Update: Green Across the Board

A surge in buying for consumer cyclical, and selling pressure falls to comfortable levels

Dear Fellow Expat:

Just a quick update. We’re still green across the board. This morning, I received an email about that due to the shift from Friday when our Russell 2000 reading sat at Yellow.

I released the morning piece a little past 9:35 to get a sense of how money flows into the U.S. market to start the day. The reason is that we were closed yesterday, but money was still in motion globally. A lot had moved into U.S. equities in premarket hours, and we continued to rally into the day.

There’s been a surge in buying on the small-cap side.

The headlines will suggest it has to do with optimism around tariffs, but the truth is that liquidity support has improved. Over the weekend, Michael Howell released another report on central bank liquidity and showed a recovery over the last week.

Also - be careful right now around energy. If you had bought Apache (APA) - or any of the producers - it’s not a bad time to take profits.

The reason? We moved OVERBOUGHT on the OILU - the leveraged ET…