July 1, 2025

Markets:

U.S. equity futures slipped early Tuesday, kicking off the second half of 2025 after the S&P 500 wrapped up a blockbuster quarter with yet another record close.

The S&P 500 rose 0.5% on Monday, setting a fresh all-time high. The Nasdaq Composite followed suit, also climbing 0.5% to a new record, while the Dow gained 275.50 points, or 0.6%.

Monday’s rally came as Canada reversed its planned digital services tax in a bid to ease trade tensions with the U.S. The move followed President Trump’s Friday announcement that he would be “terminating ALL discussions on Trade with Canada.”

With Trump’s 90-day tariff reprieve set to expire next week, traders are watching closely for trade resolutions that could extend the market’s momentum.

Markets have staged a remarkable recovery since April’s sharp decline, when Trump’s aggressive tariff stance briefly pushed the S&P 500 near bear market territory. Since then, the major indexes have surged back—closing Q2 with a 10.6% gain for the S&P 500 and nearly 18% for the Nasdaq.

While stocks are now at record levels, many traders remain optimistic that the rally has more room to run in the second half of the year.

Portfolio:

We head into today’s session with open setups in MSTU, AMDL, AUR, and LCID.

Let’s get right to it: July 1st is historically one of the most bullish days of the year, and the tape continues to reflect that strength. We’re firmly in Positive Gamma Territory, meaning dips are likely to be bought aggressively.

Key levels:

616 break could bring a fast move down to fill the bull gap at 608—that’s a level we expect to act as strong support.

Any gap fills in this environment should be viewed as dip-buying opportunities.

We don’t see anything sub-600 in the near term.

The rotation is real, and just as we noted recently, more sectors are catching fire. A monster summer move appears to be brewing—and we think it’s just getting started.