The Weekly Trend

Episode 265: Climbing the Rope

Kevin Firari Season 6 Episode 30

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0:00 | 30:13

 In this week’s episode, David and Ian discuss the fear in the market going into today's large move to the upside. They also discuss the things confirming the thesis that the market will continue to move higher, how small caps are potentially bottoming on a relative basis versus large caps, and international areas of the market starting to show signs of relative strength again.  

david_1_08-22-2025_103649

Welcome back to The Weekly Trend Podcast. Today is Friday, August 22nd, 2025 s and P 500, currently sitting at 64 76. I'm David Darling. I'm here with football this weekend. Ian McMillan, is that what you got planned for the weekend?

ian_1_08-22-2025_113650

What yeah, I definitely got football planned. I mean, it is, it's getting antsy in the McMillan household ready for football. We'll be in Atlanta and like nine days to watch the Gamecocks kickoff. I'm excited. Lots of lots of documentaries out right now.

david_1_08-22-2025_103649

Okay.

ian_1_08-22-2025_113650

Because you had like all the Netflix stuff, right? The quarterback,

david_1_08-22-2025_103649

Yep.

ian_1_08-22-2025_113650

you had the SEC special. There's documentary on the Chiefs on I think it's on Disney

david_1_08-22-2025_103649

Okay. I didn't know. I didn't know about that one.

ian_1_08-22-2025_113650

yeah, so they

david_1_08-22-2025_103649

S sec.

ian_1_08-22-2025_113650

creators know how to get excited for football.

david_1_08-22-2025_103649

Yeah. Is is SEC one? Good. I haven't watched that one.

ian_1_08-22-2025_113650

SEC one's good. I think South Carolina, I'm biased. I think South Carolina comes off looking pretty good. Yeah, definitely. Ready? You said, what did you say s and p was at I

david_1_08-22-2025_103649

64, 76 or 75. One of the two

ian_1_08-22-2025_113650

Oh,

david_1_08-22-2025_103649

looking at. I'm looking at it live.

ian_1_08-22-2025_113650

last Friday.

david_1_08-22-2025_103649

Yeah. Nothing happened. Nothing happened.

ian_1_08-22-2025_113650

happens, right?

david_1_08-22-2025_103649

Yeah,

ian_1_08-22-2025_113650

Yeah.

david_1_08-22-2025_103649

nothing like, nothing like a couple down days to get one foot out the door and get the put get put call ratio jumped and

ian_1_08-22-2025_113650

I just, it is so easy to get the masses riled up.

david_1_08-22-2025_103649

well.

ian_1_08-22-2025_113650

have days like today where it all, you know. All of that then gets wiped out to the upside

david_1_08-22-2025_103649

When we're at, the, the reading for a a i I survey for bears, like 45% bears.

ian_1_08-22-2025_113650

45%. And we're in the midst of what year? Three of a bull market we already had. The s and p had what, 10, 15% correction four months ago. So I, I hear, I mean, oh my gosh, you wouldn't believe even from friends Dave, when are, when is this, is the market actually gonna sell off it just goes up, yada, yada. that so could not be further from the truth.

david_1_08-22-2025_103649

Well, yeah. We've got, like you mentioned, the the tariff tantrum piece. That was a 20% move February to April. You were just coming off of 22, 23. Right.

ian_1_08-22-2025_113650

Yeah.

david_1_08-22-2025_103649

22, 23, we had a a 25% correction that took about 11 months. I mean, you didn't reach new all time highs until January of 24.

ian_1_08-22-2025_113650

I like how you said 2023 because if you use the s and p, yeah, we had October, 2022 as a bottom, but if you use. A lot of other indices. I mean, you use Russell, October, 2023. We went back and visited the same area a year later,

david_1_08-22-2025_103649

Right.

ian_1_08-22-2025_113650

we finally got the push higher.

david_1_08-22-2025_103649

Well, and we're, we're still at, even with today's move in Russell, we're not at new all time highs for Russell 2000. We're still at the same price we were in March of 2021. You look at equal weight, Russell 1000, you're only talking about a 3%, or I'm sorry, a 7% return since December of 2021, equal eight s and P 500. Finally making a new all time high.

ian_1_08-22-2025_113650

Dow finally making an all time high.

david_1_08-22-2025_103649

Yeah.

ian_1_08-22-2025_113650

you're getting confirmation that stocks wanna go higher. What I think, right? I mean, we hear about all this, oh, NASDAQ and s and P, and it's like, well now, mean equal weight of all of it. Equal weight S and P, and this has gotta stick, but equal way. S and Ps, I think the biggest. Thing people should be paying attention to.

david_1_08-22-2025_103649

Oh yeah. I mean that's a, that's a broadening out and I, I think, I think you brought up an important caveat, right? We're a few hours from close. If we don't hold this move on Friday, August 22nd, 2025, and we. Sell off by the close, well then that's a different story. But all we have is the price that's in front of us and that's what matters most. And if we hold this into close, like you said, you're getting confirmation all over the place, equal eight s and p Dow Jones, I mean, shoot even micro caps.

ian_1_08-22-2025_113650

You literally took the words outta my mouth of 4% today.

david_1_08-22-2025_103649

I mean it's not,

ian_1_08-22-2025_113650

microcaps. those all time? No,

david_1_08-22-2025_103649

it's not.

ian_1_08-22-2025_113650

all time, but they're year to date highs.

david_1_08-22-2025_103649

Yeah. Year to date highs well, and they're three year highs. Three and a half year highs.

ian_1_08-22-2025_113650

into that range from 2021. I mean, this is, and to your point, there is so much fear going into today. It wasn't, it was a newsy where did they meet? The Wyoming thing?

david_1_08-22-2025_103649

Jackson Hole.

ian_1_08-22-2025_113650

Jackson Hole. Oh, what's, I don't, I don't. I don't know. The trend was still fine, right? I mean, if you talk to a technician, the trend was still fine today. Yeah, we'd have been a rough week, a rough couple weeks for some certain individual stocks, but you got a lot of upward sloping moving averages, including the 200 a day. I don't know.

david_1_08-22-2025_103649

I, even the Russell 3000, like broadening out or, you look at the NYA New York composite making new highs and

ian_1_08-22-2025_113650

all time highs for the Russell 1000. If you look at IWB now, we gotta

david_1_08-22-2025_103649

Yep.

ian_1_08-22-2025_113650

but I.

david_1_08-22-2025_103649

Yeah, it's, it's a lot of confirmation if this holds. We can't complain. Just enjoy the uptrend happening during a, during a seasonally week period. Notoriously now we still have September to go last. We have next week to go. But a lot of things confirming

ian_1_08-22-2025_113650

And maybe we don't get right. Seasonality is just an average.

david_1_08-22-2025_103649

yes.

ian_1_08-22-2025_113650

It's just an average. And we can have a pretty low volatility. I mean, for what? Is expected, like you said, you look, really August through September. But yeah, maybe we buck that and again, yeah, we're still, we still have five weeks to go. Really? I mean, really, you could even say October. The seasonality is a little sketchy.

david_1_08-22-2025_103649

Mid into mid October for sure, and I, I just find it interesting to see. Small caps potentially bottoming here against large caps

ian_1_08-22-2025_113650

Hmm.

david_1_08-22-2025_103649

on a relative basis, considering the sentiment behind it all. I mean, first of all, you have overall sentiment for stocks in general, right? You have a a put call ratio that jumped especially at the index, index level, you had more bears than bulls on surveys. And then you add on the layer of small caps and like in the, in that A A I I survey, what stocks are you favoring right now? Small caps least favor. And we've covered ad nauseum, the outflows from

ian_1_08-22-2025_113650

week, isn't there a record short in

david_1_08-22-2025_103649

Yes.

ian_1_08-22-2025_113650

which I get right, because is. And I kind of brought this up to JC a few weeks ago. On their show, they say, oh, people keep showing biotech. Well, if you're, I mean, there's hundreds of billions of dollars in long short funds, people that have to be net neutral. Like I get why people continue to pound the short short na, or short Russell theme. But yeah, if that unloads or that reverses, boy, howdy.

david_1_08-22-2025_103649

Yeah, you got a, you have a scenario on your hands for short squeeze, and that's how it works, right? If, if, again, I'll reiterate, you should get nervous when you have moves, 2, 3, 4, 5% where no one hedges, like you don't see a jump in the put call. You don't see a jump in premiums for options. That's when you say, okay, because all, all the shorting is, is future buying, right?'cause people eventually have to close those. And the way you have to close'em is you gotta buy stocks. And we, before, before we pivot onto international stocks, I do wanna highlight. Support of this podcast, the Adaptive Select ETF, listed on the New York Stock Exchange under ticker A DPV, which helps investors access to the most prevalent factors in markets, momentum and relative strength through proprietary identification methods. The adaptive Select ETF attempts to own the strongest 25 large cap stocks when the market is in an uptrend. And since not all market environments are the same, adaptive select seeks to prevent extended declines by moving to short-term treasury bills and cash during long-term market Downtrends. Investors can find out more including how to invest in A DPV by visiting ad pv etf.com or calling 1-833-880-FIVE 200. Investing involves risk, including possible loss of principal distributed by Quasar Distributors, LLC. So we talked about a lot of the major indices. I think it's also fair to say, considering the sport of this pod podcast, momentum still has a grip still in an uptrends as a factor. Momentum's still alive and well. And that's a, that's a risk on factor. But even internationally speaking, it had a strong start to the year international and then kind of petered off the last few months. Here, based on, on the work done internally, and you, and you saw it too, you rolled through a lot of charts. There's a lot to like going on, setting back up for international for the second half of the year.

ian_1_08-22-2025_113650

Yeah, and it's I like that aspect of the workbooks. Obviously foreign is kind of its own thing but you know, like I told you and Kevin yesterday went through, can tell you, I mean the whole, the whole ETF universe just started at the very top and scanned it down as to what's working, what you should be paying attention to. Particularly on a relative basis. Right. That's it's so important. Think it gets talked enough about, maybe we don't talk enough

david_1_08-22-2025_103649

Yeah, let's talk about it. Let's talk about this relative.

ian_1_08-22-2025_113650

strength is so. Important. Yes. Being in an uptrend on an absolute basis, you wanna, you wanna pull up your charting platform and you wanna see the chart going from lower left to upper right, upper right, that is important. But we ha relative strength, relative behavior is, it's all great tweet last week and they, they use it much shorter relative strength than we do. But they were talking about how. They actually look at their, the relative chart first before even bothering on whether they're gonna pay attention to the absolute chart. And I think that that is great. I mean, I don't, I don't look at anything if it's not above a relative 200, like that's the minimum. We want to own things that are outperforming a benchmark that

david_1_08-22-2025_103649

Yeah. And that it's, it's an opportunity cost, right? Every, every dollar that's being invested, you have choices. That dollar can go anywhere. You could just leave it, you could put underneath the mattress, and then you've got a bajillion other things that you could put it in. And how do you, what's your process for identifying. Because like you said, you could buy an absolute uptrend,

ian_1_08-22-2025_113650

Yeah.

david_1_08-22-2025_103649

but if you buy a relative uptrend, even better.

ian_1_08-22-2025_113650

the s and p right now, like at this day, and I think Dave, so right, he always calls it the, the golden age of investing. I think that the golden age of investing will only continue to get more and more frictionless. But yeah, you can essentially go buy the s and p for free now, four basis points, three basis points, whatever Vanguard and state Street are charging, right? So you can own the s and p for free. So if that is your baseline and for the business we're in, that's really right. That's a, that's an alternative, that's a realistic alternative for our clients. They don't have to pay us percentage. They can turn around and go, just buy the essence. So what are you gonna do that's better than the essence? You have to be better than that for that risk tolerance. Obviously not all clients are a hundred percent in equities, for that risk tolerance, plus a fee, to be better than the s and p,

david_1_08-22-2025_103649

Yeah, you gotta provide value.

ian_1_08-22-2025_113650

and that is where relative strength. Comes in the factory, you gotta, you cannot, you cannot beat the benchmark if you don't own things that are beating the benchmark. It's mathematically impossible.

david_1_08-22-2025_103649

So true, so simple. So true.

ian_1_08-22-2025_113650

And so, yeah, you gotta bear those down and back to Dave's, our original point that I feel like is setting up again for international. Now they're underperforming a little bit today, but. I think it's when I see it and there's some international that's done better than others. Some that has held up really well.

david_1_08-22-2025_103649

And the fact that European financials can con, con continue to be bought hand over fist.

ian_1_08-22-2025_113650

I didn't stop. Right. And that's another thing. So we talk about route of strength, not just on a chart, but I don't have to look at a chart to know. Well, the s and p kind of got whack this week, and this stock, or this ETF was either sideways or up. That in itself is relative strength. And you saw that a lot out of foreign,

david_1_08-22-2025_103649

Yep.

ian_1_08-22-2025_113650

particularly. Yeah, I mean, European financials, Hmm.

david_1_08-22-2025_103649

Do you, do you know where the idiom, handover fist comes from? Like what that

ian_1_08-22-2025_113650

I do

david_1_08-22-2025_103649

tobacco, I had to look it up myself.'cause I, I just said it. I'm like, well, wait a minute. What does that actually mean? Well, I mean it, I know it means at a rapid rate, but it comes back from nautical handover, hand describing sailors climbing a rope.

ian_1_08-22-2025_113650

Wow.

david_1_08-22-2025_103649

So European financials, they climb in that rope. I mean, you look underneath the hood,

ian_1_08-22-2025_113650

row.

david_1_08-22-2025_103649

you look at that, you know what's underneath the hood? H-S-B-C-U-B-S, Allianz. Deutsche Bank. Deutsche Bank,

ian_1_08-22-2025_113650

Can you imagine that?

david_1_08-22-2025_103649

GLE, society General, a CA. Like all these names, credit Agricole, they, they're, they're getting bought.

ian_1_08-22-2025_113650

Deutsche Bank up 396% since October, 2022.

david_1_08-22-2025_103649

So is the world coming to an end if we're buying European financials?

ian_1_08-22-2025_113650

No.

david_1_08-22-2025_103649

Probably. Probably not.

ian_1_08-22-2025_113650

And we joke about yesterday, I love, I love the idea of American exceptionalism in the stock market.'cause that's what it has been for 14, 15 years.

david_1_08-22-2025_103649

Yeah, it's where we live. It's fun.

ian_1_08-22-2025_113650

But if I gotta go buy Italy, I gotta go buy European banks.

david_1_08-22-2025_103649

Yeah.

ian_1_08-22-2025_113650

what the chart says.

david_1_08-22-2025_103649

Well, Ann. Like I think you brought up during some of our market calls, just like though there will be a decade or something like it in the coming years where international outperforms, and that's differentiation you want and it's just unique, right? Because it's a little different mindset. It's potentially not as sexy. It, you, you got a lot of Europe, European, or international things in the portfolio,

ian_1_08-22-2025_113650

Well, you wanna own Nvidia or HSBC?

david_1_08-22-2025_103649

right?

ian_1_08-22-2025_113650

I wanna own Nvidia,

david_1_08-22-2025_103649

Right.

ian_1_08-22-2025_113650

I got a fiduciary duty too to try and beat the benchmark.

david_1_08-22-2025_103649

Mm-hmm. And so there, and that's it's, and that's not to say we shouldn't own Nvidia, it's just you do that ratio analysis and you identify where the strength is. And when European financials are setting up in such a way to outpace the s and p, you at least have to consider that opportunity cost. cause in the end, price is price and relative strength, relative strength. Pick the things on a relative basis that are climbing the rope. I mean even, okay, gold miners and gold like.

ian_1_08-22-2025_113650

miners higher. A good week. Gold is still not, well, maybe it did today. Let's see. I mean, it's still, golly, I look so good. I

david_1_08-22-2025_103649

But,

ian_1_08-22-2025_113650

higher.

david_1_08-22-2025_103649

but you've brought up in the past it, it's nice to see gold miners outpacing gold. And we're at, we're at three, three or two and a half year highs. Gold miners versus gold.

ian_1_08-22-2025_113650

And you've get, you're getting a four month consolidation on gold up here. So you know it's working off this uptrend exactly how you would want our gold miners giving you a clue that gold will eventually go higher. I mean, right. And then you've got, right, so the other side of this is the dollar. Well, the dollar continues to trade below a hundred. Getting wall up again the day. Really continues to trade below 98, 99,

david_1_08-22-2025_103649

Mm-hmm.

ian_1_08-22-2025_113650

Which I know you say, well, Ian, that's 1% less. big deal in currency world.

david_1_08-22-2025_103649

Yep.

ian_1_08-22-2025_113650

yeah, I think, I mean, right. And the next stop for dollar is to, when using Dixie, which is a dollar index, technically in 89. So what does that do for gold? And whatever the, they're gonna tell us that they're gonna tell us a week dollar is good for, I guess, small caps. I wonder if that'll be the thing we'll go back to in the, that'll be the mantra, which is fine line.

david_1_08-22-2025_103649

Yeah, that's fine. If they wanna, it's fine. If they wanna change, change the narrative.

ian_1_08-22-2025_113650

Yeah. If now all of a sudden dollars, weak dollar's, good for small caps, that's fine.

david_1_08-22-2025_103649

Speaking of, speaking of things priced in dollars, what we have going on in crypto.

ian_1_08-22-2025_113650

Hmm. Crypto a little now. Of course. Having a good day today.

david_1_08-22-2025_103649

I find it interesting how, how well Ethereum has held up going into this pretty massive range. It's been in for a while.

ian_1_08-22-2025_113650

Yeah. And you wonder if, okay, does we see small cap equities outperform? Do we see the altcoins outperform? Right? Because even today, I mean, you got your, I mean Bitcoin, like everything e. Solana Chain link Carano, ripple Litecoin, outperforming ether's up. Golly, 10%, 9% I, and that right, I mean holding 4,100 on Ethereum. I should have listened to Eric Trump when he told me to buy.

david_1_08-22-2025_103649

Hmm. Well, and even like we talk small caps, Chinese small caps.

ian_1_08-22-2025_113650

Don't get me started on China.

david_1_08-22-2025_103649

Let's do it. I started you.

ian_1_08-22-2025_113650

I'm not a commie, but we allowed to say that on the podcast.

david_1_08-22-2025_103649

yeah. We could say that.

ian_1_08-22-2025_113650

say that. I mean, it

david_1_08-22-2025_103649

You could. You can offend. You can offend the communists. It's okay.

ian_1_08-22-2025_113650

Yeah. What do we care about, offend.

david_1_08-22-2025_103649

But we'll part, we'll participate in their stocks if they're in an uptrend and a relative uptrend, and there's signs there as well.

ian_1_08-22-2025_113650

commun. Yeah, it's, I like it. I, I mean especially the tech side. Like A-C-Q-Q-Q, big breakout today Wow. 6%. Right? So then you wanna back that down. That's probably your Babas. What was the other big one? Baidu. Golly. Remember when Chinese companies used to get so much attention?

david_1_08-22-2025_103649

Yeah, I was gonna say Baidu PDD

ian_1_08-22-2025_113650

PD. D.

david_1_08-22-2025_103649

and they used to be, and it's terrible that I'm, I'm not gonna be able to look this up at this time. But I mean, Baba used to be a really huge waiting in, I'm not saying it's not a huge waiting in CQQQ, but I remember when it was a pretty large waiting in as an A DR in QQQ

ian_1_08-22-2025_113650

Yeah, and

david_1_08-22-2025_103649

and

ian_1_08-22-2025_113650

big in fangs. One of them mags or fangs.

david_1_08-22-2025_103649

I mean, you've got 10 cent. Baidu. I mean, there's some, it's gonna be it. It's gonna be an interesting finish to the year. And even like, if I could pivot back domestically, I mean XLC communication services, not bad. You throw on that top of that financials, if you're leading, if you're leading sectors are gonna be, communication services and industrials. Technology. Financials,

ian_1_08-22-2025_113650

Definitely has a small cap

david_1_08-22-2025_103649

Yep.

ian_1_08-22-2025_113650

vibe to it definitely has a four and five. Right. And that's just, I'm not even like, it's not like Europe has better banks than we do. It is just the way the indices are weighted.

david_1_08-22-2025_103649

Yeah. Yeah. A simple way to think about it is you're, you're a lot of foreign, especially Europe indices. Makeup is financials, us makeup is tech. That's definitely, definitely a true story. What else do you want to cover, Ian, for our listeners, before we ask'em to give us a high rating and. Share what we're talking about here.

ian_1_08-22-2025_113650

Yeah, I mean, I think we've mentioned it is, it's a lot of, I mean, a lot of participation, a lot of confirmation going on today. Yep. We've got four hours. We gotta, we gotta stick it. I think value the fact yesterday our, like RPV Pure value was already in new highs was

david_1_08-22-2025_103649

Ah, your point, just your point. Just being.

ian_1_08-22-2025_113650

is still right. And then, so then, right, let's take value. Let's take value and then let's do top down on that. So again, that's small crops, that's your foreign that's your industrials and those types of things. It's, and those stocks didn't flinch. And yesterday before today's big move. Back to New heights.

david_1_08-22-2025_103649

Yeah, lots, lots of things.

ian_1_08-22-2025_113650

have like two 80% updates last week or something?

david_1_08-22-2025_103649

Yeah, if you use like

ian_1_08-22-2025_113650

Oh yeah,

david_1_08-22-2025_103649

s and p, but if you use like NYSE, there was one

ian_1_08-22-2025_113650

one. So thrust, e thrust ish.

david_1_08-22-2025_103649

well, even a couple months ago, I mean, we're, we're not, we're not too far. Removed some breath thrust that happened not too long ago.

ian_1_08-22-2025_113650

And so what's the one of the biggest things that we love to talk about? So breath thrust happens, Twitter data dump on how this is 1, 3, 6, 12 months out. We all talk about it for 24 hours. Then a month later we have like a 4% correction. Everyone, like we're, it's, I think that's the perfect example of just how minute to minute and siloed things are with investor behavior when it's like, well, hey, wait, wait, wait, wait, wait. Didn't like three months ago. We have this breath thrust and that was supposed to be like super bullish for the next 12 months. So why are we worried about this?

david_1_08-22-2025_103649

Right.

ian_1_08-22-2025_113650

And yeah, then it, fine and we make a new high and I don't know, it's.

david_1_08-22-2025_103649

What I find interesting is like when you talk about opportunity, cost and relative strength is just when you look at like, let's use, let's use technology. We can use XLK, right? XLK near all time highs. XLK versus s and p is not, and so I'm just, I'm here to throw a fly in the ointment. I'm not gonna look up that idiom. I think we all know what that means, but the fact that there's a divergence there, does that resolve. And I'm only bringing it up because, right, this is about as bullish as we've sounded on this podcast in a while. That could maybe that's, maybe that's a clue. Or is it just rotation that you've had such underperformance from value and small that you're gonna see XLK hold up just fine. But you're just gonna see these other areas start to out, start to outperform, and that's perfectly fine. It's kind of like, when you talk about staples, staples can go in a be in an uptrend, that's fine. It's when they're in a downtrend and outperforming like going down less than other stocks, that's when it's a problem. So yeah, I mean, thing, things continue to look good. To your point, trying to record new all time highs, uptrend is still intact. One foot out the door. When you think about the old adage about market sentiment, I don't think we can call this euphoria right now, to your point, friends and relatives, clients, concern that, it was just a couple weeks ago, we're gonna get a recession. I don't know. We typically don't know that till afterwards.

ian_1_08-22-2025_113650

Tariffs, man. He doesn't know what he's doing with tariffs. This is so bad for the stock market. I don't know, maybe.

david_1_08-22-2025_103649

Yeah, maybe it is. It doesn't appear to be yet.

ian_1_08-22-2025_113650

Well, what if we go back to 1968 to 1982? Okay. Maybe actually a great period to use the 200 day moving average maybe. I don't know. I don't know. I know that currently the trend is up days up. There's confirmation from a lot of areas. Europe looks fine.

david_1_08-22-2025_103649

Well, and it's, it's one of those things where, John Templeton said, bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria. I don't think we're at euphoria. I don't even think we're on, I'm not even sure we're on optimism

ian_1_08-22-2025_113650

if this thing grows on skepticism, it could. It could be a seven foot, eight, 13-year-old. I

david_1_08-22-2025_103649

Like,

ian_1_08-22-2025_113650

because, and I think, I mean, you talked about it, we got a three day sell off. We got the put call ratio to spike back, essentially, if you want to call it, for lack of a better term, a fadable level. Watch people get spooked, as my dad liked to say. Tap on the, tap on the fish fishbowl, watch the fishes, scatter, and then reset. And there was a lot of resetting under the surface.

david_1_08-22-2025_103649

There was.

ian_1_08-22-2025_113650

lot of momentum. So you say, Ian, well, it was four day sell off Well go look at some momentum stocks. Go look at some of these high flyers and what happened to them over the last five to eight, nine sessions.

david_1_08-22-2025_103649

Well, and I, and I think it was a little bit telling on, I think it was the 19th, so Tuesday. So really positive breath. Most stocks up, indices down.

ian_1_08-22-2025_113650

Yes. You shared a graphic on that.

david_1_08-22-2025_103649

Yeah, it was, it was the, there's only two days with better breath and a bigger loss, and, and I'm gonna try, describe what I'm saying here to those listening. S and P 500, if we can use that metric on Tuesday was down a lot of indices were down, but most stocks were not, it was this, it's that, it's that factor that happens with the MEG seven, right? The top 20 stocks,

ian_1_08-22-2025_113650

I think it's the best way to put it. It's like the reverse.

david_1_08-22-2025_103649

Yeah. It's like the reverse. And, and you, you saw positive stock buying. On that day, even though indices were down now, for some it didn't feel like that. Right. I know. I, I understand that. A portfolio that has stocks in it, those, if they're momentum stocks, they would be down on that day, but the majority of stocks weren't the on, on the 19th. I mean, you had. 55% update in the NYSE. Yeah, the NYSE was down, so that's that large cap factor when those correct it. But when you saw that positive breath during that time, it's another thing to check a box and say, okay, risk is still on. And that's really what we have. And I, I, I do think it's telling that you've highlighted spike, spike in the put call jumping in option premiums. Completely negative sentiment on small caps. Completely negative sentiment on stocks overall. But yeah, you do the work and you look through all the workbooks and you do, you study all the, the different charts out there. Lots of things setting up and is this a breath reset at this point? Time will tell.

ian_1_08-22-2025_113650

Or it's not, and we've got everything else into participation stage now, like the Dow.

david_1_08-22-2025_103649

Mm-hmm.

ian_1_08-22-2025_113650

And small, it's they're, now they're moving to new highs and we've checked that box, but they go back. Then underperforming. That's also a possibility. I don't know. I don't know. I won't know till the next candle shows up,

david_1_08-22-2025_103649

That's right.

ian_1_08-22-2025_113650

probably won't know,

david_1_08-22-2025_103649

Bayesian statistics. Bayesian statistics, it matters. So I appreciate you doing this again with me. We hope our listeners appreciate it. Best way you can repay us is share it on your platform of choice. Give us a high ranking, share it with your friends, family, get the word out. Obviously you guys can always disagree with us. That's what makes a market. But right now, uptrend intact, price continues to current confirm, and that's all that matters is price. But Ian, thanks for. And highlighting all the interesting setups that we're starting to see, and we'll do it again next.

ian_1_08-22-2025_113650

Have a great weekend everyone.