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“Those who cannot adjust to change will be swept aside by it. Those who recognize and react accordingly will benefit.”   Jim Rogers                   

Market Commentary:

Blue skies, new highs- remain disciplined and do not chase extended ideas-

• Momentum indicators have gained strength. The wall of worry is intact, and the market keeps climbing.
•  If you are in cash, maybe you are too focused on what you think will happen next instead of allowing the market to guide you.
• The Advance/decline on the NYSE hit another new high, the NASDAQ is still surprisingly weak. The 52-week new-high/new-low numbers look better.
• The infrastructure buildout is an established and much talked about trend now. It is real, and there are a dozen market leaders in this area. The problem is most names are currently over-bought.
• It is Fall clean up time. Sell lagging and sagging companies. Only strong and healthy companies belong in your portfolio.
• Tremendous strength and activity in the bio- tech sector. I would not have any shorts in this sector. Look for a slew of merger activity. I am ready for one.

Economic data and market clues:

Earnings season is back in focus this week. Remember it is more important how a stock reacts rather than what they said about the past.

Short term interest rates will go lower, I think by another 150 basis points by the end 2025.

Maybe it is time to stop focusing on The Fed and own shares in the best companies in the best sectors.

Selected current holdings:

Magnet® : 

Exelixis                                    EXEL

Green Brick Partners              GRBK

Natera                                     NTRA

FACTS:

Amgen                                        AMGN

Generac                                     GNRC

Dycom                                         DY

For more information, contact us.

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