Panic is setting in as bond yields continue to climb higher, and the public relations campaign against data centers grabs more headlines.

Internal Breakdown

Yesterday was a much uglier session than the S&P 500 suggested, down -0.71%. New lows soared, and volume doubled. 

When new lows double up new highs, the market is in retreat mode. It means that good, even great, news and developments don’t matter in the moment.

Lots of this selling in high-beta names is especially overdone, but that doesn’t mean it's done; it just means investors have to know what they own.

Factors

Just lots of red across the screen, and late selling took a heavy toll on small-caps across the board and growth stocks in general.

After the close, many reports beat the Street, but initially, reactions were mixed.

PANW

Palo Alto Networks (PANW) crushed it on every level, and initially, the stock traded higher before turning.

DELL

Dell Technologies (DELL) crushed it, sending the stock above $470, then drifting to $460.

Bottlenecks

Dell told investors where the big money will be made for the next couple of years, regardless of how stocks in these niches are acting right now.

Today’s Session

Hedge funds are building a large short position, and the financial media is doing its usual “if it bleeds it leads” routine, while the biggest buyers are sitting on a beach or yacht licking their chops.

The end of summer, especially during a midterm year, coupled with Iran and higher yields, is obscuring the fundamental story. 

The fundamental story always wins in the end.

I think there will be a major reversal higher during the month, and the next round of earnings will produce the momentum for a year-end rally.

For now, we watch, assess, refine our wish list, and prepare to pounce when the time is right.

Comments

Or it could be September. Charles Lucente on 9/2/2026 10:15:48 AM

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