Is the Market About to Crack—or Rip Higher?
Is the Market About to Crack—or Rip Higher?
If you scroll through Zero Hedge this morning, it feels like the mood has turned distinctly cautious.
Michael Hartnett at Bank of America is calling a potential U.S.–China trade deal the end of the rally, in a “sell-the-news” sense. Another post warns that the repo market’s warning light is flickering, and a third headline warns that a “gut punch” for stocks may be just around the corner.
But over on X, @amitisinvesting makes the opposite case — and it’s a strong one.
“So you’re telling me… we are about to cut rates into a market that’s at all-time highs AND is putting up double-digit earnings growth?”
He points out:
The recent 3% S&P drawdown washed out some froth, setting the stage for another leg higher.
Earnings have been outstanding across sectors — banks, semis, retail — with AI emerging as a genuine tailwind for margins.
A U.S.–China thaw and possible Russia-Ukraine ceasefire would both be market-friendly developments.
AI capex remains strong, and $7.4 trillion in sidelined cash still hasn’t re-entered the market.
If the big tech reports this week deliver, it could reinforce the expanding multiple story into year-end.
We lean toward Amit’s take. The setup looks constructive: a brief shakeout, strong fundamentals, and easing financial conditions.
That’s why we have four new trades teed up today — all aligned with our core themes of AI, energy, and reindustrialization — designed to capture upside in names where both macro and micro tailwinds converge. Three of them come from our Portfolio Armor Top Names, which historically have nearly doubled the market’s performance since we launched our trading Substack, and another from our Multibaggers list, where we track emerging companies with asymmetric potential.
If you want a heads up when we place those trades, you can subscribe to our Substack below.
In Case We’re Wrong
Markets love to surprise. If you lean bearish despite these tailwinds, you can still protect yourself while staying invested using Portfolio Armor’s website or iPhone app — both can show you the optimal hedges for your holdings in seconds.
