Situation Awareness: Cautious. Equity futures are edging higher, but yesterday’s session saw a pause in the recent record push, with mega-cap tech names exhibiting some profit-taking. Trade mode: selective and defensive. Investors are juggling a hefty batch of earnings reports with ongoing geopolitical developments related to Iran. Regime context — 74.08% of stocks trade above their 40-day SMA, and the 4% Bull/Bear gauge shows 4% Neutral. The 5-day trend shows early signs of weakening, with participation contracting.
SIP: UNH AMZN RTX AXTI
- What’s working: Despite positive earnings results only Continuation signals have fired today.
- Leading sectors: Technology (3.02), Communication Services (2.05), Financials (2.93). Industries not sectors for themes, sorry, market closed.
- Key event: Senate confirmation hearing for Fed Chairman nominee Kevin Warsh this morning.
- Market read: Yesterday’s pause after a V-shaped rally to all-time highs suggests a digestion phase. The market needs to consolidate gains and digest earnings data before committing to further upside.
- DEP watchlist: AFRM BBWI CLSK CONL ETHU GLXY GT
- SIPS: AESI AEYE AMPX APPF ATOM AVBP