• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Investment Portfolio Feeling Stagnant? Transform Your Path Today
Stock

Investment Portfolio Feeling Stagnant? Transform Your Path Today

by May 9, 2025
by May 9, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

When your investment portfolio isn’t gaining ground, it’s natural to feel uneasy, especially in a market that lacks direction. A headline-driven environment only adds to the uneasiness, making it more difficult to decide whether to buy, hold, or sell.

This is a challenging situation for investors. The S&P 500 ($SPX) is still hovering close to its “Liberation Day” level, struggling to break above it. Of the three major indexes, the Nasdaq Composite ($COMPQ) was able to break above the April 2 levels, but is having a hard time reaching its March 25 high, which, as of this writing, aligns with its 200-day simple moving average (SMA).

What’s Behind the Lack of Direction?

Much of the market’s indecision centers on uncertainty surrounding tariffs. Trade deals are front and center in the news, with the most important one being with China. Those talks kick off this weekend. While President Trump’s suggestion of lowering the tariffs against China from 145% to 80% was a step, stocks didn’t react much. It’s still a very high rate and probably not what investors wanted to hear, and thus the market ultimately closed lower on Friday.

The S&P 500’s recent trading behavior reflects the uncertainty. In the last seven trading days, movement has been muted, a drastic change from the wide-ranging days of early April (see chart below). Of late, any optimistic news gets investors a little upbeat, but the enthusiasm fades quickly. 

FIGURE 1. DAILY CHART OF S&P 500. The last seven days are narrow range days, unlike the wide-ranging days from early April.Chart source: StockCharts.com. For educational purposes

Sector performance isn’t showing clear dominance either. On strong days, Consumer Discretionary, Technology, and Communication Services take the lead. On weaker days, defensive areas like Utilities, Energy, and Consumer Staples step in. This flip-flopping suggests investors lack conviction.

Mid and Small-Caps: Gaining Momentum

The S&P 400 Mid Cap Index ($MID) and S&P 600 Small Cap Index ($SML) posted five straight weeks of gains. This was picked up from the Market Summary page (Equities panel, weekly streak column). This warrants a closer look at these two asset groups.

Mid-cap stocks are showing slight signs of recovery. In the weekly chart of the S&P 400 Mid Cap Index, the index is approaching a near-term resistance level (blue dashed line), the percentage of stocks trading above their 200-day moving average is trending higher, and there’s no consistent move in the Advance-Decline Percent or Advance-Decline Volume Percent.

FIGURE 2. WEEKLY CHART OF S&P 400 MID-CAP INDEX. There are signs of the start of an upside move, but far from confirmed. Chart source: StockCharts.com. For educational purposes.

The weekly chart of the S&P 600 Small Cap Index mirrors the behavior in $MID—$SML is trading above its 10-week simple moving average, the percentage of stocks trading above its 200-day moving average is rising, and there’s a slight increase in the Volume Advance-Decline Percent.

FIGURE 3. WEEKLY CHART OF S&P 600 SMALL CAP INDEX. Similar to the chart in Figure 2, small-cap stocks are also showing slight signs of a potential rally, although it’s a long way away from confirming an uptrend. Chart source: StockCharts.com. For educational purposes.

Mid- and small-cap stocks didn’t participate much in the large-cap Mag 7 bull rally. Maybe things are beginning to look better for these stocks, especially if large-cap growth stocks get bogged down by tariffs.

Looking at the three-month performance across the S&P Sector ETFs, Utilities and Consumer Staples are the best performers, followed by Real Estate and Industrials.

FIGURE 4. THREE-MONTH PERFCHART OF S&P SECTOR ETFS. Consumer Staples and Utilities are the top performers over the last three months, followed by Real Estate and Industrials.Chart source: StockCharts.com. For educational purposes.

If your portfolio leans heavily toward mid- and small-cap stocks, it may be worth monitoring the performance of these groups. These stocks can rally quickly, but can also fade just as quickly. If you’ve been holding on to those stocks for over a decade, a big upside move could offer an opportunity to take profits or re-evaluate your portfolio.

The Bottom Line: Be Prepared

Next week promises a slew of market-moving news: earnings reports, trade deals, and key inflation data. It may be best to stay on the sidelines until the market digests the news. However, if you see a chance to take profits or reduce risk, don’t let them slip away.

End-of-Week Wrap-Up

S&P 500 down 0.47% on the week, at 5659.91, Dow Jones Industrial Average down 0.16% on the week at 41,249.38; Nasdaq Composite down 0.27% on the week at 17,928.92.$VIX down 3.44% on the week, closing at 21.90.Best performing sector for the week: IndustrialsWorst performing sector for the week: Health CareTop 5 Large Cap SCTR stocks: Palantir Technologies, Inc. (PLTR); Duolingo Inc. (DUOL); Robinhood Markets Inc. (HOOD); MicroStrategy (MSTR); Applovin Corp. (APP)

On the Radar Next Week

Earnings season continues with several small and mid-cap companies reporting.April Consumer Price Index (CPI)April Producer Price Index (PPI)April Retail SalesFed speeches from Powell, Jefferson, Daly, and others.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • A Sector Rotation Dilemma …
  • Silver Cross BUY Signals on the Dow (DIA) and Russell 2000 (IWM)
  • Navigating the Indecisive SPY: What Investors Should Know
  • Here’s How To Find The Best Upcoming Earnings Reports
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Confused by the Market? Let the Traffic Light Indicator Guide You
next post
Recession Ahead? Sector Rotation Model Warns of Rising Risk

You may also like

New Tables Show That Intermediate-Term Overview Is Negative

September 28, 2023

Stocks in This Area Are Running: Many Poised to Go...

January 16, 2023

The Best Five Sectors, #17

April 28, 2025

How Overextended Are You, QQQ?

February 24, 2024

S&P 500 Selloff: Bearish Rotation & Key Downside Targets!

March 4, 2025

Brand Name Breakouts Amid A Mixed Market

April 15, 2023

Gold Starting New 13.5-Month Cycle

September 1, 2023

IBM Stock Shatters Expectations, Hitting a New All-Time High: A...

January 26, 2024

The Bottom is Here or Rapidly Approaching

April 13, 2025

Tips n’ Tricks to Instantly Enhance Your Chart Annotating

June 2, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Where the Market Goes Next: Key Resistance Levels + Top Bullish Stocks to Watch Now

      May 10, 2025
    • Recession Ahead? Sector Rotation Model Warns of Rising Risk

      May 10, 2025
    • Investment Portfolio Feeling Stagnant? Transform Your Path Today

      May 9, 2025
    • Confused by the Market? Let the Traffic Light Indicator Guide You

      May 9, 2025
    • Which Will Hit First: SPX 6100 or SPX 5100?

      May 9, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,633 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,321 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,536)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Where the Market Goes Next: Key Resistance Levels + Top...

      May 10, 2025
    • Recession Ahead? Sector Rotation Model Warns of Rising Risk

      May 10, 2025
    • Investment Portfolio Feeling Stagnant? Transform Your Path Today

      May 9, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,536)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Communications Trying to Prop Up Equity...

    December 16, 2024

    The Second Half Equities Super Bowl

    July 1, 2023

    Predicting Tomorrow’s Price Movements Today: Introducing...

    August 30, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here