While earnings season is well underway, yesterday was the first really busy day of the cycle and results continue to be solid overall. With all the numbers thrown at investors, the S&P 500 ended the session essentially unchanged though the equal-weight closed higher. The S&P 400 and 600 were also modestly in the green but the Russell 2k ended down 0.5%. The undercurrent for the headline moves was the unwind of momentum, including a resumption of weakness in the thematic favorites including nuclear, quantum computing and rare earths. The FOMO fever also finally broke in precious metals which sold off well over 5%. That dynamic has continued today. The S&P 500 opened around unchanged but has moved lower throughout the day. With the index around 6700, a Reuters story about the Trump administration CONSIDERING EXPANSIVE RESTRICTIONS ON EXPORTS TO CHINA THAT ARE MADE WITH OR CONTAIN US SOFTWARE HIT THE TAPE (I’M NOT YELLILNG, IT’S INTERNATIONAL CAPS LOCK DAY (SERIOUSLY). That was good for a quick ~40 point drop. The index quickly recouped most of that move, but it couldn’t sustain any momentum after that and headed back to its lows, currently down almost 1%. The equal-weight is again outperforming while mid and small caps are underperforming, with the Russell 2000 continuing its lagging of the S&P 600 from yesterday. There’s broad weakness in mega cap growth. Commodities are mixed. ICE Brent is up ~2% on India headlines and unexpected inventory draws. Gold continues lower after yesterday’s sharp decline but has managed to hold its 20d ma (~$4,040). Other precious metals are trading higher after yesterday’s losses. Ag is also modestly higher. Crypto faded in the back half of yesterday and is under pressure again today as Bitcoin and Ethereum drop 3%.

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