The S&P 500 recently pulled back to its 200-day moving average (200-DMA) and bounced higher following tariff announcements involving the European Union and Apple. This bounce off the 200-DMA suggests strong institutional buying interest at these key technical levels. However, if that support level fails, I’ll reassess my outlook on the market’s direction. I remain bullish, primarily because leading growth stocks continue to perform well.

Most of the names on my Watch List exhibit accelerating earnings and sales growth, coupled with chart patterns that reflect institutional accumulation. I’m fully invested but am considering trimming a few positions to potentially add exposure to the gold sector, which has shown relative strength. As U.S. debt continues to balloon, the gold market has attracted investors seeking a hedge against fiscal instability.

Meanwhile, both the U.S. dollar and bond prices are trending lower. This is unusual, as rising yields typically strengthen the dollar due to increased foreign investment. However, the persistent weakness in the dollar may suggest a deliberate weak-dollar policy. A weaker dollar and shrinking imports due to tariffs could boost exports by making U.S. goods more competitive abroad.

Animal spirits remain alive and well, as evidenced by continued inflows into Bitcoin—a signal that liquidity and credit are still abundant, which supports the ongoing bull market. Nuclear energy stocks have also come back into favor, and I’m monitoring the sector for lower-risk entry points. These companies could benefit significantly from the current multi-year AI data center buildout.

In summary, I remain bullish and expect the market to retest and surpass all-time highs, continuing the uptrend temporarily interrupted by DeepSeek and tariff uncertainties.

Grace and Peace to Everyone!

Watch List: AER, ALAB, APH, APP, AVGO, AWI, AXON, BTSG, CHEF, CHWY, CRDO, CRS, CTAS, CVLT, CVNA, CW, GEV, GWRE, HEI, NFG, NWG, OSIS, PLTR, PWR, SE, VIRT

May the God of hope fill you with all joy and peace as you trust in Him, so that you may overflow with hope by the power of the Holy Spirit. Romans 15:13

If you know anyone who would like to receive these updates or invest, please contact me. 

Dexter Lyons, Portfolio Manager
337-983-0676, ChristianMoneyBlog.net
100% BRI, Honoring God with Our Investments!
Actively Managing Risk Since 1990!    

The S&P 500 and NASDAQ 100 have posted five consecutive days of gains, with both indexes trading above their 50-day and 200-day moving averages. While a short-term pullback would not be surprising, especially with resistance just 3% below all-time highs, the broader trend appears constructive.

Recent headwinds, notably the DeepSeek incident (1/27) and the tariff tensions (4/3), introduced significant uncertainty. However, the market seems to have absorbed the negative news, and those former headwinds now appear to be turning into tailwinds driving momentum higher.

One point of caution: Moody’s downgraded U.S. debt after Friday’s close, citing concerns over growing debt levels and projections that interest payments may reach 30% of revenue by 2025. This downgrade could catalyze short-term de-risking. Still, I believe the market has an underlying desire to move higher.

Junk bonds are sending a strong “risk-on” signal. They are trading above their rising 50-day moving average and are at all-time highs. Uptrending junk bonds suggest minimal credit market stress and a low likelihood of an impending recession.

Globally, markets breathed a sigh of relief as the U.S. and China agreed to a 90-day pause in their tariff dispute. This cooling-off period may remove some of the emotion from the trade negotiations and allow space for a fair and sustainable agreement to be reached.

Meanwhile, gold and Treasury bonds remain in short-term downtrends, reflecting weakness in the U.S. dollar. Futures markets are currently pricing in 2–3 rate cuts by the end of 2025, with the first likely to occur at the Fed’s September meeting. The market would likely welcome lower interest rates as they support economic growth and corporate profitability.

I remain fully invested, anticipating a continuation of the uptrend that DeepSeek and tariff-related volatility temporarily disrupted.

Grace and peace!

Watch List: AER, APH, AWI, AXON, BTSG, CASH, CHEF, CHWY, CRDO, CRS, CTAS, CVLT, CVNA, CW, CYBR, FICO, GEV, GWRE, HEI, LB, NFG, NWG, OSIS, PLTR, PWR, VIRT, WAY.

God opposes the proud but gives grace to the humble. John 4:6

If you know anyone who would like to receive these updates or invest, please contact me. 

Dexter Lyons, Portfolio Manager
337-983-0676, ChristianMoneyBlog.net
100% BRI, Honoring God with Our Investments!
Actively Managing Risk Since 1990!

The S&P 500 moved sideways last week, holding steady after a strong 10% rally over nine days—a positive sign of strength and stability. The index remains above its 50-day moving average, though it’s still facing some resistance at the 200-day mark. Meanwhile, the NASDAQ 100 has tried to break through its 200-day moving average three times in the past six sessions, and maybe the fourth time will do the trick.

Markets digest the recent tariff news, and investor sentiment seems more optimistic. While uncertainty has lingered, we’re beginning to see more clarity, and new leadership is starting to emerge. The once-dominant “Magnificent Seven” stocks face challenges, but the AI space is heating up again following DeepSeek’s surprise announcement on January 27.

We’re seeing strength in AI-related areas like construction, software, and electronics, fueled by institutional buying, as shown by price gains on higher-than-average volume. The Fed kept interest rates steady last week, and the market responded calmly—another encouraging sign. Trade deals and rate cuts are coming, and that could be the catalyst to break through overhead ceilings of resistance.

Technology remains the leader in expected earnings growth within the S&P 500, projected to rise 18.1% over the next year, compared to 12.8% for the overall index. About 72% of companies have reported this quarter, showing a 12.8% year-over-year increase in earnings. It’s the second straight quarter of double-digit growth and the seventh with annual gains. Plus, 76% have beaten earnings estimates, and 62% have topped revenue expectations—above the norm. Sectors like tech, health care, and consumer discretionary stand out. BTW, US companies are buying back stock at a record pace!

On the macro side, the US dollar and Treasury bonds continue to trend lower, supporting gold near record highs. Bitcoin is hovering around $100,000, showing strong speculative interest, often a sign of a healthy market risk appetite.

I’m about 66% invested and plan to increase my exposure as momentum builds.

Wishing you lots of grace and peace!

Watch List: AER, APH, BAP, CASH, CRS, CTAS, CVLT, FCFS, FICO, GEV, GWRE, LOAR, NFG, NWG, OSIS, PEN, PWR, TW, VIRT, WAY, WELL.

Just as I have loved you, you also are to love one another. John 13:34

If you know anyone who would like to receive these updates or invest, please contact me. 

Dexter Lyons, Portfolio Manager
337-983-0676, ChristianMoneyBlog.net
100% BRI, Honoring God with Our Investments!
Actively Managing Risk Since 1990!    

The S&P 500 has now posted gains for nine consecutive days, the longest streak in over two decades—breaking through its declining 50-day moving average and approaching key resistance at the 200-day. This impressive momentum, especially following Friday’s GDP report, signals that the worst may be behind us and that the market is gearing up for a renewed push higher.

During the recent uncertainty around global tariffs, investors sought refuge in gold. But that narrative is shifting. Capital appears to be rotating out of defensive assets like gold and back into high-growth equities. I’ve exited my gold position and currently have around 65% of my portfolio allocated to stocks with strong earnings and sales acceleration. My screens are lighting up green.

Many of the names on my watchlist are breaking out of well-formed bases with powerful technical setups and outstanding fundamentals. This is the most bullish setup I’ve seen since before the January 27th Deep Seek black swan event that temporarily disrupted the AI sector. Deep Seek has since proven to be a pivotal development, allowing AI firms to scale faster and more efficiently. Analysts have recalibrated their valuation models accordingly, and investor confidence in AI is returning.

The AI boom is back, and the sector’s leading companies are again showing strength. We don’t need a crystal ball to predict the future—we need to observe the present. Price and volume action are often the earliest indicators of future earnings strength. And right now, the outlook is promising.

Wishing you and your loved ones lots of grace and peace!

Watch List: AER, APH, BAP, CALM, CASH, CTAS, CVLT, FCFS, FICO, GEV, GWRE, HDB, IBN, LOAR, NFG, NWG, OSIS, PEN, SFM, TW, VIRT, VRNA, WAY.

With man, this is impossible, but with God, all things are possible. Matthew 19:26