And I think it will knock your $SOX off.
What is your windbag radio host and often overly historical and somewhat dry esteemed web author talking about today?
Imagine being in a major city, we’ll pick on Philadelphia because it’s become symptomatic of the rust bucket toilets north of I-40. Now what happens when all of the water mains and sewer lines start to leak and crack at once. Would you really trust the water quality or any other utility in that city? Probably not, in fact, one might worry about streets or entire city blocks collapsing because after all, with the fat people soda tax they’ve probably doubled down on eating Big Macs, Doritos, and Ding Dongs smuggled in by fatty freedom fighters further weakening the city’s supporting structures under the roads.
Now imagine that in equities.
What happens when the one thing that has been supporting the markets and bull thesis all year of the artificial intelligence trade will lift all boats might actually have been as big a mirage as OpenAI producing a product that real businesses might actually use and pay for. Thus the foundations of this thesis might actually be rotting just as Anthropic and OpenAI are preparing for possible IPOs very soon just before the stock market gods rug pulls the retail suckers once again.
The foundation that this writer speaks of?
Yes Virginia, your eyes are not deceiving you, another 5% drop today and failure at the down sloping 50 day moving average. To make matters worse they couldn’t even get a close above the 20 DMA which is an indicator of more selling to come, probably until Nvidia’s earnings next week.
Enjoy the show from Philly for now, Warsh and the Wyoming cowboys takes over after Jensen puts on his Cantina Bar extravaganza known as Nvidia’s earning report.
All hell will probably start to break out after Labor Day so enjoy the Hamptons folks.