Morning Commentary
I didn’t see that coming. Housing stocks surged on earnings that some described as “solid.” Until now, most of the industry's action has centered on potential consolidation. This is one of those instances where the charts gave buy signals before the fundamental story bolstered the “value proposition.”
Who Needs Tech?
Well, yesterday, the market rallied with a sizable pullback in Technology (XLK) – that’s the good news. The gain was only +0.06% - that’s the bad news if you are watching the market through the lens of the overall S&P 500 (SPX).
The much-maligned Health Care (XLV) Sector staged the most significant gains on the session, providing further evidence of increased interest in bottom fishing.
Broadening Rally
The big red squares and rectangles weighed on the overall market, but market breadth was impressive. This is a classic rotation.
Advancers
Market Breadth |
NYSE |
NASDAQ |
Advancers |
1,983 |
2,934 |
Decliners |
786 |
1,566 |
New Highs |
75 |
121 |
New Lows |
16 |
38 |
Up Volume |
3.22 billion |
6.35 billion |
Down Volume |
1.10 billion |
3.09 billion |
Small But Mighty
Great table from Duality Research, which pointed out the session last week that saw the most significant gain on the smallest number of advancers in history. Yesterday was the smallest gain with the biggest breadth.
The Chips Were Down
Semiconductor names took a breather, but for those accustomed to daily gains, it felt more ominous. It's not, but there is no denying that when the market pulls back, even to consolidate gains, there could be outsized declines in the hottest niche of the market.
After the close, President Trump announced a major tariff deal with the “Land of the Rising Sun.” which includes a $500 billion investment in the United States.
Today’s Session
The market is looking to get out the gate with some pep as trade anxiety fades, and economic optimism increases – at least from the market’s point of view. The White House will also nudge AI even more.
The Power Grid & Stock Market
Utilities (XLU) are poised to move higher as electricity demand is sending prices soaring.
Tweet |
7/23/2025 1:54 PM | AI Initiative |
7/23/2025 9:42 AM | ROTATION PICKING UP STEAM |
7/22/2025 1:26 PM | Tuesday Rotation |
7/22/2025 9:55 AM | THE SHADOW TO SAVE THE DAY? |
7/21/2025 1:26 PM | New Highs Beget New Highs |
7/21/2025 9:57 AM | EARNINGS BONANZA |
7/18/2025 1:14 PM | Consumer Tariff Worries Subside |
7/18/2025 9:45 AM | America is in Play |
7/17/2025 1:27 PM | Extreme Greed Resumes |
7/17/2025 10:15 AM | A Fundamental Move |
7/16/2025 1:39 PM | Market Gyrations |
7/16/2025 9:44 AM | THE MAG ONE (NVDA) |
7/15/2025 1:35 PM | Semis Rise & Banks Slide |
7/15/2025 10:13 AM | THE CURIOUS CASE |
7/14/2025 1:32 PM | Decisive Week |
7/14/2025 9:32 AM | GET READY! |
7/11/2025 1:45 PM | Facing Pressure |
7/11/2025 9:48 AM | CLEAR FOR TAKEOFF |
7/10/2025 1:53 PM | Small Caps Rally |
7/10/2025 9:56 AM | ENOUGH ZEN TO SHARE |
7/9/2025 1:32 PM | NVDA New Milestone |
7/9/2025 9:46 AM | PASSING THE BATON |
7/8/2025 1:33 PM | Seesaw Session |
7/8/2025 9:55 AM | MORE SUMMER BLAHS THAN FEAR OF MYANMAR'S TARIFF |
7/7/2025 1:27 PM | Trade Talks and Profit Taking |
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