Given the measured move of the drop from previous highs and the climb back, there's still plenty of upside for this market. As it continues to follow the path of least resistance higher.
Just like we were increasing our exposure during the correction and very brief bear market of 2025. Currently, I am doing the same as the overall markets continue to hit new highs. On top of my normal consistent daily investing into the indexes and sectors. As the overall indexes hit new highs, I continue to add more to those respective indexes.
Where the buys during corrections and bear markets are contrarian buys that take a bit more guts to partake in. The new buys at highs, tend to feel like joining the party late and trying to catch up. However we've been at the party since before it began.
Sector wise, it goes without saying Tech has been leading the charge higher. While Utilities finally joined the party and closed the week at new all-time highs. Industrials, also hit new all-time highs at week's end.
Telecom stocks are flagging out ready for their chance to join the new ATH party along with the large cap Dow 30 names.
Healthcare and Bio Techs continue to be the only two dogs in this new all-time high party and should continue to be avoided until we see a clear change in their overall price action.
Going into the week ahead, I'm still holding onto this SMCI with a breakeven stop, while keeping a close eye on AAPL as it continues to set up again for another tight-risk entry.
There are a few other names to keep on the radar, such as RMD, that is flagging under 260. This name is in the healthcare space we want to avoid, but it's also a tech name that has been leading. This is the one exception to the healthcare-avoiding rule right now.
With utilities breaking out, EXC is setting up for a nice base breakout through 44, while energy name WMB is setting up for a textbook breakout through 60. Lastly, WMT, in the lagging Dow 30 camp, has been getting tight near support. If it aims to hold this support area, there is a tight 96 support buyback setting up vs 94 to be in and prepared for the 100 breakout down the road when the Dow 30 names finally join the party and take out all-time highs.
Macro Rotation Outlook
EXC
