Market Chacha: Steps Forward and Back

Fresh news and strategies for traders. SPY Trader episode #1182. Alright, folks, welcome back to Spy Trader! It's your pal Penny Stocks here, ready to break down the market for you. It's 6 pm on Wednesday, May 21st, 2025, Pacific Time, and things are…well, let's just say the market's been doing the chacha – one step forward, two steps back.&x20; First, let's hit the headlines. We've got rising bond yields putting a damper on things, worries about the Middle East are juicing up energy prices, and earnings reports are a mixed bag. Target took a hit, lowering guidance, but Lowe's, TJX and Toll Brothers were looking pretty good. Home Depot's sales were better than expected, but earnings were just a tad shy. Plus, USChina chip tensions are back on the menu, with those restrictions on AI chip exports to Huawei. Now, the Dow is up 0.78%, the NASDAQ is up 0.52%, and the S&P is up 0.70%. But don't let that fool you. Under the hood, ratesensitive sectors like Real Estate and Utilities are feeling the pinch. Healthcare and Financials are also lagging today. So, what's Penny thinking? Cautious is the name of the game. Those rising bond yields are a real headwind, especially with Moody's downgrading US debt. The 10year Treasury yield is climbing and that's not a good sign for market stability. Keep a close watch on those yields, inflation data, and any news out of the USChina front. Given the market jitters, Penny is looking at defensive plays. Maybe consider rebalancing towards sectors like consumer staples. I'd hold off on Utilities, though, given their recent underperformance. Next Wednesday, Nvidia reports earnings. That could be a big mover, so keep an eye on that. Target's stumble is a warning sign about the consumer, so watch those retail numbers closely. And remember, folks, this is a marathon, not a sprint. Market volatility is normal. If you see good companies taking a dip, that could be a buying opportunity, but do your homework first! Make sure your portfolio is diversified to ride out the ups and downs. And most importantly, only invest what you can afford to lose! I'm not saying to run for the hills, but maybe it's time to trim those sails a bit. Stay informed, stay diversified, and stay…well, stay tuned to Spy Trader! Until next time, this is Penny Stocks, signing off!