Vilius Mikelskis
Lithuania
2m
Weekend Market Review The trends that began in November continued to accelerate into 2026, and the divergence in the market is becoming hard to ignore. The NYSE Composite, driven by value and smaller-cap stocks, is pushing to new highs, while QQQ has been stuck in a correction for more than two months. Much of this comes from weakness in former leaders like @MSFT and @META. Even modest selling in these mega-caps has released capital that’s clearly rotating into other parts of the market. We’re also seeing unusual signals under the surface. U.S. 10-year and 2-year yields continue to rise, yet borrowing costs — especially for lower-quality companies — are falling. At the same time, the VIX has been rising alongside the S&P 500, suggesting option markets are pricing in risks that equities are largely ignoring. Taken together, these divergences point to a more fragile market environment. In my view, this makes relative strength more important than ever. Defense, materials, and select AI suppliers continue to stand out, with names like @KTOS, CCJ, and MU showing leadership, while software remains a clear laggard.
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