Analyst Commentary:

• Stocks remain unfazed amid the government shutdown, with the S&P 500 (SPX) gaining 1.1% to set new all-time high above 6700. The index was up over 7% in Q3 as domestic equities continue to demonstrate strength.

• Although uncertainty around the government shutdown permeates markets, historical data from prior shutdowns dating back to the 1980s shows strong returns following those instances—offering a positive sign for investors.

• The healthcare representative XLV rose 6.9% last week, benefiting from shutdown-driven tailwinds as Congress seeks a Medicaid compromise. Despite the rally, the sector remains out of favor, ranking 10th in our sector rankings.

• While broader markets generally perform well in Q4, momentum stands out as a consistent outperformer. Since 1993, momentum representative MTUM has delivered an average return of 5.5% in Q4, highlighting its seasonal strength.

• While markets have a "Love, Hate" relationship with the month of October, the same can't be said for Bitcoin ($BTC), which is near all-time highs. 9 of the last 10 Octobers have been posotive for Bitcoin, earning the nickname "Up-tober".

• Interested in finding out where the "Weight of the Evidence" sits for major markets as we move into Q4 2025? Download NDW's quarterly report HERE.

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To learn more on momentum's seasonality, you can read Monday's featured article HERE.

Major US Index Technical Review:

A summary of the performance of major indices, in addition to their Point & Figure information. 

The Group Score Minute:

Senior Equity Specialist Steve Raymond dives into the latest trends and changes within our Asset Class Group Scores. To listen now, click HERE or on the image below. 

Nasdaq Dorsey Wright Products:

The AdvisorShares Dorsey Wright FSM U.S. Core ETF (DWUS) is comprised of 2 ETFs—primarily in domestic large-cap equities—that demonstrate in our opinion, favorable relative strength characteristics.  During periods in which the Advisor believes the market indicates broad equity weakness and cash strength, the Fund invests in fixed-income ETFs with a short or ultra-short duration, money market funds, cash and cash equivalents.  To learn more about DWUS, Click HERE.

Want More? Don't Miss Out on Our Podcasts!

This week, we pull some highlights from our latest quarterly report on the state of the market and what to monitor heading into Q4. To listen now, click HERE. 

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