Market On Open - Friday 23 February

The Day After The Singularity

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The Greatest Hangover Ever

Yesterday Mr Huang got $10bn richer.

Today maybe everybody will get a sore head from the drinks-cabinet-raiding that took place all day yesterday. Or maybe folks will just keep drinking slowly, enough to stay just a little bit happy but not maudlin or sick.

Most likely, folks keep partying until they regret it, then swear off of the AI meme stonks and decide to only buy dividend-paying consumer staple stocks from now on. If other bull markets are anything to go by, this commitment will last a few weeks max, before people start wandering over to the bar once more.

At the time of writing - 1030 Eastern - the semiconductor sector ETFs are down a little, the Nasdaq is thinking about what it has done, the Dow is looking perky and the S&P500 still thinks it can smash 5200 if it tries. The Russell remains undecided.

We all know this huge run up is going to get a retracement - it hasn’t had one yet since October / November 2023 - the question is when. As always the skill is in reacting not predicting. The charts in this daily note can help you to watch the indices and the sector ETFs closely in order to react when they change direction.

Paying members of Inner Circle, scroll down for our long- and short-term take on the S&P500, the Nasdaq-100, the Dow Jones 30 and the Russell 2000 - including the regular ETFs, the futures, the 3x leveraged ETFs and then finishing with a take on sector ETFs in semiconductor, tech, and the Fangs.

(Not a paying member? Sign up right here. If you’re not sure about committing, just take the monthly. If you like it and want to take an annual, we’ll deduct that first month’s fee so you’re not out of pocket. If you hate it, you’re down only $299).

Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.