The market initially took the Iran attacks in stride early last week, but as oil prices elevated, the sellers took the upper hand, pushing the overall intermediate-term trend to negative and, of course, doing a lot of damage to many stocks. Now, given that the reason for the selling is fairly obvious at this point (oil prices, Iran, etc.), could things reverse with some good news? Yes, and we obviously saw some of that today, with hopes the attacks may be near an end helping the market recover nicely by day’s end. Thus, we do remain flexible should the buyers flex their muscle—but we also always go with the evidence, and while today’s bounce was nice, most indexes and stocks are still sitting below key levels. We have our Market Monitor at a level 5, though we could change that (up or down) depending on what comes.
This week’s list is well-rounded, with some growth, precious metals, oil and even some AI infrastructure, which we do find encouraging given what’s going on in the market. Our Top Pick is has rested for two years but recently gapped up on earnings as its AI servers see huge growth. A follow-through on the earnings move would be enticing.
