Columbus Day Fallout - Light Tape, Heavy Rotations

Yesterday’s volume was significantly lighter than usual due to Columbus Day (banking holiday). That alone explains the 50% short squeeze in $BMBL Bumble (still trading under $5). Chart from the junk folder, not updated in nearly 2 years.

The rest of the market barely moved — $SPX closed UNCH again. Board snapshot:

• Healthcare (minus J&J)
• Big banks higher, continuing last week’s streak
• Energy stocks same
• Utilities continued their 8-day win streak — best performing sector in October. Crickets from the talking heads.
• Consumer Defensive led by a higher recent high on $WMT. Even the rich are forced to shop there now. Prices remain near COVID highs because real inflation over the past decade has been grossly under-reported. Home prices up 50-60% since 2019. 

Your tech-heavy 401k didn’t fare so well, and that trend is bound to continue... 

Chip stocks are dragging. The latest rout flies in the face of the Fast Money traders who shamelessly pumped this sector in September. What used to be a good show when Jon Najarian was on has become the #1 contrarian trade indicator. Next time you see Tim Seymour pumping his own position, consider the source.

$JPM missed earnings and revenue (came in light), but net interest margins were higher. Stock is levitating (+1%). Goldman beat — $GS up +3.5% and has room to run. $C — meh. Expected a bigger pop.

I added a bearish shooting star annotation to yesterday’s $IYF (financials) chart [public chart link]. Not just the candlestick — key FIB target visible on the $DJUSFN chart from the alternative views I track.

Far more interesting: the right shoulder target on our $PNQI tech chart was taken out. Possible rotation out of tech finally in play. Chart updated. Find the link to the public charts in the left side menu. 

$WEBS (3X Internet) bear rallying for the second day. Components differ from $PNQI — do your own due diligence. Up in pre-market after yesterday’s reversal.

Watch the $PNQI shoulder break and $WEBS for confirmation of any real rotation out of tech. Light holiday volume exaggerates moves — don’t confuse it with conviction.
Machines still drive the tape. Technicals over narrative. 

P.S. Final blog draft created by Grok/AI - because "time is money", and I ran out of the former. 

Tech Stocks Teeter Financials Totter - Welcome To The Funhouse

Earnings season kicks off with Financials next week  - spoiler - the sector is already rallying, on decent volume. Money managers started pumping banks over a week ago, but that doesn't mean you've missed the boat entirely - just means you're a little slow. This rally can continue straight into Friday, October Options Expiration, and even into the holidays. Merry Christmas! 🎄 

Here's something you didn't know: Insurance companies (also financials) led yesterday's bull parade, and as far as I can tell, no networks covered it (crickets) - $KIE S&P Insurance ETF ended the day +1.71%. 

Where did the money come from to fund that trade? - It came straight out of technology stocks ($XLK down 1.79%) - no surprise - [link to yesterday's blog] - this is the exact pivot we were expecting. We also saw money come out of crypto markets btw. $VIX managed to spike to 16.46, as if it was only a test. 

 Tech Stocks Teeter Financials Totter - Welcome To The Funhouse

Think of the current market as a seesaw: Financials are pumped on one side, as tech declines. This morning we're seeing technology leading again, as if nothing ever happened, and none the wiser.    

$XLF Financial Select Sector (heavily traded) - being added to the public charts hub [link]. Not because I think you should trade it, but because this is what every talking head is going to be pumping next week. I'm also curious to see if I gain more followers, when I tap into the current narrative (bank earnings). Maybe the algos will even follow me?  Sure financials can pop, and when it pops back above the 20 day SMA, buy signals will be triggered... 

I'm not planning to trade financials,but that could change  

I see better trades - provided by Gemini/AI. Took a couple simple prompts...    

Top Declining Industries Over the Past 2 Months

Industry Sector / Sub-Sector	Past 2-Month Sector Performance	Primary Industry Headwinds
Independent Power & Renewable Electricity	-27%	Financing costs and regulatory uncertainties surrounding green energy infrastructure.
Construction & Engineering	-24%	Project backlogs and shifting industrial capital expenditure priorities.
Entertainment	-23%	Lower consumer discretionary spending and media valuation pressures.
Ground Transportation	-21%	Volatile logistics networks and rising operational expenditures.
Electrical Equipment	-20%	Supply chain normalization following prior AI and grid-electrification spikes.
Broadline Retail	-19%	Shifting consumer behavior and lower domestic consumer confidence.

Sure, Financials have been beaten up pretty good over the past 2 months, and every money manager on Wall Street is telling you they like the setup, but AI just told you there are better trades to be had.

Homework: Build a folder for each sector. Chart a few timelines, bullish and bearish, then cross-check those against the leveraged ETF and the earnings calendar. Market movers only. I keep separate folders for indexes, ETFs, leveraged ETFs, and individual names — try filling 50 if you want to live in the weeds with me. That is why the public list only gets half a dozen lousy charts. 🤣😂

As you can already see; it's a complicated trade, and the technical charts are just as complicated. Way too complicated to start uploading a boatload of charts to the public charts hub. To try to explain all the different technical aspects I'm seeing - across a multitude of charts - to a group of inexperienced investors, is a fool's errand. But at the end of the day, it only takes 1 chart to trade financials. Nevertheless, it's a sector that's definitely worth keeping tabs on. This sets the stage for consumer health, lending, and the entire earnings season.