It can be argued that Alan Greenspan ushered in the era of an accommodative Fed, which made buying the dip a ‘no-brainer’ trade.  

Now, the buy-on-dips crowd is moving midday instead of the next day. 

No NVDA, But Growth Pulls the Weight 

Interestingly, Nvidia (NVDA) did not influence the market's performance this time. However, large-cap growth did lead the way yesterday, and we can thank old folks for their obsession with cruise liners. Consumer Staples (XLP) also enjoyed a strong showing, reflecting cautious repositioning. 

Last night, I read that wealthy Bank of America (BAC) clients have sold a ton of Technology (XLK) in recent sessions. 

Another False Start?

Meanwhile, small-caps were crushed again after showing so much promise in recent trading sessions.  

What’s Up with the Economy?

Real Disposable Income is fading quickly.

And now cyclical sectors are breaking down.

Where’s All That Capex Money Going?

I'm dismayed with the performance of Material (XLB) names. Freeport-McMoRan Inc (FCX) was the worst performer, even though it's one of the most popular stocks in the market because of the Artificial Intelligence (AI) electricity story. 

Then, higher Capital Expenditures (Capex) investments are being revised, which should help Materials and Industries (XLI). It’s a head-scratcher for the moment, but we have to listen to the market and recheck the macro proposition of positions as well as individual underlying fundamentals. 

Fear is Back

Despite three closing rallies, the Fear & Greed Index has swung to ‘fear’ and ‘extreme greed’ in just one month. 

However, I liked the reaction to three key financial releases last night, including CrowdStrike Holdings (CRWD).  Yesterday after the bell, there were more retailers, including former Wall Street darling Lululemon (LULU).

Today’s Session

The ADP report, out this morning, missed the consensus, which adds to the current scuttlebutt that the Fed is going to do more than one rate cut this year.  Many are clinging to hopes for a July cut. 

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