[Chart courtesy of MarketWatch.com]
- Moving the market
Stocks came out of the gate strong today, led by a rebound in semiconductors and AI-related names after Anthropic’s IPO filing reignited some enthusiasm for the AI trade.
Frankly, the market seemed to need a fresh AI story, much like it needed SpaceX before it. Investors have been talking about this one for ages, and now they finally have something tangible to get excited about.
The filing helped ease concerns that AI spending may be peaking, giving tech a much-needed boost after a rough stretch that left semiconductors deep in correction territory.
Meanwhile, lower oil prices added a tailwind for equities, although crude remains elevated as geopolitical risks haven’t exactly packed their bags.
Elsewhere, bond yields were mixed, silver and Bitcoin lost a little shine, and Brazil reminded investors that politics and markets can be a cruel combination, with some stocks getting absolutely clobbered following the surprise election outcome.
With the Fed decision arriving Wednesday and a likely pause already priced in, the big question is: can today’s AI-fueled optimism turn into something more durable, or was this just a well-timed shot of caffeine for the market?
2. Current domestic “Buy” Cycle (effective 5/20/2025); International “Buy” Cycle (effective 5/8/25)
Our domestic bullish cycle that began on November 21, 2023, concluded on April 3, 2025, following a market downturn triggered by President Trump’s tariff policy announcement.
This development caused significant declines across major indexes and broader market indices. However, markets subsequently rebounded, culminating in a new domestic “Buy” signal taking effect May 20, 2025.
Concurrently, our International Trend Tracking Index (TTI) experienced parallel volatility. On April 4, 2025, it breached critical thresholds, prompting a “Sell” recommendation. This position reversed as global markets recovered, with the International TTI regaining sufficient momentum to issue a new “Buy” signal effective May 8, 2025.
3. Trend Tracking Indexes (TTIs)
The major indexes maintained their early upside momentum with all three closing in the green led by the tech sector.
Gold and copper participated, but silver remained on the sidelines. Our TTIs joined in and advanced moderately.
The market kept its footing today, with all three major indexes holding their early gains and finishing in positive territory, led by a strong showing from tech.
Gold and copper came along for the ride, while silver apparently decided it needed a personal day.
Our TTIs participated as well, posting modest gains and continuing to move in the right direction.
Not a blockbuster session, but a solid reminder that steady progress is often the market’s favorite trick.
This is how we closed 10/26/2026:
Domestic TTI: +5.15% above its M/A (prior close +4.79%)—Buy signal effective 5/20/25.
International TTI: +3.39% above its M/A (prior close +3.16%)—Buy signal effective 5/8/25.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
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