Friday limped into the weekend, but the market finished on a high note, a trend that held every session. The good news is that the bias is strongly to the upside.

This is what the market looks like when we get the kind of rotation that goes beyond a few names in just three sectors. It's an intriguing balancing act because the casual observer will hear and think the market is struggling when, in fact, it's blossoming.

The market was impressive, with all major indices enjoying a majority of advancers.

Health Care (XLV) continues to thrive – led by life sciences companies.

And small-caps continue to make big moves.

I Ain’t Afraid of No Shutdown

Although large swaths of the financial media have tried to spook investors over the government shutdown, it has been a boon for the market in recent years.

Today’s Session

Wall Street has spent the past several weeks criticizing the AI trade, questioning the numbers being invested. At the same time, visionaries have continued to close deals and prepare for the future (beyond the next market dip).

All the major players have made blockbuster announcements, with OpenAI now leading the pack. You know this will continue.

Those who have missed the trade will ask where the money is coming from, but the money will materialize. In fact, the citizens of Japan have answered the question – private sector growth over controlled, coddled, and contained economies is the current wave.

Finding Money for Juice

The world spent $3.95 trillion on wind and solar as climate change alarmists prioritized them over everything else, and ignoring the fact that they have baseload and grid issues.

All that spending, and now it's only 2.5% of global power. It has wrecked economies like Germany's, which has forsaken its historic position as a premier manufacturer to appease the climate crowd.

Land of the Rising Sun

For a long time, the Land of the Rising Sun had been the Land of Permanent Sunset. Japan is poised to re-enter the game.

Comments

I can trust you to give me the real scoop on the current market. Linda Brown on 10/6/2025 8:28:12 AM

I feel like here in Hotline we have been lined up for this rotation for many years and it is finally coming to fruition in a big way. Peter McDougall on 10/6/2025 10:51:33 AM

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