This was another session in which the market moseyed higher with no fanfare or news outside the nuclear power race. The doubters are all gone, and even the World Bank is on board.

Utilities (XLU) led the way yesterday, followed by Technology (XLK). Health Care (XLV) is catching a bid, and Real Estate (XLRE) is responding to lower bond yields.

Utilities (XLU) is racing to catch up with Industrials (XLI) for the top performing sector in the year.

Large caps ruled across all factors.

But the real action is in Initial Public Offerings (IPOs), which are sizzling again, this time with shares of Chime (CHYM). The Renaissance IPO ETF (IPO) is catching a bid and has a major spike in volume.

Market Breadth and Wild Adventures on the NASDAQ.

Breadth was mixed as new highs outpaced new lows. There were more decliners on the NASDAQ Composite than advancers, even though up volume was through the roof.

Market Breadth	NYSE	NASDAQ
Advancers	1,490	1,987
Decliners	1,275	2,448
New Highs	70	143
New Lows	25	61
Up Volume	1.82 billion	12.09 billion
Down Volume	2.11 billion	3.46 billion

Market purists were screaming, and bears pointed to NASDAQ volume primarily resulting from two penny stocks.

• Healthcare Triangle (HCTI) with 5.3 billion shares traded.
• Greenlane Holdings (GNLN) with 4.0 billion shares traded.

I don’t think it’s a red flag, but it sure is a curious one.

We Have All Been Numbskulls

President Trump lashed out at Jay Powell yesterday, calling him a “numbskull.” I looked up the word's etymology, and it seems to fit the paralyzed Fed chair.

Let's face it. There have been times when we have all felt deprived of motion and powerless to feel or act. It's not indifference; I think it's fear.

Powell has blown it on more than one occasion, and now, with legacy in his mind, he is playing his cards too close to the vest. That’s my opinion.

Israel Acts

I’ve read reports that Iran was days from a major nuclear breakthrough that Israel could not allow to happen.

Last night's attacks were strategic and only involved military sites.

Today’s Session

Geopolitical escalations in the Middle East are adding pressure to futures this morning.

Crude oil prices, however, surged to nearly $77/bbl before easing.

Comments

Could you please explain how the sector weighting works for the Hotline Model Portfolio and how you apply those weightings? Thanks Joe Joe Verbanic on 6/13/2025 10:27:05 AM

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