Caruso Weekend Report: June 08, 2025

Weekend Summary

Markets had another strong week as the new bull market continues to roll on. Not many would have anticipated a V-shaped recovery, and perhaps it is fair to argue that fundamentals don’t support it. However, the market is driven by both liquidity trends as well as investor positioning. The tariff war, which had real negative consequences, was exaggerated by many given the strong political bias many have against the current administration. This likely led to an overreaction by many, who were then forced over many weeks to re-establish exposure given some genuine improvements from the worst-case tariff rollout in early April.

However, not only are some indexes such as the QQQ approaching all-time highs and some real overhead resistance, it is now possible to also objectively point to a switch from widespread anxiety to general complacency. This can be seen in many market indicators, such as our FOMO indicator, which has reached 78%, just shy of clear “FOMO” readings. Another helpful data point is the VIX, which has closed below its lower Bollinger Band.

These tools, along with others, point to a shift in tactical preference from one of aggressive buying into strength to one of patiently waiting for stock pullbacks. Having been among some of the earliest bulls of this new uptrend, this is not a macro “bear” call, but one which follows hard data on investor positioning, which may have now shifted to excessively bullish.

There is no shortage of stocks to buy should the market pull back. As always, the best stocks to buy are the ones that are difficult to buy, and market pullbacks reveal some of the few great opportunities to do so. Some stocks being watched closely at Caruso Insights include GEV & HOOD among many others.

This report is a small part of the Caruso Insights membership and serves as an excerpt from the full weekend report. It is provided to members as a quick takeaway document for the upcoming week.

“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