3 Trades For A Market That Makes Zero Sense Right Now

Don Kaufman here. 

Look, I'm going to be straight with you about what I'm seeing right now.

The market's doing things that honestly don't make complete sense to me. We've got this US-Japan trade deal news, and the market reaction? Basically nothing.

Maybe a little more volume in overnight futures, but that's it.

Here's what's really got my attention though - there's a rotation happening, and it's not out of tech yet, but tech isn't being bought this week.

Instead, money's flowing into everything else. And some of these moves are frankly making me uncomfortable.

Take utilities. 

The XLU is absolutely ripping higher, and I'm sitting here asking myself: why are we seeing a 2.6% dividend yield utility ETF making substantial moves to the upside?

Is there just nothing left to buy?

This looks extraordinarily defensive to me, even though I'm actually building a bullish trade on it.

When low-beta stuff starts moving like this, it tells me something about the broader marketplace that I need to pay attention to.

Then there's Wells Fargo. This one absolutely pains me deep inside, but I can't ignore what's happening.

When you've got substantial market cap names approaching all-time highs and they're breaking out to the upside... I'm not going to stand in the way of that right now.

We're seeing what I call gamma squeezes setting up in the near term. Wells just broke through $84, and if this thing gets legs to the upside, $87 could easily be hit.

But here's the thing - I'm seeing some key reversals happening too.

GE Aerospace just had a potential reversal right off its earnings announcement at the $172 level. The bid under the marketplace might not be sustained anymore.

The market's still really strong on a relative basis, but we're seeing some fading inside the Nasdaq. It's massively unchanged on the week, but that could all change tonight with Google earnings.

So I'm making three specific moves right now. One's a contrarian play against my gut, one's riding what looks like defensive positioning, and one's betting on a gamma squeeze that could run much further than people expect.

The timing on these setups is everything - and I walk through exactly why each one works in this environment, plus the specific strikes and expirations I'm using.

Get the complete breakdown here

Don't let this rotation catch you positioned the wrong way.

To your success,

Don Kaufman

P.S. Speaking of tonight - we've also got Tesla reporting. Both Google and Tesla could move the Nasdaq in a big way. If you want to see how Garrett's positioning for the Tesla aftermath, he's breaking it all down tomorrow morning. Worth checking out if you're trading the volatility.