RISK OFF OR ROTATION?

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Watching market dynamics unfold multiple times a day has become an oddly insightful exercise. I’m not obsessively trying to guess every tick, but I’ve learned to tune into the heartbeat of sector internals and real-time price action across a basket of assets. It tells a deeper story than headlines ever do.

Today, the surface-level action was pretty quiet… mega-cap stocks barely budged. But under the hood, smaller and mid-cap names told a very different story.

We saw a sharp morning drop followed by a strong intraday reversal, especially in healthcare growth stocks like $OSCR ( ▲ 7.93% ) and $HIMS ( ▲ 5.06% ) .

Chinese equities like $BABA ( ▲ 0.37% ) and $KWEB ( ▲ 0.89% ) outperformed today, bucking the muted action we saw in U.S. tech. Our Prospero.ai tool is even flashing a short-term bullish signal on $BABA ( ▲ 0.37% ) , confirming the strength.

For our Premium Members, this isn’t a surprise… we called this trade early using long-dated calls (LEAPS). That position is now up over 40%.

Want in on the next one? Head to the premium section below to follow our real-time moves.

Meanwhile, Bitcoin mining names started off flat and closed with strength, $BMNR ( ▲ 1.92% )  $CIFR ( ▲ 11.04% )  $IREN ( ▲ 2.42% ) all rallied, with even more movement after hours.

There’s also been sneaky strength in smaller brokerage names like $BULL ( ▲ 16.07% ) names that don’t always make it onto Wall Street's radar. Over the last few days, these underdog stocks have shown outsized gains, even against a backdrop of shaky fundamentals. From a long-term investor's view, this might look like noise. But as a trader? It’s signal.

Looking Ahead

We could see a mild pullback from here, but nothing structurally damaging. Today’s action briefly retested the non-farm payroll (NFP) highs from last Friday and bounced back. That said, the Nasdaq didn’t fully recover from its own lows, which signals some slowing momentum in US tech.

So for now, I’m keeping exposure tilted toward non-US markets and defensives. Watching price action and sector rotation gives me a more honest read than macro headlines. I’ll share more detailed setups next week.

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