This Sector Is Communicating Loudly

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Stocks headed into the long weekend on uncertain ground. 

The cautionary money flows we highlighted previously have only intensified over the past week.

So, where does this leave us heading into what could be a volatile September?

As always, cooler heads prevail. Here's why I believe we're setting up for the best buying opportunity since April...


The Rally is Running on Fumes

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Energy (XLE) topped the charts again last week—a sector that typically emerges as a leader in the later stages of market cycles. Remember, this rally could hit the five-month mark this week.

Meanwhile, communications (XLC) dominates across all other timeframes. This is genuinely bullish territory, given how growth-oriented this sector is.

The takeaway? We might face some near-term turbulence, but it's positioning us for substantial long-term gains.

Keep those cool heads—be ready to buy the dip. You can bet the press will amplify whatever "cause" they assign to any pullback, conveniently ignoring our nearly five-month rally.


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