Lithium Universe (LU7:AU) has announced Acquisition Legal DD Complete
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Lithium Universe (LU7:AU) has announced Acquisition Legal DD Complete
Download the PDF here.
Israel has agreed to a proposal led by the Trump administration for a 60-day ceasefire, during which time President Donald Trump said all parties will work to end the war in the Middle East.
‘My Representatives had a long and productive meeting with the Israelis today on Gaza,’ Trump said in a post on Truth Social on Tuesday. ‘Israel has agreed to the necessary conditions to finalize the 60 Day CEASEFIRE, during which time we will work with all parties to end the War.
‘The Qataris and Egyptians, who have worked very hard to help bring Peace, will deliver this final proposal,’ Trump added. ‘I hope, for the good of the Middle East, that Hamas takes this Deal, because it will not get better — IT WILL ONLY GET WORSE. Thank you for your attention to this matter!’
Israeli Minister of Foreign Affairs Gideon Sa’ar said Monday, ‘Israel is serious in its will to reach a hostage deal and ceasefire in Gaza.’
He pointed to Jerusalem’s acceptance of a recent proposal presented by Special Envoy Steve Witkoff, but which Hamas rejected as it did not include a solution to a permanent ceasefire and a plan to withdraw Israeli forces from Gaza.
Witkoff is expected to head to Cairo in the coming days to begin hashing out new negotiations.
The president has been pushing for Israel to end its conflict in Gaza and to secure a hostage deal.
Ending Israel’s military operations in Gaza will prove a crucial step in expanding Trump’s ambitions to bring new nations into the Abraham Accords.
‘We have opportunities in front of us,’ Sa’ar said, echoing Jerusalem’s ambitions to reach a deal. ‘We paid for the new reality in the Middle East with the blood of our soldiers and citizens.’
‘Israel is interested in expanding the Abraham Accords circle of peace and normalization. We have an interest in adding countries, such as Syria and Lebanon, our neighbors, to the circle of peace and normalization – while safeguarding Israel’s essential and security interests,’ he added.
Prior to today, Trump had not detailed which nations are interested in normalizing diplomatic relations with Israel, though nations like Saudi Arabia have made clear that so long as Palestinians continue to suffer in the Israel-Hamas conflict, normalization is off the table.
Fox News Digital’s Caitlin McFall contributed to this report.
The federal website created to host the U.S. national climate assessments, congressionally-mandated and peer-reviewed reports that cover the effects of climate change in the U.S. has been inaccessible so far this week.
A Fox News Digital review found that the websites for the U.S. Global Change Research Program and the pages for the national assessments were down on Tuesday without any links or referrals to other websites.
The White House said the climate-related reports will be located within the National Aeronautics and Space Administration (NASA) going forward. However, searches for the assessments did not bring anything up on the NASA website, according to The Associated Press.
The U.S. national climate assessments, of which five have been created to date, are published every four years. Some scientists argue the reports save money and lives, AP reported.
‘It’s critical for decision-makers across the country to know what the science in the National Climate Assessment is,’ University of Arizona climate scientist Kathy Jacobs said in a statement. ‘That is the most reliable and well-reviewed source of information about climate that exists for the United States.’
In March, President Donald Trump’s energy chief vowed a reversal of ‘politically polarizing’ Biden-era climate policies as the new administration approaches climate change as ‘a global physical phenomenon.’
‘I am a climate realist,’ Energy Secretary Chris Wright said at S&P Global’s CERAWeek conference in Houston in March. ‘The Trump administration will treat climate change for what it is, a global physical phenomenon that is a side effect of building the modern world.’
In February, the Trump administration similarly revamped agency websites to be rid of climate change-filled content, amid a widespread rebranding of federal departments from content deemed as not aligning with Trump’s agenda.
The White House and NASA did not immediately respond to Fox News Digital’s request for comment.
Once a revolutionary militia, Iran’s Islamic Revolutionary Guard Corps built power through ideology and fear. Now, after devastating losses, its future is uncertain.
After major military setbacks, Iran’s IRGC faces a turning point. Experts explain its roots, power, and whether its reign of repression and terror can endure.
Once a fringe militia born of revolution, Iran’s Islamic Revolutionary Guard Corps (IRGC) has grown into the regime’s most feared and powerful force. But according to Dr. Afshon Ostovar, a leading expert on Iran and author of ‘Vanguard of the Imam: Religion, Politics, and Iran’s Revolutionary Guards,’ said the recent U.S. and Israeli strikes in Iran may have permanently altered its trajectory.
‘What the IRGC tried to achieve over the last 25 years is basically toast,’ Ostovar told Fox News Digital, ‘Their campaign to build a military deterrent at home through missiles and nuclear enrichment, and to expand regionally through proxies, has essentially collapsed.’
Founded in the wake of the 1979 revolution, the IRGC was created to safeguard and spread the Islamic Republic’s values — often through violence. Ostovar describes how its legitimacy evolved over time, initially drawn from the overthrow of the Shah, then the Iran-Iraq War, and later through the manufactured narrative of an eternal struggle with the U.S. and Israel.
Behnam Ben Taleblu, Senior Director of FDD’s Iran Program Behnam Ben Taleblu, told Fox News Digital the IRGC’s origin reflects a deep mistrust of Iran’s traditional military, which had remained loyal to the Shah.
‘The IRGC were created through efforts to collect pro-regime armed gangs called Komitehs. They enforced revolutionary edicts and developed a parallel and ideological military force due to clerical skepticism in the national army,’ he explained.
‘The IRGC are tasked with preserving and defending the revolution in Iran,’ Taleblu said. ‘That’s one reason why the 1979 Islamic Revolution has not been tamed, nor has the regime’s extremism lost any luster. If anything, terrorism and hostage-taking have continued.’
‘They created a boogeyman in the U.S. and Israel,’ Ostovar added. ‘But today, that ideology no longer resonates with most Iranians. The majority want better relations with the West and are tired of the regime’s isolationist stance.’
Today, the IRGC is deeply intertwined with the clerical elite. ‘The IRGC and the clerical elite are partners in power, treating Iran as a springboard to export their revolution,’ Taleblu noted.
Over the past year, Iran has suffered a series of strategic defeats: Hezbollah has been degraded in Lebanon, Hamas crippled in Gaza, Syria effectively lost, and Iranian military infrastructure — including nuclear and missile sites — destroyed in many cases by U.S. and Israeli strikes. Ostovar says these losses have decimated the IRGC’s regional footprint and forced the regime to reevaluate its strategy.
‘They can try to rebuild everything — but that would take too long and be too difficult,’ he said. ‘More likely, we’ll see them repress harder at home and lean on China and Russia to rebuild conventional military capabilities like air defense and advanced jets.’
Internally, the IRGC’s economic empire is also under growing strain. Sanctions, cyberattacks, and battlefield losses have made operations far more difficult. Ostovar said that foreign banks avoid any connection with Iran out of fear they may inadvertently deal with IRGC-linked entities, forcing the group to operate through front companies abroad. ‘They’ve lost a lot, and now they’ll have to redirect their limited resources to rebuild. That’s going to stretch them even thinner.’
Despite these pressures, both Ostovar and Taleblu agree that the IRGC is unlikely to turn against the regime. ‘Much like the regime elite, the IRGC is at a crossroads,’ Taleblu said. ‘They have lost much of their strategic brain trust, but are likely to remain loyal for a combination of ideological and material reasons — so long as the status quo doesn’t change.’
Looking ahead, Iran may shift focus inward, relying more on domestic repression than on external terror. ‘They can’t get weapons into Gaza. They’ve lost access to Lebanon. They may still attempt terrorism, but they’ve failed repeatedly — especially against Israeli targets,’ Ostovar said. ‘In contrast, repressing their own people is something they can do easily.’
He warns that Iran could become ‘more insular, more autocratic — more like North Korea than what it is today.’ While regime collapse is always a possibility, Ostovar believes autocracies are often resilient. ‘Look at Venezuela or Cuba — they’ve run their countries into the ground but still hold on to power.’
Ostovar thinks change — and not for the better — could come via generational shift. ‘The IRGC’s younger cadre is less religious but no less hardline,’ he said. ‘They may not care about hijabs, but they’ve spent the last two decades fighting the U.S. and Israel in Iraq, Syria, and Lebanon. That’s the war they know.’
Some reformist elements within the regime envision a different path — one focused on normalization and growth. ‘They want to preserve the regime not by fighting the world, but by opening up to it,’ Ostovar said. ‘They look more to Vietnam or China as models.’
Taleblu warned that despite recent setbacks, the IRGC’s grip remains strong. ‘Right now, the Guards have power without accountability, wielding political, economic, and military influence in Iranian policy. How this influence is channeled by the next generation of Guardsmen remains to be seen.’
The State Department is launching a new ‘America First’ rebranding initiative to consolidate all the logos for its offices under a singular one depicting the American flag — an effort that aligns with the agency’s massive overhaul plans.
Whereas separate logos existed previously for offices, including embassies, bureaus and programs under the U.S. Agency for International Development, the rebranding effort seeks to establish ‘consistent branding’ across all these platforms to best reflect American contributions abroad, according to a State Department official.
‘The redesign is very simple, and that was to recenter and re-anchor the visual identity of American efforts overseas in the American flag,’ Darren Beattie, undersecretary for public diplomacy at the State Department, told Fox News Digital Tuesday.
Beattie said that inconsistent branding across State Department offices and programs has meant that sometimes U.S. efforts abroad aren’t as widely recognized, while other countries that do have uniformity in branding receive greater credit.
‘There’s some things you look at it, and you have no clue that’s associated with the United States government at all, and that’s obviously contrary to our purposes,’ Beattie said. ‘If we’re contributing something great overseas, we want that positivity and that contribution to be immediately visually distinguished as something associated with the United States.’
The State Department rolled out guidance on the rebranding effort Wednesday — just a day after Secretary of State Marco Rubio announced that USAID would officially no longer continue to provide foreign assistance.
Fox News Digital first reported in March that the State Department would absorb remaining functions from the previously independent organization, which delivered aid to impoverished countries and development assistance.
Compliance with the rebranding effort across State Department offices and bureaus is slated for Oct. 1, according to Beattie.
The effort seeks to visually complement the State Department’s reorganization already underway, which officials have said is the largest restructuring of the agency since the Cold War.
Rubio unveiled plans in April to revamp the agency because the department was ‘bloated, bureaucratic, and unable to perform its essential diplomatic mission.’
Additionally, Rubio told lawmakers on the Senate Appropriations Subcommittee overseeing foreign affairs in May that the restructuring aimed to ’empower’ regional bureaus and embassies who are responsible for spearheading the ‘best innovations.’
‘They are identifying problems and opportunities well in advance of some memo that works its way to me,’ Rubio told lawmakers. ‘We want to get back to a situation or we want to get to a situation where we are empowering ideas and action at the embassy level and through our regional bureaus. Those are literally the front lines of American diplomacy. And so we have structured a State Department that can deliver on that.’
Fox News Digital first reported in May that the agency’s reorganization plans would involve cutting or consolidating more than 300 of the agency’s 700 offices and bureaus in an attempt to streamline operations.
The reorganization involves axing roughly 3,400 State Department personnel, amounting to approximately 15% to 20% of the agency’s domestic headcount, State Department officials previously told Fox News Digital.
The House Rules Committee has teed up President Donald Trump’s ‘big, beautiful bill’ for a chamber-wide vote Wednesday after a nearly 12-hour-long session debating the massive piece of legislation.
It now heads to the entire chamber for consideration, where several Republicans have already signaled they’re concerned with various aspects of the measure.
Just two Republicans voted against reporting the bill out of committee – Reps. Ralph Norman, R-S.C., and Chip Roy, R-Texas, conservatives who had expressed reservations with the bill earlier on Tuesday. No Democrats voted to advance it, while the remaining seven Republicans did.
The majority of Republican lawmakers appear poised to advance the bill, however, believing it’s the best possible compromise vehicle to make Trump’s campaign promises a reality.
‘This bill is President Trump’s agenda, and we are making it law. House Republicans are ready to finish the job and put the One Big Beautiful Bill on President Trump’s desk in time for Independence Day,’ House GOP leaders said in a joint statement after the Senate passed the bill on Tuesday.
The House Rules Committee acts as the final gatekeeper before most pieces of legislation get a chamber-wide vote.
Democrats attempted to delay the panel’s hours-long hearing by offering multiple amendments that were shot down along party lines.
They criticized the bill as a bloated tax cut giveaway to wealthy Americans, at the expense of Medicaid coverage for lower-income people. Democrats have also accused Republicans of adding billions of dollars to the national debt, chiefly by extending Trump’s 2017 tax cuts.
‘I don’t know what it means to be a fiscal hawk, because if you vote for this bill, you’re adding $4 trillion to the debt,’ Rep. Gwen Moore, D-Calif., said during debate on the measure.
‘Republicans have gone on TV for months and months and months solemnly insisting to the American people that this bill is going to cut the debt, that this will not hurt anybody on Medicaid, just those lazy bums and, you know, unworthy people.’
But Republicans have said the bill is targeted relief for middle and working-class Americans, citing provisions temporarily allowing people to deduct taxes from tipped and overtime wages, among others.
‘If you vote against this bill, you’re voting against the child tax credit being at $2,200 per child. At the end of this year, it will drop to $1,000. That makes a huge impact to 40 million hardworking Americans. And it’s simply, when they vote no, they’re voting against a $2,200 child tax credit, and they’re okay with $1,000,’ House Ways & Means Committee Chairman Jason Smith, R-Mo., said.
‘If you listen to the Democrats here, they say this is all about billionaires and millionaires. No tax on tips, no tax on overtime work. How many millionaires and billionaires, Madam Chair, work by the hour?’
The bill numbers more than 900 pages and includes Trump’s priorities on taxes, the border, defense, energy and the national debt.
An initial version passed the House in May by just one vote, but the Senate has since made multiple key modifications to Medicaid, tax cuts and the debt limit.
Moderates are wary of the Senate measures that would shift more Medicaid costs to states that expanded their programs under ObamaCare, while conservatives have said those cuts are not enough to offset the additional spending in other parts of the bill.
Several key measures were also removed during the ‘Byrd Bath,’ a process in the Senate where legislation is reviewed so that it can be fast-tracked under the budget reconciliation process – which must adhere to a strict set of fiscal rules.
Among those conservative critics, Reps. Scott Perry, R-Pa., and Andy Ogles, R-Tenn., introduced resolutions to change the Senate version to varying degrees.
Ogles’ amendment would have most dramatically changed the bill. If passed, it would have reverted the legislation back to the House version.
Perry’s amendments were aimed at tightening the rollback of green energy tax credits created by the former Biden administration’s Inflation Reduction Act.
Another amendment by Rep. Andrew Clyde, R-Ga., would have restored certain Second Amendment-related provisions stripped out by the Byrd Bath.
Any changes to the legislation would have forced it back into the Senate, likely delaying Republicans’ self-imposed Fourth of July deadline to get the bill onto Trump’s desk.
The full House is expected to begin considering the bill at 9 a.m. ET Wednesday.
Sometime that morning, House lawmakers will vote on whether to begin debating the bill, a procedural measure known as a ‘rule vote.’
If that’s cleared, a final vote on the bill itself is expected sometime later Wednesday.
Speaker Mike Johnson, R-La., conceded on Tuesday evening that poor weather in Washington that forced a number of flight delays could also weigh on Wednesday’s attendance – depending on how many lawmakers are stuck outside the capital.
‘We’re monitoring the weather closely,’ Johnson told reporters. ‘There’s a lot of delays right now.’
With all lawmakers present, Republicans can only afford to lose three votes to still advance both the rule vote and the final bill without any Democratic support.
Love your Costco dupes? Lululemon is coming after them.
Lululemon has filed a lawsuit against Costco, accusing the big box store of selling knockoffs of the athleisure brand’s apparel for a fraction of the price.
According to the complaint filed Friday in the Central District of California, Costco allegedly ‘unlawfully traded’ on Lululemon’s ‘reputation, goodwill and sweat equity’ by selling unauthorized and unlicensed knockoffs and dupes, infringing on the company’s popular patents.
The complaint lists several Costco items that appear to rip off Lululemon’s designs and patents: Costco’s ‘Danskin Half-Zip Pullover’ that retails for just $8. The lawsuit claims it’s a dupe for Lululemon’s SCUBA pullover that sells for $118. Costco’s ‘Jockey Ladies Yoga Jacket’ and ‘Spyder Women’s Yoga Jacket,’ which sell for $22, appear to be a dupe of Lululemon’s DEFINE jacket with a price tag of $128. The ‘Kirkland 5 Pocket Performance Pant,’ sold online for $10, is a dupe for Lululemon’s $128 ABC Pant, the complaint contended.
The lawsuit alleged trade dress infringement, unfair competition under the Lanham Act, patent infringement, and violation of the California Unfair Business Practices Act.
Lululemon seeks to recover monetary damages from lost profits, claiming it suffered ‘significant harm’ to its brands and reputation.
Dupes have surged in popularity, fueled by social media and young people seeking trendy, high-quality clothing without breaking the bank. The suit noted that hashtags like ‘LululemonDupes’ have trended on social media platforms like TikTok, with influencers promoting ‘these copycat products.’
Lululemon, based in Vancouver, acknowledged some companies have replicated its proprietary apparel designs and sold them as ‘dupes.’ The company said it has sent cease and desist letters to such companies, including Costco.
Specifically, the suit claimed Costco sells dupes of Lululemon’s popular SCUBA, DEFINE, and ABC lines, ‘which have earned substantial fame and considerable goodwill among the public.’
Costco allegedly profited off confusion and allowed customers to believe the products are authentic, the lawsuit claimed.
The suit said Costco is known to use manufacturers of popular branded products for its own Kirkland label products.
‘This source ambiguity preconditions at least some consumers into believing that private label, Kirkland-branded dupes are in fact manufactured by the authentic suppliers of the ‘original’ products. Defendant does not dispel this ambiguity,’ the complaint said.
In November, Lululemon wrote to Costco about the infringement, and Costco subsequently removed at least some of the products that infringed Lululemon’s SCUBA mark, but later began selling the Hi-Tec Men’s Scuba full zip, the complaint said.
The suit seeks a jury trial and for the court to order Costco to pay Lululemon damages in the form of lost profits, an order to permanently restrain Costco from making or selling more dupes, and an order to remove any ads or posts displaying the infringing products.
Costco did not immediately respond to NBC News’ request for comment on Tuesday.
Lululemon said in a statement that ‘as an innovation-led company that invests significantly in the research, development, and design of our products, we take the responsibility of protecting and enforcing our intellectual property rights very seriously and pursue the appropriate legal action when necessary.’
Clean energy stocks fell Monday as President Donald Trump’s spending legislation now includes a tax on wind and solar projects using Chinese components and abruptly phases out key credits.
Shares of NextEra Energy, the largest renewable developer in the U.S., fell 4%. Solar stocks Array Technologies, Enphase and Nextracker were down between 1% and 9%.
The Senate is voting Monday on amendments to the legislation. The current draft ends the two most important tax credits for solar and wind projects placed in service after 2027.
“The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country,” Tesla CEO Elon Musk posted on X over the weekend. “Utterly insane and destructive. It gives handouts to industries of the past while severely damaging industries of the future.”
Previous versions of the bill were more flexible, allowing projects that began construction before 2027 to qualify for the investment and electricity production tax credits, according to Monday note from Goldman Sachs.
The change “compresses project timelines and adds significant execution risk,” Bank of America analyst Dimple Gosal told clients in a note Monday. “Developers with large ’25 pipelines, may struggle to meet the new deadlines — potentially delaying or downsizing planned investments.”
The Senate legislation also slaps a tax on solar and wind projects that enter service after 2027 if they use components made in China.
“The latest draft in the Senate has become more restrictive for most renewable players, moving toward a worst case outcome for solar and wind, with a few improvements for subsectors on the margin,” Morgan Stanley analyst Andrew Percoco told clients in a Sunday note.
To be sure, the rooftop solar industry is viewed by Wall Street as a relative winner from the bill, with Sunrun shares up more than 13% and SolarEdge trading more than 6% higher on Monday. The legislation seems to allow tax credits for leased rooftop systems to remain in place through the end of 2027, which was not the case in previous versions, according to Goldman Sachs.
And First Solar is up more than 9% as the legislation seems to allow the manufacturer to claim credits for both components and final products, according to Bank of America.
In this video, Mary Ellen spotlights key pullback opportunities and reversal setups in the wake of a strong market week, one which saw all-time highs in the S&P 500 and Nasdaq. She breaks down the semiconductor surge and explores the bullish momentum in economically-sensitive sectors, including software, regional banks, and small-caps. Watch as she highlights top stocks to add to your watchlist, including FedEx, XPO, CHRW, and RL, plus identifies downtrend reversal candidates like AeroVironment (AVAV) and Nike, supported by volume and technical breakouts. In addition, she covers smart entry tactics, examining historical precedent with Coinbase.
This video originally premiered on June 27, 2025. You can watch it on our dedicated page for Mary Ellen’s videos.
New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.
If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.
Below is the EB Weekly Market Report that I sent out earlier to our EarningsBeats.com members. This will give you an idea of the depth of our weekly report, which is a very small piece of our regular service offerings. We called both the stock market top in February and stock market bottom in April, and encouraged EB members to lower risk at the time of the former and increase risk at the time of the latter.
There is no better time to experience our service for yourself as we’re currently running a FLASH SALE that offers a 20% discount on annual memberships. The timing to join couldn’t be better as I’ll be providing my Q3 outlook to all EB annual members at 5:30pm ET today. A recording will be provided for those who cannot attend the session live. So if you sign up later today or tomorrow or the next day, we’ll make sure you get a time-stamped copy of the recording.
In the meantime, enjoy this complimentary copy of this week’s report….
The following ChartLists/Spreadsheets were updated over the weekend:
*We continued to add more stocks to our Manipulation Spreadsheet and you’ll see that a few have tabs, but do not have data yet. Those 3 are still “under construction”. I also added a “Summary” tab where I’ve begun to sort the individual stocks in order based on a proprietary relative AD ranking system. Don’t ask me what it means yet, because it’s still very much a work in progress as well. I’m looking at the intraday relative performance of individual stocks vs. the benchmark S&P 500. So positive percentages represent better intraday AD performance than the S&P 500, while negative percentages represent the opposite. One thing I’ll be watching is to see if stronger relative AD lines precede relative strength in stocks on a forward-looking basis. It certainly did in the case of both Netflix (NFLX) and Microsoft (MSFT) from several weeks ago when I pointed out what appeared to me to be significant accumulation in March/April when the stock market bottomed. Both NFLX and MSFT have soared since that time. I’ll keep everyone posted on the progress of my research over the next many weeks and months.
Major Indices
Sectors
Top 10 Industries Last Week
Bottom 10 Industries Last Week
Top 10 Stocks – S&P 500/NASDAQ 100
Bottom 10 Stocks – S&P 500/NASDAQ 100
If you’re a long-term investor, stepping back and looking at the stock market using this 100-year chart enables you to avoid pulling unnecessary sell triggers, because of the media, permabears, negative nellie’s, and all the “news” out there. The above chart never once flashed anything remotely signaling a sell signal and now, here we are, back at all-time highs. Simply put, it filters out all the noise that we hear on a day-to-day basis and keeps our wits about us.
Here’s the latest look at our key intraday ratios as we follow where the money is traveling on an INTRADAY basis (ignoring gaps):
QQQ:SPY
Absolute price action on both the S&P 500 and NASDAQ 100 has now seen all-time high breakouts, which alone is quite bullish. We want to see aggressive vs. defensive (or growth vs. value) ratios moving higher to indicate sustainability of any S&P 500 advance. In my view, we’re seeing that. But the intraday QQQ:SPY ratio continues to hesitate. A breakout in this intraday relative ratio would most definitely add to the current bullish market environment.
IWM:QQQ
I’m seeing signs of an impending rate cut by the Fed. However, if I’m being completely honest, one signal that we should see is outperformance in small caps and a rising IWM:QQQ ratio. That hasn’t happened – at least not yet. If a rate cut starts to become clearer, I would absolutely expect to see much more relative strength in small caps. Keep an eye out for that.
XLY:XLP
I pay very close attention to the XLY:XLP ratio and, more specifically, this INTRADAY XLY:XLP ratio. This chart helped me feel confident in calling a market top back in January/February. If you recall, that’s when we said it was waaaaay too risky to be long the U.S. stock market. By the time we had bottomed in April, the blue-shaded area highlighted the fact that the XLY vs. XLP ratio had already begun to SOAR! That’s why, on Friday, April 11th, I said I was ALL IN on the long side again.
These signals are golden and, when used in conjunction with all of our other signals, can provide us extremely helpful clues about stock market direction. If these ratios begin to turn lower in a big way, then yes we’ll need to grow more cautious. However, right now, they couldn’t be any more bullish. Expect higher prices ahead.
5-day SMA ($CPCE)
Sentiment indicators are contrarian indicators. When they show extreme bullishness, we need to be a bit cautious and when they show extreme pessimism, it could be time to become much more aggressive. Major market bottoms are carved out when pessimism is at its absolute highest level.
The S&P 500 had struggled a bit once 5-day SMA readings of the CPCE fell to the .55 area, a sign of market complacency and a possible short-term top. We saw a bit of a pullback in June, which many times is all we get during a secular bull market advance. My sustainability ratios are supporting a higher move by stocks and I know from history that overbought conditions can remain overbought. I also know that sentiment does a much better job of calling bottoms than it does calling tops. That’s why I will not overreact every time this 5-day moving average of the CPCE falls back below .55. During Q4 2024, we saw plenty of 5-day SMA readings below .55 and, while the S&P 500 was choppy, bullishness prevailed throughout. So just please always keep in mind that these 5-day SMA readings are our “speed boat” sentiment indicator that changes quite frequently. When it lines up with other bearish or topping signals, we should take note. But reacting to every subtle move in this chart is a big mistake, in my opinion.
253-day SMA ($CPCE)
This longer-term 253-day SMA of the CPCE is our “ocean-liner” signal, unlike our speedboat indicator. This one usually provides us a very solid long-term signal as the overall market environment moves from one of pessimism to complacency and vice versa. Look at the above chart. When the 253-day SMA is moving lower like it is now, it accompanies our most bullish S&P 500 moves. It makes perfect common sense as well. Once this 253-day SMA moves to extremely high levels and begins to roll over, the bears have already sold. We typically have nowhere to go on our major indices, except higher once sentiment becomes so bearish. The opposite holds true when the 253-day SMA reaches extreme complacency and starts to turn higher. We saw that to start 2022, which, at the time, I stated was my biggest concern as we started 2022. If you recall, I said to look for a 20-25% cyclical bear market over a 3-6 month period on the first Saturday in January 2022. The above chart was my biggest reason for calling for such a big selloff ahead of the decline.
These charts matter.
Since beginning this Weekly Market Report in September 2023, I’ve discussed the long-term trade candidates below that I really like. Generally, these stocks have excellent long-term track records, and many pay nice dividends that mostly grow every year. Only in specific cases (exceptions) would I consider a long-term entry into a stock that has a poor or limited long-term track record and/or pays no dividends. Below is a quick recap of how these stocks looked one week ago:
Keep in mind that our Weekly Market Reports favor those who are more interested in the long-term market picture. Therefore, the list of stocks above are stocks that we believe are safer (but nothing is ever 100% safe) to own with the long-term in mind. Nearly everything else we do at EarningsBeats.com favors short-term momentum trading, so I wanted to explain what we’re doing with this list and why it’s different.
Also, please keep in mind that I’m not a Registered Investment Advisor (and neither is EarningsBeats.com nor any of its employees) and am only providing (mostly) what I believe to be solid dividend-paying stocks for the long term. Companies periodically go through adjustments, new competition, restructuring, management changes, etc. that can have detrimental long-term impacts. Neither the stock price nor the dividend is ever guaranteed. I simply point out interesting stock candidates for longer-term investors. Do your due diligence and please consult with your financial advisor before making any purchases or sales of securities.
Upcoming Earnings
Very few companies will report quarterly results until mid-April. The following list of companies is NOT a list of all companies scheduled to report quarterly earnings, however, just key reports, so please be sure to check for earnings dates of any companies that you own. Any company in BOLD represents a stock in one of our portfolios and the amount in parenthesis represents the market capitalization of each company listed:
Key Economic Reports
Historical Data
I’m a true stock market historian. I am absolutely PASSIONATE about studying stock market history to provide us more clues about likely stock market direction and potential sectors/industries/stocks to trade. While I don’t use history as a primary indicator, I’m always very aware of it as a secondary indicator. I love it when history lines up with my technical signals, providing me with much more confidence to make particular trades.
Below you’ll find the next two weeks of historical data and tendencies across the three key indices that I follow most closely:
S&P 500 (since 1950)
NASDAQ (since 1971)
Russell 2000 (since 1987)
The S&P 500 data dates back to 1950, while the NASDAQ and Russell 2000 information date back to 1971 and 1987, respectively.
All-time highs are always a time for me to say “I told you so” to the bears, since I’ve been a firm believer that we remain in a secular bull market advance – one in which we should EXPECT to see higher prices and all-time highs. This latest rally is being fully supported by risk-on areas of the market, which will almost certainly lead for more and more all-time highs down the road.
Here are several things I’m watching this week:
Happy trading!
Tom