Not Great, Bob

Several decades ago Warren Buffett gave an interview where he said, and I am paraphrasing, that in economics you always must ask the question, "And then what happens?".

Applied to the current market we have just experienced a slow, tedious, volatility-free summer of endless slow-motion melt-ups ignoring any and all bad news. Given that, one must wonder if Wall Street's heavy hitters are in no mood to wait around after the holiday to make moves, indeed champing at the bit for action. 

In most years we note for Members inside the service that it often takes up to a full week after Labor Day to get a "varsity team" feel for the markets, meaning high volume days await more high conviction type of moves which flag positioning into autumn trading--After all, there are no scheduled holidays from now until Thanksgiving as far as equity markets go. 

However, given the sizable gap down this morning and an opening dip-buy attempt which has thus far fizzled out, it seems as though we may not have to wait a week this year. 

Case in point: NVIDIA's daily chart, updated below, shows price breaching a well-defined support neck-line dating back to mid-July. We drew the analogy of modern day NVDA to Cisco during the dot-com bubble and busy twenty-five years ago. And continue to look for NVDA to move lower now that its earnings are out of the way. 

To answer the opening question of this blog post regarding Mr. Buffett, all of the White House interventions and headlines, the dovish central bankers, and drunken sailor-spending members of Congress have gold surging to new highs, rates, oil, and silver all turning in strong sessions so far, and perhaps motivation from the big money to lock in gains on the AI/growth/tech names which clearly become longer in the tooth than seemed possible.