The All Star Charts analyst team continues to believe that the industrial sector will be one of the leading areas to lift the market higher as sector rotation works its magic to keep this bull market going.

And the chart of Caterpillar $CAT looks like a potential failed top in the making:

If we're right, $CAT could quickly recapture all-time highs north of $382 per share and then the sky's the limit from there.

The bull market is on, baby!

But if we expect it to continue, then we're going to need to see some rotation into some new sectors to bring fresh cash into the market and keep the wave going.

One sector that my Analysts feel has the potential to pick up the slack is Precious Metals. And the name that Steve Strazza and I discussed on today's Flow Show has the potential to ride the sector wave as well as play catch up to its big brother Gold.

Here's a chart of Wheaton Metals Corp $WPM:

File this post in your "Trading Is Hard" file folder.

Back on May 29th, I published a bearish trade idea in Nike $NKE.

Here’s what I said about it:

[$NKE] appears to be hanging on the precipice of a potentially large fall. The company will be announcing earnings [in late June] and I think that might be the final nail in the coffin to send this stock lower (if not sooner).

In today's Flow Show, Steve Strazza served up the opportunity that is revealing itself in the financials space.

So we looked for some vehicles to express our bullish thesis, while being mindful of upcoming earnings releases that will be kicking of earnings season in less than two weeks.

This is no time to enter trades with undefined risk. But if we can minimize the volatility, it would be best to consider those options.

We think we have just the right idea in Morgan Stanley.

Here's a one-year chart of $MS:

New issue? check

Near all-time highs? check

High Short Interest? check

Today's trade has all the ingredients for a monster breakout. This of course is no guarantee of a win, but if we're right, the payoff will be incredibly worth the risk.

It's a bull market. No question. But that doesn't change the fact that I'd still like to add some downside diversification to my portfolio in the weakest names the stock market has to offer, just in case.

Today's short trade candidate appears to be hanging on the precipice of a potentially swift and brutal fall. This is as good an opportunity as I can see to help protect my portfolio in the event we see a market pullback.

Born with an entrepreneurial spirit and temperament, Michael grew up in a working-class community full of blue-collar, salt-of-the-earth people who worked honest days for an honest wage. And it rubbed off on him. How could it not? 

In order not to be a financial burden on his family, he knew he needed to get out there and hustle. He shoveled snow, mowed lawns, caddied, and worked as a server and waiter. He worked 15 hours a week while in college so that he could earn a degree from Columbia University.

While his peers were coasting through school with trust fund cash bankrolling their adventures, the only free time Michael had was spent in the library, reading books, writing papers, and repeating.

His blue-collar work ethic paid off to this point. But making the transition into the “white-collar” world of finance wasn’t easy.

We’re taking what the market is giving us.

Recently, some of the best opportunities have been in the mega-cap space. Look at recent gains in Amazon, Google, Microsoft, and Apple.

People like to complain that “all” the gains are being concentrated in fewer and fewer names at the top of the pyramid. Why is that a bad thing? We can trade those names, can’t we? And why wouldn’t we?

In the past week, I’ve added more exposure in my portfolio to this area.

Related to the tail (big caps) that wags the dog (the market), isn’t this true of our own history of trades?

Don’t our small handful of large winners account for the lion’s share of our total gains? And don’t 80% (or more) of the rest just result in a net wash?

Kind of like the S&P 500, no?

Don’t hate. Participate.

We discuss all this and more in this week’s Jam Session:

If your house is anything like mine, you likely have an Amazon truck delivering packages to your doorstep at least once per week. In my neighborhood, the Amazon delivery truck does twice daily rounds. We're on a first-name basis. (His name is Henry).

Those packages have price tags attached to them. You'll find them in your credit card statements. It is likely not an insignificant line item in your monthly budget.

Today, the stock is making a move to fresh all-time highs, breaking out of a high three-month consolidation.

It's time to get involved.

Franklin D. Roosevelt: "Comparison is the thief of joy."

Socrates: "Envy is the ulcer of the soul."

Ovid: "Envy, the meanest of vices, creeps on the ground like a serpent."

Seneca: "The envious die not once, but as oft as the envied win applause."

Aristotle: "Envy is pain at the good fortune of others."

Johann Wolfgang von Goethe: "Hatred is active, and envy passive dislike; there is but one step from envy to hate."

Antoine de Saint-Exupéry: "The one who envies, does not really know what he wants."

Alexander Solzhenitsyn: "Our envy of others devours us most of all."

These quotes reflect various perspectives on the nature and impact of envy, from ancient philosophers to modern thinkers.

In the trading world, I don’t think the evils of envy get discussed enough. And in today’s globally connected social media world, it’s a bigger problem than ever.

I suffer from envy.

There, I said it.

In today's Flow Show, Steve Strazza highlighted the strength we're seeing in the homebuilders sector. I immediately liked it because I don't have any homebuilding stocks in my portfolio, which needs to be corrected.

Last week, Lennar Corp $LEN released earnings, and the market pretty much yawned. I like that. Because the other name that we liked better -- D.R. Horton $DHI -- hasn't yet released earnings (scheduled for July 18th) and unless they come out with something truly shocking, my bet is the market will be similarly unfazed. This tells me there's an opportunity to take advantage of some overpriced options premiums currently being bid into $DHI options.