Itâs been a recurring theme throughout this entire multi-year bull marketâjust when the bears appear to gain the upper hand, they drop the ball. Hard.
And every time they do, itâs our job as investors to strikeâruthlessly. That means getting long and leaning into strength while sentiment is still shaken.
Right now, money is flowing back into risk assets across the board. Itâs starting to look like another textbook rinse-and-repeat of the many failed breakdowns weâve seen in recent years.
Financials ($XLF) couldnât hold their breakdown. Now theyâre squeezing higher.
Communications ($XLC) tells the same storyâback above support, and the path of least resistance is up, as long as we stay above that key level.
And perhaps the most important chart on our radar: Technology ($XLK) has also failed to break down relative to the broader market. Thatâs not just noiseâit could be the early signal of tech reasserting itself as the leading sector.
Weâve seen this movie before. Failed breakdowns often lead to powerful upside moves.
The message here is simple: if the bears canât deliver, we position for the opposite. And right now, theyâre failingâagain.
Itâs time to act accordingly. Risk appetite is returning. Leadership is emerging. The window is open.
