I must admit I was wiped out last night from all the excitement.

• The first trade deal is more than likely a string of deals to follow.
• The day after Powell punted, interest rates were mostly unchanged.
• And we got the first American Pope.

Major Equity Indices

It was mostly green on the screen; the only red mark was Dow Utilities.

Most Compelling:

• Microcap
• Transportation
• Small-Caps

Out of the Foxholes

Consumer Discretionary (XLY) led the way and was powered by automobile and component stocks. Industrials (XLI) continue to act marvelously, while Energy (XLE) keeps trying to rebound. Four sectors have finished in the red, although nothing disastrous.

And the market moved deeper into the ‘zone of greed.’

Investors are spying on and focusing on oversold niches and stocks, including the iShares Russell 2000 ETF (IWM), which could be on the cusp of moving toward its 200-day moving average.

Dow Jones Transportation Average (TRAN) Index has a way to go before the risk-reward dynamics improve. But we are spying on it more closely than before.

Bond Auction

The high yield was 7 basis points (bps) above when issued and indirect (foreign) 58.9% of accepted bids versus the 63.9% average for the prior six auctions. It wasn’t a good auction.

A phalanx of Fed officials will be speaking today.

Today’s Session

There’s not a lot of exogenous stuff to nudge the market around, so we should see upside momentum out of the gate, mixed with increased trepidation throughout the session.

Lots of musing about this weekend, when Scott Bessent meets his Chinese counterpart.

Meanwhile, Wall Street’s bears are desperately trying to stop the market momentum, so expect every story you read today to have negative connotations.

Remember, 5,800 is when the smartest guys in the room have to start closing shorts and going long.

Comments

Have a rejuvenating weekend Charles Payne & Team!!! YUVONNA E BALDWIN on 5/9/2025 8:05:37 PM

Funniest comment I've heard on a financial show in a long time..."when I saw the black smoke I thought the new Pope was a brother!" Jay Rosenbaum on 5/10/2025 4:38:39 PM

LOL! Thanks, Jay, we have to have fun with this stuff. CP Charles Payne on 5/10/2025 7:45:00 PM

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