Defensive Sectors Signal Market Top

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Gianni just flagged a textbook late cycle warning that most traders are ignoring.

Consumer staples surged more than 5% last week. That sector led the entire market while the Nasdaq hasn't made a new high since October.

In healthy bull markets, tech leads. In healthy bull markets, the Nasdaq makes new highs before the Dow. We are seeing the opposite right now.

The Dow hit a new all time high yesterday. The S&P 500 is potentially forming a lower high. Meanwhile, the Nasdaq already took out two critical lows from December 18th and January 21st.

Today amplified the warning. Utilities are blowing everything else out of the water. Tech is down. Financials are making a lower high.

Gianni is holding a lot of cash right now. He has hedges on. He sees the short term risks clearly.

But here is the paradox. Gianni is still a long term bull and an intermediate term bull. He thinks the bigger opportunity is not playing defense right now.

The bigger money will be made buying this dip when it comes. He is salivating at the idea of loading up on tech after any pullback in the coming weeks.

In tonight's video, Gianni breaks down the exact risk off signals flashing across multiple markets and the levels he is watching to turn bullish again:

Classic risk off environment forming with bonds bidding, the yen surging, and defensive sectors outperforming tech
Financials setting up a lower high while the yield curve flattens, creating a big warning shot for those paying attention
Bitcoin could drop to $50,000 before finding a bottom, with Ethereum potentially retesting the $1,400 area from last April
Gianni needs to see technology outperforming again before adding longs, but expects to load to the gills in tech after excess flushes out

This is not a head for the hills moment. Gianni expects a run of the mill correction. The question is whether you will have cash ready to deploy when the opportunity arrives.

Video Length: 00:06:53