To The Moon

U.S. equities finished the holiday-shortened week with solid gains, snapping multi-week losing streaks. The $NASDAQ(.IXIC)$ surged 1.5% for the week to end a five-week slide, while the $S&P 500(.SPX)$ advanced 1.1% and the $Dow Jones(.DJI)$ secured a 0.3% weekly gain. Friday saw broad strength across the market.

Market momentum shifted dramatically on Friday following a landmark legal decision that outweighed concerning economic data. Early reports revealed that fourth-quarter economic growth slowed to 1.4%, significantly missing the 3.0% consensus forecast. Inflation metrics also ran hot, with the Personal Consumption Expenditures price index rising 2.9% year over year.

Even so, stocks rallied after the Supreme Court ruled 6 to 3 that the executive branch overstepped its authority by imposing broad emergency tariffs. The President subsequently announced a new 10% global tariff plan lasting 150 days, but the removal of prior legal uncertainties provided a significant boost to investor sentiment.

Technology and consumer companies were the primary beneficiaries of the court ruling. The communication services sector jumped 2.7%, driven by a 4.01% rise in $Alphabet(GOOG)$ $Alphabet(GOOGL)$ and a 1.69% gain for $Meta Platforms, Inc.(META)$ .

Tariff-sensitive $Amazon.com(AMZN)$ climbed 2.56%, while $NVIDIA(NVDA)$ and $Apple(AAPL)$ added to the broad tech sector strength. On the flip side, the private credit sector faced notable selling pressure. Shares of Blue Owl Capital and Blackstone fell 4.8% and 3.57% respectively, driven by concerns over retail fund liquidity. The energy sector also lagged, falling 0.7% as crude oil futures settled at $66.49 per barrel.

Over the weekend, I anticipated that several securities were due for a reversal to recover their Central Weekly Levels (CWL). This thesis played out across our core watchlist:

• $Palantir Technologies Inc.(PLTR)$ : Recovered its $134.5 CWL to close the week +2.9%.

• $Amazon.com(AMZN)$ : Reclaimed the $203 level, triggering a bullish reversal setup and closing up +5.27%.

• $VanEck Semiconductor ETF(SMH)$ : Recovered $408.3, finishing the week +1.8%.

• Oversold Leaders: Nvidia (NVDA) and $Netflix(NFLX)$ both moved above their key price levels, closing up +3.8% and +2.34% respectively.

The rotation we’ve been tracking into “Real Economy” giants like $JPMorgan Chase(JPM)$ $Berkshire Hathaway(BRK.B)$ $Exxon Mobil(XOM)$ $Wal-Mart(WMT)$ $Eli Lilly(LLY)$ appears overextended and in healthy pullback process.

Conversely, many tech giants are currently oversold. If these giants wake up, we could see a new leg up for the bull market, heading toward our mid-term targets for the SPX and NDX.

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