TheoTrade Daily: Let’s Fade Fluff and Trade Real Strength

Tuesday, May 27, 2025

The 528% Strategy Tapping Tech's Next Big Surge
Tech's just warming up, and the Great Tech Reset of 2025 is charging ahead, no matter what bonds or tariffs say. And three overlooked sub-sectors here are lining up for a breakout by June 4. This is what you need to know…

Don't Trust the Rally: Why Tech's Real and Discretionary's a Mirage
By Blake Young

Today's price action looks bullish on the surface - consumer discretionary and tech are both up big. But don't take that at face value.

That's because I think today's rally may be more illusion than confirmation. Like I said, consumer discretionaries, (as tracked by XLY) are ripping, but take a closer look and you find nearly half that move is just Tesla (TSLA) dragging the whole ETF behind it. That's not a real read on consumer strength. Zoom out and you find durable goods are still slumping - and consumer confidence is questionable at best. And while Amazon (AMZN) represents legit spending, the stock is stuck under resistance.

Tech, on the other hand, is the real deal right now. The sector ETF, XLK, is pressing a breakout, and names like Microsoft (MSFT), Broadcom (AVGO), and CrowdStrike (CRWD) are setting up for honest-to-goodness continuation. If you want to trade momentum, that's your lane.

In tonight's video, we'll look at how to fade the fakes and lean into strength. Let's take a look at my charts…

The Market's No. 1 Trading Guide, Free

This is the perfect time to make sure you're up to speed on your trading know-how. So I want to ensure you've read our free Rebel's Guide to Trading Options - it covers all the basics of trading options. Like everything we do, the course is in plain English. It's specially geared toward beginners but all traders will get something out of it. Yours absolutely free, of course - right here…

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