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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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