November 5, 2025

Markets:

S&P 500 and Nasdaq-100 futures fell on Wednesday, as valuation concerns around the artificial intelligence trade persisted after chipmaker Advanced Micro Devices posted its latest quarterly results.

That move comes after Palantir dropped about 8% on Tuesday, as investors worried that valuations for the software company — and the broader AI theme — have gotten untenable. After all, Palantir is trading at more than 200 times forward earnings.

Yet many investors remain optimistic that the long-term trend is still favorable for tech stocks, even if there is a near-term pullback, given the strength of spending in AI infrastructure.

On the economic front, investors will continue to seek clarity using alternative data in lieu of government reports. On Wednesday, the ADP private payrolls report is set to be released. Weekly mortgage applications and ISM services data are also on deck.

Investors will additionally be paying attention to the Supreme Court hearing arguments Wednesday regarding President Donald Trump’s tariffs, specifically on whether the president had the authority to impose such duties under the International Emergency Economic Powers Act, or IEEPA. Treasury Secretary Scott Bessent has said that if the high court rules against the administration, there are still “lots of other authorities that can be used.”

Portfolio:

At 8:30am, President Trump is expected to deliver remarks at a breakfast with GOP senators, where he may address the ongoing government shutdown.

Let’s refocus for a moment. Yesterday was a tough trading day — no one enjoys days like that — but these are part of market cycles. What hurts traders most isn’t the red day itself, but the noise that follows. The headlines are designed for clicks, not for truth.

If you only read the past two days of financial news and finwit, you might think markets are collapsing and the tech revolution is dead. It's actually absurd to see and listen too but fear sells! Let’s look at reality instead: during the government shutdown, the S&P 500 was at 6770 — and as of yesterday, it’s still around 6770. Don't show the naysayers that…they hate the facts.

Markets never move in straight lines. In September, they told you to sell — and we went higher. In October, they said the selloff was coming — we closed higher again. Now they’re calling for a bear market. Don’t buy into the fear. Even if we see another 10% dip toward the 200-day moving average, I firmly believe we finish 2025 higher. The positioning we saw from firms are the truth tellers.

We’re seeing the same bearish chart circulating everywhere (Bears are in love with that 200d chart) — but what most don’t understand is market psychology. Weak hands get shaken out before the next move higher. Under the surface, liquidity and institutional positioning are already preparing for what’s next.

We may hate losing trades, but we’ll use this weakness as an opportunity to reload smartly and position ourselves for the next move up. Government shutdowns don’t last forever, and when they end, momentum often surges. These temporary dips in strong names — many with clear demand and backlogs — are gifts.

Patience here. We will be in full blown attack mode soon enough.