Markets Explode Higher and Wall Street Wants You to Chase It. Don’t.

Here We Go Again

Markets go vertical and suddenly my phone turns into a fire alarm. Everyone wants in. Everyone wants my blessing to chase the rally. The financial media is in full celebration mode. CNBC is doing its victory lap. And somewhere right now, a broker is calling his book of clients telling them this is the moment they cannot miss.

I have seen this movie. I know how it ends.

What Actually Happened

Let me tell you what triggered this particular explosion higher. Treasury Secretary Scott Bessent went on television and told the world he believes a deal is getting done. There are reports suggesting the US is running critically low on missiles after extended military engagement, which creates its own pressure to reach a resolution. Iran is reportedly open to European minesweepers entering the Strait of Hormuz. Oman is apparently working as a broker.

The market heard possible all-clear and went absolutely berserk to the upside.

Now here is what Wall Street will not tell you about that setup:

• The deal is not done yet. It is being talked about.
• Markets have already priced in the best-case scenario
• The same instruments that pushed prices up this fast will push them down just as fast if anything goes sideways
• The money that already owned these positions before the news is the money that wins

The Riptide Nobody Warns You About

I use the riptide analogy for a reason. When you get caught in one at the beach, fighting it directly kills you. The ocean does not care how hard you swim. The current is stronger.

The modern market runs on leveraged financial instruments and engineered momentum plays. When the momentum goes in one direction, the move is violent and exaggerated. It looks like opportunity. It is actually a trap for latecomers.

The people who chase these rallies are almost never the ones who profit from them. They are the ones holding the bag when the momentum reverses.

What I Actually Do With My Clients

When markets sprint to the roof like this, here is the playbook I use at Markowski Investments:

• Trim positions that have become overweight due to the run-up
• Lock in profits rather than waiting for a perfect exit that never comes
• Rotate into assets with better risk-reward setups going forward
• Stay disciplined and ignore the noise from people who get paid on commissions

Nothing about that strategy is exciting. It will not get me booked on cable news. But it protects the people who trust me with their money.

The Pentagon Money Question Nobody Asks

One more thing while I am at it. The fact that we are reportedly out of missiles after spending the kind of money this country has poured into defense for decades should make every American furious. Where did that money go? Nobody knows because nobody is allowed to audit the Pentagon. The financial media will not touch that story because it does not fit the narrative of the day.

But that is exactly the kind of question the Watchdog exists to ask. Follow the money. Always follow the money. And right now, Wall Street wants you to follow it straight into a rally that has already happened.