signal sits underneath that.

Why Materials Leading Is a Growth Signal

Think about how tightly materials are now tied to the AI buildout. A few drivers stand out:

• Rare earth minerals that feed advanced chips and hardware
• The metals and inputs behind grid and data center power demand
• Uranium names tied to the reactors that will run those data centers

That kind of demand doesn’t show up in a weak economy. Money chasing the raw inputs of the AI buildout signals an economy that is expanding.

I’m also glad to see technology reclaim the year-to-date lead. That confirms we’re in a bullish market regime.

None of this should surprise anyone who respects the trend. The market keeps printing higher-highs and higher-lows.

That is the simplest definition of an uptrend there is.

I grew up in Michigan. Brutal winters teach you that a cold snap doesn’t mean the seasons stopped turning.

Corrections work the same way. A pullback of 10% or more is a normal, healthy feature of every bull market.

The perma-bears have called a top every month for what feels like years. Following them would have cost you one of the strongest stretches in recent memory.

What Comes Next

My target for crude oil still sits in the $75 to $80 range this summer. A move down there would do real work for the bull case.

Lower oil eases inflation pressure. That gives bond prices a tailwind and pulls interest rates lower.

Falling rates hand tech and the other growth sectors room to keep outperforming. I’m positioned for that chain reaction to keep playing out.

This is the kind of tape where I lean on the Trinity Terminal to separate the real setups from the noise.

Stay long-term focused. Keep your risk defined on the short-term swings.

Hit reply and tell me the one sector you’re watching into summer. I’ll dig into the best setups in next week’s note.

Take Care,

Gianni Di Poce