What was an emphatic reply to Friday’s session that revived the crowd that had been so worked up over the weekend? I’m sure the sales of cheap wine and Tums went through the roof.

Bond Yields Continue to Plunge

The ten-year bond yield (TNX) continued to free-fall, and the equity market reacted with joy. Homebuilders and other niches associated with household formation picked up nicely.

Solid Breadth

More than 85% of the S&P 500 (SPX) finished in the green, but the most astonishing feature of yesterday’s action was volume, especially for the NASDAQ Composite; 5.8 billion up against 1.5 billion down.

Market Breadth	NYSE	NASDAQ
Advancers	2,257	3,435
Decliners	515	1,129
New Highs	72	108
New Lows	33	89
Up Volume	3.84B	5.80B
Down Volume	912.99M	1.52B

All Factors Green

“Mag Seven” did its thing and is close to a monumental breakout.

IPO Wake-up Call?  Yesterday, Figma (FIG) sunk down 27.38%, which might be a good thing, considering the recent initial public offering (IPO) had the fattest forward PE ratio in all Technology (XLK). Perhaps the market isn’t insane after all.

Portfolio Approach

This morning, we added a Consumer Discretionary position (DHI) in the Hotline Model Portfolio.

Today’s Session

Palantir (PLTR) is dominating the headlines. I’m looking at the intense upside action to continue for cyclicals, which belie the daily commentary that the market will implode any day now, as the economy implodes.

Comments

Great Q2 results from META and MSFT boosted the Markets (Already in Extreme Greed position) to more than a 2% gain setting the table for the large institutions to take profits on Friday and jump on buying the Dip first thing Monday morning. The errant jobs data has been going on for quite a while as Charles has repeatedly mentioned. P. Krueger on 8/5/2025 11:09:08 AM

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