Action

The Nasdaq Composite delivered a constructive rebound last week, effectively filling the void left by the sharp selling on November 20th. Buyers defended recent lows and drove the index back above its 50-day moving average—a clear sign that demand is still present. Beneath the surface, high-quality breakouts are beginning to emerge, suggesting that the recent consolidation has been more about sector rotation than any meaningful deterioration in market health. Overall, conditions remain firm and continue to improve.

Cycle

The current market cycle is now 138 days old and still showing impressive resilience. The recent bout of selling and digestion over the past couple of weeks hasn’t been enough to do any real technical damage—the 20-day moving average continues to hold above the 50-day, keeping the uptrend very much intact. In other words, this remains a mature but healthy advance, pausing just long enough to shake out weak hands while the primary trend marches higher.

Breadth

Market breadth flipped from negative to positive last week, confirming the strength we’ve been seeing in the major indexes. The percentage of stocks trading above their 50-day moving averages climbed to 55%, and by Wednesday’s close, new highs were outpacing new lows — a key shift in underlying momentum. Taken together, these signals point to a market that has successfully absorbed a brief pullback and is now reasserting its strength.

Exposure

Recommended exposure began the week at its lowest band of 0%–20% but finished the week upgraded to 40%–60%, reinforcing the constructive price action and broadening participation we’ve been seeing under the surface.

Portfolio

As market conditions have improved, so too has our portfolio. As a select group of technology leaders has come back into favor, we have meaningfully increased our exposure through positions in Broadcom (AVGO) and Credo Technology (CRDO). Recent additions include Broadcom, Credo, and Grail, while we continue to maintain our core holdings in Eli Lilly, United Therapeutics, and BrightSpring.

Performance

Our performance in November was disappointing, but the ship now appears to be headed in the right direction. We realized losses and tactically reallocated capital into better-performing names, which seems to have marked a local minima in our equity curve for the time being. Last week, the portfolio gained 1.48%, finishing in positive territory.

Additions / Subtractions

Over the past couple of weeks, we have exited our positions in NVIDIA, Palantir Technologies, and Robinhood Markets, and redeployed that capital into fresher opportunities, including Eli Lilly, United Therapeutics, Grail, Credo, and Broadcom.

Exposure

Current portfolio exposure sits at 78.8%.