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Wednesday, June 24, 2026

The AI Bubble Pop - The MSM Tried to Cover It Up

The Smoke and Mirrors MSM Really Outdid Themselves This Time 

As Tuesday's crash in Asian semiconductor stocks spilled over into global markets - forced selling spilled over into everything from Metals/Gold, to Mag7... even Tim Seymour pot stocks (-3%). 😂  

First The Setup: 

Breadth of Fresh Air? Not So Fast [link to Monday's blog]


You want to know who's stock market is really soaring? Pull up a NIKKEI, or S. Korea chart. 

The Final Warning: I sounded the final warning after watching a certain (unnamed) Bloomberg host, bring on some grease ball to suggest the retail investor should chase Taiwan Semiconductor. 

The Very Next Day (overnight actually):  

It took nearly 30 minutes to find any credible information as I woke up to Nasdaq futures -3%. 

First Series of Tweets: 

4:15AM. Second cup. Flipping between Bloomberg - covering oil like any other day at the office - and whatever Fox Business runs at that hour — turns out it's the weather. Apparently financial news doesn't start until banker's hours. CNN wasn't even on my radar — I save them for actual emergencies, and even then it's a coin flip.

Then Vonnie Quinn, mid-commercial break, drops it like a footnote: "...the KOSPI is down ten percent." Eight second clip. Back to commercials.

That's when I high-fived the wife. "We're net short semis, honey" 

This is what it's come to: Reporting straight up lies about a sell off in Big Tech, instead of the unwind in chip stocks in Asia. 

Semiconductor stocks hit a record-breaking 18.8% of the entire S&P 500's market capitalization, putting them right around your 19% figure. Source: AI Overview (Google)

MSM immediately pointed to the rout in "Big Tech", and the SpaceX unwind, as the cause of the overnight unwind. They must think/ know retail is stupid. 

The charts don't lie. $MAGS (mag7 ETF) retests the recent low, still trading in the same range. Call it a bearish H&S if you like, but what we saw yesterday was a retest of the bottom of the recent lows. The same sideways slop I warned you about in Monday's perfectly timed masterpiece. 
$MAGS Mag7 ETF

CNBC was reading from the same script Monday evening: Pointing to Monday's lousy action (the day after a 7% move on the $SOX (June *OPEX runoff) "a great day for markets", as a sign of the broadening out... also Pointing to $CAT (after it kissed the $1000 level). 

Caterpillar Chart

I couldn't help but mock...: 
I don't know what their motivation is to spin the market, but I suspect they know that once AI leadership comes to an end, and the American people wake up, it's game over/ lights out. 


Speaking of MSM coverups: Turns out every network was paid to push the experimental covid vaccine. 

P.S. Paid to lie…and crickets on recent FDA COVID vax revelations. Media complicity is an understatement. https://t.co/PJtlMr5pgE

 Grok/AI confirms (but when prompted to give a straight answer...): 

Yes, it's largely true.

The U.S. Department of Health and Human Services (HHS) ran a "We Can Do This" public education/PR campaign costing over $900 million in taxpayer funds (sometimes cited near $1 billion total for related efforts). This included paid advertising on major networks like ABC, CBS, NBC, Fox News, CNN, and MSNBC, plus print and digital outlets, to promote COVID-19 vaccines and boosters.
Those who claim to give it to you straight, and keeping the government in check are actually being paid under the table. One can only imagine what else they're hiding.
Is it any wonder the wholly unchecked Healthcare system is wrought with Fraud. Create the problem; offer the solution. 



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Monday, June 22, 2026

Breadth of Fresh Air? Not So Fast

You would think that, "Oil Lower, Stocks Higher" (last week's script) would thaw investor sentiment – yet the CNN sentiment index remains pinned in the red. Proving It’s not $4 gas bruising retail investor sentiment. Nor is it Trump's endless stream of Truth Social bombshells, and his "look at the stock market" gaslighting,  that's got everyone on edge. It's the rangebound market whipsawing in a tight range. Same lousy breadth. Now, add a hawkish Fed.

CNN Fear Freed Index linked

That lines up perfectly with long term sentiment indicator I highlighted 2 blogs ago [link] 
America's Lost Decade In Full View 

The only person who actually believes the stock market is soaring is Donald Trump, and that line is wearing thin, even with his base. The Dow touched 52k after about its 15th retest in 2 months, and came right back down. 👇 

You want to know who's stock market is really soaring? Pull up a NIKKEI, or S. Korea chart. 
What's lifting Tokyo? The same thing that juiced U.S. semis for a +7% Friday blast: a global AI FOMO frenzy. Al Jazeera called it three weeks ago and 3 week later the trend continues:  Japan’s stock market has hit an all-time high as a global buying frenzy driven by AI shows no signs of slowing down (aljazeera.com) 

Minus tech, U.S. stocks continue to trade in the same range they've been stuck in since April. Expect more sideways slop this week as the 4th of July approaches — prime time for market rigging, according to the yearly calendar.

NYSE: Still Trading a Range as investor sentiment sours, and the Fed is on hold (best case). 
$NYSE still struggling 


The Rotation Hustle, Confirmed By Morgan Stanley's Own Word Salad Chef

You want proof that this "market" is nothing but a managed spin cycle? Mike Wilson at Morgan Stanley just went on Bloomberg (again last week) and handed it to you on a silver platter.

His words, not mine: "We went from Gold and Silver stocks (miners), to metals (rare earth?), Energy, and back into D-RAM (semiconductors). These are all commodities."

Mike Wilson, CIO of Morgan Stanley, just described the commodity rotation loop that's been fleecing retail traders all year — and called it a thesis. He even threw in some "earnings breadth" acrobatics for dessert. Perma-bull word salad, extra croutons.

I summed the video up in a tweet ––with the help of Grok AI - translating Mike's word salad to broken English/ spoken in the Chinese dialect: 

And then it happened: Friday (again) June OPEX. Semiconductors ripped +7%. Mike Wilson was seen eating crow for breakfast, and based on this Monday morning's tape he's going back for seconds.

Semiconductors don't care about whatever valuation you try to pin on it. 

Meanwhile, $IYF — the Financials ETF, which includes Morgan Stanley — can't break out above the 2026 highs. Failed breakout. Downside acceleration. So much for those earnings he keeps alluding to.

stockscharts image


Cherry-picking another "best performing sector": Russell 2000 Small Caps, up 2% on Friday. Sounds great until you zoom out — since early May, $IWM is up a lousy $10. That's your broadening economy.

Let's Cut Through the Bull: Big Tech, helped by a hyperscaler rebrand. That's the extent of your bull market. Anyone who tries to fight it gets their face ripped off. But let's not fool ourselves by calling rotations a broadening.

Two Sectors Worth Watching: Biotech & China:

Biotech because of upcoming FOMO IPO's 

China ($FXI / $YINN), because it's the most beaten-down segment on the board right now. It's so bad it's good. The $FXI chart is showing green highlights that look like a V-bottom attempting to form. Short-term view — chart it yourself.

 
ThinkOrSwin Charts Follow @3Xtraders

The Elephant in the Room Nobody on CNBC Will Touch

Here's something I honestly can't recall seeing before in 15 years of watching this market: stocks trading at or near all-time highs — and sentiment stubbornly, persistently bearish.

That's not normal. Historically, ATH prices and Fear & Greed readings below 40 don't coexist for long. Something gives. Either sentiment catches up to price — or price catches down to sentiment.

With a hawkish Fed keeping rate cuts off the table, summer volume drying up, and the 4th of July window historically ripe for distribution, the smarter bet is that fast money uses any remaining FOMO pop to take profits and head for the Hamptons. That's not a crash call. It's just reading the calendar.

Sector rotations will continue. The algos don't take summers off. But don't confuse musical chairs for a bull market.

P.S. On the Big Tech hyperscaler rebrand I mentioned earlier: Be sure to check out the  HYPERSCALERS HUSTLE: The definitive CRASH COURSE  & AI: The Marketing Genius Wall Street Swallowed Whole
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