You Won't Believe This Chart (We're Live at 8:45 EST)

If you don't trust this rally, that's okay. But don't start making bets until THIS happens.

Take Me to TheoLive: Market Masters

Dear Fellow Trader:

Last week, TheoTrade's Brandon Chapman saw something few market experts did.

A rebound emerging for the biggest names on the S&P 500.

The weight of "Magnificent Seven" stocks as a percentage of the index is massive - a growing snowball of money and concentration that's barreled across the market in the last decade.

This is why he told readers last week that something big was happening when these stocks started to wake up.

Tomorrow, Brandon will join TheoLive: Market Masters to tell us exactly what he saw…

But let me show you why his research is so important to your trading today.

I confirm something's wrong in the market using one technical indicator.

It's the 20-day moving average on the MicroSectors FANG+ Index -3X Inverse Leveraged ETNs (FNGD). When the FNGD goes ABOVE its 20-day simple moving average (SMA) - and my momentum signal goes negative -it's time to play defense.

This ETN dropped under that key technical line on August 1, 2024, before the Nikkei crisis, and on February 24, before this recent "tariff" selloff began.

Finviz

But when it breaks under its 20-day, markets tend to calm down.

That drop happened on Monday.

Brandon saw something brewing in the stocks that influenced last week's decline under the 20-day moving average. That's huge for investors and traders looking to take advantage of major shifts in capital flows across the markets.

He'll join me tomorrow and Friday for a sneak preview of his upcoming event with Don Kaufman on Friday at 10 am ET. I urge you to get your front-row seat here.

Now… let's get to what's on tap for our show at 8:45 am ET.

What's on Tap?

We'll tackle today's top actionable headline…

The U.S. has just hit Venezuela again with oil sanctions… I'll show you exactly how and why this is a massive deal for U.S. oil output.

Tune In, Tune Up, Trade Better

Your daily tuneup discusses our watchlist, top momentum stocks, and high-quality stocks with steep breakout potential. We do this every day… so join us now.

One Real Truth About 2025

Here's the most important thing you need to know about the coming 18 months.

You're going to need to trade… Not for fun… not as a hobby… not for laughs…

But as a means of income and success, given what this economy and market face.

I'll show you three simple things you can do RIGHT now to get started.

Join me before the market opens.

Momentum Turns Green, But For How Long?

The lights are Green for the S&P 500.

We have a three-day winning streak.

Selling pressure has collapsed.

Tesla's (TSLA) squeeze—which we highlighted on Friday—continues to push the stock higher. Freeport-McMoRan (FCX), a momentum favorite and breakout stock captured by Blake, just matched December 2024 highs.

But… this is the time that we're on high alert.

This recent rally follows a zero-buying-pressure event (March 13).

That means we had no stocks that met our conditions on the S&P 500 for breakout momentum stocks.

Historically, we have seen short squeezes and bull traps (low-volume events that suck investors back into believing that the worst is over) in recent years.

Economic conditions remain under pressure in the U.S. Tariffs are looming. Leading economic indicators are declining, and concerns about broader economic contraction are rising.

Across the markets, consumer cyclical names are still under pressure, and we haven't seen the technology sector get back to equilibrium on breakout versus breakdown stocks. Casino stocks like Caesar's (CZR) and MGM Resorts (MGM) are struggling.

A CNBC survey predicts a recession by the end of the year, and consumer confidence just hit a 12-year low.

All this raises questions about Americans' discretionary spending in the future.

For right now - S&P 500 momentum is improving (barely). The bulk of the pressure has come from three stocks: Palantir (PLTR), Netflix (NFLX), and GE (GE).

And volume (which Don discussed at his trading desk yesterday) is way too low to take this rally seriously. Wrote Don: "If you're ignoring volume, you're basically trying to drive blindfolded in a snowstorm."

I warn that a rug pull could arrive at any moment.

Keep your eye on the FNGD.

A move above the 20-day moving average (pink line) would suggest renewed weakness in the overcrowded stocks at the top of the S&P 500… and the possibility that a liquidity event that creates challenges across global markets has arrived.