5/24 Recap

We broke down….again. As you can see below this is our 4th breakdown of the October low trend and once again we have a megacap tech reporting today in Nvidia. The last 3 breakdowns were all followed by Microsoft then Meta and then Apple causing a gap up the next day. Will the the trick work a 4th time? We will see. Nvidia is sitting at 30x sales heading into earnings tonight, I’m not sure what tricks Jensen can pull out to appease the street after this run, but he is one of the best at the art of the pump along with Satya and Elon, so I expect nothing short of a full court press on AI and the TAM we’re looking at this afternoon.

We’ve been in this range for almost 2 months now, but again below all these moving averages, nothing good happens, usually. It’s nice to see the VIX perk up a little over 20, there is a little fear now with these debt ceiling talks not going as planned. The interesting thing to me is neither scenario is “bullish” for equities. If they don’t make a deal, we default, credit rating is shot and we sell off on the other hand if they make a deal, there is a huge liquidity drain from the treasury issuance. With that said, I remain fully invested and long things showing relative strength as you’ve seen my book the last 2 days. I’ve concentrated into the names outperforming peers. Just because markets are weak doesn’t mean everything has to go down. If we do, what do you think will be first to bounce back? The names showing strength in this weakness we are in right now.

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Today’s Unusual Options Activity & What Stood Out

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