In today’s briefing:
- Upgrading China to Overweight; Europe Breaking Out
- Can A Rate Cut Promise Overcome Tech’s Wobbles?
Upgrading China to Overweight; Europe Breaking Out
- We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment
- Short-Term supports to watch on ACWI-US continue to be $132 (testing now), $130, $128, $125-$126, and $123-$123.50. All signs point to the ACWI-US uptrend continuing for the foreseeable future.
- Upgrading China to Overweight; Europe Breaking Out; Japan Also Remains Attractive. Buys in Consumer Discretionary (primarily autos/parts), Industrials, Services, Health Care, Materials, Financials, and Real Estate
Can A Rate Cut Promise Overcome Tech’s Wobbles?
- Recent stock market leadership had become overly concentrated in large-cap technology stocks, which wobbled last week.
- The good news is market breadth is broadening out, which sets the tone for further price advances.
- However, weakening liquidity and negative seasonality pose short-term risks to the current uptrend.
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