The SPY is trying to push through the 50 day right now and clear all these moving averages after the election surprise last night. Why are we ripping so hard? Weighting and the VIX being down 17% as all the fear exits. The ai trade is continuing to flounder as the SMH is red today along with Memory names today but the hyperscalers are flying as people price in potential blocking of datacenter from Democrats in control. That means those with datacenter in place like AMZN,MSFT, and GOOG are all up 6%. Does that mean they’re actually going to block datacenters? Who knows, for today they market overreacts in this manner and with their weighting in the market it is really pushing us higher. This is why you really had to wait for the election to play out before knowing the next move. Things like TAN are up 8%, that is the solar etf, if yesterday was a republican sweep, it would’ve been down 10% today. Now we have more clarity on what is ahead and you can press your chips in a direction. The weakness in ai shouldn’t shock you, it has been visible for weeks, but yesterday was a big blow to the infinity projections on every component supplier we’ve had for the past few months. There are other sectors working, you have to move on from this ai trade most of these names are in distribution now. Just don’t be dense about look at the ai trade power names like VST down 15% this is just people completely moving aside from what has been the consensus trade of the last 3 years. Do not fight this.
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Here are today’s large cap momentum scans from the database. The rest of the small and midcap scans can be found in the link below.
My Open Book
Trades I Made Today
