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On Friday October 24 the S&P broke above the massive candle that had contained it for two weeks from Friday October 10. That’s a breakout and it puts the bulls back in charge.

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However, the market remains very thin and the major market cap weighted indexes are being pulled higher by “just seven stocks” – despite what the bulls say. It’s not that the rest of the market is falling apart. It’s just mostly treading water as the Magnificent 7 continue to race higher as can be seen in the first chart above comparing the performance of the MAGS (Mag 7), SPY (S&P 500) and RSP (Equal Weight S&P 500) ETFs over the last 6 months.

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United Health (UNH) reported 3Q25 earnings Tuesday morning before the open and the turnaround appears to be progressing nicely. UNH increased full year EPS guidance marginally from at least $16.00/share to at least $16.25/share.

But the real story here is a multiyear one. If UNH can stay on track, I see no reason it can’t reclaim its former EPS levels approaching $30 and even surpass them. If so, the stock will continue to go higher over the next few years. Continue to ride with Uncle Warren.

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Paypal (PYPL) also reported 3Q25 earnings Tuesday morning and the stock is showing life up 11% at the moment. I have followed PYPL for a long time and owned it for a long time as well before throwing in the towel. They raised 2025 EPS guidance to $5.35-$5.39 from $5.15-$5.30. They also made a deal with OpenAI. I’ll keep an eye on it but I’m not about to jump back in just yet.

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