Image Source: Pexels

The force has awakened, and no, I’m not talking Star Wars. I’m talking about the market. It’s shouting, screaming, and yet, almost nobody’s listening. Most traders are drunk on complacency, high on momentum, and dead asleep at the wheel.

You’ve heard me say it before and I’ll keep repeating it: you live and die by momentum. And judging by what I’m seeing out there, and the performance of my Genesis Cog shorts, most traders are going to die by it. 

This market’s euphoric levitation is built on seven stocks — the so-called “Mag Seven.” Strip those out, and what do you have left? 

A market that’s basically flat over four years. That’s not growth. That’s misdirection. It’s financial sleight-of-hand.

Let’s talk signals. This week, I've seen all I need to. When four out of the Mag Seven — Apple (AAPL), Amazon (AMZN), Google (GOOGL), and even Netflix (NFLX) — start to disconnect, you should already be thinking defense. You don’t wait for a catalyst. You anticipate one. You hedge. You manage risk. Because once the correction arrives, it’s going to be sharp, sudden, and merciless.

Now I know some of you want to hide behind technicals. Fine. But let’s get one thing straight — technicals are a tool, not a religion. The real threat here is fundamentals. When someone like Jeffrey Gundlach warns on bonds, listen. He’s not just another talking head — he’s the bond king. If he’s saying there’s another inflationary surge coming, you better believe it’s not just noise.

You think it’s just about rates or CPI prints? No. It’s about a dormant inflation snake, coiled up and ready to strike again. It’s about overvalued tech stocks that are already priced for perfection — with no earnings growth to back them. It’s about Boeing losing altitude, Oracle carrying the entire market on its back, and companies like Oxford Industries waving the white flag on the consumer.

Don’t get it twisted: the market isn’t crashing today. But this sideways action? This drip-drip lethargy? That’s your tell. That’s the rot before the break. You don’t wait for the house to catch fire to buy insurance.

I’ve been doing this for 38 years. I’ve lost millions, made them back, and learned every hard lesson there is. If you want to survive what’s coming, heed this one: sell into strength. When a stock’s vertical, it’s insurable. You don’t short it, but you sure as hell don’t buy it either. Wait for slope. Watch the angle. Respect the zero line.

This is not a time for bold calls. It’s a time for calculated discipline. Forget the hype. Forget the financial porn. Get uncomfortable if it means staying solvent.

The force has awakened. If you’re still asleep, don’t say I didn’t warn you.

More By This Author:

The Smart Way To Play These Mixed Inflation Signals
Rigged, Ripped, And Ribboned: The Real Market Lesson No One Wants To Hear
Retirement Traders Have An Opportunity In The CPI Data