May 20, 2025

Markets:

Stock futures slipped early Tuesday, putting the S&P 500′s six-day winning streak in jeopardy.

The moves in futures follow a relatively calm trading session on Monday that saw the S&P 500 grind higher by 0.09% for its sixth straight positive session. The Dow gained about 137 points, or 0.32%, while the Nasdaq Composite ticked up just 0.02%.

While Monday’s gains were marginal, they do add to what has been a rapid and sharp rebound for stocks over the past five weeks. The S&P 500 is now just 3% from its record high.

The gains came despite continued uncertainty around the impact of tariffs on the economy and worries about a potential U.S. recession. Investors even shrugged off the downgrade of the U.S. government’s credit by Moody’s Ratings.

Traders on Tuesday will keep an eye out for commentary about the Federal Reserve’s interest rate policy, as several central bank officials are scheduled to speak on Tuesday, including St. Louis Fed President Alberto Musalem.

Portfolio Update:

Hopefully, yesterday’s pre-market notes helped ease some nerves. Despite deep red futures, we saw underlying strength that suggested a reversal—and that’s exactly what played out with a strong day across the board.

Heading into today’s session, we’re holding positions in NN and IONQ.  The queue is heating up, and based on pre-market action, we expect several trades to trigger.

I’m watching SPY closely—we want to see a break and hold above 595. There’s clear potential building for a strong summer run. Yesterday around noon, we saw a notable money inflow into the market, with nearly $4 billion reported. The headlines are starting to write themselves:
"Hedge funds are underweight. Summer setup is strong. Call the 'smart money' back from the Hamptons—there’s a rally to chase."

We’ll be ready for it.  Let's have a monster day!