I can’t remember the last time there were zero new 52-week lows on the NYSE. That’s what happened on Friday, as the same tide lifted almost every single boat.  Breadth was astonishing, especially the up to down volume.

There was green across the screen with small caps crushing it (97% of S&P 600 finished higher).

April 9 seems so long ago, but this market was vulnerable last week. While we weren’t looking at an April swoon, those folks pulling the levers of doom were prepared to pounce.

Instead, ten of the eleven S&P sectors rallied and the market moved out of the shadow of mega cap dependency.

The Hot Trade: Homebuilders

The hope is rate cuts will eventually lead to lower mortgages and stronger demand for housing.  There is also a notion that consumers will resume their new love for cruising and traveling.  It was all reflected among the top advancers on Friday.

US Home Construction Stocks Parabolic

This is Nvidia (NVDA) week, but there are other important earnings reports and a slew of Fed officials yapping this week.

Powell has made a sea change and so has the composition of the rally.

Enjoy!

Today’s Session

There is some expected consolidation of Friday’s big gains, but any buying could trigger a wave of fence-sitters into the fray.

Pay attention to small caps – hedge funds are going to have to cover soon, and once they start, there will be a monster wave of panic buying.