Last week’s downside arrived as I warned, but in a very circuitous way — up big Wednesday, before the semiconductor and AI massacre on Thursday. The latter day had the biggest volume of puts in history. 

I think going forward  sector selection will still allow for profits on the long side. I do not think that the technology stocks in general are buy candidates just yet. I do however think the bio technology and related medical sectors do have potential, with stocks that I am interested in buying. I am looking at Novo Nordisk as one example. 

So over the next couple weeks I believe we will see some stocks bottoming and reversing. On the other hand some stocks are not going done down yet, and will very likely take out last weeks lows. 

The theme of stock selection over monolithic market index moves is likely to persist into 2027. 

Thanks,

Joe