The SPY gapped up nicely and faded back to the 8 ema where it caught a bid so far today. The 21 ema is 1.5% lower and that’s really the spot you want to watch on any move down. Until we lose that 8 ema we are sitting ontop of for now, there isn’t really much to say about the overall market. All the megacaps ex META are trending nicely at the moment and that is all that carries the market.
This market just feels off, we’re green but VIX futures are green too. It seems like every other day someone is making a deal with OpenAI and lifting the market, but how many more deals can those guys make? Today it was Amazon and I even joked about Amazon not having a deal with OpenAI on friday and sure enough they announced a deal with them today. So ignore that weekend best idea, you can sell the put side of things still if you wish as that gap fill should be a good level to long. Overall this stuff is getting silly, you had Sam Altman doing his podcast with Satya and Brad Gerstner here recently where Brad questioned where all this OpenAI spending would come from and Sam got incredibly defensive. I don’t know how all this ends but at the moment we are incredibly frothy on the market going up everyday based on future AI capex spend driving the same handful of megacaps that carry the market, higher.
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