Don here...
The S&P 500 dropped nearly 2% today.
Yet, the Russell 2000 (small caps) held up just fine.
Gianni Di Poce flagged exactly why this is happening. The tech sector hasn't hit a new all-time high in four months. When 30% of the S&P 500 can't make a new high, the index has a serious problem.
The Magnificent Seven are dragging everything down. Meta and Microsoft have gone nowhere since last May. These are trillion-dollar companies stuck in neutral while the rest of the market rotates elsewhere.
Where is money flowing? Small caps, industrials, and basic materials.
In tonight's video, Gianni breaks down the divergence and what it means:
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Industrial stocks are one day off their all-time high while tech languishes.
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Regional banks look better than large cap financials, which may have too much AI exposure.
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Consumer staples were the second best performing sector last week and are green again today.
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Gold and silver hit new all-time highs, but Gianni warns the unwind will be violent once the top comes in.
The signal is clear. Large cap tech is no longer leading. Adapt or get left behind.
Click here to watch Gianni break down the rotation and where strength actually is
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
P.S. I've been trading for decades. I've never seen a shift this fast. AI isn't coming for your job. It's coming for your portfolio. And most retirement strategies are sitting ducks.
Jeff Bierman rebuilt his positioning before the wave hit. This Wednesday, he shows you how.
π Reserve your seat now
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