Image Source: Pexels
 

Blake just identified something critical about yesterday's Fed cut.

The rotation is accelerating faster than most traders realize.

Consumer staples gapped up and stayed up. Healthcare-triggered buy signals. Basic materials surged as the top-performing sector.

Meanwhile, the Nasdaq barely recovered from its gap down. Tech stocks are sitting at 50% fair price for December. Google dropped 2%.

Blake's thesis is simple. The market isn't chasing AI hope anymore. It's betting on what directly benefits from rate cuts.

Here's what's actually working right now:

• Basic materials as top performer - inflation means their products sell for more while production costs stay flat
• XME broke out - Blake sees it running to $108-$109
• Consumer staples gapped above yesterday's Fed reaction - strength, while the broader market struggles
• Healthcare buy signal triggered - targeting $155-$160 over the next 2-3 weeks
• Dollar General (DG) and Walmart (WMT) are setting up - both could add 5% before year-end

Then there's Visa (V). It spiked 6% today for reasons Blake can't justify. The company doesn't benefit from lower rates the way banks do. They only profit from transaction volume, not spread. He's watching for $350 to fade it back to $310.

The December pattern is clear. Every single trading day except one has been at fair price. We're rotating, not breaking out.

Video Length: 00:10:33

More By This Author: