BofA’s Hartnett on Warsh at Jackson Hole: “Bull success” requires Warsh to reinforce his inflation-fighting credentials while supporting Bessent’s push to contain long-term yields. A “policy failure” could send yields back above pre-buyback levels, weigh on the dollar & favor defensives over cyclicals.

Rough week so far. Thanks to macro headwinds, we're currently seeing some momentum unwind—semis down, defensives up. I believe that institutions are simply hedging their high beta exposure right now. I mentioned earlier that there's plenty of institutional headroom for semis/tech exposure to increase. After today, I'm even more sure of this, with many funds positioning a little more defensively with higher yields as the backdrop. Personally, I'm dreaming of a scenario where $NVDA earnings will be so powerful that AI-related names resume their upwards trajectory, resulting in increased momentum as funds become more risk-on after the July de-leveraging. I feel like Jensen's remarks next week will be ultra critical to settle some nerves and to get the AI trade back on track.

HERE IS HOW THE MARKET CLOSED TODAY Five of eleven sectors finished green. Technology was the worst at -1.1%, Basic Materials -1.8% and Real Estate -1.1% behind it. Chips led the selling: - Lam Research $LRCX -5.6% - Intel $INTC -5.6% - Micron $MU -4.7% - Advanced Micro Devices $AMD -3.4% - Nvidia $NVDA -2.4% Software and hardware went with them. Oracle $ORCL -5.2%, Dell $DELL -5.4%, Hewlett Packard Enterprise $HPE -6.2%, Palantir $PLTR -2.2%. Apple $AAPL +3.6% was the largest megacap gainer, the day after its iPhone event. Google $GOOGL +0.6% and Microsoft $MSFT +0.2% held up. Meta $META -1.4% and Tesla $TSLA -1.2% did not. Defensives caught the rotation. Philip Morris $PM +2.2%, AbbVie $ABBV +1.6%, Uber $UBER +2.1%, Intuitive Surgical $ISRG +2.0%. Consumer Defensive was the best sector at +0.3%.

Tuesday, November 3, 2026 is mid-term elections. We are two months away. Until then, stay patient and survive: 1. Balance portfolio, both high growth and defensives 2. If you're all into high-growth, make sure it's quality names you don't mind holding through uncertainty Don't worry about short-term red, the markets will reward you long-term.

Big Tech’s dominance is unprecedented: The Technology, Media, and Telecom (TMT) sector now accounts for a record 49% of the S&P 500’s market value. This is ~9 percentage points above the 2000 Dot-Com Bubble peak and ~20 percentage points above the late-1960s high. The tech sector now carries a larger weight than the financials, cyclicals, and defensives sectors combined. By comparison, TMT accounted for just ~19% of the S&P 500 during the 2008 Financial Crisis. The US stock market has never been this reliant on tech.

My dear followers. Today, I'm EXTREMELY proud to say our challenge account has hit an ALL-TIME HIGH since our start on 6/15/2026. Our portfolio: +6.59% $SPY: +3.48% $QQQ: -0.91% $SMH: -8.35% We've done so amazingly well. We've avoided all major drawdowns during this time. My moves today: 1. I sold out of $BRK.B - we already have some of their holdings like Google, Coca Cola, etc. No need for me to double dip and overlap anymore. 2. I trimmed 20% out of $CRWV and letting the rest of my runners run. Risk-free and house money. 3. I also trimmed 50% out of $ETN, great gains since our entry. Next buys: 1. I am eye'ing hotels, casinos, etc. and more "luxury experience" type companies. I believe this K-shaped economy is the new norm for the next cycle. 2. I am also eye'ing an add towards chemicals industry, starting to show strength 3. I'll also start adding slowly into defensives once I see oil & energy, and consumer staples show signs on a bottom. I'll be holding onto my technology names, doing fantastic since our buys a few weeks ago. I'm also holding onto our healthcare names. Sentiment is starting to turn greedy/bullish. Staying a cautious bull on my end.

Markets remain in a period of rotation, and despite Equal-weighted SPX set to make new all-time highs on a closing basis, Technology is starting to come under pressure. It started with Software, then Mag-7, and now the first few ripples are being seen within the Semi space. Have the Semiconductors peaked? That's still doubtful and difficult to make a technically bearish case right away based on price. But i assume until/unless $MAGS starts to lift right away (Roundhill Magnificent 7 ETF) it's tough to make an imminent case for SPX and QQQ to join RSP back at new highs. For now, the 3 main factors that normally drive market downdrafts are not in place; 1) Bullish sentiment (While this rose a bit post FOMC meeting, it's certainly nowhere near bullish levels 2) Breadth deterioration (In fact the opposite has happened over the last three months) Breadth has expanded, Russell 3k Advance/Decline is at the highest levels in 5 years and the percentage of Russell 3k stocks trading above their 20-day moving average has doubled since late March 3) Defensive trading picking up. This has not yet underway to the extent one can say Defensives are being favored simply based on REITS, Healthcare, and Utilities doing a bit better. While Consumer Staples have outperformed this week, we'll need to see far more to argue that markets are getting defensive. Thus, this uncertain choppy time might be with us for awhile and directly ties into the bearish seasonal period that Mid-term q3 periods are famous for. Does this mean a 20% decline is starting? That's doubtful. But yet, it's worth paying attention to this rotation. Healthcare is an OVERWEIGHT tactically and should be favored, along with REITS for those who might be too top-heavy in Technology. Airlines, Banks, Homebuilders are other areas which are working well right now. I do not think Mag-7 has bottomed despite the one-day bounce in MSFT, and so for those who are searching for groups pushing higher, they're certainly there, they're just not in Technology right now. Yes, i HAVE raised my 2026 SPX target from 7300 to 8k which was done to coincide with end of 1H and Tom's call and wasn't specifically tactically driven during a time of technology weakening. For those who ARENT getting daily reports and my 5-10 min video DAILY, you can find here : as i rarely if ever post actionable market thoughts and/or thorough market content here !! Happy Friday and Happy Summer