Market rotation refers to the cyclical movement of capital between different sectors, where investors shift funds from one industry to another based on performance, earnings, and market conditions. When certain sectors like software stocks experience pullbacks, capital often rotates into other sectors such as semiconductors, creating opportunities for investors to identify emerging trends. Understanding this rotation pattern helps investors anticipate market movements and make more informed trading decisions by recognizing when one sector is gaining momentum while another is losing it.
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🚨The US Government Just Told You To Buy These Stocks! Plus MSFT, PLTR DELL & NOW With BIG Moves!Added:
Hey guys, Mike here. Sorry this is coming out late, but I had to go to my son's elementary graduation, start middle school next year, so time is flying. Uh, and so I'll make this one a little bit shorter video. Again, don't forget to put your questions and tickers and all that in the comments for Saturday's video. I'll get started on those. Uh, and we'll get caught up in the news and go over certain areas that we'll see. We'll see if rotation is going to continue into these. Okay. But again, you're seeing an after hours what Dale right go up 38% I believe right now. $120 something dollars a share off earnings. Okay, they had a big earnings, they crushed earnings. Uh so you're still seeing these stocks just go and go and go. So it's going to be at 500 uh in no time. Uh there's no doubt about that.
Uh understand why is the market continue and today was just nothing but you can call it a gamma screen. That's what it was. Just it just grinded up and grinded up as the gamut kept increasing increasing and what was the news you know again here we got this tenative 60-day agreement ceasefire. The market's like, "Yay, oil dumps, boom, boom, boom." Also, you got drone stocks going crazy cuz what's the government doing, right? Our tax dollars are paying and going into these companies, right? And especially this one right here, you unusual machines. And you got to understand a certain somebody's grown kids, the sons set on the board, have a big investment in that one. Okay? That's why we're taking a stake in it, that one in particular. So, you have to understand that one. So at some point in time you got to look at that chart and find you know again not financial advice. Do what you want to do. But if it works out like all the rest of them have you got to find a way in at some point in time. Again you don't buy it up already have 20%. You wait for the pullbacks like all the rest of them have done. But because at any minute you can get a tweet or a true social post saying buy this stock. It's great stock. It's going to continue to go up. Right now looking at the market you can see spying all of them new alltime highs again.
Again, that $7 billion call right now is going to hold. So, that should be support if we come back down. Uh, and there's that fib level we talked about.
It seems like forever ago. Uh, coming on up around 757 almost 758 right there.
Uh, so again, watch that one. Remember, we do have month end tomorrow. Uh, so we'll see if they're going to squeeze this up. Usually get usually a squeeze or a massive drop in the last 15 minutes. We'll see how that's going to play out. QQQ 74080 is the next fib up on that one. Again, yesterday you had with the Dow, SPY, I think all of them were at all-time highs and stuff. So, you know, let's see what happens on this one. Obviously, with Dell being up and you can see this trend line. We'll see if they're going to keep pushing this up and grinding this up uh heading obviously finishing the month out and then going into June.
Google, watch this setup. I think this is going to start to break out, start to squeeze up. I think money's going to rotate back into this. It's kind of getting this rounding bottom. And then we've seen this pattern so many times on Google. uh which bound 425 would be the first target up from there. Uh IGB got software moving up. There's a reason for that. We'll talk about there's that gap right there. It's in as you can see. But what happened? Microsoft got to moving right. So again, it's up at this level.
I was telling members this in the video for them. Look, it just keeps pounding against this wall and getting rejected.
Pounding against this wall and get rejected. And the only reason this stuff is moving up is because a lot of software stocks took a break. We've seen this one repeatedly. and every time hits this level, all of a sudden software stocks and maybe Dell kicks them in again, starts just absolutely going ham crazy again and then software drops.
Okay, so we're going to find out if this is going to be a real type of, you know, at least multi-day rotation into this because if it can get above that level and above that trend line, then it's going to fill the gap. It's going to start to push. Okay, but we got to see.
I mean, again, you get burned once, twice, whatever it is, and you keep accumulating, but at some point in time, you just got to keep thinking that semis, if they get a multi-day pullback or even just pause that Monday will start rotating like you've seen over the last couple days or the last day really, uh, in these stocks. Palanteer again, big move up, you know, uh, breaking that trend line finally, that trend line from hell right there, which has been rejecting for months. Uh if it can get past the white line at 143, uh 146 will come very quickly for this one. Again, we're going to find out if it holds 139 140. Uh if there's any form of a pullback, if MU decided to start squeeze into oblivion again, all that stuff.
Now, it did close above this trend line.
If it can stay above it, and what is it doing? It's mitigating this imbalance right here. If it can stay above it, okay, maybe get something like this right here, and then start heading to 12157, 122ish. above that you can start heading for that trend line somewhere in the rest of the year. I mean I don't mean like now or anything but sometime in the rest of the year. So that would be a good targets. Also the 200 moving average and the weekly 200 somewhere between that I think it's at 140. Uh now fintech we had talked about you can see right here clearly upstart finally got above this trend line today. If you look over at Sofi is trying to get above this trend line here. Poke his head up into that gap right there. Remember they move as a sector. Okay? So this isn't like oh my god the stocks something happened.
And no, it is just moving to the sector.
This one got another daily close above this trend line. Uh there's an imbalance first imbalance between 7780 and 80 to between 7780 to look at on that one.
Hood. Uh this had to do with the Trump accounts and is also believe it or not fintech. Okay. So it actually does go into the financials. So uh when you look at that one, nice break above this.
Finally, this one could squeeze if we get this right here. I believe Bitcoin.
If Bitcoin can absolutely get one if Bitcoin get one more bounce in it at least off the bottom of this channel, you can finally see a run up into coin and hood and all the rest of them and see what happens when it gets that 200.
So far these moving averages has been gold as you see we break above them.
Nice move up got rejected by the 200 and this is all on the weekly chart multiple times. So you know that will be really good for Hood. I'm not going to cover space stocks again as I've covered them until I'm blue in the face. I've been riding mine up that I've been talking about. But you can see, man, space assets. I mean, just boom, boom, boom, boom, boom. And again, of course, this has to do with the SpaceX IPO. Has nothing to do with the stocks going, "Oh, look at their their revenues are going crazy. Their fundamentals are gotten." No, it it's just running up. Is it going to run all the way up into the IPO on June 12th? I don't know. Okay, but trust me, the pullbacks are going to be unbelievable. And again, you just got to set your levels of where you feel comfortable getting in at stuff, right?
So that's, you know, when you look at space, that's what you got to look at.
And so again, when I say every stock running up, there's there are stocks you never even heard of that are like, you know, $10 billion market caps, space stocks that are just mooning all over the place. And so we've seen the squeezes, we know what happens. It'll pull back. If MU can have nice pullbacks, they will have big pullbacks.
And normally on the way up, you even see on the way up, they'll have like 25 30% pullbacks in four or five days. Okay?
And that's before they squeeze like this. And so you got a lot of them.
They're approaching either set new alltime highs like AS or hitting alltime highs and and kind of selling off like some of the ones we've talked about. So, you know, and laggers have caught up.
That's usually how it works. You'll get the the leaders squeezing up. The ones with the best fundamentals will squeeze and they'll set new alltime highs and they go, "Okay, cool. Time to rotate out." And they'll rotate into the laggers and they move up. Okay. Now, I know I already got a question about a certain somebody's portfolio and stuff that's going on in DC. I'll actually answer it tomorrow. Okay. I know that's the big thing. So, we'll get into that one tomorrow. And I do have the data just to catch you guys up for the week of what you're seeing. Uh, you know, some of it's troubling. The market keeps waving off. Some of it's good. Okay.
Now, when it comes to data tomorrow, the only thing you got to worry about Chicago PMI that comes out after the bail, but when it came to data today, we had a huge data dump. Uh, you can see in the morning news brief down at the bottom right here. The biggest thing was the PCE cuz that is the Fed's preferred inflation gauge. And of course it rose to 3.8. The last one was 3.5. And then of course that's the highest I mean since like May of 2023. Core PC rose 3.3. That's the highest since October 2023.
But when you look at some of the other data like this real disposable income monthly growth, right? Well, it's negative. Okay. But here's another chart of it. And if you look at that, that was like, you know, it's been going up since 2022. It's been going up a lot. Now it's kind of flat. Okay. So it don't look as bad. You look at personal savings, obviously this goes back all the way to '05, you know, cratering down, no doubt.
Why? People are spending more money.
It's been going down since 2023. Okay, so you know, and the market's been going up. Job was claimed. What do you got?
Well, they actually did tick up a little bit, but still in the gutter, right? I mean, again, nobody the market is not even going to pay attention to this till you get to 250 to 300K. Okay, remember that. Uh adjusted ISM Richmondfed manufacturing index. That's another spike up. So that's two spikes up in a row. That is out of contraction. You look at Philadelphia services index, that thing dropped off a cliff. But this one's in contraction. So it always depends on where you're at in the country. There's no doubt about that.
Okay. We've had other data come out. And what you're seeing right now is services are cooling off, which makes up the majority of the economy and manufacturing of course picking up because of all the infrastructure bill that was put out years ago. And then of course what's going on with all the other investments with AI, the buildout of these data centers and all that stuff. Okay, so that's what you're seeing and that's why you're seeing layoffs, not manufacturing, white collar. Okay, so that's what they always say, I told you many, many months, I've said it multiple times, what you saw happen in manufacturing many years ago when the the people in Washington sold us out and let all the jobs go to China and India and all that stuff and all the warehouses were abandoned. Now what you're seeing is manufacturers making a comeback and they think it's going to be obviously this is what's going to happen to white collar now the people going to walk around going that person's going to replace with AI or robot right that's what you're going to see supposedly so and you're kind of seeing it on the bigger bases but it'll hit the public traded companies first the other companies down below who are smaller remember I think it's less than 100 employees that's what makes up 6 those companies make up 66% of employment in America they ain't going to be able to afford all the AI stuff I don't think so now for a while. So, you'll see it on Wall Street first to prop up their stock and then maybe a trick with Dan. We'll find out. But anyway, guys, don't forget to put your questions in there for Devara. Congratulations. If you're into Dell or bought a call at close, please hit that like, subscribe button on your way out. Thank the membership.
Appreciate all you that have everything you get with it. Hit the first link down at the bottom. Only $7.99 a month or 85 for the whole year if you like to support the channel. And I'll see you guys on Saturday.
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