Yesterday, the market gained, but Technology (XLK) and Communication Services (XLC) pulled the rest to the finish line.

Seeing old-school names like Corning (GLW) and Oracle (ORCL) in the mix was nice. Seagate Technology (STX) is a perennial heart-breaker but also has our attention.

Doing the Heavy Lifting

… The road is long

With many a winding turn

That leads us to who knows where who knows where

But I'm strong

Strong enough to carry him

He ain't heavy, he's my brother

“He Ain't Heavy, He's My Brother” by The Hollies is a powerful song with an even more powerful backstory: it tells the story of a little girl in Ireland carrying her brother.

I’m sure everyone has thought of songs or similar words in music or books in their journeys. It's probably too heavy to use as a market analogy, but it popped into my head with the relationship between the “Mag Seven” and the rest of the stock market.

There have been so many times when the “Mag Seven” has carried the broad market, but the broad market hasn’t been able to enjoy sustained rallies without the “Mag Seven.”

Consequently, much money has been lost, primarily by the experts, who are generally paid handsomely even when their performance is subpar. But it's harder to ignore these stocks and other names beneath the umbrellas of the Fourth Industrial Revolution.

Several Wall Street axioms are yet practical, such as “Don’t fight the tape” and “New highs beget

new highs.”  There is also the notion that “it's different this time” is always a mistake, but it is different this time. We are drilling deeper to get ahead of the expanding narrative but are also willing to buy dips.

Today’s Session

Wall Street came into 2025 a lot more optimistic than 2024 with the belief earnings would justify higher share prices, after massive margin expansion. The problem with higher expectations is disappointments are dealt with harshly.

This morning American Airlines (AAL) offered guidance below consensus, the shares are getting smacked around pretty good.

In tech land, the Elon Musk – Sam Altman feud is hitting key players in the newly announced “Stargate Project.”

Boys will be boys even when they’re billionaires.

Especially when they’re billionaires.

Comments

That is a GREAT song and always liked the Hollies. Another Hollies song that might fit is Long Cool Woman in A Black Dress (The Mag Seven) that Long Cool Woman Had it All! Jim Shepherd on 1/23/2025 9:16:29 AM

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