August 13, 2025

Markets:

Futures tied to the S&P 500 and Nasdaq 100 moved higher early Wednesday as investors come off a record-setting session that saw encouraging news on the inflation front.

The major U.S. indexes are coming off of a strong trading session, which saw the S&P 500 and tech-heavy Nasdaq Composite close at fresh record highs. The S&P 500 added 1.1% to settle at 6,445.76, while the Nasdaq ended 1.4% higher at 21,681.90. The Dow Jones Industrial Average added about 483 points, or 1.1%, to close at 44,458.61.

The Russell 2000 Index jumped nearly 3% during the session as small-cap stocks are generally considered a beneficiary of lower short-term borrowing rates.

Thursday’s producer price index report on wholesale inflation will add another piece of the economic picture. The report comes ahead of the Fed’s Jackson Hole meeting on Aug. 21-23, which could also help shape expectations for the central bank’s next policy move.

Portfolio:

We head into today’s session positioned in GLW, RCAT, and TSLL.

This market’s runway—the one we first highlighted back in April while the crowd was betting against it—is now extending and lifting to new highs. The breakout activity we flagged last week is accelerating. Tech is powering this wave, and what’s taking shape is the kind of environment traders dream about. Sure, there will be pullbacks, but a runway like this hasn’t been seen in decades.

Plenty of setups are coiling for launch, and once they fire, it’s game on. And remember what we told you weeks ago: there’s still a massive pile of cash parked in money market accounts waiting to rotate in. Add to that the fact hedge funds are only up 4.67% YTD vs. the MSCI World at +11.19%—meaning the market’s not topping until CTAs flip green.

Here’s another bullish nugget: SPX earnings revision sentiment is now at its highest since November 2021. Historically, stocks rise 9 out of 10 times over the next six months after this setup.  You know thats the rule.

So, why share all this? Because the “hated rally” is still building, the naysayers are still wrong, and the next several months could be nothing short of epic.