Mosaic Chart Alerts

Easy financial conditions supporting stock market gains.

In this post, I’ll focus on setups that I’m monitoring for both long and short positions. With a chart and short write-up, this is a quick way to scan and plan potential trades.

These ideas are the end result of my process to identify stocks offering the right combination of growth fundamentals along with a proper chart setup.

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Stock Market Update

The minutes of the most recent Federal Reserve rate-setting meeting shows that while there is consensus on cutting rates, there are divides around timing and persistence of inflation. With President Trump sending out warnings on new tariffs, some officials at the central bank believe the impact on inflation will be temporary while others fear a longer-term impact on consumer inflation expectations. While the minutes also noted concerns about weakening labor market conditions, the since released June payrolls report should alleviate any concerns for now.

What’s also remarkable is that despite the relatively high level of the fed funds rate, financial conditions are running near their loosest levels since this bull market started in late 2022 (chart below where a reading below zero points to looser than average conditions). That suggests easy credit conditions overall despite high interest rates, which should be a tailwind for the economy and stock market.

While fears over inflation from the impact of tariffs are lingering, it’s the price action in copper that should concern central bankers the most. That’s because copper has among the highest correlations to long-term inflation expectations, and is widely used in a variety of end markets and products. After President Trump threatened a 50% tariff on imported copper, a domestic copper benchmark surged to new all time highs. I highlighted the bullish chart setup developing in copper in last week’s report. Copper prices are now breaking out from that ascending triangle that you can see below.

While various survey and positioning-based indicators of investor sentiment are getting stretched too bullish in the near-term, loose financial conditions and evidence that the economy is chugging along (thus supporting the earnings picture) are both positive catalysts for the big picture as we start the second half of the year. We’ve been actively adding several new positions to the model portfolio, with other stocks still setting up.

Keep reading to see:

• Open ETF positions.

• Open stock positions.

• Chart analysis for new trade ideas.