[Chart courtesy of MarketWatch.com]
- Moving the market
The bulls found their footing today as technology stocks bounced back into favor.
Much of the enthusiasm centered around Elon Musk’s empire, with SpaceX surging after reporting explosive revenue growth and news that SpaceX and Tesla have formed committees to explore a potential merger.
Tesla joined the rally as investors looked ahead to its earnings report.
The AI trade also got a fresh shot of adrenaline. Strong growth from SpaceX’s AI business helped reignite interest in the sector, while investors now turn their attention to Meta’s earnings for clues on whether the AI story still has plenty of runway left.
After recent concerns about massive AI-related spending, tomorrow’s reaction could be just as important as the numbers themselves.
Elsewhere, bond yields edged higher, diesel prices dropped sharply, the dollar strengthened late in the day, and gold managed a modest gain. Bitcoin, meanwhile, seemed blissfully unaware of the crosscurrents and continued its march toward $85,000.
Today’s message was simple: tech reclaimed leadership, AI optimism returned, and now all eyes are on Meta.
Will tomorrow’s earnings keep the rally fueled, or remind us that expectations have gotten a little ahead of reality?
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)
Tech was back in the driver’s seat today, shaking off yesterday’s pullback and helping both the S&P 500 and Nasdaq finish with respectable gains.
The metals joined the party too, although they seemed content to mingle near the snack table rather than tear up the dance floor.
Our TTIs caught the bullish bug as well. The international model kept up the momentum, while the domestic side took a slightly more measured pace after yesterday’s sprint.
Not every day needs fireworks, sometimes a steady climb gets the job done.
This is how we closed 10/21/2026:
Domestic TTI: +5.10% above its M/A (prior close +4.72%)—Buy signal effective 5/20/25.
International TTI: +3.99% above its M/A (prior close +3.59%)—Buy signal effective 5/8/25.
All linked charts above are courtesy of Bloomberg via ZeroHedge.
———————————————————-
WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?
Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly to get more details.
Contact Ulli