🚨 Market Rotation: Why Small Caps Are Heating Up & Tesla is Cracking
What you know before you trade this week.
What I’m Watching This Week — And What Most Traders Are Missing
A major market rotation may already be underway — and most traders are missing it.
Tesla looks ready to break, small caps are quietly waking up, and institutions just tipped their hand heading into the weekend. If you're trading this week, here's everything I'm watching.
🔙 Last Week Recap:
✅ Non-farm payrolls came in strong — but the strength was misleading.
The data was propped up by teens and part-time jobs. Full-time employment and high-quality labor metrics looked soft under the hood.
❌ Tesla ($TSLA) rejected at the 200-day moving average.
Momentum is cracking, and options flow is getting aggressive — especially on the downside.
🟡 Small caps ($IWM) surged late Friday.
Institutions rebalanced into small caps at the end of day, and the underlying rotation is starting to become visible.
📌 1. $TSLA – Breakdown Watch
Tesla was rejected hard at the 200DMA and is showing bearish price action. More importantly, options positioning is telling a clear story.
There’s massive put open interest below $275, and if that level cracks, I expect a sharp move down to $245.
Right now, call buyers are speculating on a bounce — but put holders are positioning for more pain. Watch volume shifts this week for confirmation.
📊 2. $IWM – Small Cap Rotation Play
$RTY (Russell 2000) is quietly outperforming.
Friday’s late-session surge was not random — it was institutional rebalancing into small caps. The sectors catching bids?
Regional banks
Industrials
Energy
Rotation is real. Don’t sleep on this.
💡 3. $AVGO – Sentiment Top?
Broadcom blew out earnings again — and then stalled.
Historically, $AVGO has a tendency to mark the top of short-term Nasdaq rallies. If it fades from here, it could drag $NVDA and other semis with it.
If you’re long semiconductors, this is one to monitor closely.
🧠 Macro + Theme Watch:
Here are the big-picture themes on my radar:
🔁 AI Semis are still leading.
$ASOX > $ESOX
AI-related chips are outperforming analog and legacy names. The market’s telling you where the heat still is.
🚨 $HOOD: Classic Reflexivity Trade
Traders priced in S&P 500 inclusion based on rumors — and then it didn’t happen. The fade was obvious. When expectations get one-sided, pay attention.
🔥 “Story Stock” Breakout Phase is Beginning
Names like $HIMS and $RKLB are starting to base and breakout. These aren’t just meme trades — this is where institutional + retail momentum converge.
🎥 Go Deeper:
I walk through the latest economic data, open interest analysis, the historical SPY setup, and 2 bonus trade ideas I didn’t post anywhere else in this week’s full video: