BULL CHARTS

[Mark Minervini @markminervini]

Investors are getting more optimistic about the market. A seven sentiment composite we follow is near its most negative reading possible. The only other time it has been as bearish (too much optimism) in the last five years was in June 2024. While the S&P finished that year higher, there was an 8.5% drop in July-August of that year that helped relieve some of that optimism. This is converging with a very low put volume reading (which is another sign of investor optimism), and a cycle headwind (see charts below). While our longer term sentiment readings aren't yet showing signs of a major top, a pullback should be expected to relieve some of the near term optimism.

[ISABELNET @ISABELNET_SA]

🇺🇸SPX

The S&P 500 surged 16.1% in April and May, the second-best performance on record. History suggests momentum tends to carry. In prior double-digit gains, June has always been positive, with the rest of the year adding an average 18.6%
👉https://t.co/yIk7SZYp6p

@RyanDetrick

[Ryan Detrick, CMT @RyanDetrick]

The S&P 500 soared 16.1% in April and May, the second best ever (only 2020 was better).

Here's the thing, after previous big gains (>10%), June has never been lower and the rest of the year added 18.6% on average.

[J.C. Parets @JC_ParetsX]

It's amazing how quickly people forget that Tesla created more shareholder value, faster, than any other stock in American history. Now, after years of consolidation, look at this setup. Is it ready to do it again?

[Ryan Detrick, CMT @RyanDetrick]

Want to make a bear mad?

Tell them that after April & May gain more than 10% (like 2026 will), the rest of the year has gained double digits each time and been up an average of nearly 19% the rest of the year.

[Ryan Detrick, CMT @RyanDetrick]

Just the other day I was told that it isn't a bullish signal when equal-weight indexes make new highs.

The good news is this is what makes a market. I think it is a good sign.

Loved this chart from @JC_ParetsX that shows new highs for S&P 500, Nasdaq-100, and Dow equal-weight

[Walter Deemer @WalterDeemer]

$QQQ would have to decline to 722.12 to fill this morning’s gap. (There’s no gap in $SPY.) How quickly it gets filled -- if at all – gives us an idea of how strong the underlying trend is; we already know it’s pretty darn strong. but unfilled gaps at new highs are quite rare.

[Ryan Detrick, CMT @RyanDetrick]

All-time low in consumer confidence

AAII bears highest since late March market lows

Stocks @ ATHs

One big reason we were so bullish 8 weeks ago was the historic worry and hedging. This continued doubt is quite bullish longer-term.

[SentimenTrader @sentimentrader]

Nasdaq just triggered 8 Hindenburg Omen and Titanic Syndrome warnings in 3 weeks.

When the 3-week warning count reached 8+, Nasdaq annualized returns averaged -24%.

Price keeps pushing higher. So do the warnings.

Read full analysis:https://t.co/iJUI9CJyKS

[Steve Burns @SJosephBurns]

"Your job as a trader is to wait for the best opportunities. Money is made stalking and sitting not being active and forcing a new trade each day."

- Dan Zanger

[Ryan Detrick, CMT @RyanDetrick]

This is 7 all-time highs for the S&P 500 in May.

Only 1995, 2013, and 2017 had at least that many.

Rest of the year those years? 15.5%, 13.3%, 10.9%. In other words, be open to more strength.

[J.C. Parets @JC_ParetsX]

Bonds have been the tell. Still seems like they are.

[Ryan Detrick, CMT @RyanDetrick]

The S&P 500 is up six weeks in row and >10% during the win streak.

This is only the 10th time that has ever happened (since 1950) and it was lower a year later only once (80 yrs ago), with an avg return of 17.1% (about 2x the avg year return).

Another clue favoring the bulls.

[Steve Burns @SJosephBurns]

Trading will expose every mental and emotional weakness you have.

Greed? You'll destroy your account with big losses.

Fear? You won’t be able to take your signal entries.

Impatience? You will trade too much.

Ego? You will be unable to cut losses short.

Trading doesn’t change you, it just reveals who you are.

[GRITCULT @GRITCULT]

Dostoevsky was 28 when they stood him in front of a firing squad. Blindfolded. Hands tied. He could hear the rifles being loaded.

At the last second a messenger on horseback arrived. The Tsar had commuted the sentence. The entire execution was staged. Psychological torture designed to break him.

It worked. He had a seizure on the spot.

They sent him to a labour camp in Siberia. 4 years. Freezing. Starving. Sleeping on wooden planks next to murderers. His epilepsy got worse. He had no paper. No pen. Nothing.

When he got out he was broke. His first wife died. His brother died. He inherited his brothers debts. He was so desperate for money he signed a contract with a publisher that would have given away the rights to everything hed ever write if he missed the deadline.

He wrote The Gambler in 26 days to make it. Dictated it to a 20 year old stenographer named Anna. Married her three months later.

Then the real work started. Crime and Punishment. The Idiot. Demons. The Brothers Karamazov. The greatest novels in the history of the Russian language. Maybe any language.

The man who stood blindfolded before the firing squad, who convulsed on the ground while soldiers watched, who slept next to killers in Siberia for 4 years, who was buried in debt and grief.

That man wrote: "every minute can be an eternity of happiness."

He earned the right to say it.

its never over. never give up fren.

[Tito A @GnT_Trades]

There's a version of discipline that not a lot of people talk about: the discipline to be wired and take all the trades available to you.

Everyone talks about the discipline to wait. To sit out, to not overtrade. And that's super important.

But there's also an opposite problem to think about. You've been burned enough times that now you're gun-shy. The setups are there. They meet every criteria, and yet you can't pull the trigger because the last three times you got stopped out.

Under-trading out of fear can sometimes be just as costly as overtrading out of boredom. This is especially true in easy money environments such as the one we saw the first 2 weeks of April. The difference with undertrading is can feel responsible in the moment. It feels like discipline. But it's a line line.. sometimes it is just fear wearing a discipline costume.

My rule is, if the setups are there, take the trades. The size can be adjusted depending on market environment, and your own confidence at the time.

[Lone @lonextrades]

Qullamaggie made $100M trading stocks.

His first piece of advice to new traders:

Don’t do it. You’re probably not going to make it.

And if you’re going to ignore that advice. Put in 60-80 hour weeks for a decade.

Thats how I made it.

[a16z @a16z]

S&P 500 sold off by ~10% during the Iran conflict and made a full recovery just 11 trading sessions later. It constituted the fastest V-shaped recovery on record.

More charts: https://t.co/2IoX6EtHav