Yesterday, after the closing bell, most market stories shared the same headline: the market was down again, without providing nuance. Not only could this market have been hammered by momentum and sentiment, but it also climbed off the canvas numerous times and, at one point, even went positive. Extended factors were impressive, with more than half finishing in the green, including small-caps across the board.

Touch & Go

The multiple turns in yesterday’s trading reflect mounting doubts and a sense of opportunity. Advancers and decliners, along with the up-to-down volume, were just about even, but still a lot more lows than highs.

Banks finally won the right to lower capital requirements. That news early in the session was the first moment I saw the selling stall and nibbling begin. Financials (XLF) eked out a small gain, as private equity concerns continue to grow.

Say It Isn’t So, Willy

What an explosive story after the close. The co-founder of Super Micro Computer (SMCI) was arrested and charged, along with two others with selling $2.5 billion worth of Graphics Processing Unit (GPU) chips to China (see below).  Shares were hit, and we must wonder what this means for Nvidia (NVDA) and potential authorized sales.

Nvidia’s CEO Jensen Huang has been lobbying the White House hard to sell chips into China and recently received limited approval. Meanwhile, I read years ago where the CEO of Super Micro called Jensen his best friend. This case is more than theft; if guilty, this is espionage against the United States.

The fact that one dude is “on the lam” makes it look even worse.