Why Bonds Are So Important to Stocks Right Now

Note: I’m turning today’s topper over to Gianni DiPoce because he has evidence a new primary cycle is starting for equities and you need to be ready. I’ll see you after the video. - Don

Stocks are currently moving sideways; they’re consolidating almost entirely across the board. 

But if you’ve been with me for a while, you know I like to think and trade in terms of cycles, and I’m seeing signs that we could be late in the equity market cycle. That’s because we’ve seen recent outperformance in the “inflation trade,” energy, basic materials, and even utilities. 

So, I’ve been pretty cautious over the last few weeks, but I’m beginning to be more bullish. The consolidation we’re seeing right now is healthy, and we’ve seen a correction in time, as opposed to price.

I think the short-term direction of stock prices is really at the mercy of bonds right now. If they continue to sell off, we’ll see energy and industrials continue to outperform. But if a new cycle begins, I’d expect tech and classic growth stocks to start to break out in the next few weeks. Let me show you my thinking here…

TheoTrade Daily Chatroom Schedule for Wednesday, April 10, 2024
9:20 AM to 10:30 AM: I’ll be calling the market’s opening action
10:30 AM to 11:30 AM: Professor Jeff Bierman teach trading techniques
11:30 AM to 12:30 PM: Blake Young has more charts for you
12:30 PM to 1:15 PM: Gianni DiPoce reacts to economic data 
1:15 PM to 2:00 PM: Brandon Chapman looks for big money flow
2:00 PM to 3:00 PM: Tony Rago reveals the day’s NQ charts
3:00 PM to 4:00 PM: Corey Rosenbloom will hunt for great plays to close out the day
4:00 PM: Gianni and Blake will talk stocks and macro @ The Close

The Latest Pick from Gianni DiPoce
What can I say? The guy is on fire right now. Gianni has given viewers even more stocks to buy. His most recent: “Buy COIN at market.” As usual, there were more picks, but we’ve got to keep those (and his trading recommendations) close to the vest. You can get all of Gianni’s free Sector Cycle Bullseye research delivered right to your inbox by clicking here. It’ll always be cost-free…

We’ll talk again soon,

Don Kaufman
Co-Founder, TheoTrade