To The Moon

The Q2 2026 earnings season has revealed a divergence between the broader market and the highly scrutinized mega-cap technology space, while Wall Street banks and key defensive sectors like healthcare have delivered strong results. In the tech sector, sharp post-earnings stock declines for mega-caps like $Alphabet(GOOG)$ $Tesla Motors(TSLA)$ were generally not caused by poor revenue or core business growth. Instead, a clear pattern of “AI cash burn anxiety” emerged. Both Alphabet and Tesla handily beat top-line expectations, with Google Cloud revenues surging and Tesla delivering solid vehicle metrics. However, Alphabet’s massive infrastructure spending pushed its quarterly free cash flow into a negative

It was a volatile and difficult week on Wall Street, as major U.S. indexes finished lower across the board. The market logged its first back-to-back weekly losses since March, primarily dragged down by anxiety over massive corporate spending on artificial intelligence (AI), surging energy costs, and new trade policies. Key Market Drivers This Week Big Tech AI Spending Jitters: Q2 earnings sparked investor concern as $Alphabet(GOOG)$ dropped -7.8% for the week following raised capital expenditure guidance for AI data centers, while $Tesla Motors(TSLA)$ plummeted -17.8% amid negative free cash flow driven by massive investments in AI and robotics. Geopolitical Escalation & Energy Volatility: Oil (CL=F <

Tech sector shares faced heavy downward pressure during the session, heavily influenced by $Alphabet(GOOG)$ , which drove capital expenditures above analyst expectations and posted negative cash flow for the first time, alongside $Tesla Motors(TSLA)$ , which tumbled following its earnings report due to margin contraction and softer-than-expected delivery metrics. Furthermore, premarket gains in $ServiceNow(NOW)$ completely evaporated during the regular session, weighing heavily on the broader software industry's performance. However, the definitive catalyst driving the market lower extended beyond tech alone. By 8:29 AM, futures were already sliding steadily, but

There is a divergence forming in the market that deserves serious attention, and it is not showing up in the headline index number. The $S&P 500(.SPX)$ is holding near its highs, my anticipated annual target of 7,638 set the expected rejection in June with the all time highs at 7,620 (and posted that day that the target could be considered reached), price is compressing with a series of lower highs and higher lows. On the surface, everything looks constructive. But when I look beneath the index, at the groups that built this rally and carried it for two and a half years, the picture is more complex. The Magnificent Seven, $Apple(AAPL)$ $Microsoft(MSFT)$

The U.S. stock indexes began the week with an optimistic morning rally, fueled by hopes for geopolitical de-escalation in the Middle East following reports that Iran might pursue a diplomatic path to ease tensions. This early momentum was further bolstered by renewed investor appetite for AI and semiconductor stocks, as the market began to digest the recent “Kimi shock.” While the initial release of Moonshot AI’s Kimi K3 model last week rattled investors with fears of a “cost-efficient” Chinese competitor, the narrative shifted this morning. Reports that Moonshot AI had to pause new consumer subscriptions due to a lack of sufficient compute capacity served as a potent reminder that, regardless of software efficiency, the physical demand for high-end hardware remains a massive, unyielding b

I remain bullish when technical conditions support it and bearish when a reversal is likely. For instance, there are metal-focused outlets that have maintained a bullish stance since March in Gold and Silver despite of the clear overextension that needed a major correction, crypto publications insisting in a bounce when technicals did not support that, and others that remain dogmatically bullish on semiconductors regardless of the charts. Will they reach all-time highs again? Certainly. However, identifying exactly when and how much pain is required to get there is where neutral, professional technical analysis provides the most value. I was bullish at the market bottom in late March providing clear references, targeting 7,638 for the $S&P 500(.SP

$Invesco QQQ(QQQ)$ The narrowing price action in tech set bearish resolution. The 20DMA is set to cross below the 50DMA, a clear trend shift that seemed unimaginable less than a month ago since semiconductors were going to the moon. The damage could be worse but some mag7( $Apple(AAPL)$ $NVIDIA(NVDA)$ $Alphabet(GOOGL)$ $Microsoft(MSFT)$ $Meta Platforms, Inc.(META)$ $Amazon.com(AMZN)$ $Tesla Motors(TSLA)$ ) have mitigated it. News are Catalysts for Tech

This week’s economic indicators paint a picture of steady growth and a resilient labor market, though slight cracks are appearing in consumer activity. Labor market stability remains a highlight, as initial jobless claims fell by 8,000 to a seasonally adjusted 208,000, outperforming the consensus estimate of 217,000. Meanwhile, consumer spending showed steady headline demand, with June retail sales ticking up 0.2% as vehicle sales and online retail offset a steep drop in fuel prices. Anyway, core retail sales (excluding autos) unexpectedly dipped 0.2%. On the production side, the Philadelphia Fed Business Index surged to a blowout reading of 41.4 in July, crushing forecasts of 12.7 and signaling robust growth in northeastern manufacturing. Why the Market Pullback? Three Macro Factors to Co

$S&P 500(.SPX)$ The tech selloff has pushed the index below its 20 and 50 daily moving averages. Considering the bearish crossover in the oscillator, this suggests further declines ahead. The previous two bounces occurred with a more reset oscillator, which is not the case today. The 20 daily moving average was breached and the oscillator is falling from overbought conditions, with a lot of space before getting oversold. Losing this moving average is usually concerning.

Wall Street endured a volatile week as a deeper pullback in major technology stocks snapped recent winning streaks in the $S&P 500(.SPX)$ . For that reason, we closely tracked the $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ in our daily market analysis this week. Semiconductors remain under pressure. This week alone, the market darlings continued to be punished: $Advanced Micro Devices(AMD)$ lost -11%, $Micron Technology(MU)$ -13%, $Broadcom(AVGO)$ -7%, and $NVIDIA(NVDA)$ -4%. The semiconductor ETF