A micro look at the market on Friday using the Heat Map and extended factors underscores how selective the session was. Large-cap growth finished an intense week; low volume beat a hasty retreat.  Apple (AAPL) has found buyers ahead of a big announcement this week.

Tech without Mag Seven

It seems like a long time ago (probably because I didn’t have a three-day weekend), but Friday’s session was mostly ho-hum on the outside but filled with the usual daily fireworks—which is where the money is being made.

Technology (XLK) and Communication Services (XLC) are returning to the driver’s seat.

Eclectic Tech

I’m not sure if it's bottom fishing or value investing. Still, Micron Technology (MU) and Dell Technologies (DELL) caught big-time bids, and Super Mirco Computer (SMCI) continues to confound orthodox investors. Airbnb (ABNB) and Uber (UBER) are beginning to live up to long-time hype.

No Cuts & Falling Earnings Estimates

iShares Expanded Tech-Software Sector ETF (IGV) is positioned for both conservative investors and aggressive traders to be buyers.

Fear & Seasonality

The market has slipped back into the Fear Zone, which could be a short-term negative, but a long-term positive.

For those watching the calendar, historically, the second half of February is not a good time for the stock market.

Earnings Calendar

The earnings calendar is light, but there are influential names topped off with Walmart (WMT) reporting this week.

Remember that most of the best-performing stocks this year are up on reactions to earnings.

Economic Calendar

Friday has the most consequential data on tap, but each day will be informative.

Today’s Session

The hottest stocks are higher in pre-opening trading, which is ironic in the sense global fund managers see this market as the most overvalued since 2001. The stocks with the highest valuation metrics are moving up the most.

Another manufacturing report comes in better than consensus, but the Empire Fed Survey sees prices higher and employment lower.

Empire Manufacturing Survey

Comments

I hold amazon,tesla, should I sell or hold Colleen on 2/19/2025 6:09:08 AM

Hold both. Karina Hernandez on 2/20/2025 3:36:38 PM

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