EB Daily Market Report - Friday, July 25, 2025

Dear Members.

Just a reminder that Tom Bowley will be conducting our Q2 Earnings Webinar next Monday. This will be a very valuable event where Tom will go over the Magnificent seven as well as other stocks he thinks could benefit as a result of earnings already reported or on deck to report soon. We'll make sure you get room instructions prior to the 5:00 pm EST start time.

Another trading week nearing an end and with both the S&P and NASDAQ notching fresh all time highs.

Not much has changed from last week when I pointed out both the S&P and NASDAQ are technically overbought. In addition, we saw meme stocks gain popularity though some of the high flyers have cooled some. Also, we're looking at record use of margin with options trading at record levels as well. In other words, lots of warning signs that at a minimum we should be somewhat cautious.

Next week could end up being one to remember. First, we're going to get earnings reports from the AAPL, AMZN, META and MSFT. Toss on top of that the Fed rate decision on Wednesday and we could get a much better handle on where things might be heading in the near term.

I'm still of the mind that at the present time there's more risk to the downside. In other words, the market could keep moving higher but at some point we could see that stall and with the market priced for perfection we could see some selling. We should see price support right round 6300 with the first level of technical support at 6259, representing the 20 day moving average. To the upside 6400 will likely be the next level to be cleared if the bulls look to take the market higher.

Bottom line: tremendous, positive momentum in the market. But the market is very stretched here so at least keep one finger on the sell button "just in case."

At your service,

John Hopkins