Financial News vs. Noise

Here's a recording of my appearance on the Schwab Network talking about the Magnificent 7

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Quite the day. I was a bit concerned about CPI, turns out for good reason as it came out slightly hotter than expected, dragging the market down. This lowered the odds of a 50bp cut next week. Then we saw an amazing turn around, maybe helped along by NVDA. Jensen Huang gave an update on Blackwell yesterday that was perhaps slightly more bullish than a similar update 2 weeks ago...

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"here we are ramping Blackwell and it's in full production. We'll ship in Q4 and start scaling in Q4 and into next year."

Nvidia CEO Jensen Huang addresses the big question on investors’ minds-MarketWatch

The return on that is fantastic because the demand is so great that … every dollar that they spend with us translates to $5 worth of rentals. And that’s happening, you know, all over the world, and everything is all sold out. And so the demand for this is just incredible.’

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I continue to believe that the AI trade is the key to the market, as NVDA and the Semi's go, so goes the market.

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The AI power theme is something I talk about a lot. Past couple of days we have seen some really strong moves in the nuclear power names. This may be on news of Putin restricting exports of uranium, but something to keep an eye on.

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Real nice U&R move from VRT yesterday.....

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My second favorite theme is the weight loss drugs, which all ramped yesterday. One underthought about Trump trade are these companies. If Trump wins then RFK Jr. is going to try to change things. If he loses, nobody is going to care about the root causes of obesity.

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VKTX is the speculative play, it had a U&R at it's 50 day and looks to be green again this morning.

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In a perfect world we would be trying to figure out why kids need obesity drugs. This is not a perfect world so we just give them a shot....

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Obesity Drug Safe for Kids, Study Finds. Novo Nordisk Stock Rises.-Barron's

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Eli Lilly to invest $1.8 billion to expand manufacturing for weight loss, diabetes and Alzheimer’s drugs-CNBC

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