Table of Contents:
1) AI Bubble: Delayed profitability, financing concerns, and price-sensitive customers are threatening the AI industry’s promised returns.
2) Technical damage in semiconductors and hyperscalers is raising the risk of further technology sector weakness.
3) Tech Credit: Mounting credit concerns at major AI companies highlight the financial risks of enormous investment commitments.
4) Treasuries: The Treasury rally may signal a flight to safety, warning of a potentially significant stock market decline.
5) Major Index Charts: The S&P 500 and Nasdaq are deteriorating…while the Russell 2000 tests critical support.
6) Solid earnings and rotation beyond technology could fuel a post-election rally, with Starbucks offering an interesting opportunity.
7) Investors are moving toward defensives, with healthcare, staples, energy, utilities, and aerospace and defense showing relative strength.
8) The Binance breach raises institutional security concerns, while Bitcoin’s test of its 50-week moving average could prove critical.
9) Potpourri….When will Japan defend its currency again…and will that have an impact on the “carry trade.”
10) Summary of our current stance.
