- The new site is launching today (my team promised me it would). Yesterday, a few late issues delayed the launch, but I’m told the new site will be up later. So I’ll keep this note brief. IF ANYONE HAS ANY ISSUES LOGGING ON, OR IF YOU DON’T SEE EMAILS IN THE COMING DAYS, PLEASE EMAIL, AND WE WILL SORT IT OUT ASAP. We don’t anticipate issues, but with a big change to ALL of our systems/apps, some issues might affect some of you. Thanks for your patience.
- The blue wave with Democrats taking control of Congress wasn’t all that unexpected. A lot of people will talk about how gridlock and divided government is great for the market; I could agree to a point. Checks and balances are a good thing that our founding fathers designed 250 years ago; however, the huge challenges ahead won’t change overnight– positively or negatively to a large degree. I’m hopeful there can be some bipartisan solutions. Dare to dream, I know.
- I’ve warned that the prospect of the Dems regaining control of Congress would be negative for the AI trade, since “no data centers in my backyard” was a big campaign issue. My views on the downside risks to AI tech haven’t changed. Confirmation of the Dems having control has put AI-related stocks under more pressure. Crude and energy stocks are under pressure as well. The thinking is that Trump isn’t going to go ahead with more attacks on Iran. Hard to say, since Trump, as we know, is hard to predict (or his next social media post).
- On the upside, consumer discretionary stocks are big time. We have some longs that are up sharply, and I have no complaints. We pared back the current list of ideas ahead of the new site launch, even if some of our views didn’t change. Expect a lot of ideas once the site is live. We’ll email these as they change, and they’ll be visible on the new dashboard, so you won’t have to wait for the notes.
- I hope to be back to our usual programming with the new note changes in the coming days. I’ll leave it at that for today.
US markets – a tale of two indexes
S&P 500 has been resilient vs. the NDX, moving in a sideways range. The downside Propulsion nearly was achieved.
NDX daily still has the downside Sequential in progress to watch. Breaking the 200-day would likely be kicking out the legs from the tech sector.
A few ratio charts
QQQ vs SPY ratio shows how this broke the July low and has a downside Sequential pending on day 6 of 13. Risk remains lower.
Mag 7 vs SPY ratio topped in October and has a downside Sequential pending on day 4 of 13. Risk still is to the downside
RSP equal weight vs SPY had at the lows DeMark Sequential buy Countdown 13 when I showed this last month. There still is an upside Sequential pending on day 8 of 13.
Current ideas
PCT reports after the bell, and what will matter is the CEO’s tone on the conference call. I have low expectations for anything, as the bigger catalyst comes in Q4 and 2027. The market might respond positively if there are no negatives. It’s a longer-term idea, and I’m just trying to be realistic.
demark observations
With the upside move, there are more sell Countdowns 13s – especially with Combos with many on day 12 of 13. Another upside day and these will qualify 13s
