Tuesday’s CPI report sparked a broad rally in U.S. markets, led by the transport sector, with United and Delta pushing the S\&P 500 to a new all-time closing high. The Dow and equal-weighted S\&P 500 also returned to buy signals, while small, mid, and micro-cap stocks, as well as semiconductors, surged. Technology was mixed, with the Nasdaq 100 and Magnificent Seven ETFs hitting new highs, but Canadian Infotech remained flat, and many individual tech names underperformed.
The ARK ETFs were mostly positive, with Fintech, Innovation, Industrial, and Space ETFs all back on buy signals, while Genomics lagged. Several high-profile tech stocks, including Salesforce, PayPal, and Zoom, continued to decline, showing underlying market divergence. While major indices remain strong, Stephen cautioned that many ETFs are now near “panic zone” tops, where gains are harder to achieve, and risk-reward levels are less favorable.
Stephen Whiteside
Wednesday, August 13, 2025
