🟠 Market Signal: RISK ON. Yet short-term conditions remain overbought, but the last two days cooled modestly. // Strong breakouts continue. Rotation is constructive yet confined to technology. Capital flows into mega-cap, quantum, drone, solar and software stocks. After three weeks of software-infrastructure leadership, software application names are now breaking out from low levels. This rotation can keep the market higher. // $IXIC broke out of a two-week bull-flag consolidation into new all-time highs with nine consecutive weeks of positive action. Strength remains limited to tech stocks. // BTC and crypto trades poorly. Gold shows weakness but holds its 40-week moving average. // Market currently neglecting any Strait of Hormuz situation but even if an agreement is reached the tipping point has likely passed and more severe damage to the economy might be underway. // This week's key event is Friday’s U.S. employment report, which will directly shape Fed rate-cut expectations and stock valuations. // Action: Quite a few open positions. Default action SOH. Unless a HVBO with exceptional cat comes along. 1. This week, the stock market extended its rally during the holiday-shortened week, with the S&P 500 rising 1.4%, the Nasdaq Composite 2.4%, and the DJIA 0.9% to fresh record highs as leadership stayed concentrated in technology and AI-related stocks while participation broadened in small- and mid-caps. The Russell 2000 gained 1.8% and the S&P Mid Cap 400 1.4%. Information technology surged 4.6% as the leading sector, with the PHLX Semiconductor Index up 5.1% and the iShares Expanded Tech-Software ETF climbing 8.1% amid strength in hardware, software, and AI infrastructure names. Consumer discretionary advanced 1.5% and the iShares U.S. Home Construction ETF rose 2.3%. Energy was the weakest sector, falling 5.4%, as WTI crude oil declined roughly 11.5%. Consumer staples dropped 3.2%, utilities 2.1%, and real estate 1.4%. The 2-year and 10-year Treasury yields each declined 11 basis points. On Friday, the stock market ended the week on a record-setting note, with the S&P 500 rising 0.2%, the Nasdaq Composite 0.2%, and the DJIA 0.8% to fresh highs. Information technology gained 1.9% and financials 0.6% as the only positive S&P 500 sectors. Strong earnings drove gains in $DELL (+32.88%), $NTAP (+22.39%), $HPE (+12.69%), $NOW (+14.38%), $ORCL (+10.85%), and $MSFT (+5.45%), boosting the iShares GS Software ETF 6.3%. $HOOD surged 11.15%. Consumer staples fell 2.0% led by $COST (-3.91%) and $CLX (-6.42%). Crude oil declined 1.7% to $87.42. The 2-year Treasury yield fell 1 basis point to 4.01% and the 10-year yield was unchanged at 4.45%. May Chicago PMI expanded sharply to 62.7. Key economic news for this week: Mon – Manufacturing PMI, ISM Manufacturing, Construction Spending, FED head speech, Auto Sales; Tue – FED head speech, Job Openings; Wed – ADP Employment, FED head speech, Services PMI, Factory Orders, ISM Services, Fed Beige Book; Thu – Jobless Claims, Productivity, FED head speech; Fri – Employment Report, Unemployment Rate, Hourly Wages, Consumer Credit; Sat – FED head speech. 2. Another 300+ breakout day. All breadth ratios strongly bullish. // 20s remaining in extreme territory with over 200 stocks but much down from the 350 reading two days ago. // Market Signal remains RISK ON. 3. EOD: $ACN, $ASAN, $CHA, $CRM, $DLTR, $ESTC, $FRSH, $FTNT, $GEN, $OKTA, $PD, $SNOW, $WDAY. ANTS: $A, $ALAR, $LSCC, $STUB, $TE, $UAMY. SWINGS: $IGV. EP: $APPS, $FIG, $IBM, $INOD, $ONDS, $RGTI, $SNOW, $TXN, $UMAC.