Fundstrat
Fundstrat's Mark Newton: Which Sectors Could Lead the Market in November?
10/27/2025, 8:34:32 PM
Economic Summary
- Equity technical trends are strong with intermediate-term momentum positive, small-cap breakouts, and seasonally favorable conditions supporting risk assets.
- Market breadth remains narrow—tech (MAG-7) has driven gains while equal-weighted indices are flat since July, implying dependence on a few mega-cap names like AAPL, MSFT, AMZN, GOOGL, TSLA.
- Earnings are described as phenomenal, helping sustain the rally, while the broader economy is 'chugging along,' reducing immediate macro downside risk.
Bullish
- Technology leadership is driving the recent breakout and remains the top-performing sector.
- Shopify (SHOP) has broken out to all-time highs with a technical target near $210.
- Former MAG-7 laggards like Alphabet and Tesla are starting to lead, indicating rotation within mega-caps.
Bearish
- If technology peaks and other sectors don't broaden, the market could suffer a meaningful pullback.
- Market leadership is narrow—equal-weighted S&P has been flat since July, signaling concentration risk in mega-cap tech.
- Speculative sentiment and signs of excess would be a contrarian warning sign for a larger sell-off.
Bullish tickers
SHOPGOOGLTSLAAAPLMSFTAMZNROSTLULUREDDIT
Bearish tickers
AAPLMSFTAMZNGOOGLTSLANFLX
AAPL
Bullish
Viewed as a de facto safe-haven tech name due to large cash reserves and leadership status.
Bearish
Could be vulnerable if tech leadership fades and market breadth deteriorates.
GOOGL
Bullish
Former laggard that is beginning to lead within the MAG-7 rotation.
Bearish
May stall if overall tech rotation reverses or momentum wanes.
TSLA
Bullish
Now showing leadership after earlier lagging, contributing to mega-cap rotation.
Bearish
Risk of underperformance if speculative excess reverts or momentum fades.
MSFT
Bullish
Remains a core MAG-7 name and hasn't broken down despite some consolidation.
Bearish
Has gone sideways and could underperform if it fails to resume upside momentum.
AMZN
Bullish
Part of large-cap tech cohort that remains intact and recently supported market performance.
Bearish
Sideways action risks underperformance relative to leading tech names if momentum shifts.
NFLX
Bullish
Has not broken down materially and could re-accelerate with improved momentum.
Bearish
Has moved sideways and could lag if rotation favors other sectors.
SHOP
1 price targets
210
Bullish
Broke out to all-time highs above $170 with momentum; technical target suggested near $210.
Bearish
Breakouts can fail without supportive volume; watch for lack of follow-through.
ROST
Bullish
Noted as showing intriguing action alongside other consumer names.
Bearish
Retail names could lag if consumer discretionary loses steam.
LULU
Bullish
Highlighted for interesting action and resilience despite recent dips.
Bearish
Could face pressure if discretionary sentiment cools.
REDDIT
Bullish
Recent pullback described as healthy consolidation without evidence of trend deterioration.
Bearish
After a rapid run, the stock has pulled back and could see further consolidation.
People mentioned
MarkCharlesWilliam O'Neill