Momentum Monday Update: Broad Market Shrugs Off Fed’s Rate Cut Hold. Plus Two New Momentum Picks.

Bond traders like the Fed's holding pat on rates.

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The New York Stock Exchange Advance Decline Line (NYAD) is rallying this morning as the broad market continues to outperform technology. This suggests investors are focused on other sectors beyond technology as the DeepSeek drama works itself out.

The bullish scenario is being aided by the bond market’s sanguine response to Fed Chairman Powell’s sudden turn against inflation. This suggests that the bond market is now comfortable with the future pace of inflation and in contrast to recent trader attitudes the prevailing opinion is that the Fed may be catching up to rising inflation.

The U.S. Ten Year Note yield (TNX) is on the verge of testing the 4.5% yield. A break below this level could prove to be very bullish for stocks.

In this Flash update I have two new picks in stocks which are nearing breakouts.

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