Maybe it’s because I was trading nightly futures until 2 a.m. this morning, but my head is blank even when I wake up in the morning. Before going to bed, Nasdaq was down about 3%, but it recovered a lot and ended. AI stocks and semiconductor stocks were also fluctuating. The Philadelphia Semiconductor Index fell almost 9% and closed down about 2%.
As you all know the news, what’s driving the current market is 1. Hope for AI future vs. Concerns about AI investment shrinking due to interest rate hikes due to inflation. 2. Optimism and pessimism about the U.S.-Iran negotiations. 3. Absorption of market liquidity due to large IPOs starting with Space X… These three variables are taking turns affecting the market. So the volatility is no joke. It’s a really fun chapter if you get in the rhythm well. For derivatives…
Tonight’s CPI is expected to be 4.2%. Everyone is expecting it to be higher than last month. However, if it exceeds this expectation, the possibility of a rate cut by the FED will disappear and interest rates will fluctuate again, so I predict that the market will be crazy again, but it will be at an expected level. Rather, I think the PPI on Thursday will be more of a variable. And on Friday US time, Space X will be listed. How much higher or less than the public offering price will be of interest to everyone.
OpenAI has secretly submitted an application for listing. Starting with the entropic application last month and the SpaceX listing this Friday, all three big players will be listed by the fall. The movement of money to invest in semiconductors and AI will be inevitable as these funds are large. The problem is that the supply volume of stocks, especially the IPO amount itself, is large, so the big three suck up the liquidity in the market, especially the money invested in semiconductors. Since stocks are a function of money, when demand is limited, the elasticity of the supply side inevitably increases. As we learned from the theory of economic principles…
I think I should watch the market start in the morning and go to bed. I don’t think I can cheat on my age. If I don’t get enough sleep, I can’t do anything the next day. I still don’t know what I’m talking about because my head is dazed. Still, I paid for my meal at dawn, so I don’t think I’ll get cursed at even if I sleep. The volatile market, the less experienced market, will be swayed. Please set up and follow the center, which is the displine. I’ll be in “Coza” mode after 9 o’clock… I hope you follow and stick to the principles well. Good night….