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Capitulation Rally or True Recovery?
From Relief Bounce to Reality Check The US market staged a sharp rebound on Thursday (July 30), only to follow up with a lukewarm performance on Friday. While several market commentaries were quick to hint a full-fledged recovery from recent lows, the price action points to merely a tactical bounce off extreme oversold levels, particularly following the… Continue reading
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Inside the Unending Rotation Game
Welcome to the unending rotation game where market themes change overnight and positive catalysts are short-lived. This week, in US market, early recoveries in AI infrastructure and memory stocks unraveled into a sharp Friday liquidation; even blowout earnings beats were met with immediate selling. While the market isn’t short on compelling stories, turning them into… Continue reading
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Semi Gravity and the Leverage Flush II
Ultimately, the market is a grand reallocation mechanism where only a few will win. Long-term survival comes down to disciplined exposure management to minimize drawdowns, rather than pure stock-picking skills. “Deciding what not to do is as important as deciding what to do.” – Steve Jobs Continue reading
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Semi Gravity and the Leverage Flush
Recently the US market divergence is starkly visible on the tape. While the SOX is violently corrected as semiconductors are pulled down by gravity, Nasdaq is also being dragged in a range-bound fashion. Meanwhile, S&P remains comparatively anchored and resilient, buoyed by the defensive rotation into mega-caps and the relative strength of its non-tech allocations. The… Continue reading
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Navigating the Choppy Map: Tech dodging bullets, Biotech finds the 1-Up
As we move through late June and into July, the market has turned increasingly choppy. The Nasdaq and S&P 500 are moving sideways. The semiconductor space has had a roller-coaster ride, showing intense profit-taking and rotation. The Philadelphia Semiconductor Index (SOX) has closed below its 20-day moving average (MA) – a breakdown that has occurred… Continue reading
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How Intel Goes to “Apple Inside”?
The most eye-catching narrative last week – President Trump announced via Truth Social post that Apple (AAPL) has agreed to partner with Intel (INTC) to design and manufacture its chips domestically. While official corporate confirmations are still pending, the headline triggered a +10% surge in Intel last Thursday. This announcement echoes The Wall Street Journal’s… Continue reading
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Spotting relative strength
US market stabilized at the end of last week following a multi-day correction, with the SOX, Nasdaq, and S&P 500 recovering on Thursday and Friday. This rebound coincided with Trump’s announcement that a peace deal with Iran is close to being signed, alongside the highly anticipated listing of SpaceX (SPCX). The blockbuster IPO experienced a… Continue reading
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A Reality Check for the AI Hype
While no single catalyst drives a market correction, Friday’s pullback was symbolic in magnitude to temporarily cool off the hype, particularly within AI-related segments. The numbers speak for themselves: the Nasdaq slid 5% while the SOX plummeted 10%, marking the deepest single-day correction since March 2020. Deconstructing the Sell-Off The catalysts, as commonly quoted in… Continue reading
