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📈 The Market Is Soaring... So Why Does It Feel So Bearish?

📈 The Market Is Soaring... So Why Does It Feel So Bearish?

Why This Rally Feels “Wrong” — and What We Believe at Simplify Wall Street

Simplify Wall Street
May 18, 2025

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🧠 Brainstorming

The stock market is flying — yet almost no one trusts it. What happened last week?

The S&P 500 jumped 5.3% last week
The Nasdaq soared over 7%
And the Dow is back in positive territory for 2025

But if you ask most investors how they feel, they’re worried, hesitant, even negative. That’s exactly why this rally might keep going!

📊 What’s Driving the Market Right Now?

✅ 1. Strong earnings

Companies aren’t just surviving — many are thriving:

Over 78% of S&P 500 companies beat earnings expectations
Corporate profits are up 13.6% year-over-year

✅ 2. Cooling inflation

April CPI came in lower than expected — now at 2.3%, easing pressure on the Fed.
(Source: Bureau of Labor Statistics)

✅ 3. No immediate rate hikes

The Fed has signaled patience. Markets love that.
(Source: Reuters)

🤔 But Then Why Does This Rally Feel Wrong?

Because the emotions of the past two years are still hanging over us.

People lost money in 2022–2023
The debt ceiling keeps getting raised
- The debt ceiling is the legal limit on how much money the U.S. government can borrow to pay its bills.
Tariffs, inflation, politics — it feels like chaos

So even as stocks go up, many investors are still waiting for “the catch.”

🧱 What We Believe at Simplify Wall Street

At SWS, we don’t invest based on how we feel.
We invest based on logic + data.

Here’s our current stance:

Trade of the Week: $HOOD Momentum Play

Our SWS Pro members were alerted when we bought $HOOD for both stock and option traders — and both crushed.

📊 Stock Trade:

📍 Entry: $41.34
🚀 Exit: $61.22
💰 Profit: +48.1% gain on shares
If you bought 200 shares, that’s a gain of $3,977.

📝 Option Trade (Nov 2025 $60 Call):

📍 Entry: $4.55 per contract
🚀 Exit: $12.73
💥 Profit: +179.7% gain
Since each option controls 100 shares, that’s a move from $455 → $1,272.50 per contract — or $817.50 profit per contract.

We’re just getting started.

Simplifying your investing and trading is easier with the right insights at hand.