It was another very impressive session, considering the fear merchants spent all weekend talking up the chances of a major correction at the open on Monday morning. There were so many fascinating narratives during yesterday’s trading, including the Financial (XLF) Sector galloping to the front of the pack at the closing bell, despite the negative reaction to Goldman Sachs (GS) earnings results.

Utilities (XLU) and Consumer Staples (XLP) were lower, as money parachuted out of traditional safe haven sectors. The pendulum is swinging hard toward fear of missing out (FOMO) and fear of losing everything.

Since March, I mentioned the term “coiled spring” eight times in the Hotline Commentary and three times in Payne’s Perspective – it was prescient (sometimes you have to pat yourself on the back). Money flows are picking up, which is important for breaking out to new highs.

Factors

Factors are mostly green, but that rich, inviting green spans across small-caps.

Monster Momentum

Going into yesterday’s session, memory and optical names dominated, and it only got better. Sandisk (SNDK) rallied another $100, as Evercore ISI placed a $1,200 “base case” target on the stock, but also a $2,400 “bull case” target.

After the close, Bloom Energy (BE) expanded a major deal with Oracle (ORCL). The partnership aims to support 2.8 gigawatt (GW) of fuel cell deployment for artificial intelligence (AI) and cloud infrastructure, up from 1.2 GW. These ties are coming fast and furious.

Software’s SOS

Everyone agrees the software-as-a-service (SaaS) seat model is dead, and all the growth is happening with AI agents.

Even big year-to-date winners like Terawulf Inc. (WULF) are down almost 50% from their all-time high.  These names look compelling, but only nimble traders need to force the issue right now.

Earnings Season has Begun.

Amazingly, the Street is looking for double-digit earnings growth this year and next. I think the estimates are too low.

Could the ‘Art of the Deal’ wrap up this Iran Conflict this week?  I wouldn’t be surprised.

Today’s Session

PPI came in at +0.5% for March, the street was bracing for +1.1%, which is bad news…for the bears.

Watching crude and bond yields but all the major action revolves around AI. This is the time.

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