Good morning,
The big macro news since our last publication is that the S&P 500 soared to a new all-time high on Tuesday, its first since August 13.
There has been some improvement in the rest of the market, with breaks of monthlong downtrend lines and the first day of more SPX 52-week highs than lows in over a month.
But the biggest reason for the new high in the index is that the AI trade is back (kind of).
And by kind of, I mean that we’re seeing healthy dispersion. It isn’t every stock breaking out and working again. But importantly, some of the largest and most important are.
Today, we’ll review leaders emerging from the rubble, on both the data-center/power side of the trade, as well as the chips.
We’ll also cover:
The key group that isn’t back
Tuesday’s reversal in biotech
My favorite energy names
Hot List updates
and more!
AI power is back
Constellation Energy breaks out on mega-deal with Microsoft
They say the market gets the news first, and a small bottom formed over the last two weeks of September. Tuesday’s 12% gain broke it out, and CEG looks like an opportunity. The 200-day and 50-day are both lined up as potential stops.
Quanta breaks a five-month downtrend line
Gave some back yesterday, but if we’re above the 50-DMA, the breakout is intact.
Okay, not a power play, but Johnson Controls cools the data centers
New all-time highs on Tuesday and a relative breakout as well.
