As market participants, objectivity is everything as it allows us to flip the script when necessary.

That’s why I’m always on the lookout for cracks in my thesis.

One way to do that is by playing devil’s advocate, which is identifying data points that challenge our view and force us to rethink our perspective.

Adapting to new evidence isn’t just an edge; it’s a necessity to be successful in this business.

Right now, when it comes to data points that challenge a bullish case for equities, the weakness in home construction stocks stands out. 

The Home Construction ETF $ITB is breaking to new lows relative to its defensive peer group, the Real Estate ETF $IYR.

Health Care is one of the largest sectors in the Russell 2000, making up 17%—just behind Financials at 19% and Industrials at 17.5%. 

That makes it a key player in the small-cap space, often overlooked but packed with information.

I often use this sector to gauge where small boys are headed next.

After a brutal drawdown in 2022-2023, the Small-Cap Health Care ETF $PSCH is finally knocking on the door of a major trend reversal.

I'm in the UK visiting my sister for a couple weeks, and I have to tell you—I love it here.

The vibes, the peace, and the sense of adventure just hit different. It never gets old to visit Europe. There are so many incredible places, rich with history and culture, all packed close together.

But for me, it's hard not to think about how these European indexes are moving lately.

They’re all ripping. 

From the all-time highs in Germany and the UK to big structural trend reversals in Italy, Spain, and Greece, investors are embracing risk, and it's showing up across the board.

Unlike in the U.S., where tech dominates, these European indexes are built differently. They have a ton of financials, industrials, and even utilities. That’s just how it works here.

When it comes to global equities, we’re seeing participation broaden in a way we haven’t seen in a long time.

Europe stands out with a growing list of countries ripping to new highs.

Just look at the German DAX and the London FTSE 350 both closing the week at their highest level in history.

Have you heard about these electric helicopter stocks?

They’re being called the "Uber of the skies," racing to launch air taxis in major cities sooner than most people expect.

Imagine skipping traffic as an air shuttle arrives to take you straight to the airport.

It sounds almost too good to be true.

But the reality is that there's some serious juice in these names.

One in particular that is setting up nicely is Archer Aviation $ACHR.

Just look at this chart.

When it comes to inflation expectations, the Treasury Inflation-Protected Securities vs the US Treasury Bonds ratio is one of the best ways to measure it.

When investors anticipate rising prices for goods, they hedge by favoring TIPS over traditional bonds.

The TIP/IEF ratio is ripping to its highest level in almost three years.

It’s no coincidence that the Bloomberg Commodity Index $DJP looks just like it.

A couple of days ago, I talked about three big reasons I’m long China.

Today, I want to go deeper into the overwhelming bearish sentiment around these stocks and why it could be the perfect catalyst for their next leg higher.

Whether it’s the doom-and-gloom headlines, distrust in the government, skepticism over earnings, or fears of an escalating trade war., the bottom line is— “these stocks are uninvestable.”

Just look at this chart. Short interest in the Large-Cap China ETF $FXI was recently at the highest level it's been in the last year and is still elevated today. 

If you’ve been following me for a while, you know I’ve been long China.

This is a bet against the crowd. Nobody trusts these companies or their numbers—honestly, I don’t either. But I don’t have to. 

I trust price.

And for months now, these stocks have been catching a relentless bid. That kind of price action tells me everything I need to know.

Investors are willing to take the risk, and as long as price keeps confirming it, I am too.

One big reason China is working—something no one’s really talking about—is the quiet rotation happening across emerging markets.

Gold has been an absolute monster since breaking out of that massive base last year.

Gold bugs can't complain—this is what they've been waiting on for years, and now they’re finally getting paid.

They’ve got the ball and are sprinting downfield with no one in sight.

This week, price ripped out of another tight consolidation to fresh all-time highs, just like it did last September. 

When it comes to Canada, it's not about tariffs or political headlines making the rounds these days.

The real focus is the Canadian Dollar.

With nearly a 10% weighting in the Dollar Index $DXY, CAD is a crucial piece of the broader currency puzzle.

CAD/USD is pressing against a decade-long support zone, hovering around a key level that triggered strong reversals in 2016 and 2020.

Every year, without exception, there's always a new headline, a fresh "fear," or just another reason to sell.

Whether it's a new geopolitical tension, economic concerns, or the latest updates on DeepSeek and tariffs, there's always something that seems to provide something to “worry about.”

But here’s the truth. Investors have dealt with headlines like these for decades. It’s nothing new.

Our friend Ryan Detrick put together a great chart that perfectly illustrates this point.

Another international theme on my radar right now is European banks.

These stocks serve as a strong gauge of global risk appetite. Typically, when they perform well, risk assets are in good shape.

The European Financials Index $E1FIN just closed the month at its highest level since the Great Financial Crisis.