The Three Wise Men

Insiders have called a bottom, but Treasury markets remain stressed. Meanwhile, positive buying in technology gives me hope while all other sectors show weakness.

Action to Take: Post-holiday trading resumes, with markets giving back some gains this morning after two strong sessions pushed the S&P and Nasdaq up for the week. While ongoing rate concerns and global growth worries weigh on sentiment, an interesting signal emerges from corporate executives. Friday's quad witching sparked the strongest insider buying since the beginning of 2024.

----------------------------

Momentum: Markets embraced the holiday spirit on Tuesday as semiconductors and mega-caps led a broad advance, with the Nasdaq and S&P 500 gaining over 1%. While encouraging after last week's intense selling pressure, thin holiday volumes suggest we take this bounce with a grain of salt - we're already giving back roughly half those gains in premarket trading. We're watching for signs of a potential bottom forming, but smaller caps continue to struggle as inflation and rate uncertainty weigh on risk appetite.