The market never made an effort to rally yesterday, but the session was telling. Investors took advantage of a headline-driven dip in Applovin (APP), and the artificial intelligence (AI) trade continued to drive Advanced Micro Devices (AMD) and DELL Technologies (DELL) higher. But the session was more about rotation into the safety of the consumer cyclicals.

Keep Your Cupboards Stocked

Perhaps it's childhood drama, but I love stock parties and garage sales. However, it's hard to own Consumer Staples (XLP) in a portfolio.

With the wealth effect running rampant (record stocks and housing prices), Consumer Discretionary (XLY) has trounced Consumer Staples. This double bottom could signal a short-term trading opportunity.

Foxholes Get No Sunlight

In addition to Consumer Staples, many mavens have urged investors to hide in quality names; however, the Quality ETF (QUAL) has been a significant loser against the broader market.

It's at a double bottom, which might make it more attractive if there is more profit-taking.

It was hard to find any positive extended factors yesterday, and small-caps were slammed across the board.

We get the Federal Open Market Committee (FOMC) minutes today, which should be a barrel of laughs.  Considering the extreme range in the Fed’s dot plot, there are serious disagreements about monetary policy.

Today’s Session

Major indices are looking to open into the green.

The ten-year treasury yield (TNX) is down 2.7 basis points, testing the 4.1% level.

Betting markets are expecting the government shutdown to now go on over 20 days.

Most Americans still indicate the shutdown has little to no effect on them.

Comments

Charles, regarding the effect on people due to the shutdown; If the government shrinks more and there were less government workers, a shutdown in the future would have even less effect. We need private sector employment and less government jobs which I think are another form of welfare and democrat vote buying. James W. on 10/8/2025 11:03:31 AM

Trump should go ahead and cut some excesses in Government. The opportunity to cut is now. Do it. Vincent on 10/9/2025 8:59:08 AM

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