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We’re now starting to see some use case examples of what AI is starting to produce. Now we’re beginning to see how AI is going to drive margin expansion. BofA is actually predicting that AI will drive expansion in 23 of 25 industry groups. In time it really is going to have an effect on every industry.

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Source: Sam Ro

In Q2 more than 40% of S&P 500 companies cited AI on their earnings calls.

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You can see from this chart that the Magnificent 7 has already seen a big bump in margin expansion. That hasn’t yet hit the other 493 companies. Eric Wallerstein at Yardeni Research thinks that’s coming.

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Source: Eric Wallerstein

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The interesting thing about the post Fed market reaction was the overnight Futures action. It was short covering. Is that important? Well what it does mean is that that sort of buying pressure can only last as long as there are shorts wanting to cover their shorts...duh.

For the market to move higher, sustainably higher, you need sticky new long positions.

Currently, subject to change of course, we are not seeing that.

The 'inflation' story as far as the Fed and mainstream media are concerned is dead. The current topic de jour is GDP growth. Retail sales will be a big one going forward: Costco reports on Friday, could be a big deal for the market.

Which means (and underscores the rotation that we are starting to see out of defensives into cyclicals) risk on is back on the menu with growth stocks being more important again.

I'll have more on this later but, Utilities are now a growth sector (electrical infrastructure) via MSFT having Three Mile Island reactivated (nuclear and URA) to power their data centre. The stock is CEG.

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For next week:

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A trade for next week:

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Materials as a sector (+3) is bullish. DD waiting to B/O higher.

jog on
duc

<blockquote data-quote="ducati916" data-source="post: 1297916" data-attributes="member: 2975">We’re now starting to see some use case examples of what AI is starting to produce. Now we’re beginning to see how AI is going to drive margin expansion. BofA is actually predicting that AI will drive expansion in 23 of 25 industry groups. In time it really is going to have an effect on every industry.<table style='width: 100%'><tr><td></td><td>[ATTACH=full]184596[/ATTACH]
</td><td></td></tr></table>Source: <a href="https://substack.com/redirect/b30dba3d-70cb-4541-8653-3423692aa2cd?j=eyJ1IjoiOWdrYjEifQ.VPOi-EtlifRPJqwS4b3y4j9oPR67rAn8nODoa1rpAGg" target="_blank">Sam Ro</a>In Q2 more than 40% of S&amp;P 500 companies cited AI on their earnings calls. <table style='width: 100%'><tr><td></td><td>[ATTACH=full]184597[/ATTACH]
</td></tr></table>You can see from this chart that the Magnificent 7 has already seen a big bump in margin expansion. That hasn’t yet hit the other 493 companies. Eric Wallerstein at Yardeni Research thinks that’s coming.<table style='width: 100%'><tr><td></td><td>[ATTACH=full]184598[/ATTACH]
</td><td></td></tr></table>Source: <a href="https://substack.com/redirect/9330f01e-7e37-40cc-8f97-ba414db81398?j=eyJ1IjoiOWdrYjEifQ.VPOi-EtlifRPJqwS4b3y4j9oPR67rAn8nODoa1rpAGg" target="_blank">Eric Wallerstein</a>[ATTACH=full]184584[/ATTACH][ATTACH=full]184585[/ATTACH][ATTACH=full]184586[/ATTACH][ATTACH=full]184587[/ATTACH][ATTACH=full]184591[/ATTACH][ATTACH=full]184590[/ATTACH][ATTACH=full]184589[/ATTACH][ATTACH=full]184588[/ATTACH]The interesting thing about the post Fed market reaction was the overnight Futures action. It was short covering. Is that important? Well what it does mean is that that sort of buying pressure can only last as long as there are shorts wanting to cover their shorts...duh.For the market to move higher, sustainably higher, you need sticky new long positions.Currently, subject to change of course, we are not seeing that.The &#039;inflation&#039; story as far as the Fed and mainstream media are concerned is dead. The current topic de jour is GDP growth. Retail sales will be a big one going forward: Costco reports on Friday, could be a big deal for the market.Which means (and underscores the rotation that we are starting to see out of defensives into cyclicals) risk on is back on the menu with growth stocks being more important again.I&#039;ll have more on this later but, Utilities are now a growth sector (electrical infrastructure) via MSFT having Three Mile Island reactivated (nuclear and URA) to power their data centre. The stock is CEG.[ATTACH=full]184593[/ATTACH]For next week:[ATTACH=full]184594[/ATTACH]A trade for next week:[ATTACH=full]184595[/ATTACH]Materials as a sector (+3) is bullish. DD waiting to B/O higher.jog onduc</blockquote>

[QUOTE="ducati916, post: 1297916, member: 2975"] We’re now starting to see some use case examples of what AI is starting to produce. Now we’re beginning to see how AI is going to drive margin expansion. BofA is actually predicting that AI will drive expansion in 23 of 25 industry groups. In time it really is going to have an effect on every industry. [TABLE] [TR] [TD][/TD] [TD][LEFT][ATTACH=full]184596[/ATTACH][/LEFT][/TD] [TD][/TD] [/TR] [/TABLE] Source: [URL='https://substack.com/redirect/b30dba3d-70cb-4541-8653-3423692aa2cd?j=eyJ1IjoiOWdrYjEifQ.VPOi-EtlifRPJqwS4b3y4j9oPR67rAn8nODoa1rpAGg']Sam Ro[/URL] In Q2 more than 40% of S&P 500 companies cited AI on their earnings calls. [TABLE] [TR] [TD][/TD] [TD][LEFT][ATTACH=full]184597[/ATTACH][/LEFT][/TD] [/TR] [/TABLE] You can see from this chart that the Magnificent 7 has already seen a big bump in margin expansion. That hasn’t yet hit the other 493 companies. Eric Wallerstein at Yardeni Research thinks that’s coming. [TABLE] [TR] [TD][/TD] [TD][LEFT][ATTACH=full]184598[/ATTACH][/LEFT][/TD] [TD][/TD] [/TR] [/TABLE] Source: [URL='https://substack.com/redirect/9330f01e-7e37-40cc-8f97-ba414db81398?j=eyJ1IjoiOWdrYjEifQ.VPOi-EtlifRPJqwS4b3y4j9oPR67rAn8nODoa1rpAGg']Eric Wallerstein[/URL] [ATTACH type="full"]184584[/ATTACH] [ATTACH type="full"]184585[/ATTACH] [ATTACH type="full"]184586[/ATTACH] [ATTACH type="full"]184587[/ATTACH] [ATTACH type="full"]184591[/ATTACH][ATTACH type="full"]184590[/ATTACH][ATTACH type="full"]184589[/ATTACH][ATTACH type="full"]184588[/ATTACH] The interesting thing about the post Fed market reaction was the overnight Futures action. It was short covering. Is that important? Well what it does mean is that that sort of buying pressure can only last as long as there are shorts wanting to cover their shorts...duh. For the market to move higher, sustainably higher, you need sticky new long positions. Currently, subject to change of course, we are not seeing that. The 'inflation' story as far as the Fed and mainstream media are concerned is dead. The current topic de jour is GDP growth. Retail sales will be a big one going forward: Costco reports on Friday, could be a big deal for the market. Which means (and underscores the rotation that we are starting to see out of defensives into cyclicals) risk on is back on the menu with growth stocks being more important again. I'll have more on this later but, Utilities are now a growth sector (electrical infrastructure) via MSFT having Three Mile Island reactivated (nuclear and URA) to power their data centre. The stock is CEG. [ATTACH type="full"]184593[/ATTACH] For next week: [ATTACH type="full"]184594[/ATTACH] A trade for next week: [ATTACH type="full"]184595[/ATTACH] Materials as a sector (+3) is bullish. DD waiting to B/O higher. jog on duc [/QUOTE]

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