📈 Clear Leaders

This is what's driving the market.

$XLF / $XLY Leading

Obviously this morning we have a lot going on with the release of DeepSeek and its potential threat to American AI developments (primarily impacting companies like Nvidia and Microsoft).

To me, this presents a buying opportunity, especially in sectors that are selling down but have no exposure to the AI arms race.

We have very clearly seen that Financials and Consumer Discretionary names are the engine behind the market.

While these names aren’t flashy like tech, they are providing consistent gains and are the best performing sectors in the entire market right now.

Stocks to Watch

On the XLY side, we are seeing apparel stocks breaking out across the board.

Key names to watch include LULU, RL, ONON, and SKX.

You’re not seeing strength in the market like this in other names - including tech.

As for XLF, we are seeing banking stocks rip as well as capital markets stocks. With continuing financial deregulation expected to come from the Trump administration, these names should continue to grind higher.

Watch names like KKR, APO, JPM, HOOD, and GS.

For more information on how I am viewing the market, watch this video: