Friday came out of the gate with gusto and settled down into the close, but it was still good enough for ten of eleven sectors to finish higher, and all but one factor to close in the green.

Need Breakouts

The NASDAQ-100 (NDX) has broken out to new highs, but lots of key names are still struggling to do the same. This is a good week for leaders to step up and create more upside momentum and fear of missing out (FOMO).

Negative headlines sent crude oil higher, while improved movement in the Strait of Hormuz was ignored. I think that’s over, and markets are preparing to look past peak crude oil.

While The U.S. Flirts with Socialism

Brazil has seen a tectonic shift, and it looks like it could become the latest South American country to move away from Socialism/Communism. 

They’ve lived with this for decades and have woken up, while young college graduates in America are romanticizing these twin political evils.

This is great news for markets and capitalism. And amazing news for Latin America.

Today’s Session

We begin the week in a stealth bear market: S&P 500 versus S&P 500 equal-weight – pure carnage.

Mag Seven Quiet Comeback

Meanwhile, Mag Seven, which Wall Street universally wrote off earlier this year, has come roaring back, and investors are piling in.

It's not really a comeback, to quote LL Cool J; Mag Seven has been doing this for years.

Follow the Leader

The pack leader is breaking out and still looks cheap. Jensen is making all the right moves.  The entire chip sector has been on fire, and like NVDA, they have gotten cheaper lately – they are trading at a discount to the broader market.

Still, naysayers hold on to comparisons to the year 2000, many citing this chart from BTIG over the weekend.

The chart patterns are similar; the value proposition between then and now is orbits apart.

Comments

the 'smart money' is dumb and short as usual as are the bond vigilantes. They like all the government numbers cant measure productivty enhancements from SI. S & P "consensus" estimates off by 100% last 2 quarters! r u kidding me? All those crooked Ibank bean counters should be fired. Corporate profits are our best leading economic indicator always have been Buy US only stocks now overweight tech short any woke corporation like DIS CRM NIKE VZ etc Mark Schneeberger on 10/5/2026 10:22:36 AM

We need to get the information our before mid-term elections about Brazil changing and----WHY. Good for the GOP. Brazil, having been under Communism for decades---NOW SEES THE LIGHT. MAKE IT KNOWN TO ALL OF OUR VOTERS !! James G. Williams on 10/5/2026 10:39:14 AM

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