Why Are Stocks Not Crashing?
Daily Plan 8.6.26
A few questions are on everyone’s mind—
Will stocks ever crash?
Will AI companies ever generate meaningful returns on their multibillion-dollar investments?
Can someone short this market and make bank?
My answers—
Yes.
No.
No.
Why?
First, I do think this eventually unravels. Over the next year or two, we are likely to see meaningfully lower prices.
This massive AI investment juggernaut will create value, but that value will accrue to a very small group of people. In my view, it will not turn into the kind of sizable windfall that today’s biggest AI spenders are expecting.
But here is the more important point: anyone thinking this is an easy place to short and watch the profits roll in will likely be just as disappointed.
The problem with being short is that you are fighting, almost single-handedly, against a mob of funds and investors who believe the exact opposite.
For every dollar being shorted, there are a thousand dollars waiting to buy the dip—any dip.
That is why I think this market keeps inching higher and bleeding shorts until they finally give up.
Then, and only then, do we see the beginning of the end of this charade. I will share this in more detail in my weekly post, but long story short, do not step in front of this freight train. Not yet.
For now, I think any dip into the 7,711–7,720 range could remain support, with the market currently around 7,750. From here, I think we are ready to make a run toward 8,000.
ALM
This is an older stock shared by me here around $10 before it almost ran unto $25.
It’s since been cut in half. Keep an eye out on this action. I think any dips on this can remain supported for another run into 25, and then 35s.
~ tic
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