“I was high on 1,800 milligrams of hydrocodone when I asked her to marry me.”
-Matthew Perry
If the ticker was AIH (for AI Hydrocodone) and the chart “looked good”, would you chase it? Ironically enough, AIH is a microcap company called Aesthetic Medical that’s gone from 11 (from the 2021 Cycle Peak) to 0.62/share. It’s crashed -94%.
Since The Bear Market in US listed Small Cap Stocks remains #on this morning (Russell 2000 down -23.5% from that 2021 Cycle Peak), you don’t have to worry about that and/or the Manufacturing, Industrial, or Small Business Recessions in America.
You need to chase #MOAB AI headlines, baby! “
“I did my usual trick, complaining about intense stomach pain… so they’d give me hydrocodone – as much as I could actually feel – which turned out to be 1,800 milligrams a day.
To put that in perspective, if you broke your thumb, a kind doctor might prescribe you five 0.5-milligram pills.” -Friends, Lovers, and The Big Terrible Thing, pg 83
Back to the Global Macro Grind…
Want/Need some AI drugs? The #MOAB (Mother of All Bubbles) concentration in the Not-Russell 2000 and/or SPX Equal Weight (RSP) does! That Alphabet Launch of “Gemini AI” got us the 1st “market” up day in 4!
Do people even know what AI is?
We’ve been working on it for years. It’s embedded in most of what we do when trying to create algos to front-run not only our former selves (I was a “fundamental” Captain Stock Picker too, yo) but The Machine.
Ironically enough, yesterday alongside the GOOGL AI launch, we launched @HedgeyeAI on Twitter!
I know. Our valuation didn’t go up at all on that. #weird.
Did our revenues go up on that? A: Nope. We’ve been publishing our HedgAI Signals for “free” since October (on our website) and we’ll start charging for those very short-term AI macro and single stock signals in Q1 of 2024
To receive HedgAI Signals free each day, sign up here.
Is it going to double my company’s valuation? Get serious. The only place you can see people doing drugs on assigning instant-to-the-vein #BubbleCap to AI headlines, product launches, etc. is on Old Wall Street.
Long-term Full Cycle Investing? LOL. Show them some short-term weight loss tickers and/or some AI, and it’s all good, baby!
This is, of course, ridiculous. And at some point the beginning of the end of ridiculous begins. For most things, that started AFTER Small Caps, SPACs, Crypto, NASDAQ, etc. peaked in 2021. You should be old enough to remember that.
Let’s look at yesterday’s GOOGL AI impact on what many mistake as the US economy (i.e. SPY):
A) GOOGL + GOOG = 18.5% of SPY’s daily “market” return
B) Top 10 Stocks = 54% of SPY’s daily “market” return
C) Lower 167 Stocks = 8.6% of SPY’s daily “market” return
ABC, for Alphabet, baby! You can do this. These drugs are going to last for-evah!
If you’re doing the real work and doing it with discipline (i.e. daily), you’ll recall that 2 market days ago:
A) AAPL + NVDA were +14% and +7% contributors to SPY’s daily “market” return
B) But 82% of stocks in the SP500 were down on the day for an average loss of -1.3%
As you can see on our Content Partner, Tier 1 Alpha’s table in today’s Chart of The Day:
A) AAPL + NVDA positively impacted SPY by 6.5% and 6.6%, respectively yesterday
B) AAPL has guided to ZERO Growth and NVDA is Hydrocodone plus Matrix Blue Pills from here, baby!
The funniest part? I’m long all of that (got longer lower WHEN what everyone owns was for sale on Monday):
A) Bought XLG (SP500’s Top 50 ETF)
B) Bought SPMO (SP500 Momentum ETF)
So I did some disciplined dabbling with the Blue Pills too (0.5 milligrams), I guess (all these Asset Allocations are in our new daily Portfolio Solutions product = Long Only Asset Allocation model portfolio).
But those are getting sold to whoever wants/needs those readily available Street Drugs on green today. Rooster and I built our own in-house AI, eh. We don’t need to chase the AI they think they need on AI pump days.
Up next: the US Jobs report, where those addicted to “Fed Rate Cuts” and Fed Cowbell want/need The People to start losing their jobs in America at a faster rate. It’s sad, but true. So was the end of my Canadian Friend, Matthew Perry’s life. #RIP
Immediate-term Risk Range™ Signal with @Hedgeye TREND signal in brackets
UST 30yr Yield 4.22-4.62% (bearish)
UST 10yr Yield 4.12-4.46% (bearish)
UST 2yr Yield 4.48-4.89% (bearish)
High Yield (HYG) 74.47-76.15 (bearish)
SPX 4 (bearish)
NASDAQ 14,132-14,397 (bullish)
RUT 1 (bearish)
Tech (XLK) 181-187 (bullish)
Energy (XLE) 81.16-84.56 (bearish)
Utilities (XLU) 62.02-63.98 (bullish)
Shanghai Comp 2 (bearish)
Nikkei 32,167-33,371 (bearish)
BSE Sensex (India) 66,674-70,544 (bullish)
VIX 12.51-15.57 (neutral)
USD 102.64-104.61 (neutral)
EUR/USD 1.071-1.098 (bearish)
USD/YEN 144.01-148.10 (bearish)
GBP/USD 1.249-1.275 (bullish)
Oil (Brent) 72.76-81.01 (bearish)
Nat Gas 2.47-2.93 (bearish)
Gold 2008-2096 (bullish)
Copper 3.71-3.92 (bearish)
Silver 23.46-26.20 (bullish)
Uranium (URA) 27.89-29.60 (bullish)
MSFT 365-385 (bullish)
AAPL 187-196 (bullish)
AMZN 143-149 (bullish)
GOOGL 126-140 (neutral)
NVDA 448-488 (neutral)
Bitcoin 38,954-45,913 (bullish)
Best of luck out there today,
KM
Keith R. McCullough
Chief Executive Officer
