In some ways, I feel like Rally 2025 officially began yesterday. This market needs to prove it can move higher without ten Clydesdales pulling the wagon. Moreover, the rally needs to be led by cyclicals and reflect consumers’ willingness to spend, which is consistent with solid Gross Domestic Product (GDP). growth.

New Narratives

Small-caps continue to gather steam, as growth and quality begin to stall.

Heat Map

The Heat Map paints a compelling story. Big Box retailers were lower, but other consumer-facing companies saw substantial gains in their underlying share prices.

Banks acted great one week ahead of next week’s earnings releases.

Up, Up & Away

There was a time politicians urged higher taxes on “the rich,” under the notion they only sat on their fortunes like Scrooge McDuck. The rich have been flossing for a long time and now more than ever carry the economy.

The Clearer Blue Skies

According to the WSJ:

“We’re in a very different place than we were 90 days ago,” Delta Chief Executive Ed Bastian said in an interview. He pointed the progress in trade deals between the U.S. and other countries, and the potential for some geopolitical conflicts to abate.

“We’re hopeful—and with a little bit of confidence—that we’ll see things start to improve,” he said.

Delta (DAL) posted $2.13 billion in profits, a 63.0% increase from a year ago. But the difference was all those old folks in the First-Class section.

• Premium Ticket Sales +5.0%
• Main Cabin Ticket Sales -5.0%

I know millennials like to travel – this is just another reason to consider investing in the stock market.

Today’s Session

Market jitters, which would typically be natural, were enhanced this morning with more tariff announcements.

The plan is working, and at this point, all the nudging of negotiations should be behind closed doors.

I'm not worried about the market, but the public has to hear doom and gloom 24-7 and can't keep up.

Overall, I'm thrilled with the resolve of the economy and determination of the market.

Here's the dilemma.

Great stocks are generally overbought. So, we are way ahead of reality, which is not unusual (I discussed this in Unstoppable Prosperity) which puts investors in a bind.

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