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Sunday, May 10, 2026

Aerospace Trade Finally Pays — Energy + Transports Rotation Loading (Mother’s Day Edition)

It’s funny to hear the folks on CNBC still talking chip valuations (+100X) in 2026 like it means something. Valuations are meaningless. Shorting the $VIX and driving markets ever higher through an endless series of sector rotations (on low vol) is the only game in town. If you’re sharp, you can document it in the charts nearly every single day.
Translation: Don’t trust these moves in the tech space — they’re being driven out of Asia/S. Korea. The same FOOLS who attempt to justify 100X (not a typo) valuations are the same idiots who pointed to stocks trading at “book value” in 2008 like valuation still meant something. Maybe it did at some point in the past… but not anymore.On a positive note: Last week our patience finally paid off in the aerospace sector.
[Before chart - screenshot] 

[After chart] Massive Gap Higher  $DFEN 3X aerospace up 11%. Tests the 50 day sma
I don’t want to see anyone left holding the bag on my watch, so I rang the register ["take it" link].

Speaking of being left holding the bag: Bloomberg continues to point to high oil prices even as Crude Oil enters a bear market. TDS in full view in broad daylight.  

We also took profits in the software space, and home builders [link]. CNBC continues to beat a dead horse after the rally of the past 6 weeks. Here they are over the weekend, still pumping the Software trade,  after it’s already run its course. 


$SKYY (Software/ Cloud ETF) Same Chart I showed you back in April. (was it?). 1. Already had a nice run. 2. Sitting right at resistance. 3. CNBC pump 05/08/2026. 

$SKYY Chart 

Last week’s trade was the culmination of the chip-sector spaghetti I laid out in the previous update: $QCOM → $INTC → $AMD (+15%) —   The AI Spaghetti Incident Complete w/Side Salad (It’s a Whole Plate Full [link]) That may continue into May Options Expiration. 
Next Trade on the Menu: A pivot back into the Energy sector and the beaten-up Transports (trading at the 50-day SMA). In fact, I see several sector rotations coming up over the summer. Keep looking.

P.S. ProTip: When CNBC talking heads point to the BRAND NEW trading vehicle Roundhill’s latest Semi ETF $DRAM (up 95% over the past 6 weeks), with Friday’s rally juiced on a WSJ report that Intel has made a deal with Apple… your head should already be on a swivel.

P.P.S. My Spidey senses are already tingling. I feel like this is the market’s last hurrah before it gets perpetually dumped going into the mid-terms in November — since market crashes on Trump’s watch have become the new norm. It’s almost as if the market is gas-lighting the American voter with $5 gasoline, while the top 20% enjoy a “k-shaped” economy.


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Wednesday, May 6, 2026

The AI Spaghetti Incident Complete w/Side Salad (It’s a Whole Plate Full)

Don’t worry — we’re not throwing spaghetti at the wall to see what sticks.
We’ve got several obvious trades and setups to get to this morning. Most obvious being the AI rocket, which is just too hot to touch right now, so we’re going to unpack that one sequentially.1. Main Course Still Simmering  
(Same setup I pointed out last week. #WaitForIt)
$DJUSAS Aerospace updated chart (below) continues to consolidate — this is exactly where most retail gives up. There is a 3X leveraged aerospace bull ETF that may mirror this trade. (Check my warning on leveraged ETFs and do your own due diligence.)

$DJUSAS Aerospace DCS Chart 

2. Don't forget about $IBM - your grandfathers favorite hyperscaler is still on the table [link to Tweet] 3. The Latest Sector Rotation That's Way Too Hot To Handle - AI - first $QCOM → $INTC → Today $AMD (+15%) → CHASE IT, I (F***ING) DARE YOU!
The secret is in the sauce 
[From the P.S. in yesterday’s blog — Part III of the AI series] “The Latest Sector Rotation Nobody Is Talking About: Diversified Hyperscalers”
(Spoiler: It’s a made-up term. There is no diversification in the space. It’s actually a rotation in and out of specific segments of the AI buildout, and even among sub-categories within semiconductors.) The sales pitch requires some pretty fancy bull acrobatics — sorry for the word salad — taken directly from the Fast Money transcript: “ASML isn’t just an AI play — it’s lithography plus broader chip equipment exposure!” 
“Storage names like $STX give you diversified hyperscale exposure!”  Translation: Keep pumping semis. Just rotate into the ones that sound less frothy than $NVDA.It’s the same old CNBC-style whac-a-mole they run on the Mag7. Facebook wobbles? Pile into Apple. When the concentrated AI leader $ASML starts to roll over, suddenly storage and equipment names become a “safer, more diversified”. Classic sequential pump job, just like we saw in the crypto space - in fact I think Asian traders are running the table.  
I spotted the pivot out of $ASML in real time — a classic rotation designed to keep the sector narrative alive before the whole thing cracks. While everyone was still debating whether ASML was “falling behind,” the smart money had already started piling back into Western Digital, and Sandisk, half a dozen names... really.

 

4. The AI Trade That Takes The Cake $AIS (VistaShares Artificial Intelligence Supercycle ETF) - Rally turns 1 year old  [up how much?]  - I won't double dare you to chase it; I don't want to see any bloodshed. 😂 

$AIS Top 10 Holdings - $AMD, $INTC, $TSM [all covered yesterday: link] 
$AIS holdings screenshot 5/6/2026 

 
On a highly sarcastic note: AI Data Center high-flyer $ANET [also mentioned in yesterdays blog] plummeted 10% in after hours. Classic “beat but guided softer on margins” reaction (Source Grok/AI).     
Cramer & Friends (Morgan/Goldman): Last we heard they were all bearish or calling the chip rally “worrisome” and overbought in late April. Cramer’s the street panic-buying the shares they shorted/rented?  😂

P.S. I spotted something extraordinary this morning, as the Oil bulls were getting scorched for the 9th time. I missed the real time action, because I was blogging, but I don't usually chase... in pre-market. 


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