“IWMs did make new all-time highs. The fact that small caps are making new all-time highs, the fact that their PEG ratio is collapsing. So, this is being driven by earnings.”
Small cap earnings growth is outpacing price appreciation, collapsing their PEG ratio and driving a fundamentally backed market breakout.
“we're finishing this year at basically the lowest PEG ratio in the last 22 years on this... We're currently 8.66 above the 200-day moving average. I mean, we're nowhere in bubble territory. This is th”
S&P 500 earnings growth is actually outpacing price appreciation, driving the index to its lowest PEG ratio in 22 years.
“Micron could overtake Meta in stunning AI power shift. I have no doubt that is going to happen either from them or from more than them in terms of the hardware names.”
Capital is rotating out of massive AI spenders like Meta and into hardware as the market corrects its structural overweight to software.
“If there's going to be some mega spike up to 300, why are we back to where we were? At some point, the prices of the movements happen... crude prices have come down.”
Physical and paper crude markets have converged without a price spike, proving the bullish oil narrative wrong as spot prices roll over.
“This is gas at the pump... We're below four now. This implies about 375. So, you've got gas moving lower.”
Retail gasoline is breaking below four dollars a gallon, reflecting a broader collapse in crude prices and inflation expectations.
“There's no reason to use Adobe when you can get free amazing visuals like the chalkboards I'm showing you that take 2 seconds to do as long as you're using AI.”
Free AI generation tools create amazing visuals in seconds, eliminating the need for users to pay for Adobe's legacy software suite.
“You want to be long semi-short software.”
Free AI tools make legacy software obsolete while forcing hyperscalers into massive, unavoidable infrastructure capex to stay competitive.
“You want to be long semi-short software.”
Free AI tools instantly generate what legacy software used to charge for, destroying the moats of incumbents like Adobe and Salesforce.
“Here's CRM, Salesforce, continuing to puke out.”
Free AI tools are rendering legacy software obsolete, causing a broader sector decline that is dragging down Salesforce.
“Google, Meta, Amazon, Microsoft have all splurged to secure podium spot in the race to build out the infrastructure... The AI spending boom is creating a depreciation time bomb... I want to be short t”
Hyperscalers are destroying free cash flow through massive infrastructure spending that creates a depreciation time bomb.
“Here's the Microsoft chart. This is a gruesome chart. This is not good. They are unchanged and basically since ChatGPT came out, they just keep going lower and lower.”
Microsoft is trapped in an AI spending war that destroys free cash flow while its stock repeatedly fails at the 200-week moving average.
“Gemini has fallen way behind. So for all of you Google fans out there thinking that they're going to dominate this, I don't know what's going on... Google and Meta may have the worst the most to lose ”
Massive capex spending creates a depreciation time bomb for Google while its Gemini model falls behind rivals in the shift to AI agents.
“I don't even know how Meta is alive in this point at with this... Meta's new AI unit is a total mess. Executives and employees alike are struggling with the chaotic AI strategy.”
Meta squandered its open-source AI lead as its new AI unit devolves into a chaotic, low-morale mess that drives away top engineering talent.