Market Notebook

Discussion – 

PRICE ACTION:
Equity prices, as measured by the ticker SPY, and bond prices, as measured by the ticker BND, closed higher last week.

SPY    +1.74%
BND    +0.13%

TECHNICAL ANALYSIS:
SPY price broke above previous highs establishing a short-term impulse higher within the context of a longer-term upward trend.

BND price appears to be experiencing a short-term pullback within a long-term upward trend.

SENTIMENT:
Sentiment remained positive during the last week.

A note of caution for the week ahead in equities: News has been released suggesting that China has developed an AI model to rival ChatGPT. The Chinese model, DeepSeek, is open source and uses significantly less computing power than U.S. models. The Chinese model could put downward pressure on computer infrastructure stocks like Nvidia. Expect volatility in tech during the coming week.

ECONOMY AND FUNDAMENTALS:
The U.S. real economy appears well-positioned for continued growth in 2025.

ACTION:
Have a strategy, be prepared, and act decisively when action is required.

All the best during the week ahead!

Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.