May 13, 2025

Markets:

Futures linked to the S&P 500 were flat early Tuesday after a strong rally, as investors reacted to an inflation report that came in slightly below expectations.

The Consumer Price Index (CPI), which tracks a wide range of goods and services across the U.S. economy, rose 2.3% year-over-year in April. This was just below the 2.4% increase forecasted by economists surveyed by Dow Jones. Core inflation, which excludes food and energy, held steady at a 2.8% annual rate—matching expectations and unchanged from the previous month.

Monday’s market surge followed news that the U.S. and China agreed to reduce tariffs for 90 days, fueling optimism that tensions won’t derail the broader economy.

Over the weekend, negotiators in Switzerland reached a deal to lower reciprocal tariffs between the two countries to 10%. However, the U.S. will maintain its 20% tariff on Chinese fentanyl-related imports, bringing total tariffs on China to 30%.

Treasury Secretary Scott Bessent told CNBC’s Squawk Box on Monday that further talks with Chinese officials are expected “in the next few weeks” as both sides work toward a broader agreement.

Portfolio:

Yesterday was a breakout day for the charts—and for our portfolio. Momentum is surging in a way we haven’t seen in over six months.

Heading into today’s session, we’re holding one position in QUBT.

Here’s what we’re watching:

SPY: Strong bullish gap held; bear gap now filled. Key levels above 582.44 are 585.29 and 588. The setup is very bullish.

QQQ: Island bottom pattern confirmed, breakout above 506.50. Next resistance level is 512.

GOOGL: Key levels to watch are 158.48, 160.23, 162.08, 163, and 165. The stock remains a sleeper—still recovering post-AAPL announcement.

TSLA: Trading above 300. A break above 320 could trigger a move to fill the bear gap from 327.45 to 330.20. This one has serious potential to be the stock of the summer.

NVDA: On top watch today. Big moves may be coming.

Be ready today!  Full attack mode so close.