Caruso Weekend Report: June 01, 2025

Weekend Summary

By removing all the noise from headlines, gap ups/downs, intraday rips, and dips, and focusing solely on closing prices, we can see that after a nearly vertical move from the April lows, the markets have simply entered a calm three-week consolidation. This week barely saw any change from day to day. This action is ideal, and while a more significant pullback would still be normal for an uptrend, this calm consolidation is laying the groundwork for another strong push higher should a bullish catalyst develop and break prices upward.

Despite the multi-week market pause, many leading growth stocks have experienced relentless accumulation. Stocks reaching all-time highs and continuing to rise during this market pause are highly likely to be leaders in the coming months. Two such stocks are GEV and RBRK. Nothing is more powerful in an uptrend than a leading stock. To qualify, it must advance more than the market during upswings and decline less than the market during downswings. These types of stocks generate true alpha.

“Don’t be thrown off by the swarm of gloom and doomers. In the long run, they have seldom made anyone any money or provided any real happiness. I have also never met a successful pessimist.” – William J. O’Neil