Focus On Themes, Sectors, and Good News

I come at big economic news and the markets from a day trader or swing trader perspective.

When it comes to short-term sector trends or hot ideas, we don’t necessarily look at the big picture down the road. From that zoomed-in perspective we care about the reaction.

Recent Fed Actions Sparked One of the Biggest Opportunities I’ve Ever Seen

The Big Picture

That said, I still keep up with economic news and events.

For example, I was paying attention to Fed Chair Kevin Warsh’s keynote speech from Jackson Hole last week.

This week I was interested in:

• The August US Manufacturing PMI released on Tuesday (Sept. 1)
• The Weekly Jobless Claims released yesterday (Sept. 3)
• And today’s release of the August Nonfarm Payroll numbers

Now, we always wait for the market’s reaction when these numbers drop. Then, we keep that in mind when planning trades. It’s good risk management, okay?

But what about when the news doesn’t give much in the way of a clear direction? The market reacted well to Warsh’s speech, then gave it all back just as fast.

Here’s what I’m choosing to do. I still plan to trade the patterns, but I’m also taking a bigger step back.

Zoom Out

I’m focused on themes, sectors, and positive news. That, my friend, is where the opportunity lies.

For example, I’ve been very clear for the past couple of years. I’ve called AI the greatest technology in the history of mankind.

I first started talking about AI agents taking over everything in my life, including my trading, back in January.

Fast forward to today and you see that more and more people and businesses are using this technology. Obviously, there’s Anthropic and OpenAI. Then there’s Grok Bot.

Grok was a sleeper. I’ve been saying it for a while, but now everyone is starting to see it. It’s just incredible technology.

Now, what does all this talk about AI have to do with today’s newsletter?

The Golden Age

If you can avoid focusing on the day-to-day social media outrage, or the problem of the day, and instead look at the big picture, it’s hard to argue against this being the next Golden Age.

I believe we live in the greatest time in history, a true Golden Age for the human population, for space exploration, and for AI.

There is so much to be bullish about.

My Take

Maybe close that social media and don’t focus on the outrage of the day.

Last fall and early winter, everyone was screaming “AI bubble” at the top of their lungs.

Me? I said we are just getting started and that 2026 would make 2025 look like a joke.

Here we are. Tech and AI are strong. The so-called SaaSocolypse narrative turned out to be wrong. And the AI-buildout theme keeps leading the markets higher.

If you focus on themes, sectors, and good news, there are amazing opportunities out there.

Watchlist

ChargePoint Holdings, Inc. (NYSE: CHPT) was good to me during the COVID market. So, it got my attention when I saw it pop on Wednesday (Sept. 2) with an earnings beat.

CHPT was riding the major resistance (M/R) into the close. Depending on how it plays out after hours, look for a push above the M/R with a risk on yesterday’s VWAP around $8.30.

On My Radar

• Nvidia (NASDAQ: NVDA) gave AI startup Hugging Face $13B hugs
• Does the “news that finds you” serve your life?
• London launched the UK’s first robotaxis yesterday
• My IRIS Analytics partner Ben Sturgill wants to show you the “1-hour setup” he uses to target 100% profits every week (it’s a killer bootcamp and it’s free)