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The billion-dollar diversity, equity and inclusion (DEI) industry has infiltrated every sector of society, from corporate boardrooms to government agencies. In the public sector, it has morphed into a boondoggle, funneling taxpayer dollars into products and programs aimed at indoctrinating Americans under the guise of progress. A recent X post by Secretary Brooke Rollins at the U.S. Department of Agriculture (USDA) exemplifies this overreach, exposing how the Biden administration politicized even the most basic agricultural resources — seeds — turning them into vehicles for DEI propaganda. 

Rollins recently posted an image of USDA tomato seed packets found behind a door emblazoned with the words, ‘These seeds are for growing, diversity, equity, inclusion, and accessibility at USDA.’ With the seeds were decorative note cards that stated: ‘If You Can Be Anything, Be Inclusive At USDA.’  

The DEI seed initiative seems to have been an outgrowth of President Joe Biden’s Executive Order 13985, signed in January 2021, which mandated equity action plans across federal agencies. Biden’s EO was issued to encourage workers to seek ways of embedding DEI into their agencies. It no doubt is responsible for much government waste, and, as Rollins said, ‘There will be no more American taxpayer dollars spent on DEI initiatives or #WOKESEEDS at the @USDA.’ 

In the meantime, farmers dependent on USDA to focus on its mission suffered along with other Americans. According to data gleaned from the U.S. Bureau of Labor, while farmers grappled with real challenges — food inflation surged 23.5% between February 2020 and May 2023, and fertilizer prices spiked 300% in 2022 — the USDA diverted resources to ideological endeavors. 

The department’s agenda ranged from items such as the seeds to a study with the claim, ‘It is also important to recognize that transgender men and people with masculine gender identities, intersex and non-binary persons may also menstruate.’ The result? Wasted taxpayer money and propaganda infiltrating even the seeds meant to grow America’s food supply. 

This isn’t just about a waste of taxpayer dollars; it’s a betrayal of public trust. During Biden’s tenure, farmers faced supply chain disruptions and regulatory burdens, yet the USDA prioritized DEI initiatives over practical support like securing food supply chains or reducing red tape.  

The absurdity of DEI seed packets — some users even questioned if they could be used to grow tomatoes — underscores the overreach of the previous administration’s woke agenda. A 2025 White House directive, which terminated all ‘Equity Action Plans’ and related grants, labeled such initiatives as ‘immense public waste’ and discriminatory, aligning with Rollins’ move to end this spending at the USDA. This policy shift, reinforced by the America First Investment Policy introduced in February 2025, redirects resources to agricultural innovation, not ideological agendas. 

The USDA’s DEI seeds are a microcosm of a larger problem: the billion-dollar DEI industry has overstepped, using taxpayer dollars to push propaganda at the expense of practical governance. Rollin’s approach is balanced and practical. USDA should focus on food security over symbolic gestures like DEI seeds. Rollins’ decision to expose the waste and reassure Americans of her commitment to running a responsible Department of Agriculture is a healthy signal of a return to accountability that will ensure that taxpayer dollars support American farmers, not ideological indoctrination.  

Ferreting out wasted funds that undergirded the politicized agendas of the Biden administration sends a strong message to other federal agencies that they too need to closely examine their agencies. This should guarantee that commonsense and accountability are working together to ensure that legally prohibited, divisive DEI initiatives are being brought into alignment with civil rights laws and constitutional protections. 

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Vice President JD Vance condemned European countries last month for a lack of commitment to democracy as many of them lash out with lawfare attacks against populist leaders.

Vance’s critique applies to more than just Europe, however, as populist leaders across the globe are facing legal troubles from outright election bans to criminal convictions.

Here are the top populist leaders facing the most pressure.

1. Marine Le Pen, France

Right-wing French politician Marine Le Pen and several members of her ascendant National Rally party were convicted of embezzlement on Monday, and she herself has been banned from running in the 2027 presidential election.

Populist leaders from across Europe condemned the verdict, pointing to her significant lead in the polls.

‘Those who fear the judgment of voters often seek reassurance from the courts. In Paris, they have condemned Marine Le Pen and would like to remove her from political life,’ Italian Deputy Prime Minister Matteo Salvini said following Le Pen’s verdict.

‘We are not intimidated,’ he added. ‘Full speed ahead, my friend!’

2. Jair Bolsonaro, Brazil

Brazil’s Supreme Court accepted charges against former President Jair Bolsonaro last week over an alleged attempt to remain in office after his 2022 election defeat, ordering the former leader to stand trial.

All five justices ruled in favor of accepting the charges leveled by Prosecutor-General Paulo Gonet, who accused Bolsonaro and 33 others of attempting a coup that included a plan to poison his successor, current President Luiz Inácio Lula da Silva, and kill a Supreme Court judge.

The former president has repeatedly denied wrongdoing and says he’s being politically persecuted.

Under Brazilian law, a coup conviction carries a sentence of up to 12 years. When combined with the other charges, it could result in a sentence of decades behind bars.

3. Calin Georgescu, Romania

Calin Georgescu won the first round of Romania’s presidential elections earlier this year, only for the election to be canceled due to allegations of Russian collusion in Georgescu’s favor.

Georgescu was then taken into custody and has since been banned from running in the election, despite leading in polls.

4. Matteo Salvini, Italy

Italian Vice Premier Matteo Salvini faced years of legal trouble due to accusations that he had illegally detained roughly 100 migrants during his term as interior minister in 2019.

The 2019 incident saw migrants held offshore on a humanitarian rescue ship. Italian courts dropped the charges against Slavini in December.

‘Protecting our country’s borders from smugglers is not a crime,’ Salvini said shortly after the verdict. ‘This is a victory for the League and for Italy.’

5. Imran Khan, Pakistan

Pakistan’s former Prime Minister Imran Khan was jailed last month on corruption charges, though many of his supporters have compared his situation to that of President Donald Trump and the charges he has faced.

A Pakistani court sentenced Khan and his wife, Bushra Bibi, to 14 and seven years in jail after finding them guilty of corruption. They were convicted for allegedly accepting land as a bribe through the Al-Qadir Trust, which they had set up while Khan was in office. Khan, however, maintains his innocence, describing the events as a ‘witch hunt’ in exclusive comments to Fox News Digital. It is just one of the more than 100 cases he is facing.

Khan’s plight has also been highlighted by longtime Trump ally and adviser Richard Grenell, who took to social media late last year when he tweeted, ‘Free Imran Khan!’

6. Donald Trump, United States of America

President Donald Trump has faced waves of legal trouble from his political opponents stretching back nearly a decade to his first administration.

First he faced down the now-discredited Russia collusion claims before once again facing impeachment for negotiating aid for Ukraine. Once out of office, federal and state governments targeted his business dealings with investigations, eventually resulting in his conviction for falsifying business records, a verdict his allies say was bogus.

Trump has acknowledged that populist leaders like him are facing challenges across the globe. He remarked on Le Pen’s ‘very important’ situation in a statement Tuesday.

‘She was banned for five years and she was the leading candidate,’ Trump said. ‘That sounds like this country, that sounds very much like this country.’

Fox News’ Avi Kumar, Benjamin Weinthal and the Associated Press contributed to this report.

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The legal resistance to President Donald Trump’s second term is in full swing with more than 120 lawsuits filed since Jan. 20 by states, advocacy groups and individuals targeting his executive orders and policy agenda.

As the lawsuits move through the judiciary, understanding the structure of the federal court system can help clarify how these challenges are likely to unfold.

Article III of the U.S. Constitution establishes the Supreme Court along with ‘inferior Courts as the Congress may from time to time ordain and establish.’ The Constitution also states that judges shall hold their offices during a period of ‘good behavior.’

The federal judiciary has three main levels: district courts (trial courts), circuit courts (the first level of appeal) and the Supreme Court (the final appellate authority). There are 94 district courts, 13 circuit courts and one Supreme Court.

To hear a case, a court must have personal jurisdiction (authority over the parties involved), subject matter jurisdiction (authority to hear the type of legal issue at hand) and proper venue (the correct geographic location for the case to be tried).

Unlike state courts, which have broad authority, federal courts are courts of ‘limited jurisdiction,’ which means they can only hear cases authorized by the Constitution or federal law. Each lawsuit filed against the Trump administration raises a federal question, giving federal courts subject-matter jurisdiction.

Each district court has at least one United States district judge appointed by the president and confirmed by the Senate for a life term. Plaintiffs who lose at the district court level can appeal to a federal appellate court.

Appellate courts, also known as circuit courts, hear appeals from district courts within their geographic boundaries. Each circuit covers multiple states. For example, the Fifth Circuit includes Louisiana, Mississippi and Texas.

Each circuit also has multiple judges, ranging from six total judges to 29. Appeals to the circuit courts are first heard by a panel of three judges. Parties must file briefs to the court, arguing why the trial court’s decision should either be affirmed or reversed.

After briefs are filed, oral arguments are scheduled during which attorneys from both sides present their case and answer questions from a panel of judges. In some instances, the full court may hear a case in what’s called an en banc session. The Ninth Circuit, due to its size, follows a modified en banc process.

A circuit court’s decision is binding on all lower courts within that circuit. As such, those courts must follow that holding. Other circuits can look to that circuit’s holding as reference, but they are not bound by it.

A case can generally only be appealed once a final decision has been issued. However, some issues can be appealed before a final decision is made via what’s called an interlocutory appeal.

Parties can appeal a circuit court’s decision to the U.S. Supreme Court by filing a writ of certiorari, which is a request for the court to review the case. The Supreme Court isn’t required to take the case and denies most petitions, granting review in less than 1% of appeals. When cert is denied, the lower court’s ruling remains in place.

A circuit split is when circuits disagree on a particular legal matter. This will generally prompt the Supreme Court to grant cert in a case. If cert is granted, parties must file briefs and conduct oral arguments. 

Each circuit is assigned to a specific Supreme Court justice who handles certain appeals from that region, such as emergency applications and administrative requests. For example, Chief Justice Roberts oversees the D.C. Circuit, the 4th Circuit and the Federal Circuit. The assigned justice may act alone or refer the matter to the full court at their discretion.

The Trump administration has already appealed various decisions to the Supreme Court via emergency appeals. On March 28, the administration asked the court to review a temporary restraining order that blocked the administration’s use of an 18th-century wartime law to deport Venezuelan nationals, including alleged members of the gang Tren de Aragua, from the United States. 

The appeal came shortly after the U.S. Court of Appeals for the D.C. Circuit issued a 2-1 ruling to uphold the district court’s decision blocking the administration. 

Fox News Digital’s Breanne Deppisch contributed to this report. 

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The Senate Judiciary Committee is holding a hearing to examine the influx of nationwide orders against the Trump administration by federal district judges. 

Last week, Chairman Chuck Grassley, R-Iowa, revealed the details of the event, set one day after the House committee’s hearing on the same subject. 

‘Since the courts and the executive branch are on an unsustainable collision course, Congress must step in and provide clarity,’ he said in a statement last week. ‘Our hearings will explore legislative solutions to bring the balance of power back in check.’

The hearing, titled, ‘Rule by District Judges II: Exploring Legislative Solutions to the Bipartisan Problem of Universal Injunctions,’ will feature testimony from John N. Matthews Professor of Law at Notre Dame Samuel Bray, partner at Boies Schiller Flexner Jesse Panuccio, who was previously the acting associate attorney general at the Department of Justice (DOJ), and the chairman of the DOJ’s Regulatory Reform Task Force and vice chairman of the DOJ’s Task Force on Market Integrity and Consumer Fraud, as well as Agnes Williams Sesquicentennial Professor of Federal Courts at Georgetown University Law Center Stephen I. Vladeck.

After revealing details of the hearing, Grassley rolled out his own bill to tackle the issue. 

‘These nationwide injunctions have become a favorite tool for those seeking to obstruct Mr. Trump’s agenda,’ he wrote in an op-ed in the Wall Street Journal. ‘More than two-thirds of all universal injunctions issued over the past 25 years were levied against the first Trump administration. In the past two months alone, judges have issued at least 15 universal injunctions against the administration—surpassing the 14 President Biden faced throughout his four-year term.’

Grassley’s legislation would restrain the lower courts’ ability to issue nationwide orders, and they would no longer be able to stop ‘legitimate executive action’ by granting orders to entities or individuals who are not parties to the lawsuit. 

While similar bills have been introduced by Grassley’s GOP colleagues in both the Senate and House, it is unclear whether the issue will get floor votes, as it would need to amass more than 60 votes in the upper chamber to beat the filibuster. 

Senate Majority Leader John Thune, R-S.D., has not elaborated much on the issue and, when asked about it, he told reporters, ‘At the end of the day, there is a process, and there’s an appeals process. And, you know, I suspect that’s ultimately how it’s going to be ended.’

President Donald Trump has made his frustration with nationwide injunctions clear, urging action on them publicly. 

‘Unlawful Nationwide Injunctions by Radical Left Judges could very well lead to the destruction of our Country!’ the president said in a recent Truth Social post. ‘These people are Lunatics, who do not care, even a little bit, about the repercussions from their very dangerous and incorrect Decisions and Rulings.’

‘If Justice Roberts and the United States Supreme Court do not fix this toxic and unprecedented situation IMMEDIATELY, our Country is in very serious trouble!’ he continued. 

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Democrats have remained relatively quiet while President Donald Trump and Republicans hammer federal district judges for churning out nationwide orders halting his administration’s actions. 

But during President Joe Biden’s tenure, they decried similar wide-ranging injunctions and even sought to remedy the issue with legislation. 

In 2023, Sen. Mazie Hirono, D-Hawaii, debuted a measure to give the U.S. District Court for the District of Columbia sole jurisdiction over any cases with national implications. 

‘When parties are able to choose their judges, it creates the perception that they are able to predetermine their case’s outcome, compromising the integrity of our federal justice system,’ she said in a statement at the time. 

‘Activist plaintiffs should not be able to hand-pick individual judges to set nationwide policy, which is why it’s critical we address the issue of judge shopping in our federal courts. By routing cases with national implications through the D.C. District Court, which has expertise in cases challenging federal agency action, the Stop Judge Shopping Act will strengthen trust in our federal justice system and help ensure major cases are decided based on the law, not the ideological agenda of any one judge.’

The bill wouldn’t have ended nationwide injunctions as Republicans and Trump have sought, but it would give all jurisdiction on such decisions to one court, potentially reducing the probability of such orders being levied against Biden or other Democrat presidents. 

The D.C. court is made up of 11 district judges appointed by former Presidents Biden and Barack Obama, and four were appointed by Trump. The court’s chief judge is Obama-appointee James Boasberg, who is at the center of a key battle with the Trump administration over deportation flights using the Alien Enemies Act, a 1798 wartime immigration law. 

A similar measure was proposed by then-Majority Leader Chuck Schumer, D-N.Y., Sen. Sheldon Whitehouse, D-R.I., in addition to 37 other Democrats in 2024. The bill would have required cases involving broad injunctions to be randomly assigned in order to ‘promote uniformity and fairness.’

Hirono, Schumer and Whitehouse did not provide comment to Fox News Digital when asked if they still supported legislative action and if they backed any of the Republican bills. 

Multiple Republicans in Congress have rolled out legislation this Congress to explicitly prevent district-level courts from issuing such wide-ranging orders, including Senate Judiciary Committee Chair Chuck Grassley, R-Iowa. 

In an op-ed for the Wall Street Journal, he wrote, ‘The obvious solution is to limit district courts to resolving the cases only between the parties before them.’

‘Under my bill, lower courts could no longer block legitimate executive action by issuing orders to nonparties to the lawsuit. The bill would also make TROs against the government immediately appealable, to make sure that prudence wins out over rash decisions handed down in the heat of a political moment,’ he explained. 

The top judiciary Republican also pointed to past grievances Democrats have had with the practice of nationwide court orders. 

‘Two-hundred forty Democratic lawmakers, including Sens. Chuck Schumer and Dick Durbin, in 2023, submitted a friend-of-the-court brief warning of the ‘perilous consequences’ resulting from a district judge’s move to block the abortion pill mifepristone,’ he recalled. 

‘Justice Elena Kagan has similarly expressed dismay.’

The brief was filed to plead with the high court to overrule the nationwide injunction issued by U.S. District Judge Matthew Kacsmaryk, which suspended FDA approval of mifepristone. 

‘The consequences of the Fifth Circuit’s decision could extend far beyond mifepristone, for it undermines the science-based, expert-driven process that Congress designed for determining whether drugs are safe and effective,’ the lawmakers wrote at the time. ‘By permitting the district court to disrupt FDA’s current regulation of mifepristone, the Fifth Circuit has countenanced judicial interference that erroneously substitutes the district court’s judgment for FDA’s scientific determination.

Hirono, Schumer and Whitehouse have not been publicly critical of nationwide injunctions during the new Trump administration as district judges across the country manage to halt actions.

On Wednesday, the Senate Judiciary Committee will hold a hearing on the subject as Republicans push legislation to end the practice of issuing nationwide orders. 

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Tesla CEO Elon Musk said Sunday that his involvement in the Trump administration could be hurting the automaker’s stock price.

Speaking at a town hall event in Wisconsin, Musk said his role with the so-called Department of Government Efficiency — which is pushing for widespread government job cuts — is creating backlash against his electric car company and hurting the stock.

“What they’re trying to do is put massive pressure on me, and Tesla I guess, to … stop doing this,” Musk said, according to Bloomberg News. “My Tesla stock and the stock of everyone who holds Tesla has gone, went roughly in half. I mean it’s a big deal.”

Elon Musk at a Cabinet meeting at the White House on March 24.Win McNamee / Getty Images

Shares of Tesla entered Monday already down more than 34% year to date, and the stock has been cut nearly in half from its peak in December. Shares were down an additional 6% in premarket trading Monday.

Tesla’s stock is trading at a little more than half of its highest level from December.

The drop for the stock could be a “buying opportunity” for the long term, said Musk, who was in Wisconsin ahead of a state supreme court election there. Musk has campaigned for the conservative candidate and spent more than $12 million on the race, in addition to giving $1 million each to two voters at Sunday’s rally for signing a petition against “activist judges.”

The slumping stock isn’t the only sign of public anger with Musk for his political work. Protesters demonstrated at Tesla dealerships over the weekend, and there have been reports of vandalism against vehicles and dealers across the country.

Musk’s role in politics is not limited to DOGE. He publicly campaigned with Trump in 2024 and has been a regular presence at the White House since the new administration took over in January. He also regularly comments on many different political topics on X, the social media company he owns.

The CEO’s rising political profile comes amid signs that Tesla’s core business is slowing. The automaker’s vehicle deliveries declined in 2024, and preliminary data has shown that sales are down again early this year, especially in Europe. In a note to clients Sunday, investment firm Stifel trimmed its price target on the stock and lowered its sales projections for Tesla.

Musk’s political dealings may not be the only reason for Tesla’s struggles. Other U.S. auto stocks have also labored in recent weeks, partly because of threats of higher tariffs on imported goods into the U.S. and retaliation from overseas trading partners, adding uncertainty to an industry whose supply chains are tightly woven among the U.S., Canada and Mexico.

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Restaurant chain Hooters of America filed for bankruptcy protection in Texas on Monday, seeking to address its $376 million debt by selling all of its company-owned restaurants to a franchise group backed by the company’s founders.

Hooters, like other casual dining restaurants, has struggled in recent years due to inflation, the high costs of labor and food and declining spending by cash-strapped American consumers. The company currently directly owns and operates 151 locations, with another 154 restaurants operated by franchisees, primarily in the United States.

The privately-owned company, which shares a private equity owner with recently-bankrupt TGI Fridays, intends to sell all corporate-owned locations to a buyer group comprised of two existing Hooters franchisees, who operate 30 high-performing Hooters locations in the U.S., mainly in Florida and Illinois.

Hooters did not disclose the purchase price of the transaction, which must be approved by a U.S. bankruptcy judge before it becomes final.

Founded in 1983, Hooters became famous for its chicken wings and its servers’ uniform of orange shorts and low-cut tank tops.

The buyer group is backed by some of Hooters’ original founders, and it pledged to take Hooters “back to its roots.”

“With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations,” said Neil Kiefer, a member of the buyer group and the current CEO of the original Hooters’ location in Clearwater, Florida.

Hooters said it expects to complete the deal and emerge from bankruptcy in three to four months. The company has lined up about $35 million in financing from its existing lender group to complete the bankruptcy transaction.

Casual dining restaurants have been hammered by rising costs in 2024, with well-known chains like TGI Fridays, Red Lobster, Bucca di Beppo, and Rubio’s Coastal Grill all filing for bankruptcy last year.

Restaurant prices have risen about 30% in the last 5 years, outpacing consumer prices overall, according to the Federal Reserve Bank of St. Louis.

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Meta’s head of artificial intelligence research announced Tuesday that she will be leaving the company. 

Joelle Pineau, the company’s vice president of AI research, announced her departure in a LinkedIn post, saying her last day at the social media company will be May 30. 

Her departure comes at a challenging time for Meta. CEO Mark Zuckerberg has made AI a top priority, investing billions of dollars in an effort to become the market leader ahead of rivals like OpenAI and Google.

Zuckerberg has said that it is his goal for Meta to build an AI assistant with more than 1 billion users and artificial general intelligence, which is a term used to describe computers that can think and take actions comparable to humans.

“As the world undergoes significant change, as the race for AI accelerates, and as Meta prepares for its next chapter, it is time to create space for others to pursue the work,” Pineau wrote. “I will be cheering from the sidelines, knowing that you have all the ingredients needed to build the best AI systems in the world, and to responsibly bring them into the lives of billions of people.”

Pineau was one of Meta’s top AI researchers and led the company’s fundamental AI research unit, or FAIR, since 2023. There, she oversaw the company’s cutting-edge computer science-related studies, some of which are eventually incorporated into the company’s core apps. 

She joined the company in 2017 to lead Meta’s Montreal AI research lab. Pineau is also a computer science professor at McGill University, where she is a co-director of its reasoning and learning lab.

Some of the projects Pineau helped oversee include Meta’s open-source Llama family of AI models and other technologies like the PyTorch software for AI developers.

Pineau’s departure announcement comes a few weeks ahead of Meta’s LlamaCon AI conference on April 29. There, the company is expected to detail its latest version of Llama. Meta Chief Product Officer Chris Cox, to whom Pineau reported to, said in March that Llama 4 will help power AI agents, the latest craze in generative AI. The company is also expected to announce a standalone app for its Meta AI chatbot, CNBC reported in February. 

“We thank Joelle for her leadership of FAIR,” a Meta spokesperson said in a statement. “She’s been an important voice for Open Source and helped push breakthroughs to advance our products and the science behind them.” 

Pineau did not reveal her next role but said she “will be taking some time to observe and to reflect, before jumping into a new adventure.”

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Financials take the lead.

No changes in the composition of the top 5 this week, and only one change of position within the top 5.

Financials (XLF) leapfrogged to the number one position, sending Communication Services (XLC) to the #3 position. Energy (XLE) remains #2 while Utilities (XLU) and Healthcare (XLV) remain in positions #4 and #5.

Let’s examine the details and see what the Relative Rotation Graphs tell us about the current market dynamics.

Sector Lineup

  1. (3) Financials – (XLF)*
  2. (2) Energy – (XLE)
  3. (1) Communication Services – (XLC)*
  4. (4) Utilities – (XLU)
  5. (5) Healthcare – (XLV)
  6. (6) Industrials – (XLI)
  7. (7) Consumer Staples – (XLP)
  8. (8) Real-Estate – (XLRE)
  9. (9) Consumer Discretionary – (XLY)
  10. (10) Materials – (XLB)
  11. (11) Technology – (XLK)

Weekly RRG: A Tale of Three Leaders

The weekly Relative Rotation Graph now shows three sectors firmly planted inside the leading quadrant.

XLF has rotated back into leadership after a brief sojourn, while Communication Services (XLC) maintains its strong position. Energy (XLE) is the latest entrant, crossing over into leading with a positive RRG heading—a trajectory that bodes well for continued outperformance.

Utilities (XLU) and Health Care (XLV)—our fourth and fifth-ranked sectors—currently reside in the improving quadrant. However, their strong RRG headings suggest they’ll likely leap into leading territory in the coming weeks. It’s worth noting that Health Care is flexing its muscles with the highest RS momentum value among all 11 sectors.

On the flip side, we’re seeing only two sectors with negative RRG headings—the same culprits as last week. Technology (XLK) is pushing further into the lagging quadrant, while Consumer Discretionary (XLY) is rapidly approaching a crossover from weakening to lagging. This persistent weakness in these typically high-flying sectors is something to keep an eye on as it coincides with general market weakness.

Daily RRG: Short-Term Shifts

Zooming in on the daily RRG, we get a more nuanced picture of short-term rotations. Financials are holding steady in the leading quadrant with a neutral heading—there has been little movement over the past week.

Energy, which boasts the highest RS ratio, is losing some momentum. However, given its elevated RS ratio, this is likely just a temporary setback.

Utilities and Health Care are showing some interesting moves on the daily chart. XLU is currently in the weakening quadrant with a negative heading, but XLV is starting to curl back up—a positive sign that aligns with its weekly chart momentum.

XLC’s daily tail is painting an intriguing picture. It’s barely inside the lagging quadrant, but its positive heading pointing towards leading suggests it may soon start supporting the positive direction we see on the weekly chart.

In the bottom half of the rankings, we see some weekly weakness confirmations. Technology is rolling over in the improving quadrant, while sectors like industrials and materials are rotating from leading to weakening, all of which aligns with their lower positions in the portfolio ranking.

Financials (XLF)

XLF has bounced off support around 47, but the price chart still looks precarious.

The relative strength picture, however, is much more encouraging. We’re seeing a clear uptrend in the raw RS line, which is pulling both RRG lines higher. Keep an eye on that 47 level as key price support.

Energy (XLE)

Energy is currently trading in a range between roughly 84-85 and 98.

The real action is in the relative strength- we’re seeing a breakout from a falling channel, which is now pulling both RRG lines above 100.

This is what’s driving XLE’s move into the leading quadrant.

Communication Services (XLC)

XLC is holding above support around 94, but only just.

A break below 93-94 could trigger more downside.

Relative strength still looks good, but the raw RS line is at the top of its rising trend channel. The high RS ratio reading gives some wiggle room, but it’s a situation to monitor closely.

Utilities (XLU)

Utilities remain stuck in a trading range, which is keeping its raw RS line range-bound as well.

It’s strong enough to keep the RRG lines rising, but we’ll need to see a relative strength breakout to push XLU into the leading quadrant.

Health Care (XLV)

Health Care is bumping up against resistance near 150 and remains range-bound.

A potential head-and-shoulders pattern is forming, but support is still a ways off around 135.

Relative strength is pushing against resistance, and with both RRG lines rising, XLV looks poised to cross into the leading quadrant soon.

Portfolio Performance Update

After last week’s hiccup, the RRG portfolio has not only erased its underperformance but actually flipped to outperformance.

As of last week, the portfolio stands at -4.86% YTD, compared to the S&P 500’s -4.96%. That’s a reversal from a 1.4% underperformance to a 10 basis point outperformance — not too shabby for a week’s work.

The market is sending plenty of mixed signals, but the sector rotation story is becoming clearer. Financials are stepping up, Energy is making moves, and the traditionally defensive sectors are showing strength. Meanwhile, Tech and Consumer Discretionary continue to lag—a trend that could have significant implications if it persists.

These rotations can shift quickly, so stay nimble and keep your eyes on the charts. The market never sleeps, and neither should your analysis.

#StayAlert –Julius


It was an ugly close to another roller-coaster trading week as the stock market struggled with several moving parts. Wednesday’s Evening Doji Star in the S&P 500 ($SPX) showed its power. The trading week didn’t end on a pretty note. 

The S&P 500, Nasdaq Composite ($COMPQ), and Dow Jones Industrial Average ($INDU) all closed lower and are trading below their 200-day simple moving average (SMA). And the selloff is across the board. It’s not concentrated in the heavily weighted stocks. 

The headwinds: Auto tariffs, declining consumer confidence, and hotter-than-expected PCE data. These have raised investor fear once again. The Cboe Volatility Index ($VIX) spiked higher on Friday, closing at 21.65.

From a sector perspective, Utilities was the only S&P sector that closed in the green on Friday, which reiterates defensive investor sentiment. This could continue for as long as investors worry about inflation and weakening U.S. economic growth. In addition to defensive sectors, other areas of the market show some bullish strength. 

What Are Investors Eyeing? 

Bond prices are rising. The daily chart of the iShares 20+ Year Treasury Bond ETF (TLT) is trading above its 50- and 100-day SMA. A break above the 200-day SMA would set a positive tone for bond prices although if past price action is of any value, TLT didn’t have much success the last couple of times it crossed above the 200-day. It could be different this time.

FIGURE 1. BOND PRICES SHOW SIGNS OF LIFE. Bond prices are now starting to rise. Will we see an RSI above 70 when TLT crosses above its 200-day simple moving average? Chart source: StockCharts.com. For educational purposes.

The relative strength index (RSI) in the lower panel is above 50. The last couple of times TLT crossed above its 200-day SMA, RSI failed to cross above 70, indicating a lack of momentum. However, if TLT crosses above its 200-day SMA and coincides with an RSI cross above 70, that could be an alert for a gain in momentum. 

Bonds were starting to trend higher after hitting their January lows but that uptrend consolidated from early March. There needs to be an upside follow-through for an uptrend to resume in bonds. There’s still time for it to play out but keep your eyes on this chart for the next few weeks.

Gold and silver prices have also been on a tear. Gold hit an all-time high on Friday while silver pulled back on Friday after Thursday’s price spike. Overall, the uptrend is still intact in both metals.

If you’re a regular reader of our ChartWatchers Newsletter, you’ll recognize the chart below which looks at the performance of various asset classes.  

FIGURE 2. PERFCHART OF DIFFERENT MARKETS. Gold and silver have outperformed most other asset groups. Chart source: StockCharts.com. For educational purposes.

Note how gold and silver prices are outperforming equities.  

Last but not least, let’s analyze the performance of the automobile sector, the most impacted industry group this week. Automobile stocks continue to slide. The daily chart of the Dow Jones US Automobiles Index ($DJUSAU) below displays a clear picture of the state of the industry. 

FIGURE 3. THE AUTOMOBILE INDUSTRY. Things aren’t looking great for the automobile industry. After attempting to cross above the 200-day SMA, the Dow Jones Automobiles Index fell and is trending lower. Chart source: StockCharts.com. For educational purposes.

After a healthy run in the second half of 2024, the industry has been in a steep decline, with any attempts of a rally being short-lived. On March 25, $DJUSAU crossed above its 200-day SMA but failed to hold above it. There’ll be more tariff news between now and April 2. So be prepared for more volatility in the automobile industry.  

The Bottom Line

Q1 has been pretty dismal, mainly due to tariff policies. There’s more to come. With “Liberation Day” approaching, expect more volatility in the stock market. There’s also the March jobs report on Friday. Equity futures are trading lower ahead of Monday’s open. 

We’ll end with a chart that every investor should be monitoring closely as we get through the next few months—a three-year weekly chart of the S&P 500. Feel free to save this to your ChartLists.

FIGURE 4. WEEKLY CHART OF THE S&P 500 INDEX. The index attempted to move beyond its July and August highs but didn’t succeed. With more tariff news on the horizon, will the S&P 500 succeed or will it move toward its March highs? Chart source: StockCharts.com. For educational purposes.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.