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A Greek Odyssey

First of all, I apologize for any potential delays or inconsistencies this week. I’m currently writing this from a hotel room in Greece, surrounded by what I can only describe as the usual Greek chaos. Our flight back home was first delayed, then canceled, then rescheduled and delayed again. So instead of being back at my desk as planned, I’m getting back into the trenches from a small Greek town. But the markets wait for no one, so here we are!

Market Sector Shifts: Tech Takes the Lead

The changes in our top five aren’t massive, but they’re certainly worth noting. Technology has muscled its way back to the #1 spot, nudging Industrials down to second. Communication Services and Utilities are holding steady at positions #3 and #4 respectively. The most interesting move, imho, is Financials re-entering the top five at #5, up from #7 last week.

Real estate remains just outside at #6, while Consumer Staples has dropped out of the top five, landing at #7. Materials and Energy are still bringing up the rear at #8 and #9. In a bit of musical chairs, Consumer Discretionary and Health Care have swapped places — Discretionary now at #10 and Health Care down to #11.

  1. (2) Technology – (XLK)*
  2. (1) Industrials – (XLI)*
  3. (3) Communication Services – (XLC)
  4. (4) Utilities – (XLU)
  5. (7) Financials – (XLF)*
  6. (6) Real-Estate – (XLRE)
  7. (5) Consumer Staples – (XLP)*
  8. (8) Materials – (XLB)
  9. (9) Energy – (XLE)
  10. (11) Consumer Discretionary – (XLY)*
  11. (10) Healthcare – (XLV)*

Weekly RRG

The weekly Relative Rotation Graph (RRG) paints a clear picture of Technology’s strength as it powers further into the leading quadrant. Industrials is still in the lead, but has started to lose some relative momentum — though it’s maintaining the highest RS-ratio reading. Communication Services is showing a clear upward rotation, while Financials and Utilities are inside the weakening quadrant with negative headings (but still above the 100 level, keeping them in the top five).

Daily RRG

  • Technology and Communication Services flexing their muscles in the leading quadrant
  • Industrials inside lagging, but turning back up
  • Financials in improving on a positive heading
  • Utilities rotating back down at a negative heading, close to crossing into lagging

The sector at risk here is clearly Utilities — at least for now.

Technology

The Technology sector chart is showing a very clear breakout above the resistance area around 240. It’s a decisive move, and that old resistance should now act as support. This breakout is mirrored in the relative strength line, which has continued its upward trajectory after breaking out of the falling channel.

Industrials

Industrials are also flexing their muscles, clearing overhead resistance with a nice breakout. The relative strength line, already out of its consolidation pattern, appears to be gaining momentum again. This is starting to drag the RS ratio line higher.

Communication Services

Communication Services is showing a clear upward break over the 105 resistance area. Just like Tech and Industrials, that old resistance is now expected to act as support. The price strength is finally reflected in the relative strength line, which has started to move up against the rising support line. This is causing the RS momentum line to pull up, almost crossing back over the 100 level, which should, in turn, push Communication Services back into the leading quadrant on the weekly RRG.

Utilities

Utilities, one of the defensive sectors in this cyclical power play, has remained static within its range. But in this market, standing still means losing relative strength. The utility sector is becoming increasingly at risk, with its relative strength chart returning to the trading range and heading towards the lower boundary. This is dragging the RRG lines lower.

Financials

Financials, our new entrant in the top five, is still grappling with the old rising support line and overhead resistance level. However, last week’s price action seems to have broken the sector out of a small consolidation pattern. If Financials can now take out the overhead resistance just above 52, it’ll be a powerful sign for this sector.

Portfolio Performance

From a portfolio performance perspective, we’re getting hurt by the strength of the Technology sector. It’s in the portfolio, but not enough to keep up with the S&P 500’s performance. We’re still underperforming by around 8%.

To turn this situation around, we need sustained moves higher by Technology, Communication Services, and potentially Financials. If Consumer Discretionary could join the party at some stage, that would be ideal — but it’s still far off at #10. For now, we’ll have to work with what we’ve got, especially from Tech and Communication Services, with potential boosts from Financials and Industrials. Utilities are likely to be a drag while they remain in the top five, given the current bullish market sentiment.

#StayAlert and have a great week. –Julius


Prosecutors in northern Mexico’s Sinaloa state are investigating the discovery of 20 male bodies with gunshot wounds – including five that were decapitated – on a bridge over a federal highway.

Sinaloa Secretary General Feliciano Castro Meléndez called the case a “regrettable situation” and said it was “part of the violence and insecurity that Sinaloa is experiencing.”

Since 2024, Culiacán has been the epicenter of armed clashes between rival factions of the Sinaloa cartel.

Two of the most prominent factions are La Mayiza, which is loyal to the cartel’s alleged co-founder Ismael “El Mayo” Zambada, and Los Chapitos, which is loyal to the sons of former drug kingpin Joaquín “El Chapo” Guzmán.

‘Los Chapitos’

The violence in Sinaloa escalated after Zambada and one of El Chapo’s sons, Joaquín Guzmán López, were arrested last year by US authorities in El Paso, Texas.

Former Mexican Secretary of Security Rosa Icela Rodriguez said Guzmán López had reached an agreement with one of his brothers, Ovidio Guzmán López, who is in US custody, “So that they would go to the United States to surrender.”

Ovidio had been extradited to the US in September 2023 to face drug trafficking charges over his alleged role in the Sinaloa cartel. Days after his extradition, he pleaded not guilty to the charges in a US court.

Later that month, several members of his family entered the US as part of an apparent “negotiation or plea deal opportunity provided by the (US) Department of Justice itself,” Mexico’s Security Secretary Omar García Harfuch said.

Two other sons of El Chapo, Ivan Archivaldo and Jesus Alfredo Guzmán Salazar, are still at large. The US has accused them of leading large-scale drug trafficking operations for the cartel and has issued $10 million bounties for information leading to each of their arrests.

This post appeared first on cnn.com

More than 40 people have been killed in an Israeli airstrike that hit a cafe near the port in Gaza City, according to the head of the territory’s largest hospital.

Dr. Mohammad Abu Silmiya, the director of Al-Shifa hospital, said in an update on Monday night that at least 41 people had been killed and 75 injured in the strike.

The Al-Baqa cafe was a well-known spot for students, journalists and remote workers, as it offered internet and a place to work by the Mediterranean coast.

He also said the hospital was short of ICU beds and anesthetics to treat the casualties. The death toll increased Monday night after some people died from their injuries.

“We are treating the injured on the hospital floor as no rooms and hospital beds are available,” the hospital director added.

Among those killed was a freelance journalist, Ismail Abu Hatab, according to other journalists at the scene.

The Hamas-controlled Government Media Office said his death brought to 228 the number of journalists killed by Israeli military action in Gaza since October 2023.

This post appeared first on cnn.com

The British Royal Household released its financial statement on Monday, revealing that the annual lump sum from the government remained at £86.3 million ($118.50 million).

The sum, called the Sovereign Grant, pays for the upkeep of royal palaces and the royals’ official duties and is funded by British taxpayer money. In return, the monarch hands over all profits from the Crown Estate — which includes vast swathes of central London property, the Ascot Racecourse and the seabed around England, Wales and Northern Ireland — to the government, in an arrangement dating back to 1760.

The Sovereign Grant functions like an expense account for the monarch and their representatives, covering the costs of their public duties, including travel, staff, and upkeep of historic properties. Notably, it excludes funding for security, which also incurs a high cost given the royals’ numerous public engagements and events.

Royal family members undertook more than “1,900 public engagements in the UK and overseas, while more than 93,000 guests attended 828 events at Official Royal Palaces,” the annual Sovereign Grant Report said.

The total grant of £86.3 million ($118.50 million), which by law remains the same as the three previous financial years, is comprised of a £51.8 million ($71.1 million), core grant and £34.5 million ($47.4 million) to fund the refurbishment of Buckingham Palace.

Buckingham Palace, a top tourist attraction in central London, is undergoing a major modernization project that will see upgrades to electric cabling, pipework, elevators and accessible bathrooms.

The royal family will decommission the royal train “following a thorough review into its use and value for money,” according to the accounts report. The monarchy has been using its own rail travel since Queen Victoria first boarded a specially built carriage from Slough, England, to London Paddington Station in 1842.

The report also said the Royal Household will increase its use of sustainable aviation fuel (SAF) and continue the electrification of its fleet of vehicles.

Last year, the Royal Household announced it aimed to transition to an “almost fully electric” fleet of vehicles, without providing a target date. Britain’s PA Media reported that the King’s two Bentleys would be modified to run on biofuel.

The royal family’s three main sources of income are the Sovereign Grant, the Duchy of Lancaster and Duchy of Cornwall estates and their personal property and investments.

The level of funding for the British royal family has long fueled criticism, with one anti-monarchy group calling for the Sovereign Grant to be abolished and for the British public to keep all the profits of the Crown Estate.

“The grant system is mad. Funding goes up not because of any need for extra money, but because the grant is linked to government profits from land managed by the Crown Estate,” Graham Smith, a campaigner for the group Republic, said in a statement earlier this year. “The palace has recycled the excuse of needing the money for refurbishment of Buckingham Palace, an excuse used to double the grant ten years ago.”

“It’s time that half a billion pounds was put to good use, that there was proper accounting for the cost of the monarchy and for that cost to be slashed to just a few million pounds,” Smith added.

The Keeper of the Privy Purse, James Chalmers, said in a statement on Monday as the report was released: “Soft power is hard to measure but its value is, I believe, now firmly understood at home and abroad, as the core themes of the new reign have come into even sharper focus, and the Royal Family have continued in their service to the nation, Realms and Commonwealth.”

This post appeared first on cnn.com

Turkish police arrested at least four cartoonists on Monday accused of drawing and distributing a cartoon that authorities and protesters say is a depiction of the Prophet Mohammed and Moses.

The cartoon, published in a political satire magazine, shows what appears to be a Muslim and a Jewish man, both with wings and halos, shaking hands and greeting each other as bombs fall below.

The cartoon went viral on social media four days after it was published. Hundreds of people took to Istanbul’s main tourist street, chanting “Allah is Great” and calling for sharia law in protest. Turkish authorities quickly condemned the magazine.

Interior Minister Ali Yerlikaya called the cartoon a provocation and said those “who dare to do this will be held accountable before the law.” Yerlikaya said the cartoon was not protected by freedom of expression or freedom of speech.

Fahrettin Altun, the head communications for the Turkish Presidency, called it a “vile attack on our beliefs and values.”

The country’s Justice Ministry announced an investigation had been launched into the incident under Article 216 of the Turkish Penal Code for the crime of “publicly insulting religious values.”

LeMan, the weekly political satire magazine known for irreverent comics similar to French Charlie Hebdo, released a statement saying their cartoon was not depicting the Islamic prophet.

“This cartoon is not a caricature of the Prophet Mohammed (pbuh). In the work, the name Mohammed is fictionalized as belonging to a Muslim person killed in Israel’s bombardments. There are more than 200 million people named Mohammed in the Islamic world. The work does not refer to the Prophet Mohammed in any way,” the magazine said.

“By highlighting a murdered Muslim, the aim was to highlight the righteousness of the oppressed Muslim people, with no intention whatsoever of belittling religious values. We reject the stigma imposed on us, as there is no depiction of our Prophet,” LeMan said.

“To interpret the cartoon in such a way requires extreme malice,” the magazine added, but also offered an apology to any readers who may have been offended.

As protesters took to the streets, the Interior Ministry released videos of cartoonists being detained in their homes, barefoot and handcuffed by police with captions such as “You will not escape from our security forces or from justice.”

Protesters were seen kicking the doors of the magazine offices in central Istanbul. In one video a demonstrator shouts, “For our Prophet, we would give our lives and take lives; no one can insult our Prophet.”

The crowd also performed a nighttime prayer. Within hours, Istanbul’s governor Davut Gul announced that all four people who were wanted for the cartoon were in police custody.

Gul did not say if any demonstrators were detained but said in a statement, “It has been determined that some individuals mingling among the protesters have engaged in provocative actions. It is of great importance that the protesting groups disperse to prevent harm to our citizens and to maintain public order.”

Some groups have called for further protests against the magazine on Tuesday.

This is a developing story and will be updated.

This post appeared first on cnn.com

It’s a bittersweet day for Windows users.

Microsoft is scrapping its iconic “blue screen of death,” known for appearing during unexpected restarts on Windows computers. The company revealed a new black iteration in a blog post on Thursday, saying that it is “streamlining the unexpected restart experience.”

The new black unexpected restart screen is slated to launch this summer on Windows 11 24H2 devices, the company said. Microsoft touted the updates as an “easier” and “faster” way to recover from restarts.

The software giant’s blue screen of death dates back to the early 1990s, according to longtime Microsoft developer Raymond Chen.

Travelers walk past screens after a major disruption in Microsoft’s cloud services caused widespread flight cancellations and delays at T3 IGI Airport in New Delhi, India, on July 19.Vipin Kumar / Hindustan Times via Getty Images file

Microsoft also said it plans to update the user interface to match the Windows 11 design and cut downtime during restarts to two seconds for the majority of users.

“This change is part of a larger continued effort to reduce disruption in the event of an unexpected restart,” Microsoft wrote.

The iconic blue screen was seemingly everywhere in July 2024 after a faulty update from CrowdStrike crashed computer systems around the world.

This post appeared first on NBC NEWS

Thailand’s embattled prime minister was suspended from duty Tuesday and could face dismissal pending an ethics probe over a leaked phone call she had with Cambodia’s powerful former leader.

Paetongtarn Shinawatra, 38, has only held the premiership for 10 months after replacing her predecessor, who was removed from office. Her suspension brings fresh uncertainty to the Southeast Asian kingdom, which has been roiled by years of political turbulence and leadership shake-ups.

Thailand’s Constitutional Court accepted a petition brought by a group of 36 senators who accused Paetongtarn of violating the constitution for breaching ethical standards in the leaked call, which was confirmed as authentic by both sides.

The court voted to suspend Paetongtarn from her prime ministerial duties until it reaches a verdict in the ethics case. Paetongtarn will remain in the Cabinet as culture minister following a reshuffle.

Paetongtarn has faced increasing calls to resign, with anti-government protesters taking to the streets of the capital Bangkok on Saturday, after the leaked call with Cambodia’s Hun Sen over an escalating border dispute sparked widespread anger in the country.

The scandal prompted the Bhumjaithai party, a major partner of the prime minister’s government, to withdraw from the coalition last week, dealing a major blow to her Pheu Thai party’s ability to hold power. Paetongtarn is also contending with plummeting approvals ratings and faces a no-confidence vote in parliament.

In the leaked call, which took place on June 15, Paetongtarn could be heard calling former Cambodian strongman Hun Sen “uncle” and appeared to criticize her own army’s actions after border clashes led to the death of a Cambodian soldier last month.

The Thai prime minister could be heard telling Hun Sen that she was under domestic pressure and urged him not to listen to the “opposite side,” in which she referred to an outspoken Thai army commander in Thailand’s northeast.

She also added that if Hun Sen “wants anything, he can just tell me, and I will take care of it.”

Her comments in the leaked audio struck a nerve in Thailand, and opponents accused her of compromising the country’s national interests.

Following the ruling, Paetongtarn said she accepts the court’s decision and that her intention “was truly to act for the good of the country.”

“I want to make it clear that my intentions were more than 100% sincere — I acted for the country, to protect our sovereignty, to safeguard the lives of our soldiers, and to preserve peace in our nation,” she said in a press conference Tuesday.

“I also want to apologize to all my fellow Thais who may feel uneasy or upset about this matter,” she added.

Thailand and Cambodia have had a complicated relationship of both cooperation and rivalry in recent decades. The two countries share a 508-mile (817-kilometer) land border – largely mapped by the French while they occupied Cambodia – that has periodically seen military clashes and been the source of political tensions.

In the wake of the scandal, Paetongtarn tried to downplay her remarks to Hun Sen, saying at a press conference she was trying to diffuse tensions between the two neighbors and the “private” call “shouldn’t have been made public.”

The prime minister said she was using a “negotiation tactic” and her comments were “not a statement of allegiance.”

Paetongtarn became prime minister last year after the Constitutional Court ruled that her predecessor Srettha Thavisin had breached ethics rules and voted to dismiss him as prime minister.

The same court also dissolved the country’s popular progressive Move Forward Party, which won the most seats in the 2023 election, and banned its leaders from politics for 10 years.

This post appeared first on cnn.com

Home Depot said Monday that it is buying GMS, a building-products distributor, for about $4.3 billion as the retailer moves to draw more sales from contractors and other home professionals.

Shares of Home Depot were roughly flat in early trading Monday. GMS shares jumped more than 11%.

As part of the deal, the Home Depot-owned subsidiary SRS Distribution will buy all outstanding shares of GMS for $110 per share, which adds up to about $4.3 billion and amounts to total enterprise value including net debt of about $5.5 billion, the company said.

Home Depot said it expects the acquisition to be completed by early 2026.

Home Depot’s announcement also concludes a potential bidding war between the big-box retailer and billionaire Brad Jacobs. Jacobs’ building-products distributor QXO had offered about $5 billion in cash to acquire GMS and said it would press forward with a hostile takeover if the company’s management rejected the proposal.

As Home Depot chases growth, it’s gone after a steadier and more lucrative piece of the home improvement business: electricians, roofers, home renovators and other professionals who tackle large projects year-round and need a lot of supplies. Home Depot said it’s speeding along that strategy with the GMS deal.

Home Depot bought SRS Distribution — the subsidiary that’s acquiring GMS — last year for $18.25 billion, in the largest acquisition in its history. Texas-based SRS sells supplies to professionals in the landscaping, roofing and pool businesses and it has bought up many other smaller suppliers as it’s grown.

Home Depot’s focus on selling to professionals is well-timed. Sales from do-it-yourself customers have slowed as higher mortgage rates have decreased housing turnover and dampened homeowners’ demand for larger projects because of higher borrowing costs.

The company said it expects total sales to grow by 2.8% for the full fiscal year and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to rise about 1%.

This post appeared first on NBC NEWS

Home Depot said Monday that it is buying GMS, a building-products distributor, for about $4.3 billion as the retailer moves to draw more sales from contractors and other home professionals.

Shares of Home Depot were roughly flat in early trading Monday. GMS shares jumped more than 11%.

As part of the deal, the Home Depot-owned subsidiary SRS Distribution will buy all outstanding shares of GMS for $110 per share, which adds up to about $4.3 billion and amounts to total enterprise value including net debt of about $5.5 billion, the company said.

Home Depot said it expects the acquisition to be completed by early 2026.

Home Depot’s announcement also concludes a potential bidding war between the big-box retailer and billionaire Brad Jacobs. Jacobs’ building-products distributor QXO had offered about $5 billion in cash to acquire GMS and said it would press forward with a hostile takeover if the company’s management rejected the proposal.

As Home Depot chases growth, it’s gone after a steadier and more lucrative piece of the home improvement business: electricians, roofers, home renovators and other professionals who tackle large projects year-round and need a lot of supplies. Home Depot said it’s speeding along that strategy with the GMS deal.

Home Depot bought SRS Distribution — the subsidiary that’s acquiring GMS — last year for $18.25 billion, in the largest acquisition in its history. Texas-based SRS sells supplies to professionals in the landscaping, roofing and pool businesses and it has bought up many other smaller suppliers as it’s grown.

Home Depot’s focus on selling to professionals is well-timed. Sales from do-it-yourself customers have slowed as higher mortgage rates have decreased housing turnover and dampened homeowners’ demand for larger projects because of higher borrowing costs.

The company said it expects total sales to grow by 2.8% for the full fiscal year and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to rise about 1%.

This post appeared first on NBC NEWS