(And Now You've Got Problems)
| | You know what's funny? | Everyone was convinced Nvidia earnings would rescue the market yesterday. | I'm watching the market right now and seeing Nvidia's down 4% at $187. Four percent! After crushing estimates and guiding higher. | That tells you everything you need to know about where we really are. | The Rotation That's Not Working | They're trying to prop this market up with the most desperate rotation I've witnessed in years. | Financials up over 1% while tech crumbles. Goldman Sachs ripping higher. They're shoving money into anything that's not a semiconductor, trying to keep the advance-decline line from completely imploding. | But it's not working. | They're trying so hard to rotate out of their tech problem, but the rotation keeps failing. | When The Market Stops Believing | This is what happens when the market stops believing in a narrative. | For years it's been tech and more tech and Nvidia. Crypto made them, then AI exploded them higher. | But yesterday? Nvidia put up spectacular numbers and the market basically shrugged. | That's when you know you've got problems. | The Warning Sign Nobody Sees | The advanced decline line keeps trying to stay positive while tech sells off. They're pumping money into financials and consumer names just to keep the internals from rolling over. | But when I see forced rotations like this, I know we're close to something breaking. | When the rotation plays start failing too, the whole thing implodes upon itself. | When the best company in the best sector can't rally on great news, something fundamental has shifted. | The market's not buying the story anymore. | And when that happens, you don't just get a pullback in the high-flyers - you get a reset across everything that was riding on that narrative. | That's why these failing rotations matter. Because when they completely break - and they're starting to - that's when things get really interesting. | I'm watching for market conditions to shake up so I can put on my signature strategy for volatility and chaos. | Because the crazier things get, the better it is for Christmas Trees. | To your success, | Don Kaufman | | | | |
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