The Week Ahead: The Rotation Continues
AI worries are pressuring Tech and sending yields lower as we embark on a heavy earnings week including several names in the cross-hairs.
If I Get a Tattoo on My Hand It Will Be a Reminder to Set a Stop!
Setting a stop is the most important task in trading. It’s also the hardest.
Tech Selloff Deepens as Market Rotation Continues
Another selloff in AI names broadened to encompass most of Tech, sending the Nasdaq-100 to its worst week since April 2025. Five sectors though would finish the week up 2% or more, as 30-year Treasury yields fell the most since April 2025.
The Run-Up to Black Monday in 1987 Looks a Lot Like 2026
While there are some similarities to 1987, there are also some major differences.
Industrial Output Jumps the Most Since April to Highest Since 2018
Industrial production beats estimates, rising from a year earlier the most since September 2022, as manufacturing rebounds from August’s dip and utility output jumps to a record high led by electricity.
Import Prices Jump as AI-Related Costs Rise the Most Since 1987
Fuel prices rebounded and nonfuel import prices hit their highest annual rate since April 2022, with semiconductor prices posting an eighth straight record year-over-year gain.
My Worst Case for the AI-Fueled Economy
Here’s what I’m most concerned about the future of our economy. Also, let’s check on Warsh’s latest speech, the market rebound and the charts.
The Market Is Undergoing a Change in Character as AI Splits Into 2 Groups
The hyperscalers pay for AI out of their own cash. The companies that borrow to build it are starting to trade like rate-sensitive stocks.
Despite Hot PPI, Yields Fall, Sparking Broad Rally Held Back By Tech
Stocks recovered from early losses as Tech bounced and the largest drop in 10- and 30-year yields in over a year saw five sectors gain over 1%.
The AI Trade Isn’t Over, but the Easy Gains Likely Are
The hot CPI report finally triggered the rotation. Breadth was the best in weeks as money moved toward the laggards.