This Is the Turning Point
Thursday was ugly. The Nasdaq dropped 5.5%, its worst day since April 2025, and closed more than 10% below its recent high. Micron fell 17% and Nvidia fell 9%.
Then Friday happened. Micron bounced 5%, and Nvidia was back in positive territory for the year.
That's why I think this is the turning point. The selloff wasn't about earnings or demand. It was fear.
Democrats won the midterms, and worries about tighter AI infrastructure regulation set off the profit-taking. A research note declaring the AI trade over added fuel.
None of that changes the demand I wrote about in my CoreWeave, Broadcom, and Micron posts. The buildout is still happening.
The Fed is the one thing that could make me wrong. Hawkish commentary at the end of the week already took some of the air out of the rally.
Corrections like this shake out the weak hands. I'm staying put.
