EB Daily Market Report - Friday, April 11, 2025

Dear Members.

All of the major indexes are substantially higher this morning after starting out on the weaker side. There remain a lot of hurdles; all of the indexes remain below all key technical levels. And the VIX remains elevated though off of its recent high. And government bond yields are quite elevated with the 10 year climbing as high as 4.59% before settling down some.

With all this in mind, Tom Bowley asked me to pass along his thoughts to everyone. Here they are below.

I decided to go all in today.  I still see the possibility for lower prices over the next few months, but I believe the risk of being out of the market is now greater than the risk of being in it.  This morning's Michigan consumer sentiment was 50, matching the lowest level in history.  Low readings between 50-55 have historically marked major stock market bottoms.  Throw in the recent acceleration higher in the VIX to near 60 (and it's still in the 40s), the spike in the put call ratio, and the recent selloff that favored aggressive sectors and I don't need to see anything more.I have invested primarily in the QQQ and IWM, but I've also added Mag 7 stocks as well.  The manipulation worksheet also adds to my growing bullish feelings.

Also, both inflation readings this month were well below expectations.  Throw in China raising tariffs again overnight (bad news) that was received in stride.  It seems that most of the damage has likely been done.

That's it for this week and Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins