S&P at highs, but watch this crack

📰 In This Issue…

The headline numbers look strong on paper, but beneath the surface, the market is splitting in two.

The S&P 500 and Nasdaq 100 recently pushed to new all-time highs. However, that strength is being driven almost entirely by Tech and Healthcare.

When only two sectors carry the load, the indexes look healthy while the rest of the board takes damage:

This does not mean that market will crash, the other sectors can come back and play catch up or the divergence is the sign of things to come, only time can tell!

• Small Caps: The Russell 2000, which was leading the market earlier, is now down 8% from its peak.

• Financials: Banks and financial names are struggling to find any footing.

• Precious Metals: Gold and Silver dropped 4% to 5% this week, breaking straight into bearish territory on the weekly charts. I closed many of my gold positions

What I Am Looking Out for This Week

1. Strong Tech Setups: Most of our tech picks from last week performed well. I am watching for tech leaders to continue their uptrends, looking to add to positions on orderly bounces.

2. Copper Resilience: While commodities took a heavy hit, Copper held its ground. That relative strength is a great sign for when the commodity space eventually recovers.

I will send recommendations when something comes up!

📊 Trading Framework Reminder

Remember: Every long-term investment alert can also be played as a swing trade. When shorting, risk management is even more critical.

🦅 Long-Term Investors (3-12 Month Holds)

• Entry: Full position on breakdown.

• Profit Taking: Cover 1/4 to 1/5 at Goal 1.

• Exit Signal: Close above 20-day EMA (your trend guide) or 50-day EMA.

• Why? Strong moves are hard to time at the bottom, but the 20EMA acts as a reliable trend filter.

⚡ Swing Traders (2-6 Week Holds)

• Entry: Full position on breakdown.

• Profit Taking: Cover 1/3 at Goal 1.

• Final Exit: Cover the remainder at Goal 2.

💬 How Did We Do?

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