Dip-Buying Roars Back

Funny looking bear market you’ve got there mate…

From so over to so back in a day.

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Markets snapped higher yesterday, retracing a good chunk of last week’s fall, with broad-based buying across sectors and only a handful of S&P 500 stocks closing lower.

Consumer discretionary led the rebound, shifting the spotlight to whether this strength can drive a clean breakout to new highs.

Fed Turns Dovish

Friday’s selloff on soft labour data quickly flipped the rate debate, with policymakers like Mary Daly now openly signalling a willingness to cut earlier if needed.

More to follow?

The market is now pricing a 90% chance of a September rate cut.

Pending further data, ‘bad news’ is currently good news for risk.

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Flow Reloaded: Breadth Returns

Aggressive dip-buying restored market breadth and underpinned technical confidence.

Fast fading bouts of volatility have been monetised and redirected back into equities, keeping momentum funds and CTAs squarely onside.

Growth themes, particularly tech and drones, are regaining favour.

Keep an eye out for this announcement today:

Earnings Surprises Set the Pace

Palantir added 5% pre-market after beating estimates and raised guidance, flying in the face of valuation angst.

You can argue about the valuation all you want, but you can’t argue with the growth.

Palantir were flexing their Rule of 40 status in the report…

Idexx surged 27% after standout numbers. Everyone loves their pets & Idexx are well positioned to take advantage of that.

Reddit continues to crush sceptics with its post-earnings strength. Up another 6.9% yesterday.

While buyers persistently bottom-fishing UnitedHealth are still feeling the pain.

Momentum Still in Command

The tape remains bullish for trend followers; shorts and contrarians have been harshly squeezed.

Tactical patience is paying off, as the true test ahead is whether the Fed can deliver rate cuts for “right reasons”.

Until the data flips, stick with market strength and avoid snap “top-picking”.

Positioning Radar: Stay Disciplined

Risk-taking is paying, but leverage and emotional chases get punished fast.

Focus on sector leadership, tech, drones, and positive growth surprises.

Don’t sink capital into underperformers with downtrending earnings.

It’s a mug’s game.

Systematic buyers are still active. Buybacks are supportive.

Bears will have to try a lot harder to drag this market down…

Volatility & risk lingers, but trend discipline still has the edge heading toward mid-August.