The market continues to rise, and yesterday’s Fear & Greed Index moved in the wrong direction. Or perhaps it moved in the right direction based on market breadth and traditional valuation metrics.

Info-Tech (XLK) dominates, while Real Estate (XLRE) continues to react positively to lower rates.

Buying Begets Buying

The nonbeliever’s daily shout-out concerns about the absurdity of the stock market rally and its competition. The rally replies by twisting the knife.

Large-Cap growth remains in a league of its own, but Large-Cap Core is finding more buyers.

Heat Map

Yesterday, an Artificial Intelligence (AI) halo was seen in Utilities (XLU), while lower rates nudged big banks.

The Chips Shift Gears and Move Higher

I don’t usually recommend books, but James Hilton’s “Goodbye, Mr. Chips” is like an idyllic summer day.

VanEck Vectors Semiconductor ETF (SMH) stocks moved into a higher orbit, but volume was lighter, and the Relative Strength Index (RSI) is signally short-term overbought.

Leading the Parade

Advancers were mostly chip stocks, which may explain how Chipotle Mexican Grill (CMG) got on the list. Today, Adobe Inc. (ADBE) could lead the Tech parade.

But…

I worry about the economy and think the Fed should cut now rather than react too late.

Today’s Session

Import prices were down -0.4% in May after gaining 0.9% in April. This data marks another softer inflation number for May along with PPI and CPI. 

Export prices fell -0.6% down from an upwardly revised 0.6% for April and missing consensus of a flat reading. Capital goods, consumer goods, and food prices were higher, while auto export prices were unchanged.

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