Morning Commentary
Friday wasn’t a disaster, but it was disappointing, considering the resolve witnessed after Monday’s drubbing – the market was on the cusp of finishing the week higher.
Market Breadth |
Advancers |
Decliners |
S&P 500 |
27% |
71% |
S&P 400 |
23% |
76% |
S&P 600 |
28% |
71% |
NASDAQ Composite |
35% |
61% |
Heat Map & Extended Factors
The “Mag Seven” has seen Communication Services (XLC) names take the lead, imposing on Friday and for the week. Earnings misses didn’t matter as much as the ability to spin a vision of hope and optimism.
Nobody laid it on thicker than Elon Musk.
The glaring red spot was Nvidia (NVDA), which continues to come under pressure from DeepSeek-R1 and potential chip export limitations to China, a fast-growing market.
The market was mostly the story of a few more sellers than buyers.
Nowhere to Hide
There was nowhere to hide on Friday, but I was surprised that revenue was among the hardest-hit factors at a time when investors were supposedly moving away from momentum and growth.
Market Breadth
On the week, market breadth points to an evenly divided market, where winners continue to attract new buyers (see 52-week highs to lows).
The most dangerous place to be is a Technology (XLK) name that falls out of favor.
Tariff Cheat Sheet
Today’s Session
Equity futures are under pressure this morning, it will surely test market sentiment and investor resolve. This is the second Monday in a row that markets began under duress. Some consider bullish sentiment to be bearish, which I disagree with. Bullishness often follows the rally which means the longer in the tooth the rally, the greater the enthusiasm.
At some point this will wane. But for all the brilliant mavens that call this an automatic sell signal, remember, they’ve missed a large chunk of the two-year rally.
This is the time to retreat to the underlying fundamentals. It’s true fundamentals and technical analysis could be overrun by emotions.
Comments |
Give the Tariffs time to work. Retaliating by others is futile on their part! They purchase very little from U S A. Bernard Lambert on 2/3/2025 8:38:29 AM |
Tweet |
6/24/2025 1:47 PM | Peace Rally |
6/24/2025 9:48 AM | PEACE THROUGH STRENGTH: THE MARKET LOVES IT |
6/23/2025 1:47 PM | Getting Some Resolve |
6/23/2025 9:51 AM | BRACING |
6/20/2025 1:29 PM | Second Triple Witching |
6/20/2025 9:38 AM | POWELL BLEW IT |
6/18/2025 12:41 PM | FED Day |
6/18/2025 9:45 AM | ROOM WITH A VIEW |
6/17/2025 1:26 PM | Tension Continues |
6/17/2025 9:50 AM | THE BIG TECH TEN & CO |
6/16/2025 1:34 PM | Fears Subside |
6/16/2025 9:44 AM | DRUMBEATS OF PEACE |
6/13/2025 1:30 PM | Showing Resilience |
6/13/2025 9:37 AM | THE NEW NUCLEAR AGE |
6/12/2025 1:27 PM | Interest Rates in Focus |
6/12/2025 9:35 AM | ENTER GEOPOLITICAL RISK |
6/11/2025 1:38 PM | Fed in Tough Spot |
6/11/2025 9:50 AM | LOW-KEY PARTY |
6/10/2025 1:23 PM | Tuesday Reversal |
6/10/2025 9:45 AM | TWISTS & TURNS |
6/9/2025 1:20 PM | Small Caps Continue to Outperform |
6/9/2025 9:50 AM | TRUST THE FRIDAY RALLY IN THE AGE OF FEAR & LOATHING |
6/6/2025 1:17 PM | Small Caps Jump |
6/6/2025 9:49 AM | Sideshow |
6/5/2025 1:26 PM | Five Below Gets a High-Five |
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