Thoughts on the current market.
Market Trends: The breadth of the market is expanding with new 20-day highs, indicating a robust rally across sectors, including semiconductors and AI. Historically, such trends suggest continued market growth, with pre-election draw-downs typically short-lived.
Market Highlights:
Bitcoin: Continues to demonstrate strength.
Real Estate & Homebuilding: REITs and key players like DR Horton and Lennar are performing well.
Semiconductors: Mixed; NVIDIA remains above its 50-day MA, while others like Micron, Qualcomm, and ASML lag behind.
2/10s Yield Spread: Expected to steepen.
Banking: The KBW Bank Index is strong.
Forex: USD/JPY, JPY is weakest in 30 years.
AMD Acquisition: Acquired Silo AI for $665 million, marking a significant expansion into AI.
% of stocks above the 200ma has historically been a good indicator for slight pullbacks.
Banks are strong on the back of a Trump presidency.
Coherent (a Druckenmiller play), is at a great level of suppport.
Homebuilders are some of the strongest around.
Coupang took a pause but the uptrend is still intact.
Nvidia continues to trade above the 50ma.
Contrary to popular belief and headlines, its better to fade the smallcap “rally”.
Time to travel to Japan.
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