What Does This Mean?

Something is happening here, there's possibly a seismic shift in the works and we can be early on the train. Or, maybe it's just a blip on the radar. This feels big to me...

Two charts need some attention (plus a bonus chart), I think something is trying to sneak by us here.

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Hint: there's a theme here.

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These subtle hints pop up from time to time and if you're watching and you know what you're looking for, these little guys can be very important. The fact that we have charts flipping on us in very different situations tells us a lot about something brewing.

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When money goes from growth to value that is very telling about the upcoming economy. If you are interested in staying ahead of the changing landscape this is very important to note, we are in the early stages of a shift, probably a pretty big one.

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Nasdaq vs Russell

Somewhere in the last month or so these two charts have become very negatively correlated (going opposite of each other), this has happened on and off in the past but for the most part the peaks and valleys have lined up pretty well. The contract couldn't be anymore stark, see the example below.

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Nvidia vs Alcoa

‍The next chart is the infamous Nvidia vs a simple not much talked about, Alcoa which produces aluminum products. We see the same relationship here, negative correlation. Why would something like a Alcoa, a simple material stock with a $7B market cap have this very opposite correlation from a $3T monster like NVDA?

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Bonus Chart:

Growth vs Value, you can draw your own conclusions with this chart:

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Investors can't stop talking about Nvidia, Apple, Microsoft etc. It seems like we're living in an AI world but without the big benefits of AI, yet. So how much longer do investors plan on riding the train? The above charts tell me we are seeing some early signs of sector rotation, the crowded trade, for sometime, has been the tech/AI trade and at some point that will have to normalize. This creates a major opportunity for the rest of the market to get a chance to taking some of the capital floating out there as if becomes free from the AI move.

I'm curious about your thoughts, do you think this matters? Is this just a blip on the radar and will fall back in line next month or is this the start of something much bigger?

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