Well, here we are again — another week, another set of whiplash-inducing market swings. If you’re not used to it by now, buckle up, because 2025 is shaping up to be the most volatile market in a decade.
Even after predicting this in November, I didn’t expect daily 2-3% swings in major indexes. But here we are.
Where’s the Selling Coming From?
At first, the downside looked like a classic move away from risk — Bitcoin dropped 20%, tech stocks got slammed, and even Nvidia (NVDA) fell despite beating earnings. But now, the story is shifting.
Tech is only down about 3% this week. Normally, that would mean Energy (XLE) benefits, right? Not this time. Energy was actually down over 6% at one point this week! These kinds of sector flips are what makes our current market so unpredictable — and potentially profitable for those who catch the moves early.
With that in mind, I’ve been looking for bullish setups in Energy and Financials (XLF) going into next week to see if this rotation continues. While nothing is easy or obvious, the one somewhat consistent trend in 2025 has been these sharp sector rotations (although I would avoid tech outright until later in the year).
What’s Happening Today?
The market got a small pop at the open — enough to hit our Overnight Option target (a win!) — but has since drifted lower. And, right on cue, we’re seeing another round of sector flips. Energy and Utilities (XLU), which were just getting hammered (see above!), are now leading.
Bigger picture? It looks like we’re heading for at least the October swing low in the major indexes. We’ll talk about that in more detail during our 1:30 pm ET Mapping the Market session.
One last note: Gold has been eerily quiet despite all this market chaos. That could be telling us that the largest asset in the world has finally gotten used to the chaos and isn’t so reactive to a Tariff here or a job report there… But for now, it’s just another puzzle piece in an already wild market.
Navigating This Chaos
Watch my Mapping the Market session, where I went go deeper into these trends and strategies.
See you there!
