Nasdaq Toppy??? Bond Cash Overvalued?

Musk goes Viral with is GFYourself Comments

Alright, before we get into any of the market data and updates, lets first take a look at what the great Elon Musk had to say in a CNBC interview yesterday. As a precursor, we believe Elon is an advocate for free speech and everything he does confirms that, including his words yesterday! Now there is some foul language so listener be warned, but in a nut shell we loved this other quote from him besides the GFYourself moment,

Let the chips fall where they may, what I care about is the reality of goodness, not the perception of it and what I see all over the place is people who care about looking good while doing evil, f*&k them, OK. (Elon Musk 11/29/23)

In regards to the video on his response to CNBCs Sorkin when questioned about losing advertisers on X, well just click on the video if you haven’t seen it! He basically said “Let the Earth decide” let them judge who wins, I will not be blackmailed with money! Here is the link to the part in the interview when asked about advertisers, in particular Bob Iger of Disney, Sorkin and Musk "GFYourself"

Source: CNBC, RealClearPolitics

Look the strong hold of main stream media and all their continuous propaganda and narrative is OVER. We cannot stress it enough, the world will move a more decentralized trustless system whether people like it or not. AI is already moving us that way and its already indicative in the world around us. If you cannot sense this change, see this change, well then you just aren’t looking.

We even see it in financial markets as major investment firms all employ some form of AI and ML in their processes and from what we have come to understand about AI, is that it has a take no prisoner attitude and it will see the highest return with the lowest friction and how it obtains this is the proprietary magic. However with a little caveat, he who has the most capital to deploy will have a major advantage that is certain. We have often said that AI will operate on the mantra of

“to those that have everything everything will be given and to those who have nothing everything shall be taken away.”

Case and point the Nasdaq up nearly 40% this year, the Russell2k unchanged. Strength wins, weakness loses, which is kind of the antithesis of the entire woke movement isn’t it? Kinda interesting how that works…sorry AI doesn’t care about political sentiment, emotions or beliefs, it does what it does to fill an objective.

Ok onto the markets, we know the markets are at an inflection point, the equities seem to have topped out and gone no where for awhile here and this is putting in some very interesting chart set ups. Let’s look at the MEGA8s chart:

We drew the blue teal line awhile ago and we will stand by it. We commented a few posts ago about this line that buyers need to defend it and if they fail will open a can of worms, well we are there now.

What has also become apparent is that prior support for the SP500 vs the Nasdaq futures charts have been hit and are holding. We aren’t sure if this means the overall market will turn lower or if the SP500 will just outpace if we run up. We tend to think that the SP500 will outperform on the downside as the Nasdaq gets reversed out of as it is so heavily overbought this year. In fact it has outperformed the SP500 futures contract by over 3 to 1 in terms of dollar value return for one contract. As this chart shows, the SP500 did find support here prior and someone has stepped in once again:

This chart is long 1 SP500 vs short 1 Nasdaq future in dollars. So be careful jumping on the equity bandwagon as the markets have struggled with these areas before.