| Hey there, | Sending this form our new impoved email system to give you the best communication experience. | Alright, so AI's wild movements continue to be the story this week, and today was not pretty. | The Dow dropped 251 points for its second straight triple-digit loss. The S&P 500 fell back below 6,800. And the Nasdaq? Down 486 points for its worst single-session drop since October 10th. | Palantir, Oracle, and basically everything AI-adjacent got crushed as Wall Street suddenly remembered that valuations matter and expectations can get stretched. | The VIX jumped to its highest level in two weeks, which tells you people are getting nervous again. | What's really going on: | This is what happens when an entire sector runs too hot for too long. Eventually, somebody blinks and asks "wait, are these companies actually worth this much?" And then everyone heads for the exit at the same time. | We've seen this movie before. Doesn't mean AI is dead. Just means the trade got ahead of itself and now it's correcting. | Five things worth knowing today: | 1. Bitcoin dropped below $100k for the first time since June. When risk assets start selling off, crypto usually joins the party. Nothing moves in a straight line forever. | 2. Manufacturing contracted for the eighth straight month in October. That's not exactly screaming "strong economy," but the market's been ignoring that data for months now. Maybe it's starting to pay attention again. | 3. Uber stock got hit harder than the broader market. Earnings weren't terrible, but in this environment, "not terrible" isn't enough. We'll dig into that more if it stays interesting. | 4. Options traders aren't fazed by Sarepta's selloff. Sometimes when a stock drops and options traders keep buying calls, it means they see value. Sometimes it means they're catching falling knives. Time will tell which one this is. | 5. We've got a quick survey if you have a few minutes to help us out. Always trying to make this better for you. | Oil and gold doing their thing: | Oil pulled back after OPEC+ said they're raising output in December but pausing increases starting in 2026. WTI settled at $61.05, down about 1%. | Gold dropped back below $4,000 as the dollar strengthened. When the dollar goes up, gold typically goes down. That safe-haven appeal dulls when the currency itself is strong. December gold futures settled at $3,945. | My take on today: | This AI selloff feels like profit-taking mixed with genuine valuation concerns. When you've got names that have run 100%, 200%, even more this year, a 5-10% pullback is actually pretty healthy. | The question is whether this is just a breather or the start of something bigger. The VIX popping tells me people are getting cautious, but we're not in panic mode yet. | Defense stocks might be the play if AI continues to crumble – we'll keep an eye on that rotation. And there's a travel stock that might be a buy-the-dip opportunity, but I want to see where support holds first. | Bottom line: | After weeks of AI stocks doing nothing but going up, reality showed up today. Valuations matter. Expectations matter. And when both get stretched, corrections happen. | This could be a one-day flush or the beginning of something messier. Either way, if you were overweight AI names, today was a reminder about position sizing and taking profits when things get frothy. | More tomorrow – let's see if the selling continues or if buyers step back in. | Talk soon,
| P.S. - Days like this are why you take profits on the way up. A 50% gain can turn into a 30% gain real fast when everyone decides to sell at once. |
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