Shame on me. As the markets exploded yesterday for positively NO reason whatsoever (except Fed jawboning), I wanted to make my short positions even more aggressive near the close, but I chickened out. The /ES ripped almost 100 points higher (again, for NO reason), moving the market from Laughably Overvalued to Insanely Overvalued, and I didn’t do anything about it. It’s no shock that all the equity futures are down right now, but let’s none of us forget the (fake) CPI numbers coming out Thursday morning. That’s a big risk.
Even though all the futures are down, Nvidia continues to blast into the ionosphere with another lifetime high. Look, most of you know I’ve been deeply into tech since 1979. I won’t go through my bona fides, but my tech knowledge and experience is way, way over on the right side of the bell curve. And I will say, once again, I think this whole AI thing is the biggest pile of dog crap I’ve ever witnessed in my life, and yet TRILLIONS of dollars (TENS of trillions, actually) depend on this thing being a blow-out success. If AI doesn’t utterly transform humanity and create ungodly profits, you are going to see an AI WINTER like you’ve never imagined, and the word GLUT is going to be on everyone’s lips.
I am a monotheist, but if I were to consider a second god, it would be the Dow Utility chart. This pattern is still the most beautiful and well-formed thing I’ve ever seen in my life.
If this $UTIL chart plays out as I hope, nothing is going to be able to stop it. Not the completely manufactured b.s. government data. Not Powell’s lies. Not Yellen’s horseshit. None of it.
It’ll sweep over them all like something which sweeps a lot. Just watch.
