Morning Commentary
It was a tough finish to a tough week. Only 24% of S&P 500 (SPX) components finished higher; anxiety is spreading beyond the superintelligence/artificial intelligence (SI/AI) trade. Ironically, superintelligence news and developments set the pace on Friday. Midweek reports described how an old vulnerability in a widely used web-scraping language was exploited and how close the Internet came to being shut down.


According to USA Today:
Researchers at digital infrastructure defense firm Calif first caught the issue, called PHP2Shell, in July, with help from one of OpenAI's most advanced models, according to OpenAI. As the story unfolded, cybersecurity stocks rallied.
The session's top performer, Crown Castle, Inc. (CCI), surged on reports that SpaceX (SPCX) is in talks to lease many of its U.S. towers. Software (IGV) surged, and investors looked beyond cybersecurity for opportunities.


Tug-of-War
Bespoke Investment Group did great work showing the Jekyll-and-Hyde year between semiconductors and software. At some point, the SI/AI Revolution will move beyond the picks-and-shovels (chips) phase, but that part of the story isn’t over yet. But this is a momentum market when behavioral trends supersede fundamentals. Instant reactions bake assumed success and assumed failure into share prices.

Software Breaking Out
Software (IGV) is breaking out against semiconductors,confirming a reverse head-and-shoulders formation, and breaking above the 50-and 200-day moving averages. Hang on for another wild week.

| Tweet |
| 10/26/2026 7:32 AM | OPENAl SAVED THE INTERNET |
| 10/23/2026 12:39 PM | Rolling Capitulation |
| 10/23/2026 9:51 AM | A Mixed Session |
| 10/22/2026 1:01 PM | Momentum Takes a Hit |
| 10/22/2026 9:38 AM | STILL – LOTS OF TREPIDATION |
| 10/21/2026 1:27 PM | A Midweek Lift |
| 10/21/2026 9:49 AM | SPACEX: OUT-OF-THIS-WORLD FINANCIALS |
| 10/20/2026 1:28 PM | Gaining Territory |
| 10/20/2026 9:35 AM | CAN MUSK & SPACEX REIGNITE EXCITEMENT? |
| 10/19/2026 1:02 PM | A Monday Rebound |
| 10/19/2026 9:35 AM | MORBID ANNIVERSARY |
| 10/16/2026 1:44 PM | Rate Hike Odds Tumble |
| 10/16/2026 9:55 AM | Buyers Materialize |
| 10/15/2026 1:20 PM | Foxholes in Focus |
| 10/15/2026 9:37 AM | Fear & Loathing |
| 10/14/2026 1:14 PM | Weakness Deepens |
| 10/14/2026 9:32 AM | Hot Trades Melt Down |
| 10/13/2026 1:10 PM | Slow Going |
| 10/13/2026 10:11 AM | Zuck Breaks Out the Watermelon |
| 10/12/2026 12:29 PM | A Sluggish Start |
| 10/12/2026 9:33 AM | Macro Safety Micro Opportunistic Market |
| 10/9/2026 1:17 PM | AI Trade is Back |
| 10/9/2026 9:51 AM | FAKE NEWS STRIKES |
| 10/8/2026 1:16 PM | A Thursday Dip |
| 10/8/2026 9:51 AM | INTERNAL INFERNO |
| More commentary archives | |
|
Home |
Products & Services |
Education |
In The Media |
Help |
About Us |
Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.
|