Markets Making a New Paradigm Shift

Bitcoin Approaches Resistance...

KR Opinion

As I mentioned on tonight's podcast, we're witnessing an extraordinary period on this planet marked by a significant paradigm shift. It's remarkable how the markets and the people involved have found a renewed sense of optimism. I've often pondered what the world would be like without wars and under the current challenges if law and order were restored to their highest levels, allowing people to pursue their dreams freely.

In my many years in the markets, I have seen a lot, but what we are experiencing right now is possibly one of the most unique environments ever. The average investor today has access to immense knowledge and cutting-edge technology. With the ability to transact in nanoseconds, leverage opportunities, and utilize fractional shares, you no longer need to be a big player to participate—the playing field has been significantly leveled.

I often hear discussions about how BlackRock and various custodian firms own all the stock, but that's a conversation for another night and one we will explore in a future live stream. However, it’s undeniable that a new class of investors has emerged. This shift began with the advent of Robinhood and gained significant momentum in 2019 when Charles Schwab introduced fractional shares and eliminated transaction fees.

I bring this up because I believe we are on the brink of a new era in investing. This era is defined not just by artificial intelligence and the vast reservoir of knowledge at our fingertips but also by the widespread awareness and accessibility of technology. This accessibility empowers individuals to learn, grow, and prosper unimaginably.

I foresee an era of unprecedented productivity, GDP growth, and wealth creation—outcomes once thought to be beyond reach. I am grateful for the opportunity to share these thoughts with you tonight. Reflecting on my 44-year journey in the markets, it has been a fantastic experience, and I am grateful to have shared it with many of you.

The past weekend's events reminded us of life's fragility. We have all lost special people and witnessed others disappear from this planet, but sometimes, such events reveal deeper truths and change our perspectives. I plan to continue contributing to the community I've built and to a broader audience over the long term.

I want to express my sincere appreciation to everyone who has read my words, listened to my videos, and supported my efforts through my YouTube channel, Substack newsletter, and product purchases. Your support has been invaluable in helping me extend my expertise further into the markets. Thank you again, and God bless you all.

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Why the Increase?

After nearly six months of delivering high-quality content and evaluating the time and effort required, it’s clear that an adjustment is necessary. Additionally, compared to other services in this space, our new rate is still highly competitive—many charge double my monthly rate. This increase will allow us to continue providing exceptional value and ensure the sustainability of our work.

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By opting for the annual subscription annual subscription before the end of this month, you can avoid the price increase and enjoy the same great content at a significantly reduced rate of $6.67 per month. After July, the annual subscription will still offer a discount, but the price will reflect the new monthly rate before the end of this month; you can avoid the price increase and enjoy the same great content at a significantly reduced rate of $6.67 per month. After July, the annual subscription will still offer a discount, but the price will reflect the new monthly rate.

Thank you for your understanding and continued support. The initial $8 monthly fee was always intended as an introductory rate, and we’re thrilled to have so many of you on board. Maintaining this environment requires substantial effort; we believe this adjustment is fair and necessary.

We plan to release exciting content and new developments in the future, and we look forward to sharing them with you.

Best regards, Bob Kendall

Looking Back on Monday’s Action

The stock market demonstrated a robust performance, with the Dow Jones Industrial Average climbing by 0.5% to reach a new all-time high. The Russell 2000 continued its recent trend of outperformance, surging by 1.8%. Meanwhile, the S&P 500 and Nasdaq Composite recorded gains of 0.3% and 0.4%, respectively.

At the NYSE and Nasdaq, advancing stocks outnumbered declining ones by a 3-to-2 margin.

A notable contribution to the market's upside bias came from outperforming bank stocks buoyed by ongoing earnings reports. Goldman Sachs (GS 492.23, +12.35, +2.6%) stood out as a significant winner following its earnings report this morning. Additionally, the SPDR S&P Bank ETF (KBE) rose by 2.7%, and the SPDR S&P Regional Banking ETF (KRE) increased by 2.9%.

The S&P 500 financial sector was among the top performers, closing 1.4% higher. The energy sector saw the most significant gain, jumping by 1.6%. In contrast, the utilities sector was the worst performer, declining by 2.4%

Today's positive market sentiment was also influenced by the perception that the recent assassination attempt on former President Trump could boost his chances of winning the upcoming election in November. Many investors view Trump as a market-friendly candidate due to his policies on deregulation and lower corporate tax rates.

Furthermore, an early rise in market rates was linked to the belief in Trump's potential November victory. However, Treasury yields settled below their highs, with the 10-year note yield closing four basis points higher at 4.23% after reaching 4.45% and the 2-year note yield dropping one basis point to 4.45% after peaking at 4.47%.

• Nasdaq Composite: +23.1% YTD

• S&P 500: +18.1% YTD

• S&P Midcap 400: +9.3% YTD

• Russell 2000: +7.9% YTD

• Dow Jones Industrial Average: +6.7% YTD

 Reviewing Monday’s Economic Data:

- July NY Fed Empire State Manufacturing: -6.6 (KR Forecast consensus -6.0); Prior -6.0

 Looking Ahead to Tuesday:

- 8:30 ET:

  - June Retail Sales: KR Forecast consensus -0.1%; prior 0.1%

  - Retail Sales ex-auto: KR Forecast consensus 0.2%; prior -0.1%

  - June Import Prices: prior -0.4%

  - Import Prices ex-oil: prior -0.3%

  - Export Prices: prior -0.6%

  - Export Prices ex-agriculture: prior -0.8%

- 10:00 ET:

  - May Business Inventories: KR Forecast consensus 0.3%; prior 0.3%

  - July NAHB Housing Market Index: KR Forecast consensus 44; prior 43

WaveTech Database

Very little has changed regarding the database overnight. We observed approximately 405 new buy signals compared to 144 exit signals, keeping us within the 70% bullish range. This suggests that not much is expected to change in the immediate future.

We are firmly entrenched in this uptrend, as I have been discussing over the past several days. I anticipate the database will continue hovering between the 68% and 72% levels. This stability confirms that the short-term database is also in a robust uptrend. Consequently, we expect continued grinding along the primary moving averages and trends.

I will explore these moving averages and trends further in the newsletter, providing more detailed analysis and insights.

S&P 500 Futures