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The market has recouped all of its losses suffered in the wake of Liberation Day.

It looks like a V-bottom, but I’m skeptical for a couple of reasons. One, there is still tremendous uncertainty about the outcome of the trade war. Until that overhang is lifted, it’s hard for me to justify a market that’s off to the races.

Two, the market was already selling off before Liberation Day. I think that’s because it was starting to price in an economic slowdown. Investors seem to have forgotten that fact as well.

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Palantir (PLTR) moved back to all-time highs after an almost 50% correction, and the company will report earnings Monday afternoon. It’s worth remembering that comments by Palantir CEO Alex Karp were the catalyst for the market top on Feb. 19. With a market cap over $300 billion and a rabid retail investment following, Palantir is an important stock.

While I don’t understand the business, the fundamentals are stellar. The problem is valuation. Palantir trades at 84x the midpoint of its 2025 Revenue Guidance. Not 84x EPS -- 84x Revenue.

“The valuation doesn’t make any sense,” Jefferies analyst Brent Thill told Barron’s. I wonder if their earnings report on Monday could catalyze a correction in a market on the verge of overheating.

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