How to handle an extended market: Secret to being ready for the next opportunities

Is it time to hold off on new exposure until we rest?

Jun 28, 2025

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Key take-away: Bigger liquid stocks will trade smoother, and be FAR easier for you to handle.

Markets saw an impressive week as new all-time highs were reached in both SPY and QQQ!

Tough the be bearish about that, however: It can be dangerous to push things too hard when the market stretches!

We saw some really strong momentum moves, with many new leaders emerging and cementing themselves at the top of our focus list.

I’ve prepared an exciting new batch of names that are ripping higher—you’ll find it below.

In the portfolio, we had great action from HOOD, GEV, and META, all of which made new highs on their rallies.

Friday got a little interesting as we saw the indexes shakeout pretty aggressively, possibly due to rebalancing, before closing well.

The big question now: does the market need a rest, or will momentum return right out of the gate Monday morning?

In the Trading Room, we added SE to the portfolio, and took a partial profit in META as it tagged a nice risk multiple and approached prior ATH resistance.

Tonight, I’ll be breaking down:

The setup I saw in SE
Stocks to watch for Monday
Elite leaders pullback focus list
Market breadth, discussing the possibly extended market
Themes/Sectors
Video breakdown of it all!

Let’s go!

QQQ

QQQ had a stellar week, confirmed by a bullish breakout to new all-time highs on volume.

There’s nothing more bullish than fresh highs for an index or stock.

On the daily timeframe, we are now short-term extended, so it wouldn’t surprise me to see a retest of the breakout level or some sideways consolidation—both would be very healthy.

A support/resistance flip is possible here—where prior resistance becomes new support. I’m watching closely and liking the action.

The 65-minute chart: Holding well above the rising moving averages

SPY

SPY also had a strong week, making new all-time highs on Friday.

The action was impressive, and a short rest might be appropriate after this aggressive multi-day run.

Any retest or pullback will likely be a high-quality opportunity to add exposure—assuming setups remain healthy.

As always, it's important to prepare both bullish and bearish scenarios so we're ready for whatever the market throws at us.

IWM

The IWM began the week with a solid test of the 21 EMA, held it beautifully, and rallied to close on the highs of the day.

From there, it was a steady grind higher into a major pivot around 216, where it stalled on Friday.

Some digestion under this level could create a tight base, setting up a potential breakout attempt.

ARKK

ARKK had a steady week, mostly consolidating last week's gains.

It remains in a strong uptrend, and the weekly chart shows clear signs of sustained accumulation.

The potential here is massive—this move could still be in the early stages. It’s slightly extended now, so I’ll be watching for a pullback entry.

Gold

Gold traded tightly most of the week, holding just above its 50-day moving average—until Friday, when we saw a bearish break below that level.

That puts the chart in a weak technical spot. No interest in trading this here—just watching from the sidelines.

Bitcoin (long)

Bitcoin is consolidating very nicely above it’s moving averages after reclaiming them earlier in the week.

We’ve got some congestion between here and the 110,000 level, after which the chart really opens up the door to the prior ATH.

Giving it the benefit of the doubt here and letting it work as long our stop holds and price stays above the moving averages.

USD

The dollar had a rough week, although it did print a bullish engulfing candle on the weekly.

It entered the week with two hammer candles, which might suggest some support is forming—but the broader trend remains down and heavy.

TNX

The 10-year yield broke below the 200-day moving average, but some support came in on Friday.

We’ll see if it can quickly reclaim the moving averages or if further weakness is coming.

Our market indicator

Remains on a GREEN signal.

Note we are getting close to the upper Keltner band, and seeing net highs slowly decrease vs expand.

Qullamaggie indicator

Our Qullamaggie indicator remains RISK ON.

On Monday, we flipped back to a risk-on signal and held the trend nicely all week.

We’re riding the moving averages higher with a healthy gap between the 10 and 21 EMA.

SKFD

After a few days of excessive readings, Friday’s pullback relieved some pressure. We’re still above neutral, but short-term breadth definitely eased up.

NCFD

This indicator also pulled back, reflecting the rest we saw in many strong names Friday. After a week of big moves, late-week profit-taking in certain stocks was no surprise.