11/12/25 Recap

The SPY is holding strong but under the hood you can see the rotation unfolding. The megacaps are all weak while financials, energy, and materials are seeing money flow into them. The only tech name strong today was AMD after that roadmap they released at their investor day yesterday, it feels like lots of other tech names are being sold to rotate to AMD after it. Look to put it bluntly, our entire market is tech stocks, what they do is what “the market” does but occasionally money flows to other sectors which are almost perpetually in bear market territory. This has been a phenomenal year, our third in a row, and other than NVDA reporting next week there just isn’t much left to buy in tech land. The stories are all known, the openAI partnerships are all established, and these names have just gotten really ahead of themselves and their capex spend is scary for many investors. A cooling off is very much needed, could be sideways, doesn’t have to be down, but for whatever reason the money is just not going in those mag 7 names the last few sessions. I’m sure like we always do in a few weeks the Santa rally will begin and they will all be bid again.

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