Rotation, Rotation, Rotation. Heat Wave Stokes Energy Stocks. New Nat Gas Momentum Trade.

Money moving out of NVDA is looking for a new home.

Despite the recent gloom and doom, stocks seem to be in a rotation.  That’s because all that money coming out of NVDIA is looking for a home.  And it looks as if, at least some of it, is moving into natural gas.

In my recent Smart Money Trading and Strategy Weekly, I noted that despite Wall Street’s hype about AI, there were other sectors of the market, which were worth exploring.  In that article, which I highly recommend checking out, I focused on the homebuilder sector.   I have not changed my mind.

On the other hand, it looks as if the rotation of money out of tech is expanding beyond homebuilders and REITs.

As you can see, the New York Stock Exchange Advance Decline line (NYAD) held at recent support and looks set to test its recent highs. A new high on NYAD would negate any thought of a correction in stocks.  Fingers crossed.

Indeed, as the summer heat dome spreads from the Northeast U.S. to the Midwest and the South, the natural gas sector is starting to spread its wings. 

Today, I have a new trade based on a natural gas stock, which is exploding out of a multi-month base.

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