When Pigs Fly: How the Trillion Dollar Club Became a Value Trap for Investors

Jensen Huang: "Trust me bro" image (screen capture) from an unreputable source (WSJ)

The Trillion Dollar Club Isn't Exclusive Anymore - In fact the list of companies reaching a $1 trillion valuation is growing exponentially. Just this morning, I heard that Jim Cramer's friend, Jensen Huang (not a stock picker/ CEO of NVIDIA 😂) said (wait for it) "Marvell should/could/may/might be the next Trillion Dollar Company", (many sources) and the stock is already up another 20% in pre-market. This kind of sentiment scares me, and this is a club nobody should want to be a part of.  

© 2026 Veteran Market Timer / 3Xtraders.com — Created with help from Grok (xAI

Next in Line for the Crown JP Morgan $JPM - of Course 

Watch for $JPM to break the $1t ceiling before year end (Chart reserved for members).

They Booted Walmart (from the $Trillion Pig Trap), when they determined that the recovery was K shaped, yet the fact that it made the grade (chosen) helps explain why Walmart was driven to such a sky-high valuation in the first place. Also explains why 1 trillion dollar market caps is so conspicuously telegraphed by the live cable news networks. These are the obvious whisper number targets... I should've realized this was a trend, way back when Microsoft hit the $1t number. Today Microsoft trades at a 3t market cap. Stocks being purposely driven to sky-high valuations? uh...yeah

How'd we get here? When the geniuses in Washington DC decided that the best way to deal with a flu pandemic was to print $9T dollars, that money was immediately put to work in where else? - BIG TECH. 

All the names on the list were already well capitalized, so when the Fed finally let its foot off the gas, momentum continued to carry it. Apple,  Google, Amazon, they don't care about money orienting to cure the flu, and they don't need to borrow.... Today there's a massive ecosystem of strategic partnerships fueling a massive multi-billion-dollar investments in which multi-billion-dollar investments where major tech companies, hardware manufacturers, and model developers fund each other. The feedback loop fuels the bubble 

• Nvidia & OpenAI: Nvidia—the leading supplier of AI chips—is heavily invested in AI model developers.
• AMD, Meta & OpenAI: Hardware competitor AMD struck a landmark deal valued at over $100 billion,with Meta, where Meta will buy 6 gigawatts of AI computing power from AMD. In return, Meta receives stock warrants for up to 10% of AMD’s equity.
• Amazon, Google & Anthropic: Alphabet (Google) and Amazon both made massive multi-billion-dollar investments into OpenAI rival Anthropic. In exchange, Anthropic committed to using Amazon Web Services (AWS) for AI training and Google's custom chips and cloud infrastructure.
• Nvidia & CoreWeave: Nvidia has heavily invested in private and public companies within its supply chain and customer network, including pumping billions into AI data center provider CoreWeave. 

I remember - not so long ago when Microsoft hit a $1 trillion market cap on April 25, 2019. It was the third U.S. company to do so (after Apple in 2018 and Amazon shortly after). Fueled by earnings; It closed the day a bit below but crossed it again later.

The 3rd Winning Pig in the series was immediately hyped by - you got it - CNBC [link to article] 

Microsoft hits $1 trillion market cap for the first time as stock jumps on earnings beat

The AI related rotation continues: The screen-shot below shows which names drove markets higher into last weeks close. Today, $HPE, & $MRVL... ( Somebody is making out like a bandit, on this rotation schedule, and it ain't me, I can assure you.

All The Usual Suspects 

Sentiment Indicators Pinned in the Red: 

This is the most extreme bullish sentiment - as expressed by the CBOE options Total Put/Call Ratio (the $CPC) that we've seen since 2021.   

The $VXX & $VIXY ($VIX short term futures) have also traded to new record lows. The market is either pricing in a very dull summer, or investors are ridiculously complacent. Another glaring example of $VIX indices (supposed to be risk indicators) being heavily shorted as usual.  

Read: Technically They Can't Short the VIX. Here's How They Do It Anyway

A Deep Dive into the Most Manipulated Indicator on Wall Street — and the Proof Is Right There in the Charts [link] 

Next up: More cracks forming in the Mag7 floor. Stay tuned.

Take care,

AA

$NVDA Tips, Trash Rips: The Rotation Nobody Wanted to See

Bad news first: I know I’m beating $NVDA like a dead horse here, but damn — this was literally “the only stock that matters” all the way up. Now we’re supposed to believe it suddenly doesn’t?

$NVDA DCS Chart - After pointing to critical support on NVIDIA, over the weekend [link], it continues to struggle at the Oct. '25 highs, and the channel that it was trading in is also broken, so the $NVDA bulls have a lot to prove going forward. 

From bad to worse:

$MAGS is lagging. Meanwhile $FNGS is printing new highs — but take a peek under the hood. They need $DELL up 40% in a day to keep the scoreboard looking pretty. That's not breadth. That's a magic trick. And carrying most of the weight? Apple. Buffett's favorite. Still a phone manufacturer, last time I checked — but I digress.

Now for the part I called:

While several Mag7 names sat on the bench, the dash for trash arrived right on schedule:

• Dollar Tree (DLTR): +16.8% to +18% — beat EPS handily, raised full-year guidance
• Kohl's (KSS): +15% to +20% — smallest comp-sales drop in four years, strong beat
• Best Buy (BBY): +8.4% to +16% — earnings beat, reaffirmed FY guidance, same-store sales +2%

Retail/ consumer cyclical's  recommended week before last [link]  $RETL (+25% in 2 weeks)

$RETL Alert Tweeted 

 Trading rather flat this morning - not off to the races.

This feels exactly like last year when Mag7 fell out of favor and $SOX stole the show. Could be a shakeout before summer rip (devil’s advocate), but the charts are screaming otherwise. Reminder: Technically $NVDA isn't one of the, "hyperscalers", it's a chip stock, and if you don't know the difference, you should checkout the HYPERSCALERS HUSTLE: The definitive CRASH COURSE     

And here’s the part that should really worry tech bulls: $NVDA might actually be the least of your problems. Its main competitor $AMD — along with $CSCO, $AMAT and a handful of mem trades — have been ripping triple-digit gains since February while the real Mag7 (Amazon, Facebook, $IBM) sat on the sidelines.

Another WIN: $IBM rallied to the target I laid out on April  Dissecting Semiconductors + One Hyperscaler Quietly Sitting on the Launchpad 

hyperscaler $IBM takes out the target - dump it

— Veteran Market Timer (@3Xtraders) May 27, 2026

$TRAN also bounced back, with junk retailers - as predicted - but most other sectors are dead. They used to call the market "bifurcated", but even that word fails to capture the broken state of the market.   

What is soaring? Mostly trash, but also some good stocks like $DELL, but even Dell is moving in hyperbolically, irrational, unsustainable moves, designed to  squeeze any would-be short sellers straight into the Summer break. Some of the accentuated movement we've seen lately can be attributed to algo buying, but there is only 1 reason you drive the price action on something like Snowflake up 30% in a day, and Valuation isn't one of them. 😅 

The tell nobody wants to talk about.

Goldman just raised their year-end S&P target to 8,000. Sounds bullish, right? Wrong. Walk the breadcrumbs: 7,000 → 7,500 → 8,000. That's a victory lap. And in my experience, when the big boys start publicly patting themselves on the back, they're also quietly telegraphing the exit.

Watched a Bloomberg talking head run the same playbook yesterday. 

Some will say it's different this time — AI is a game changer, blah blah. Nothing new under the sun. We've seen this movie. We know how it ends.. 

P.S. RE: Trump Accounts (AKA Baby IRAs). Considering the fact that the market is trading at 100-year-highs, and you have until Dec. '28 to accept the government seed money ($1000). Personally I would wait for a nasty correction, before taking the offer.    

But If you still think your baby is going to get rich investing in a government program, I have another bridge for sale in Chicago.

Seriously though - here's a good article on the plan from Motley Fool - linked below.    

Link to article @ fool.com

P.P.S. The part nobody is saying out loud. They Trump branded the baby IRA program, and that's a deal breaker for anyone who didn't vote for him. Maybe they did this to disenfranchise liberal democrats? Conspiracy hidden in plain sight.