I came up from the AMEX and CBOE, back when you had to scream to get an order filled.
I have traded through every mess and bull market this market has produced over the last 25 years.
And somewhere along the way I settled into a routine I had not changed in years.
You know what they say, if it ain’t broke … don’t fix it.
However, I recently made a switch that’s dramatically changed the way I view the market.
And instead of waking up and looking at the futures in the morning, I check out one screen developed by my friend, Tim Colby, who also traded with me at the AMEX and CBOE.
One example of why.
Coca-Cola beat every single stock in the Magnificent Seven this year. Up 31% to an all-time high, while that entire group of world-changing businesses managed about 3%.
Nobody had that on their Bingo card in January, not even the CEO of Coca-Cola.
Most folks know of the move now…after the fact.
But there is actually a way to spot these sector moves before they become obvious plays.
Tim is showing you the entire thing tonight at 7 p.m. Eastern with Hannah Selner.
Before you decide whether to be there, let me tell you how this fixes your trading, or at least how it’s helped me become better and more confident in my own trading.
Start with something most investors have never been told.
At any given moment, only a handful of the S&P’s eleven sectors are outperforming the index. Academics have documented that for decades, so it isn’t a market opinion.
Which means the sector you’re in matters more than almost anything else you do.
Own the wrong three or four and you can be dead right about the market and the economy and everything else, and still spend a year going nowhere while other people get paid.
You just watched a live demonstration of that.
Leadership this year rotated out of mega-cap technology and into energy, financials, and consumer staples, all of which pushed to all-time highs. That is how a company selling syrup outran every business building artificial intelligence.
None of that happened in a single session.
It took months, and it was visible the entire time if you knew where to look.
The problem Tim solved
Tim’s our head of macro trading and he came up the way a lot of us did, buried so deep in the math that he’d trade a symbol without knowing what the company did. Then somebody at his firm taught him macro and he says a whole new world opened up.
What he built out of that is called the Macro Gauntlet, and it tracks where capital is moving between sectors right now, not where it went last quarter.
I’m not explaining the mechanics here because those are his to show you tonight.
What I’ll tell you is what it did to my own routine.
It’s the first thing I look at in the morning, before Big Money Flow and before any of my own scans, and it’s the last thing I look at before I close the laptop.
Where this ranks
We’ve done a lot of things at Option Pit over the last decade, and four of them changed how we trade permanently instead of just coming and going. Zero DTE, one DTE on equities, the proprietary scanners, and the AI engines.
The Macro Gauntlet is the fifth, and I don’t say that about much.
One more thing worth knowing. You do not need options to use it. If all you want to do is rotate between ETFs, there are enormous advantages here.
If you pick individual stocks, it changes how you choose them.
Tim has been trading it with his own money for months, which is the only endorsement I have ever cared about.
Why tonight specifically
Look at the calendar.
We have month-end rebalancing, then Labor Day, and then real money comes back to this market the following week. Fresh capital arrives in about ten days and it has to go somewhere.
Where it goes is exactly the question this tool answers.
Tim goes live with Hannah tonight at 7 p.m. Eastern, walking through the entire system, including how his sector rotation approach returned 13 times the market using options and what it does when you skip the options entirely.
I’ll be there, and I’m already using the thing. If it’s worth my time after 25 years, I promise you it’s worth yours.
Your only option,
Mark Sebastian