Paid Subscriber – Market sells off – Momentum stocks lead the way down – Update 07/20/26

Is a Spinoff Announcement a Good Time to Buy the Stock?

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• Quant Weekly – Up over 59% since June 2025

• Quant 30 – Up over 63% since June 2025

• Legacy – Up over 340% since April 2023

• Changes to the main Quant Portfolios

• Top Quant Stocks – Healthcare excluding BioTechnology + Bonus 2026 H2 Top 10

• Education – Is a Spinoff Announcement a Good Time to Buy the Stock?

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USA Stock market week ending 07/17/26

• S&P 500 (SPY): -1.5% – The broad market pulled back as investors took a more cautious stance, giving back a portion of recent gains.

• Dow Jones Industrial Average (DIA): -1.0% – Blue-chip stocks posted a modest weekly decline, showing relative resilience compared to the broader market.

• Nasdaq Composite (^IXIC): -2.9% – Technology and growth stocks led the market lower, making the Nasdaq the weakest of the major indexes.

• Russell 2000 (IWM): -0.7% – Small-cap stocks slipped slightly but outperformed the larger-cap benchmarks during the week’s decline.

• Invesco S&P 500 Momentum ETF (SPMO): -6.4% – Momentum stocks experienced significant selling pressure, substantially underperforming the broader market.

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Market Drivers this Week (07/20/26 – 07/24/26)

• Monday (7/20): June Leading Economic Indicators (10:00 AM ET). Earnings: Halliburton, 3M, General Motors, Danaher, Northrop Grumman, and D.R. Horton.

• Tuesday (7/21): Earnings: Philip Morris, Northern Trust, PulteGroup, GE Vernova, Otis Worldwide, and Southwest Airlines.

• Wednesday (7/22):Biggest earnings day of the week. Earnings: Alphabet, Tesla, IBM, Texas Instruments, ServiceNow, and AT&T.

• Thursday (7/23):Initial Jobless Claims (8:30 AM ET) and the European Central Bank interest rate decision. Earnings: Intel, Union Pacific, Deckers Outdoor, Digital Realty Trust, and Newmont.

• Friday (7/24):S&P Global Flash PMIs (9:45 AM ET), New Home Sales (10:00 AM ET), and the Kansas City Fed Manufacturing Index (11:00 AM ET).

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The CNN Fear and Greed Index ends the week at 37 back in the Fear area. After a single week out of the Fear area, the index slid back. Out of the last 7 weeks, it has been in the Fear area for 6 of them.

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The Quant Model Portfolios made significant drops this week as the environment for momentum stocks turned ugly. The momentum ETF (SPMO) had a large drop. It is at times like this, after large drops in favorite stocks, that shares can be added to stocks that still have good fundamentals. This usually pays off in the long run.