If I had told you on April 2nd that this would be the state of the land (below) on May 13th, you would have been offended or highly amused.

Furthermore, if I had said the Artificial Intelligence (AI) theme and semiconductors would lead the rebound, you might have been doubly offended or amused; look at yesterday’s session.

Ironically, the experts who cast fear and doubt told us the best place to hide out would be defensive sectors. They are not working, save for Utilities (XLU).

Never Fails

I have been doing this for a long time, and I have to say I’m never surprised when the mavens are wrong, but this is record time. The fact of the matter is that this time, the establishment was lashing out at the person who upset their apple cart. 

A system centered around the greatest money-making machine ever, but one that also needs a large portion of the population to be placated throughout life to enjoy a completely different financial experience. Sadly, with a few tweaks, the money machine will get stronger, and prosperity will spread even further.

The Pros “Really” Blow It

In April, global fund managers signaled their intention to dump U.S. stocks. They might be doing better in German stocks and similar things, but not much longer. They are significantly underweight in the market and will have to blink and buy soon.

Always Confident - Never Wrong

It's one thing to miss the rally, like fund managers, and another to be heavily short on the market, but the smartest folks in the room find themselves in the latter category nowadays.

Today’s Session

Futures are indicating the market will open slightly in the green.

Meanwhile, commodities are moving lower.

The top mover in the pre-market is Super Micro Computer (SMCI) following a $20B deal with a Saudi data center company to provide high density GPU platforms and liquid cooling. Semiconductor names such as Nvidia (NVDA), Advanced Mico Devices (AMD), and Qualcomm (QCOM) are also getting a boost following deals with Saudi AI startup Humain, to build AI data center infrastructure.

Comments

Turns those machines back on! Matt Mucci on 5/14/2025 7:23:22 AM

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