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I’m going to say something that might sound crazy to anyone who’s been trained to fade euphoria…
This AI rally isn’t something you want to fight.
We’ve all lived through markets propped up by policy pivots, emergency liquidity and last-second interventions. The big V-bottoms of the past decade were sparked by things like sudden trade war reversals or the Fed stepping in with heavy support.
This time, the market isn’t being rescued — it’s leading.
Look, I get it. Every trader’s been burned chasing a hot sector that suddenly reversed. But what we’re seeing now isn’t the same dynamic we had in 2020 or during the long liquidity-fueled climb of 2008–2021.
This rally is being powered by earnings and genuine optimism, not a policy safety net. The markets themselves are driving the optimism and the numbers backing it up keep getting stronger.
The productivity boom is already visible in quarterly results. Earnings and profit margins are off the charts, revisions are moving higher and the biggest beneficiaries aren’t speculative microcaps. These are the world’s largest, most profitable companies pushing higher — not cheap fliers.
And sure, with moves this strong there’s always that instinct to assume we’re approaching a bubble. But if people think this looks like the dot-com era, they may be underestimating what’s possible. If 2000 looked extreme, this cycle could end up running longer, higher and far bigger than anyone expects. Betting against that kind of potential is a dangerous stance to take.
Yeah, the K-shaped economy is real and we have an affordability crisis — I’m not going to pretend otherwise. But the economy isn’t the market. The market is the upper branch of that K and it’s stretching as far and as fast as it can. That divergence explains why things can feel tough on the ground while indexes keep ripping higher.
The Global Scale Changes Everything
Here’s the part that really matters: We’re staring at an AI build-out so large it’s hard to fully comprehend. We’re talking about a global undertaking measured in tens of trillions of dollars — with massive investment flowing through the MAG7, hyperscalers and every major spender in the tech ecosystem.
And it’s not only happening in the U.S. The MAG7 CEOs have been making moves in China. Japan has been ripping to all-time highs. Markets across Asia and Europe are participating. This isn’t a local mania or an isolated bubble — it’s a multi-continent expansion cycle with the strongest companies in the world leading.
When you fade this rally, you aren’t fading hype — you’re fading global strength. You’re fading the companies that have become the torchbearers of this new cycle.
You’re fading the biggest engines of productivity on the planet.
And honestly, I’ve got a simple test for when we’re actually in bubble territory. I’ll know it’s real bubble time when my mom calls me asking how to get ChatGPT to work. The other night she asked me what ChatGPT even is.
That alone tells me we’ve still got plenty of runway ahead.
It’s a Boom Until Price Says Otherwise
My framework is simple: It’s a boom until price says otherwise. It’s a boom until structure breaks. It’s a boom until real bottlenecks show up. And yes, those bottlenecks will come — energy demand alone is going to stretch the grid and that kind of strain introduces volatility along the way.
But volatility inside a boom isn’t the same thing as the boom ending.
Sure, sentiment can get stretched. Flows can get one-sided. That’s when traders should start watching for short-term reversals or overextensions. But none of that changes the structural trend powered by this global AI surge.
The truth about markets is that you can’t put them in a box. They’re dynamic, always pushing boundaries — and AI is allowing them to push those boundaries further and faster than anything we’ve seen before.
As traders, we need to adapt to that velocity instead of fighting it.
This productivity wave is happening right now and it’s showing up in hard numbers. Don’t let ideology or fear of heights keep you from participating in one of the most fundamentally sound rallies in years.
Order Flow:
This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
If a stock is really expensive, consider a spread to lower the cost.
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
There is inherent risk in trading. Trade at your own risk.
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from the team at Lance Ippolito Trading, New Money Crew or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. 2 Former Hedge Fund Managers Recently Had A Private Meeting in Utah…
To give a deep dive into a brand-new way to ride billions of dollars in forced momentum on the S&P 500 each day!
