Republic Risk: Keeping It Real

Good morning... we're off to one last adventure in Rome, and this market found a little bit of stability after a record expiration last week. Stay bullish.

Equity Storm Watch Is GREEN on the S&P 500 and RED on the Russell 2000

Futures are flat following yesterday's tech rout, led by market darling Nvidia, which sold off 6.5%.

This pullback highlights the risks of crowding into popular names.

Since reaching its recent high of $139.98 on Thursday, Nvidia is now down 11%. Before you panic, remember that this is how the market naturally functions—stocks do not ascend in a straight line indefinitely. Should Nvidia retreat to $115.82, it would mark a 38.2% Fibonacci retracement from its recent upward move. Meanwhile, as investors recalibrate their portfolios, attention shifts to key earnings reports from FedEx (FDX) and Carnival (CCL) today, alongside the Richmond Fed Manufacturing Index and Consumer Confidence Index. Then, all eyes turn to Friday’s crucial PCE price index for May, which offers a clue for Fed rate hike plans in the 2nd half of 2024. 

FedEx will show us the health of the economy.

Equity Sector Strength

I am very bullish on credit s…