AI Frenzy is Over for Now…

One more thing, the AI Buildout stocks are tired.

The NVDA,MSFT,GOOG,IBM,AMZN,TM,CAT,TT,BLD mix is rolling over. They have led the bull market in stocks since April 10, 2023. They peaked on April 15, 2024, had a whiplash down day on April 15th, and now are slowly rolling over. Here is the chart of them compared to the S&P 500.

This is the week of reports. PPI, CPI, Retail sales, etc. We should see good numbers on inflation, the crest has been long passed. Retail sales could be problematic as consumer confidence is tepid. Anyway, the market is fully valued so reactions to good inflation numbers will be short lived in my opinion. Markets are just sitting here waiting for something new. The AI buildout Index has peaked.

Now the S&P 500 is all alone in being bullish.

I expect a sharp downward reset to this first stage of a long term bull market.

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