The Selfish Leaders

Will They Pass The Ball?

Author

Larry Thompson
August 09, 2025

The Iron Giants

The market delivered a solid save this week.

S&P 500 up over 2% and the Nasdaq 100 up almost 4%.

The Bulls ate last week’s punch like a fat kid eats Oreos.

The charge was led by the Iron Giants, up a combined 5.5% hitting All Time Highs.

The Iron Giants

If you don’t know by now, these names can take over the game. 

They make up more than 30% of the S&P 500 and over 40% of the Nasdaq 100. 

That’s not just “influence,” it’s market gravity.

When your MVPs are dropping 40 points a night, it doesn’t matter if the bench (breadth) is quiet.

This isn’t a complaint — it’s simply the construction of the market.

Understanding it gives you context most people miss. That context adds an edge.

I like to track $MAGS ( ▼ 0.26% ) for an equal-weight look at the “Superstars” themselves. 

As long as they’re fresh and scoring, the bench doesn’t need to win the game.

But when they sub out, the role players have to produce.

Selfish Play

Right now, the bench is sluggish.

That doesn’t mean you get bearish, it just makes allocating fresh capital trickier.

You’re essentially betting on the same 10ish stocks to keep carrying the index.

The Bull Market is still intact and leaders leading is a healthy thing.

BUT the BEST tape is when those leaders also pass the ball.

These charts tell the story:

Selfish Play By The Leaders

The Biggest Are Scoring Most The Points

Rare to See All Time Highs With Bullish % Below 50%

This is “selfish play.” It’s effective, but it’s not ideal.

Eventually, the Bull Market will need the rest of the roster to show up.

Bull Markets have a habit of solving problems and this is one it’s solved before.

That said, with this leadership gap and a seasonal backdrop that’s usually a headwind, I’m not betting it gets solved right away.

It’s not a reason to fight the trend.

Just a problem worth waiting for the market to fix.

Patience is a tool most traders neglect.

Right now, it’s the one I’m choosing to use.

My Weekly Show - Thompsons Two Cents

🎥 Check out the latest episode of Thompson Two Cents Live!

This week I break down:
✅ The Strong Leadership
✅ Breadth Being Stuck In No Man’s Land
✅ Several Trades I Currently Like

🚀 Throw it on 1.5x speed and let it rip.

👍 Give it a like. It’s the easiest way to show me some love.  

The Sunday Stalk List | Ep. 11

I’ll be breaking down setups I like right now.

If you like clean charts, clear setups, and tactical insights — this one’s for you.

The early feedback has been 🔥 and we’ve already tagged some big winners.

Cheers,

Larry Thompson, CMT CPA