One of my favorite setups is when you have a major "top" formation, that doesn't actually turn into a reversal pattern and top for the market.

A recent example was in shares of Disney.

If you guys recall, this one looked like a major top, sentiment was down in the dumps, and we were buyers at 80.

Here we are with Disney at 120 and hitting new 52-week highs.

I gotta tell you, this setup in Energy looks exactly like that.

Look at this chart below - it's got all the hallmarks of a top:

That was the highest weekly close for the US Dollar Index since early November.

The trend has been higher for the US Dollar throughout the entire 1st quarter of 2024.

Remember, the Dollar bottomed towards the end of December in 2023.

So how much higher can the Dollar go?

What we're seeing happening in Bitcoin right now is demand trying to absorb the overwhelming amount of supply that there is up at these prices.

We know from prior attempts a couple of years ago that just below 70,000, there is more selling pressure than buying pressure.

It's just math, there has been more supply than demand at these prices.

Here's what Bitcoin looks like over time:

There is a time and a place for everything in this market.

One of the more fascinating groups of stocks for me right now (and always for that matter) is when a stock has a very high short interest, and is making new highs.

You see, here's what many people fail to remember:

Short sellers are promising to be buyers in the future. Shareholders are only promising to be sellers.

And so what that means to us is that the more short sellers there are in a given stock, the more investors there are promising to buy the stock in the future.

In their view, they would ideally like to buy these stocks back at lower prices (for a profit).

But what happens instead, in many cases, is that they are forced to cover at much higher prices (for massive losses).

And that's where we come in.

There are winning stocks that keep on winning.

That's what happens in Bull Markets.

But let's just keep in mind that this year is NOT last year, despite the fact that we're still in the midst of an ongoing bull market.

There are stocks falling apart underneath the surface. And there's money being made on the short side.

That wasn't the case in 2023, and especially not from the biggest most important companies.

Take Apple, for instance, down another 4% yesterday. $AAPL closed at the lowest levels relative to the S&P500 since 2021.

This is one of the charts I started this week's LIVE Conference Call with. How could I not?

We're looking at the Equally-weighted Nasdaq100 and Equally-weighted S&P500.

These Indexes eliminate the largest components from dominating the equation and treat each stock in the index equally.

Both of these are working on breaking out of this multi-year base to new all-time highs.

Can they do it?

Since the beginning of February, the two best performing sectors are Energy and Materials.

These stocks have been dominating the back half of Q1.

You're seeing new all-time highs today across the board in Materials.

Here are two of my favorite ones we've been in.

There hasn't been much going on in the new lows lists this year.

As I've mentioned here plenty, you cannot have a market correction, mathematically, without the prices of stocks falling.

Well, there's been some action in the short-term new lows recently with Technology leading the way.

Half the Large-cap Tech stocks just hit new 10-day lows, and Technology has seen the most amount of new 1-month lows of any sector.

Small-caps have struggled the most:

This is a great thing, but only if you allow it be great.

Interest rates went out yesterday at their highest levels since November.

Do you really believe that the 10-year yield keeps going up because interest rates are going down?

lol

There are people who actually believe that.

So for us, who actually take the time to look, we know that it's the exact opposite.

Commodities are heading higher. And Interest Rates are rising with them.

Over the weekend I found myself having to remind someone that the U.S. Bond Market is crashing.

I know many of us have just grown accustomed to the bond market crashing all year, every year.

But this isn't just something to dismiss, like many investors have apparently found themselves doing.

This is the biggest bond market crash in our lifetimes.

Are you prepared for a market environment where Commodities are ripping higher and stocks continue to struggle?

Don't worry, most people are not.

In fact, so few people are prepared for this line to go up, and so much pain will be felt by so many (investors or otherwise), that this is exactly the outcome I'm betting on.

Have you heard that stocks are going up in anticipation of lower interest rates?

Me too.

That's hilarious isn't it?

What about all those journalists?

Are they feeding you the same garbage?

Yup!

How about the Biden?

This guy is still the President of the United States. And he's telling you that rates are going down.

Have any of these people even bothered to look?

Or are they just lying to you?

Neither is an acceptable answer.

The U.S. 10-year Yield just went out yesterday at the highest weekly close since November.