(New Video)
| | | Don Kaufman here. | Look, I'm going to be straight with you about what I'm seeing right now. | The market's doing things that honestly don't make complete sense to me. We've got this US-Japan trade deal news, and the market reaction? Basically nothing. | Maybe a little more volume in overnight futures, but that's it. | Here's what's really got my attention though - there's a rotation happening, and it's not out of tech yet, but tech isn't being bought this week. | Instead, money's flowing into everything else. And some of these moves are frankly making me uncomfortable. | Take utilities. | The XLU is absolutely ripping higher, and I'm sitting here asking myself: why are we seeing a 2.6% dividend yield utility ETF making substantial moves to the upside? | Is there just nothing left to buy? | This looks extraordinarily defensive to me, even though I'm actually building a bullish trade on it. | When low-beta stuff starts moving like this, it tells me something about the broader marketplace that I need to pay attention to. | Then there's Wells Fargo. This one absolutely pains me deep inside, but I can't ignore what's happening. | When you've got substantial market cap names approaching all-time highs and they're breaking out to the upside... I'm not going to stand in the way of that right now. | We're seeing what I call gamma squeezes setting up in the near term. Wells just broke through $84, and if this thing gets legs to the upside, $87 could easily be hit. | But here's the thing - I'm seeing some key reversals happening too. | GE Aerospace just had a potential reversal right off its earnings announcement at the $172 level. The bid under the marketplace might not be sustained anymore. | The market's still really strong on a relative basis, but we're seeing some fading inside the Nasdaq. It's massively unchanged on the week, but that could all change tonight with Google earnings. | So I'm making three specific moves right now. One's a contrarian play against my gut, one's riding what looks like defensive positioning, and one's betting on a gamma squeeze that could run much further than people expect. | The timing on these setups is everything - and I walk through exactly why each one works in this environment, plus the specific strikes and expirations I'm using. | Get the complete breakdown here | Don't let this rotation catch you positioned the wrong way. | To your success, | Don Kaufman | P.S. Speaking of tonight - we've also got Tesla reporting. Both Google and Tesla could move the Nasdaq in a big way. If you want to see how Garrett's positioning for the Tesla aftermath, he's breaking it all down tomorrow morning. Worth checking out if you're trading the volatility. | | |
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