is the ROTATION complete now? Watch for THIS NEXT!

Summary

The video discusses the ongoing sector rotation in the market, focusing on the decline of tech stocks and the rise of other sectors. It highlights the bullish trend in the Dow Jones, Berkshire Hathaway, and the S&P 500, while suggesting that the market is not bearish but experiencing a shift in investment focus. The speaker emphasizes the importance of being an unbiased trader and managing risk effectively.

Takeaways

• 📈 The Dow Jones has reached a new all-time high, indicating a strong bullish market, especially as tech stocks are rotating out.
• 🔄 Sector rotation is in progress, with money leaving tech stocks and moving into other sectors, as evidenced by the Dow's rise and tech's decline.
• 🚀 The 'Magnificent Seven' tech stocks saw significant losses, reinforcing the need to look at other sectors for opportunities.
• 📊 Berkshire Hathaway hit a new all-time high, suggesting strong performance outside the tech sector.
• 📉 The NASDAQ 100 (Triple Q's) is experiencing a pullback, with potential support around 478-480, indicating a nearing end to the sector rotation.
• 💡 The speaker predicted the current market behavior, including the tech pullback and sector rotation, using chart analysis.
• 🔍 Focus is on identifying when the tech sector will find support and potentially rally again, contributing to an overall bullish market.
• 🏦 Financial, industrial, and healthcare sectors are showing strength, further supporting the bullish market outlook.
• 📉 The VIX (Volatility Index) is low, suggesting a lack of market fear and potential for further bullish movement.
• 💹 Bitcoin holding above $64,000 is another risk-on indicator, contributing to the positive market sentiment.
• 💬 The speaker emphasizes the importance of being an unbiased trader and following chart signals for successful trading.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is the sector rotation in the stock market, particularly the shift from tech stocks to other sectors, and the implications of this rotation on the Dow Jones, NASDAQ, and other indices.

What is the current status of the Dow Jones according to the script?

The Dow Jones is currently at a new all-time high, having increased by 0.55% on the day of the script. It has surpassed the price target of 411 and is on its way to the next target of 415.

What is the significance of the 'Magnificent Seven tech stocks' mentioned in the script?

The 'Magnificent Seven tech stocks' refer to the mega cap tech or big tech stocks that have been significantly impacted by the sector rotation. The script suggests that these stocks were not a good investment at the time due to the shift of capital to other sectors.

What is the script's stance on the current market being bearish?

The script argues that the market is not bearish overall, despite the decline in tech stocks. The Dow Jones is at an all-time high, indicating a bullish market, but the bullishness is not uniform across all sectors, particularly tech.

What is the role of Berkshire Hathaway in the script's analysis?

Berkshire Hathaway is used as an example of a stock that is performing well, having reached new all-time highs with a 1.53% increase on the day of the script. It illustrates the sector rotation theme where money is moving from tech to other sectors like industrials and financials.

What is the Triple Q's and why is it significant in the script?

The Triple Q's likely refers to the NASDAQ 100 index (QQQ). It is significant because the script discusses its potential downward trend and how it fits into the broader theme of sector rotation, with money moving out of tech stocks.

What are the potential support levels for the Triple Q's mentioned in the script?

The script suggests that the Triple Q's could find support between 478 and 480, which would be a critical level to watch for potential sector rotation completion.

What is the script's prediction for the S&P 500 index (SPY)?

The script predicts that the S&P 500 index (SPY) could continue its bull trend, potentially reaching new all-time highs by the end of the month, provided it does not break below the support level of 556.

What is the VIX and how does it relate to the current market analysis in the script?

The VIX, or Volatility Index, is a measure of the stock market's expected volatility. The script predicts that the VIX will decrease towards 13, indicating a lower expected volatility and a potential fuel for another bull rally.

What advice does the script give for traders in the current market?

The script advises traders to be unbiased, focus on price action, and have a trade plan prepared for different scenarios. It also emphasizes the importance of managing risk at critical support levels and being aware of sector rotations.

Outlines

00:00

📈 Dow Jones and Sector Rotation Insights

The speaker begins by discussing the Dow Jones, questioning whether the sector rotation is complete. They emphasize that despite the tech sector's downturn, the Dow Jones is reaching new highs, indicating a bullish market. The 'Magnificent Seven tech stocks' are mentioned as being heavily impacted, but the speaker suggests that this is merely a shift of funds into other sectors. The speaker also highlights the importance of not focusing solely on tech stocks and instead looking at broader market opportunities. They discuss the potential for the Dow Jones to continue rising, with new price targets set, and mention the significant buying volume and bearish sentiment that could drive further growth. The speaker also touches on Berkshire Hathaway's performance, suggesting that a multi-month consolidation breakout indicates a strong bullish trend.

05:02

📉 Tech Sector Downturn and Market Analysis

The speaker delves into the tech sector's downturn, using the NASDAQ 100 and the S&P 500 as examples to illustrate the sector rotation. They predict that the tech sector's weakness could lead to a lower high rejection, which was evident in the price action. The speaker also discusses the potential support levels for the tech sector, suggesting that a break below certain levels could lead to further declines. They mention the importance of being prepared for various market scenarios and the need to read price action without bias. The speaker also covers the performance of the S&P 500 ETF (SPY), the Russell 2000 ETF (IWM), and the VIX, providing insights into their potential movements and the implications for the broader market. The discussion includes the possibility of a continued bull trend in the S&P 500 and the potential for the tech sector to recover after a period of cooling down.

10:03

🚀 Bullish Breakouts and Market Opportunities

The speaker concludes by highlighting the potential for bullish breakouts in various sectors beyond tech. They discuss Lockheed Martin as an example of a stock breaking out of a multi-week consolidation, suggesting a powerful push upwards. The speaker emphasizes that there are numerous opportunities in the market, not just in tech stocks, and encourages viewers to look for these opportunities. They reiterate that the market is still bullish and that the sector rotation is likely nearing completion, which could lead to a broader market rally. The speaker also mentions other sectors like industrials, financials, and healthcare that are showing bullish trends. They conclude by advising viewers to manage risk and have a trade plan prepared for different market scenarios, and they invite viewers to join their Discord server for more trade ideas and intraday updates.

Keywords

💡Dow Jones

The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States. In the video, the speaker discusses the Dow Jones reaching a new all-time high, indicating a bullish market trend. The Dow Jones is used as an example to counter the notion that the market is bearish, emphasizing that the market's overall health is not solely dependent on the tech sector.

💡Sector Rotation

Sector rotation is an investment strategy where investors move their investments from one sector of the economy to another based on market trends and expectations. In the video, the speaker discusses the ongoing sector rotation from tech stocks to other sectors, suggesting that this shift is responsible for the current market dynamics. The concept is central to the video's theme, explaining the movement of capital and its impact on different market segments.

💡Mega Cap Tech

Mega cap tech refers to large technology companies that have a significant market capitalization and influence on the stock market. The speaker mentions that these stocks were 'absolutely destroyed' in the current market scenario, indicating a downturn in this sector. This is used to illustrate the broader market trend away from tech stocks, which is a key point in the video's analysis.

💡Berkshire Hathaway

Berkshire Hathaway is a multinational conglomerate holding company led by Warren Buffett. In the video, the speaker highlights Berkshire Hathaway's stock performance, noting its new all-time high and strong buying volume. This serves as an example of a non-tech sector that is experiencing growth, contrasting with the tech sector's downturn.

💡Triple Q's

The term 'Triple Q's' is not a standard financial term and might be a colloquial or specific reference used by the speaker. It could potentially refer to a specific index or sector, possibly related to tech stocks given the context. The speaker discusses expecting a breakdown in the 'Triple Q's' and the implications of this for the broader market, indicating a shift in investor sentiment.

💡Support and Resistance

Support and resistance are concepts used in technical analysis to identify price levels at which an asset's price is likely to find a stopping point and reverse. In the video, the speaker discusses potential support levels for the 'Triple Q's' and how a breakdown below these levels could signal further declines. This is a key technical analysis tool used to understand market trends and predict future price movements.

💡S&P 500

The S&P 500, or Standard & Poor's 500, is a stock market index that includes 500 of the top companies in the United States, covering various sectors. The speaker uses the S&P 500 as an example to discuss the broader market's bullish trend, despite the tech sector's decline. This highlights the diversity of the market and the importance of looking beyond a single sector.

💡Russell 2000

The Russell 2000 Index is an index that represents the performance of the small-cap segment of the U.S. equity markets. The speaker mentions the Russell 2000 ETF (IWM), discussing its performance and how it hit a price target, indicating a positive trend for small-cap stocks. This is used to further illustrate the sector rotation and the potential for growth in areas outside of tech.

💡VIX

The VIX, or Volatility Index, is a measure of the stock market's expected volatility. The speaker discusses the VIX being around 15, which is typically seen during market pullbacks, and predicts it could go lower, indicating a continued bullish market. The VIX is a key indicator used to gauge investor sentiment and market volatility.

💡Bitcoin

Bitcoin is a cryptocurrency and a digital payment system. In the video, the speaker mentions Bitcoin as a risk-on indicator, suggesting that its price movements can signal broader market sentiment. The speaker discusses Bitcoin holding above $64,000 as a positive sign for the market, indicating a potential for further bullish trends.

💡Lockheed Martin

Lockheed Martin is a global aerospace, defense, security, and advanced technologies company. The speaker highlights Lockheed Martin (LMT) as an example of a stock that is starting to break out of a consolidation phase, suggesting potential for a bullish trend. This serves as an example of opportunities outside the tech sector, reinforcing the video's theme of sector rotation.

Highlights

The Dow Jones reached a new all-time high, indicating a bullish market despite tech sector struggles.

Sector rotation is evident as money moves from tech companies to other sectors, driving the Dow Jones up 0.55%.

The 'Magnificent Seven' tech stocks suffered significant losses, suggesting a shift in market focus.

Berkshire Hathaway hit new all-time highs, demonstrating strong market confidence in non-tech sectors.

The speaker predicts the Dow Jones could reach 420 if it breaks through the current resistance at 415.

The NASDAQ 100's lower high indicates a potential sector rotation away from tech, supporting the broader market's bullish trend.

The speaker suggests that the market is not bearish but experiencing a sector rotation, contrary to common perceptions.

The Russell 2000 ETF shows potential for continued bullish trends despite a 1.05% drop, highlighting resilience in small caps.

The VIX index is expected to decline towards 13, signaling a continued risk-on environment.

Bitcoin holding above $64,000 is seen as a positive risk-on indicator, suggesting further potential for market growth.

The XLI index, representing the industrial sector, shows a double bottom breakout, indicating strong bullish potential.

The XLF index, representing the financial sector, surpasses the price target, suggesting continued bullish momentum.

Lockheed Martin's breakout from a multi-week consolidation suggests a new bullish phase for the company.

The speaker emphasizes the importance of being an unbiased price action trader to capitalize on market opportunities.

Sector rotation is nearing completion, potentially leading to a broad market rally as tech companies find support.

The speaker invites viewers to join his Discord server for trade ideas and intraday updates, highlighting the value of community in trading.

Transcripts

all right all right today I want to

start out looking at the Dow Jones and I

do want to ask the question is the

sector rotation finally complete or do

we have more sector rotation to come and

we will look at all of the charts

necessary to answer that and the first

thing I want to show you is the

Magnificent Seven tech stocks which I

call the mega cap Tech or the big Tech

got absolutely destroyed today and this

is the topic that I've been focusing on

during these video updates and

especially in the Discord server is that

there was no need to be looking at tech

stocks right now if you're a bull while

we have so many opportunities in other

sectors that are just now starting to

break out and if you were a bull in big

Tech today it was a very big blood bath

and if that's all you have on your watch

list you are probably thinking the

market is extremely bearish but that

could not be farther from the truth this

is all just money leaving the tech

companies and going into other sectors

which is very evident by the Dow Jones

going up .55% today to a brand new

all-time high blasting through that

price Target at 411 and Well on our way

towards the next price Target at 415 and

remember last night I upgraded my price

Target and I told you this was buy all

dips above 407 for the next price Target

at 4155 now again I'm not putting any

limits on how high the Dow Jones can go

if we break through 415 we'll be looking

for 420 and as I've told you before

there is a ton of buying volume on a

bull breakout and there's still a ton of

bears trying to short the Dow Jones so

so do not for one second think it can't

go higher it is likely going to continue

to go higher and there is no way with

the Dow Jones breaking out to brand new

all-time highs that we can say the

market is bearish so first things first

if you think the market is bearish that

is because you got caught in a sector

rotation out of tech and you only look

at tech stocks this is still a very

bullish Market it is just not a very

bullish market for tech companies right

now to further Hammer home this point

we're going to jump over to birkshire

hathway with once more was up

1.53% today making brand new all-time

highs and just continuing to go up in a

vertical line on all very decent buying

volume and again this is a multi-month

consolidation breakout of over 5 months

of going absolutely nowhere and that is

why this is such a bullish breakout so

when we're talking about is the sector

rotation completed the first thing we

need to look at is the sector that money

is leaving from so next we're going to

jump over to the triple q's and on the

triple Q's I did tell you I was not

bullish on this thing I was actually

looking for it to break down towards 478

but I do think I was a little too

aggressive on that downside there is a

good chance we could find support just a

bit higher than that and the other thing

I want to show you is that this was

broadcasted on the chart before it

happened and you can see right here in

the Discord server where I said the

triple Q's were likely going lower and

that some kind of news event was going

to take the credit for it there was no

news event that caused this to happen as

you can tell from this update on your

screen right now I called this before

before happened before I ever saw any

news this was 100% broadcasted on the

charts and this was 100% part of the

sector rotation theme that we've been

talking about so I want to spend some

extra time on the triple Q's today

because if this is the sector and this

is the index that money is leaving we

need to try to figure out when that

money is done leaving and when we are

likely going to find support and if we

look at the volume on the triple Q's

today we had very high volume selling as

we were expecting on a breakdown below

491 and we gap down below 491 which is a

breakaway Gap and when you get a

breakaway Gap below a risk level that is

a risk-off indication and that meant

there was a very good chance we were

going to 485 but I told you in the past

I didn't expect 485 to hold while that

was a good opportunity to get low-risk

long entries the real price Target that

we're looking for is closer to 478 to

480 so very quickly here I do think the

sector rotation is coming to a close and

the reason I believe that because we've

already seen a lot of the money leaving

the triple q's and sellers will get

exhausted down here near support so my

preferred scenario is that we are going

to find support somewhere between 478

and 480 and then try to bounce to close

this Gap up here right around 493 and

this is the scenario that I prefer but

as I always tell you you should be

prepared for all scenarios and there is

a scenario where this support fails and

we just come crashing down towards this

Gap fill at 468 and if you remember back

I told you this Gap fill was a 100%

guarantee that that it was going to fill

but we have no idea what time and what

time frame it's going to fill so it is

possible if we lose support here we just

continue to flush down and go close that

Gap now however what I prefer is that we

would go up here higher first and put in

another lower high and then from there

we could get another lower high

rejection and then come down and fill

that Gap in that scenario I think will

hurt the majority because a lot of

people will miss the rally higher as we

go up to close the gap as we're closing

the Gap there's a good chance they're

going to get bullish just in time for

another lower high rejection to fill

this Gap at 468 and the market does love

to fool and hurt the majority and that

could very well be What Hurts The

majority we're going to have to watch

the price from here to find out more

information and as always let the chart

do all the talking so the chart is doing

a ton of talking there is no denying

that this looks riskof although we are

at very strong support which could be a

sign to get risk onone but once more if

that support fails that is going to be

another riskof indicator that we're

likely going down towards 468 so if you

look at this rejection from an all-time

high and the lower high we were getting

the all-time highs in the S&P 500 and

the Dow Jones while the dech sector was

putting in a lower high and that is how

I was able to predict sector rotation

and the fact that the NASDAQ 100 was

looking weaker which meant we were

likely going to get that lower high

Rejection it was all on the chart and

the price action did all the talking all

I did was read the chart so that is what

I'm teaching you to do is read the price

action have no bias I couldn't care less

if we go higher or lower all I want to

do is make money and get the best risk

reward setups with the best probability

to win the trade and right now I cannot

deny that the Bulls have a damn good

chance to win here if they buy at this

support especially with that Gap fill

above and the Very powerful bull Trend

as long as we're above the support trend

line so 478 to 480 is a very critical

support if we break below it that is

another indication we're going a lot

lower so do be aware of that and watch

the price action and let it do all the

Talking next up we'll jump over to spy

and spy did get rejected from that

all-time high price Target at 564 we did

gap down so we have a gap up here at 562

and we did not get the riskof indication

so I'm going to redo some of these

arrows we got the pullback and we hit

the all-time high price Target so that

trade has completely worked out but what

we haven't yet seen is spy going to get

risk off and break 556 or are we just

going to get another higher low and

continue a bull Trend build the Gap at

562 and head higher towards 569 this is

very possible if the sector rotation is

complete and the tech sector starts to

get bought up while these other sectors

are going higher as well because you

have to remember the S&P 500 represents

multiple sectors which includes the

Industrials financials Healthcare and

Tech sector now there are other things

in the S&P 500 like energy but they are

very low weight so we're not even going

to talk about them but when we look at

the possibility that above 556 we can

make another brand new all-time high by

the end of the month this is another

indication that there's no reason to be

panicking and starting to freak out

unless we start to break down below 556

and even then you shouldn't be panicking

it should be part of your trade plan

that if we break support you're getting

risk off for a push down here towards

548 so I think spy is very simple risk

on above 556 risk off below it and do

not rule out the possibility this strong

bull Trend just continues to push higher

on the Russell 2000 iwm ETF we were down

1.05% today and we did hit the price

Target right around 226 and we were just

a little bit away from the price Target

at 228 which if I zoom out here and I

give you a bigger picture view that is

where I thought the small caps were

going and as of the intraday High we

were only about 8% away from it so we

were very close and we are still outside

this upper po underband so even if we do

get a pullback towards this support zone

between the Gap fill at 218 and the

breakout at 220 there's still a good

chance we're just going to continue to

push higher within this bull Trend and

hit the price Target so there's nothing

on these charts that tell me the market

is bearish if anything it's only

confirming that we had sector rotation

out of the tech companies and out of big

Tech into these other sectors if you

look at this chart these moving averages

are very positive sloping with lots of

Separation in a strong bull Trend which

tells us we're looking to buy dips in

iwm at strong support zones if we look

at the vix today we did finally get the

vix zone right around 15 which is what

we expect to see in the vix while we're

getting pullbacks and as long as we

don't see tons of panic and fear here

the vix is likely going to stay down

below 15 and Crush yet again which is

going to fuel another bull rally so

right now I'm going to give you one more

prediction that the vix is going to

crush and the vix is going to come back

down towards 13 and that is going to

fuel the balance that I'm expecting in

the indices next we'll look at Bitcoin

which is another good risk on indicator

and Bitcoin is holding above 64,000 and

if we hold above 64,000 we'll be looking

for 67,000 and I still think this is

risk on while we can hold this breakout

above 60,000 so from here we'll look at

xli in xli I did talk about this double

bottom breakout but more importantly now

that we're at all-time highs in xli we

have a bigger double bottom in play and

that is as long as we're above 126

there's a good chance we're going to see

buyers of the dip above 126 as we

continue to push higher towards 131 and

it's very hard to say that the market is

bearish if we're expecting new all-time

highs and very powerful bull Trends so

if you think the market is bearish it's

because you're only looking at tech

stocks there is nothing bearish about a

mega double bottom breakout that is

likely going much higher and the

industrial sector is going to favor the

Dow Jones if we look at the financial

sector which is XLF we did pushed

through my price Target at 43.5 and

we're continuing to push higher and

again these are not bearish indic ations

these are healthy for the market as a

whole which definitely includes the S&P

500 even if we continue to see weakness

in the tech companies there are still

stocks breaking out looking very bullish

and I want to talk about one of those

tonight which is Lockheed Martin ticker

symbol LMT which is just now starting to

break through this multi-week

consolidation where we've gone

absolutely nowhere except sideways and

we are just now starting to break out of

this range while we're above 471 which

means we could see another very powerful

push here and again there are are tons

of great trades in this market as long

as you know where to find them it's not

all necessarily going to continue to be

in those tech companies that you're used

to trading and that you're used to

everybody talking about there are other

stocks in the stock market and this is

one of them that is starting to look

bullish and also if you look at this

multi-week consolidation breakout it is

all happening on higher lows and now

higher highs so again there is nothing

bearish about the market right now there

are only sectors of the market that are

seeing selling in favor of buying others

so I don't want to make this video too

winded or too long so we'll jump back

over the S&P 500 and I'll just Hammer

home the point one more time this was a

sector rotation we were all over it from

the beginning and I told you exactly

everything you should be looking for and

what you should be trading and I even

suggested that you sideline those tech

companies so that is all now playing out

and there's a good chance now that it's

playing out that it could also be near

completion which means those tech

companies could find support and

continue this bull rally and we could

get an everything rally which is

extremely bullish for the whole entire

Market before we had a very narrow

breath bull market that the Magnificent

7 tech companies were pushing spy in the

triple Q's higher but now we're seeing

participation from the small caps and

the Dow Jones as well as many other

sectors like Industrials and financials

and Healthcare and Healthcare is another

one of those sectors that was going

higher today continuing to push and

break out bullishly that we didn't even

look at and of course there's going to

be plenty of other stocks and trade

ideas in the Discord server highlighting

the sector rotation theme so remember

the market is still bullish don't get

bamboozled and don't get get tricked

into thinking the market is bearish just

because tech companies are going lower

tech companies are a very important part

of the market but they have had a very

strong bull rally and they are just now

cooling down and once they're done

cooling down they could continue to go

higher and this bull rally can and

likely will continue to live on so no

matter what you're doing manage a risk

at critical support and make sure you

have a trade plan prepared for either

scenario and let the price action on the

chart do all the Talking be an unbiased

price action Trader and you are going to

be very profitable in this market so if

you want access to all of my trade ideas

that's going to be in my Discord server

and you'll also get access to my

intraday updates and all of my technical

analysis and you can find out how to

join my Discord server by clicking on

the link in the description of this

video so thank you for watching

everybody I hope you're crushing this

market and as always I will see you in

the next episode