Wow…

Wow, Harris picked Walz. That completely flips the economic direction that the country has gone since Reagan started the “Trickle Down/Supply Side/Bernanke Zero Rate” debacle. Growth is headed for the small cap AI applicators, the bottom-up sector of the economy. Flip of the Russell vs Nasdaq last month presaged this. Chart shows our projection of the RUT/NDQ ratio into 2026.

We will go much deeper into this evolving equation in the next few days with charts going back to 1988.

As to trading…

Yesterday’s selloff was healthy. Traders still don’t see the long term picture as they at the moment are trying to buy tech stuff that got hit hard. That means the rally in tech stocks will have a setback, maybe even test yesterday’s lows. But three months down the road, the small caps will be leading the way, and the S&P should see 6000 in December after the election.