What another tight session yesterday that had the potential to be big on the upside. But semiconductors were sideswiped, and money flooded software, which enjoyed its best session in a long time (IGV +3.3%).

Nvidia (NVDA) lost more than $9.00 and closed just above the 200-day moving average and major support point. Meanwhile, the company’s credit default swaps soared, reflecting increased risk and concerns that Jensen & Co. are spreading themselves too thinly.

The tangled web is more tangled, and some are crying foul. I'm not in that camp, but I admit this is a heck of a commitment.

Most of the names in the NVDA web stumbled out of the gate but climbed off the lows of the session, including Nebius Group (NBIS), which was getting hammered at one point but finished fractionally higher.

Overall, yesterday was an encouraging session, with 65% of the S&P 500 (SPX) closing in the plus column.

Today’s Session

Once again, the Korean Stock Exchange (KOSPI) is setting the tone.  The South Korean market is down 10% overnight as margin unwinds and panic sets in; it means early weakness for the US AI trade.  Now there is a chorus of boobirds screaming to investors to flee the “trade.” But this is more than a trade. The concerns are legit but two or three years too early. 

When the dust settles, these names should rocket higher, and I guarantee you many of the mavens screaming fire in a crowded theater will be buyers.  Of course, most are doing it for eyeballs and clicks.

Earnings successes continue to be the most untold story of July.  They matter even if they have been greeted with selling or yawns.

We are licking our chops – just have patience.

There will be no afternoon note today.

Make sure to watch my special Townhall on Fox Business today at 2 PM.

“Undeniable Windfalls: Think Big!”