The Stock Market is EXPLODING.. (BREAKING NEWS)

The stock market is exploding higher today, ladies and gentlemen. We have a lot of news and developments to get into in today's episode. There really just is broad green out there. I mean, look at the heat map for the S&P. Outside of industrials and some oil and gas stocks, most sector groups today are doing very well. And there is a big reason for that we will get into at the top of today's video. The only thing that I ask you to do ever on this channel is to hit the like button for the YouTube algorithm to help push this video out to more people that need to see it that will make money from it. And let's begin. All right. So, first things first, the Russell 2000 today up 0.66%. NASDAQ 100 up 1.34. NASDAQ itself up 1%. S&P's up 0.83%. 83%. The Dow is up 0.33%. 10-year Treasury yields today are falling over 7 basis points. That is the largest decline we have seen in a long time. 10-year Treasury yields still elevated at 4.62% but again falling today, making some progress, helping to fuel the broadening of the markets on a day like today. You can also see oil is down 3% today sitting at just under $81 per barrel. So first things first today part of the reason and probably the biggest reason why stocks are seeing this broadening today is PPI month overmonth came in at 0%. Last month was actually revised up a little bit to negative0.1%. The forecast was for a rise of about 0.2%. So that's a big downward surprise to PPI. Now if you guys are unfamiliar, PPI is producer price index. CPI is consumer price index. So in logical order, you'd expect if we get inflation, that inflation comes through PPI and then goes into CPI, right? Companies would get the inflationary costs first and then pass them on to consumers. If PPI is coming in low, that's a sign for the future that maybe we won't have as big of an inflation problem. This morning, we also had your initial jobless claims that came in at 209,000. The forecast was 202,000. So even though 209,000 initial jobless claims is really low, it is higher than expected. So mix that with a low PPI report and people are feeling optimistic. In fact, following this PPI report today, traders are no longer fully pricing in a Fed rate hike by the end of this year. But there still is a high probability that we could get a rate hike this year. You could see there's a 34% chance of a pause throughout this year. 44.7% chance of one rate hike, 18.8% chance of two rate hikes, and 2.5% chance of three rate hikes. But to a certain extent, like as we get to September's Fed meeting, after September's Fed meeting, the probability of three rate hikes or even two, it's going to fall a lot. So, taking that out of the equation, you're actually not pricing in a full rate hike this year. You're still pricing in like 20 basis points, 23 basis points of hikes, but you're not pricing in a full rate hike. So I do think in terms of the broadening of this market for small caps and software cyclicals, industrials, the areas that benefit from a less hawkish Fed or actually seeing a pause and and no rate hikes, there is more fuel on the fire ready to go to continue to lift those areas higher as we get more CPI reports, as we get more jobs reports, as we get more Fed meetings and commentary that suggests we won't be getting any rate hike. We also had a speech today from Fed Hammock and that's another big variable today that did cause stocks to move higher. We'll talk about that in just a moment. Tomorrow we do have economic data as well. Actually quite important economic data with retail sales month overmonth. That's going to give us kind of a an insight to economic activity right now and that will be important. You also have Michigan consumer sentiment that comes out tomorrow morning. This is a survey of like 200 left-leaning people. It doesn't tend to mean a whole lot in all reality, but the markets do respond to it. Specifically, 5-year inflation expectations and one-year inflation expectations in which you're actually expecting both of those to come down a little bit tomorrow. And just to mention earnings here today, you do have applied materials and figure workhorse, the metals company that will report today in after hours. Next week, you're going to get a lot more of your software stocks, more cyclicals, more industrials, and then the week after that, you're going to get Nvidia, which is going to obviously be a big catalyst for this market. Despite the data and information that we've seen over the past couple of weeks that says the Fed should not be doing anything right now, there are some delusional Fed officials on the FOMC committee. Fed Hammock is one of them. She today quote repeats the need to raise rates right now. I know some of these people, they're delusional, but thank God it's not the whole committee, right? [laughter] or this bull market would be over with. Fed Hammock says, "My view is we need to act now." Fed Hammock says the labor market is stable and you know Fed Hammock acts as if they raise rates it would actually do anything for inflation. No, it would just hurt the consumer. It would just hurt people. You you just want to hurt people and not affect inflation, right? [laughter] um economic practice has been for a very long time that when you want to get inflation down, you just take away jobs. You make people lose their jobs. How that sounds criminal when you say it out loud, right? Impressive work by some of these Fed officials. Fed Hammock says inflation amid recent shocks has risen. Fed Hammock says unemployment is the best indicator of the jobs market. She says it's stable. Fed Hammock says policy is not restrictive. Businesses are expected to grow and borrow. Fed Barkin today also says that rate hikes are still on the table. Fed Barkin says it remains an open question whether rates must rise to bring inflation back to 2%. Fed Barkin says inflation could ease as wage pressures moderate and tariff and oil shocks fade. Though price pressures may remain embedded, many Fed officials believe current rates are already restrictive enough. Meanwhile, consumer spending remains resilient. Business investment is strong and AI is helping firms experiment with reducing headcount. Fed Barkin says AI investment seems impervious to the level of rates. Fed Barkin says some inflation drivers, including AI, could be persistent. Fed Barkin says US investment boom not confined to data centers. Fed Hammock says inflation is broad-based, not just in certain sectors. I have learned that from talking with businesses. Well, why don't you go talk to consumers? Why don't you go ask people if they can buy a home? Come on. These people need to get their head out their ass already. Fed Hammock then says, quote, "Payroll data is noisy." Sandisk's CEO today says the company is committed to mid to high teens volume growth. PCE inflation is seen at 3.6% in July. Oxford economist expects expects the Fed's preferred inflation gauge headline PCE to rise 3.6% 6% year-over-year in July, easing slightly from 3.7% in June. The report is due later this month. CNN fear and greed index as of today is sitting at 67 on the high side of greed. A month ago, you were at 40, which was in fear. So, it has the pendulum has shifted a little bit. But Fed Barkin today calls the labor market vulnerable and says the Fed is not in a forward guidance place. Barkin says he does not think the labor market is as strong as the data indicates and worries about how long consumer spending can hold up at the lower end. He is torn between focusing on inflation running above target for more than 5 years and the fact that it jumped in two separate episodes and is now slowing, adding that continued slowing in headline inflation could help keep expectations in check. We also have some oil news today. As oil prices drop as investors weigh falling demand amid Middle East tensions, there was a report out today from the International Energy Agency that said global oil demand is set to fall further than previously expected this year. Although we don't have any specific news from Iran Oman negotiations or any further details on where things stand between the US and Thrron. You can see oil today falling about 2.5% on this expected less demand environment from this report today. And I do think the broadening of this market will continue. I don't subscribe to the view that we have to have some kind of violent downturn before the midterms. I would make the argument you've already fallen 11 and a half% um you know you bottomed out here on what July July 29th. We may have pulled forward the post or pre-midterm correction that you typically tend to see and just got it a little earlier. There's nothing to say you have to have some kind of violent correction. I don't expect some kind of face ripper rally before the midterms either though. But I do think from a logical perspective, Donald Trump right now wants damage mitigation. He wants oil to come down. He wants gas prices to come down. He wants consumers to feel better heading into the election. The last thing you want is gas prices between $4 and $5 or higher heading into a midterm election. It already looks like Republicans are going to do really bad on the midterms. I think over the next month or two, you're more likely to get good Iran news than bad Iran news. So that to me, I think adds positive fuel to the fire. Now I will tell you this is not a one shoe onesizefitsall shoe kind of market. You have the AI hardware trade and hyperscalers which are kind of all in that one trade if you will. That's what moves the headline index. So even though the NASDAQ fell 11 and a half% from from peak to trough in the trading community portfolio, we didn't fall at all. This portfolio fell like not even five five percent like it it was nothing right here during the NASDAQ's 11 and a half percent decline. This portfolio is up almost 89% year to date. Okay. Um it's a part of the broadening theme. It is again finding those opportunities before Wall Street. You want to find these opportunities before Wall Street loves them. That's what we do over there. identify and execute exponential opportunities before Wall Street. Wherever they are, I don't care if they're AI, hardware, I don't care if they're software, cyclicals, industrials robotics automation we're going to go where the opportunity is. And you know, I own stocks in many different sector groups of this market, financials included, right? This is what has been outperforming recently. And you don't even have like Wall Street hyped up about the uh hyped up about the broadening trade yet. Like nobody's even really talking about that. People are still caught up on hardware stocks. And while I do think some hardware stocks can do well, I'm bullish on Marll, Qualcomm, AMD if you guys did not know, I don't think that is where the exponential opportunity is at this moment. I think Wall Street is slowly showing their cards here that the broadening trade [crying] has legs to it. Now, if you guys want to come trade and invest alongside of us, that link is down below in the description of today's episode. I think we're very early in the next AI trade, which I've explained on this channel is robotics, automation, AI software, and cyber security. But even more so, you have opportunities, financials industrials uh cyclicals small caps that are even outside of the next big AI trade itself. And look, if we do get good news on the war with Iran and oil falls and inflation continues to come down and the Fed gets more doubbish, that's positive for all areas of the markets, but it's more positive for, you know, the next AI trade, right? the four themes of the next AI trade, cyclicals, industrials, small caps. It's less positive for AI stocks and hardware stocks, and that could fuel the broadening to continue, but we will talk about that more in the next video. Ladies and gentlemen, that is it for today's episode. Hit that like button, subscribe to the channel if you guys have not done so already. Have a fantastic rest of your day and I will see you in the next