All-Time Highs and Five New Stock Picks this week
New highs, a potential Hormuz deal, and the busiest trading week of the year — two momentum entries and three new Easy Doubles positions.
Weekly Market Snapshot — May 24, 2026
Photo by Thomas Kinto on Unsplash
As I write this, President Trump is announcing a deal “almost done” with Iran. If confirmed, it includes the reopening of the Strait of Hormuz — at least for the next 60 days.
Right now, nothing else matters more than this.
If the deal holds, the narrative shifts fast. Energy price pressure eases. Inflation expectations cool. And the door opens for a more relaxed monetary policy. A lot of “ifs” — but meaningful ones.
I’ve been writing for months that the backdrop for stocks has been quietly strong: credit becoming more available, earnings growth accelerating, and a structural shift driven by AI and robotics. The tariff chaos of 2025 and the Iran conflict in 2026 temporarily disrupted that story.
Today, credit conditions are healthy. Borrowing is reaccelerating. And if Hormuz truly reopens, the picture for the next several months could improve significantly — before the next disruption inevitably arrives.
Important: This is not investment advice. Please consult a licensed financial advisor before making any investment decisions. AI tools used for editing.
The Index
The S&P 500 closed the week at 7,473 — a fresh all-time high.
The weekly chart looks strong. Price is above all four moving averages, fanned out in perfect bullish alignment. MACD is rising. The trend is a clear Stage 2.
But there’s a catch.
RSI is at 70.93 — overbought. Volume on the breakout was ordinary, not emphatic. And under the hood, less than half of S&P 500 stocks are trading above their 50-day moving average. The index is making new highs. The average stock is not. That’s a thin foundation.
The V-shaped recovery from the April low (~6,317) to today’s ATH is an 18% move in roughly six weeks. Powerful. But historically, moves like this need to breathe before the next leg up. A pullback toward 7,100–7,200 would be healthy — and would not break the trend.
The Stage 2 uptrend is intact. This is not the moment to chase aggressively.
Sectors and Themes
What’s leading: Technology is the clear winner, up over 26% in three months. Energy has been the surprise performer over six months, lifted by the Hormuz war premium. High-beta is outperforming low-volatility by a wide margin. Risk appetite is firmly on.
What’s lagging: Communication Services, Financials, and Health Care are all showing negative weighted momentum. Materials and Industrials are technically weak. Consumer Discretionary is not outperforming Consumer Staples — which is unusual in a bull market and worth watching.
On themes (table below): The leaders are Semiconductors, Space Economy, Quantum Computing, Cybersecurity, and AI. Not random — they all connect to the same story: defense spending, AI infrastructure, and geopolitical urgency driving technology investment. Uranium, Fintech, Home Construction, and Travel remain in downtrends. Bitcoin is underperforming in a risk-on environment — a quiet red flag for crypto.
The Hormuz Variable
This is the big one. Trump announced the Strait of Hormuz will reopen to normal tanker traffic. If confirmed, the near-term consequences are significant.
Energy (XLE) faces a reality check. The sector’s six-month gain of +31% was built on a war premium. Normalize Hormuz, and a meaningful portion of that premium deflates. Oil pulls back. Energy stocks with it.
Clean energy and solar keep marching. These sectors have been moving for their own reasons: government policy spending and explosive electricity demand from AI data centers. Whether oil is at $70 or $100, those drivers don’t change. Expect continued strength.
Airlines, Travel, and global logistics get relief. These have been in downtrends. A genuine reopening is the catalyst they’ve been waiting for. Too early to call a reversal — but watch for a Stage 1 base forming.
The broader market gets a confidence boost. Removing the biggest geopolitical overhang on global growth is broadly positive for cyclicals and risk assets. That said, much of this may already be priced in given the rally since April 8.
The key qualifier: if this materializes. As we’ve seen since March, announcements and physical reality have diverged repeatedly. Trade the confirmation, not the headline.
Bottom Line
The bull market is alive. The trend is up. Leadership is clear — technology, semiconductors, AI, defense-adjacent themes — and risk appetite is high. A resolved Hormuz removes the last major macro cloud and could extend the rally further.
The honest caveat: the market is overbought, breadth is thin, and consumer confidence signals are mixed. A 3–5% consolidation from current levels would be normal and healthy — and frankly a better entry point than chasing new highs. I’m not predicting one. But I wouldn’t be surprised either.
For now: stay with what’s working. Don’t add aggressively at these levels. Watch energy closely for profit-taking. And keep one eye on breadth — if stocks above their 50-day MA start climbing toward 55–60%, this rally gets a lot more durable.
Portfolios
10X Momentum Portfolio
Last week my Buy Stop order for NXT was not triggered. Here’s where things stand:
AMD remains the highlight — up +113% in less than two months. That’s the kind of trade that justifies the system’s frequent small losses. My win rate sits at 39%. That means 61% of the time I get stopped out. This isn’t a bug. It’s a feature.
This week I’m placing two new orders. See below.
REDWIRE - RDW
RDW is a defense and space infrastructure company. Government spending on space — military and commercial — is one of the few areas of genuine bipartisan consensus. The stock spent over a year in decline while the business quietly built backlog. This week’s explosive breakout suggests institutional money is finally moving in.
The company is growing at 22% YoY and is at a profitability inflection point — moving from -10% to +14% ROA in a single year. The market is starting to notice.
The ideal entry was last week. But the volume is impressive and the setup is still valid.
Order: Buy Stop 315 shares of RDW at $17.50. If triggered, initial stop loss at $10.70.
CRDO - Credo Technology Group Holding Ltd
CRDO makes high-speed connectivity chips — specifically Active Electrical Cables — that are essential for hyperscaler data center buildouts. With Microsoft, Google, Amazon, and Meta still accelerating AI capex into 2026, demand for CRDO’s products is structurally growing.
Revenue is up +130% year-over-year. Earnings are growing fast. Net margins are approaching 50%. The chart reflects all of it.
Order: Buy Stop 25 shares of CRDO at $219. If triggered, initial stop loss at $149.
10X Easy Doubles Portfolio
Three positions in the green, one in the red. Average annualized return is +1,794%. Since inception, I’ve outperformed the S&P 500 by 15 percentage points. LQDA and DELL are doing the heavy lifting — both up over +60%.
One note on the watchlist: MU is already up +110%. I didn’t add it to the portfolio at the time — the MACD was negative. That’s the system working as designed, even when it stings.
This week I’m adding three new positions. All biotech.
