My title for 2025 has been, The Year Momentum Died. I argued that buying and selling strength was going to be the most rewarding strategy. Well friends, that epitomizes what we are and have been seeing. Wednesday saw the S&P 500 finally breakout to the upside and get people a little more excited. I was hoping for a 1-2% spurt to perhaps do some selling and risk reduction. But the bulls couldn’t muster any momentum. They just kinda died. And I still believe the stock market remains in a range and will be choppy. If you forced me to add color, I would say that when if and when the gains for 2025 are erased, that would be a really good buying opportunity for a a run to new highs.

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It’s just tough to get really excited right here. Markets will do their best to confound the masses. Bulls aren’t happy. Bears aren’t happy.

Today is options expiration and seasonal trends turn negative for the rest of February which really means just next week. Remember, these are just light headwinds and tailwinds.

On Tuesday we bought more MQQQ. We sold EMB. On Wednesday we bought PEP and more XLF. On Thursday we bought EMB and more MQQQ.

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