All-Time Highs With the Worst Internals Ever Recorded

Don Kaufman here.

I’m me more nervous than I've been all year and it has nothing to do with Halloween. 

Yeah, I just closed Microsoft for 297% and Google for 203% this week. Hell of a Halloween treat, right?

But here's the thing that's keeping me up at night...

While the S&P was hitting all-time highs Wednesday, we just broke a record nobody's talking about. The worst market internals EVER recorded at an all-time high.

I'm talking about sectors getting absolutely decimated while tech carries this entire marketplace on its back.

The belly of the beast is rotten.

And here's the kicker - volatility is doing something I've never seen before. VIX going UP while markets go UP. That's not supposed to happen, people.

You know what that tells me? The smart money is buying protection for a reason.

I've got three major warning signals flashing right now:

1. The sector breakdown that's worse than anyone realizes (wait till you see which ones)

2. The bond market move that everyone's ignoring

3. Why next week's rotation attempts are probably going to fail spectacularly

Look, I could sit here and celebrate my 297% Microsoft winner all day. But when you've been doing this as long as I have, you learn to pay attention when the market starts acting this weird.

This next week is going to be pivotal.

I recorded a full breakdown of exactly what I'm seeing - the specific sectors getting smoked, the volatility signals screaming danger, and why even my big wins this week don't change what's coming.

WATCH THE FULL MARKET BREAKDOWN HERE

Trust me, you want to see this before Monday's open.

Keep your risk defined out there.

Don

P.S. - The expected move for next week is still massive despite no Fed meeting and past earnings season. Ask yourself why that is.