All major indices (S&P500, Nasdaq, Russell 2000, Dow) touched all-time highs this week. There’s a simple rule in investing: A market at all-time highs is likely to keep going higher.
That’s why the biggest forward returns for the index occur when the index is already at highs. This speaks to the tendency to trend.
We’ve been bullish since the Liberation Day lows, having been fully invested in stocks by April 30th. We predicted SPX would reach $6800 which it did this week. We continue to be bullish because the underlying fundamentals and technicals tell us to be.
We’ve been able to beat the S&P500’s returns this year by side-stepping the April drawdown. We also traded into Nasdaq and Russell at opportune times to boost returns.
Today’s post will further outline how we see the market path developing for the rest of the year.
The rest of this article is for premium members. Today’s post covers:
New deal with China
Microsoft and OpenAI
Nvidia’s industrial revolution
October FOMC meeting - Fed slows rate cuts
Technicals and positioning
Our portfolio - new trade
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