3
That’s a nasty combination for high-growth stocks. Higher oil + higher yields + expensive technology stocks = pressure.
That said there were some bright spots last week as well. Energy gained 2.5% , materials rose 2.3% , helped by a surge in precious metals, and health care gained 1.0% .
I put out Text Alerts to get into a $Gold and $Silver position. I used UGL and AGQ and futures contracts.
Friday’s broad market rebound was encouraging, but it wasn’t enough to erase the damage from earlier in the week.
So, what’s the big picture?
We’re seeing a continued rotation away from some of the market’s most crowded AI and semiconductor trades , while money is finding its way into energy, materials and other areas showing relative strength.
That’s exactly the kind of environment where Money Flow matters.
Don’t get caught up in what CNBC is talking about today.
Watch where the money is flowing.
That’s where the next opportunity will come from.
THE NUMBERS
DJIA: -0.9%
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S&P 500: -1.4%
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Russell 2000: -1.7%
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Nasdaq Composite: -2.1% S&P Mid Cap 400: -2.5%
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• PHLX Semiconductor Index: -5.5% • 10-Year Treasury: 4.74% • WTI Crude: +5.4%
THE PULLBACK IS HERE. NOW WE FIND OUT WHAT’S REAL.
This week’s selloff is important—but I’m not looking at it as a reason to panic.
I’m looking at it as a test. Stocks I like include WMT, RKT, SOFI, TREE, NOC,
We’ve had a market that has rewarded investors for chasing AI , semiconductors and momentum stocks for quite some time.
Now we’re seeing those trades get unwound. It the semiconductor trade returns look to SOXX . Nice stage 1 set up right now. I am waiting for an entry opportunity.
The question isn’t:
“Why is the market going down?”
The better question is:
“Where is the money going while it’s coming out?”
That’s the question I’m asking. Because markets don’t move randomly. Money rotates. When one group begins to weaken, another group eventually becomes the destination. Money never sleeps nor does it wait. And we’re already seeing clues.
Energy is strengthening. Precious metals are strengthening. Health care is holding up.
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