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There are seismic shifts taking place in the market right now. 2025 has pretty much started off as expected with stocks making new all-time highs in the U.S. Our reading of sector flows kept us on the right side of the market year-to-date.

But the biggest developments have been going on abroad, and I want to be very clear that our sector slicing system words the same way when comparing the stock markets of two different countries.

Today I want to show you the “why” behind these shifts in money flows. Check this out… (JUMP)

Money, Like People, Responds to Incentives

I’ve been talking a lot about Chinese stocks over the past few weeks, and in both Theo’s live room and the Trinity Trade, we’ve taken a handful of setups that have worked out very nicely. The fact that these names are working with ease, while select U.S. stocks are struggling with price gaps speaks volumes in terms of where the money is flowing.

Have a look at this money supply (M1) chart for China. It’s gone completely parabolic over the past couple of months. This is a recipe for Chinese stocks to attract capital back into their markets - the government and central bank are incentivizing this.

If we see this trend continue going forward, we could expect Chinese stocks to continue to draw attention. We’ve been very early to this developing trend, and I wouldn’t be surprised to see it go full blown mania.

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