The picture is unchanged: AI and broader equities remain supported by the compute build, record-high markets and abundant money supply. The preference is for Nasdaq exposure over the Dow, with short positioning seen as a tailwind for $QQQ, while the Dow is viewed as vulnerable on crowded positioning and weak price action. Copper is the other weak link, with crowded longs and an inability to hold gains despite favorable news.
Dow offers the preferred short because positioning is exceptionally crowded, the chart looks ugly, and it failed after the broader market’s initial CPI-driven rally.Month
Nasdaq is preferred long exposure versus a Dow short because speculators remain short and shorting the index amid the AI advance is considered a mistake.Month
AI remains supported by an expanding compute build that requires substantially more chips, making broad short positions against the theme a mistake.Year
Copper is the preferred AI-related short because speculators are crowded long, price has gone nowhere, and bullish news has failed to sustain gains.Month
Dow offers the preferred short because positioning is exceptionally crowded, the chart looks ugly, and it failed after the broader market’s initial CPI-driven rally.DIRECTION ONLY$DIA
Dow offers the preferred short because positioning is exceptionally crowded, the chart looks ugly, and it failed after the broader market’s initial CPI-driven rally.
Nasdaq is preferred long exposure versus a Dow short because speculators remain short and shorting the index amid the AI advance is considered a mistake.DIRECTION ONLY$QQQ
Nasdaq is preferred long exposure versus a Dow short because speculators remain short and shorting the index amid the AI advance is considered a mistake.
AI remains supported by an expanding compute build that requires substantially more chips, making broad short positions against the theme a mistake.DIRECTION ONLY
Copper is the preferred AI-related short because speculators are crowded long, price has gone nowhere, and bullish news has failed to sustain gains.DIRECTION ONLY$CPER
Stocks in the EU, Canada, and the US are at all-time highs, while money supply is also at a record level and the trend remains upward.DIRECTION ONLY$SPY
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