We are witnessing history. I was around during the dot.com days, but this is a different kind of event. There is a paradigm shift in thinking in the federal government that sees rare earth, semiconductors, and nuclear power as vital to the nation's wealth, prosperity, and safety. Purists and haters are losing their collective minds. These are the real Green Giants that Wall Street tried to turn into alternative energy.

Investing and trading in these names is tough for anyone who isn’t open-minded or willing to take outsized risks.

But there are plenty of grand slams out there in companies that are making money, expanding margins, and taking market share.  And then there are industries, where the pie is growing so rapidly that almost all the players are enjoying monumental returns.

Yesterday’s advancers look like the blueprint for rebuilding America’s industrial base, focusing on nuclear power and data centers.

Market Breadth & Heat Map

For such a strong rebound, new lows almost eclipsed new highs on both the New York Stock Exchange (NYSE) and the NASDAQ Composite. Not everything was a bottom-fishing candidate.

Advancers were well above decliners, but the most significant bullish indicator was the ratio of up-to-down volume.

The big boxes and rectangles were various shades of green – that’s always bullish for the stock market. I was also relieved by the action in banks and puzzled by the strength in retailers.

The same tide lifted most extended factors.

Riding Parabolic Moves

-Forexpedia

There are market niches that are very parabolic, suggesting a pause and pullback soon. However, remember that the underlying value position of most of these names is improving rapidly. 

Yes, the shares are moving faster, so be nimble. It's early for several reasons and could see wild gyrations. The broad market is not parabolic and offers something for everyone.

Today’s Session

More saber-rattling overnight as China goes after a South Korean shipbuilder, which recently purchased Philly Shipyard in 2024 for $100 million and unveiled plans to invest $5.0 billion in additional capital.

It's part of the $150 billion pledge from South Korea to invest in the United States.  China’s provocative actions are casting a wider global net, which hasn’t gone unnoticed by the administration or other nations, including the Netherlands, which seized control of a Chinese company yesterday for national security reasons.

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