There is an interesting technical dynamic occurring that could have implications for many markets. The type of technical analysis is called intermarket analysis, made famous by John Murphy, CMT. The markets include the U.S. Dollar Index (USD), gold and silver, emerging markets, and Bitcoin. While the price charts of these markets are always the most-important barometer -- and some of the assets are stretched to the upside (metals) and the downside (greenback) -- the Commitment of Traders (COT) data lines up very well with reversals in the markets. The dollar is negatively correlated to a high degree with all the above assets. Using COT data over many decades has allowed us to make many non-consensus and reversal calls. But it can also be very frustrating because the smart-money commercial hedgers can be very early when accumulating a falling asset, and also early when selling a rising asset. In recent history, their timing toward the greenback has been very good. For instance, hedgers were bullish in early 2021 and in mid-2023, and were bearish in late 2021/early 2022, in October 2023, and in June 2024. At the same time, large speculators (hedge funds) did the opposite, and each time, it was quite effective to follow the hedgers. The COT data just turned bullish on the dollar, this as the USD is oversold, testing chart support near 100, and with sentiment that is crashing. At the same time, gold (especially) is very extended, the COT data is terrible, and sentiment is very bullish. Indeed, the ebb and flow of the financial markets never stops. (Mark Arbeter, CMT)

Artificial intelligence has redefined the way certain industries operate within the Industrial sector, leading to notable advances in aerospace & defense, construction & engineering, and manufacturing. Why does this matter for investors? It makes companies more efficient and allows management to focus on profits and company goals. In aerospace & defense, AI is used in flight operations to analyze weather and air traffic data. Sensors also run predictive analytics that identify potential problems with an aircraft. In defense, AI provides tools for strategic decision-making, threat monitoring, and cybersecurity. Indeed, when defending against cyber-attacks, technology can learn patterns and create improved layers of protection. In construction and engineering, AI can optimize the design process, using advanced algorithms and simulations to identify the best configurations and optimal product performance. AI also has capabilities to efficiently allocate resources on a construction site and anticipate potential risks. The technology can provide real-time insights that help in negotiations with suppliers, task organization, and risk prevention. In manufacturing, AI solutions are analyzing production data and demand forecasts to streamline production schedules and resources planning. It is also improving the effectiveness of order-management systems to decrease fulfilment lead times. Studies by McKinsey have concluded that machine downtime can be reduced by 30%-50% and quality costs can be decreased by 10%-20%. Others have predicted that AI in manufacturing will be a $21 billion market by 2028. The following is a list of Argus BUY-rated stocks in the Industrial sector that are leaders in the use of AI.

OSI SYSTEMS INC has an Investment Rating of HOLD; a target price of $146.000000; an Industry Subrating of High; a Management Subrating of Medium; a Safety Subrating of Medium; a Financial Strength Subrating of Low; a Growth Subrating of Medium; and a Value Subrating of Medium.

ASML is the leader in photolithography systems used in the manufacturing of semiconductors. Photolithography is the process in which a light source is used to expose circuit patterns from a photo mask onto a semiconductor wafer. The latest technological advances in this segment allow chipmakers to continually increase the number of transistors on the same area of silicon, with lithography historically representing a high portion of the cost of making cutting-edge chips. ASML outsources the manufacturing of most of its parts, acting like an assembler. ASML’s main clients are TSMC, Samsung, and Intel.