Hi Trader,
The market had a nice day on the heels of an agreement on the framework for a peace deal.
And here's more good news: it rallied but didn't go insane on the news.
The S&P 500 finished nicely higher, up about 45 points.
That's another new all-time high, about 1,250 points off the low tick (the lowest price it hit) on March 30.
Oil fell. More importantly, bonds rallied, but nothing crazy.
IEF (the fund that holds 7 to 10 year Treasury bonds) is now over its 21-day moving average and showing real strength. A continued, mild day-to-day rally is exactly the kind of support this market likes. If bonds start to rally hard, that's where we could see some fluctuations.
VIX (the market's fear gauge) closed at its lowest point since January 22.
All of this points toward two things:
- If you're waiting for a major sell-off, it might not be coming soon.
- The S&P 500 will likely keep moving higher, albeit at a MUCH slower pace.
Love It: Ford Charges Into the AI Trade
Ford Motor Company (F) I don't know if you saw this, but Ford is going to start making batteries for AI data centers. This is a brilliant pivot off the F-150 Lightning. I was surprised that truck didn't sell, but hats off to management for this one.
Ford is already up several dollars, and at the rate it's going, F is probably going to make a serious run at $20 a share. Plus, you ever seen a construction site? It's LOADED with F-150s. If we get a true explosion in AI construction, Ford is going to sell trucks.
Leave It: Exxon Pumps the Brakes Near Term
Exxon Mobil (XOM) Long term, I love this company. Near term, I think the potential peace deal puts some pressure on XOM. I like the stock to $200 a share over the next 18 months.
But first I think XOM tests $140, maybe even $130, as investors fail to recognize how much money this company makes with WTI at $80 a barrel.
I wonder if one of these stocks becomes the Trade of the Week on the Ticker Highlight Show, Monday at 10:30 AM ET.
Better yet: for the first time ever, we're releasing two option trades this Monday.
To get both, join the Ticker Highlight Show before we go live.
Your only option,
Mark Sebastian