Thereisonethingnooneistalkingabout,butitisverydangerous.TheDow$DJI hitanewhigh,whiletheNasdaq$Q isfalling.Whenwasthelasttimethesetwoindicesshowedsuchdivergence?March2000,thetopoftheinternetbubble.TheDowwasstillrising,buttheNasdaqcrashedfirst.Currentmarketpicture:Defensivesectorsarerising,financialsarerising,theequal-weightindex$RSP isrising.ButthePhiladelphiaSemiconductorIndex$SOX iscollapsing,AIiscollapsing,opticalmodulesarecollapsing.Capitalisnotleaving,it'smoving.Fromtechtodefensive,from$Q to$DIA,fromoffensetosafehaven.Thisisnotasignalthattheentiremarketisabouttocrash,butforAIandsemiconductors,itisaveryclearlocalizedtopwarning.ThenIdiscoveredsomethingevenmoreterrifying.WallStreetshortsdidnotactonawhim;theyhadlongplannedanattackschedule:Firstwave:SmashingMicron$MU beforeearnings,from1255to1050,-13%.Secondwave:Meta$META admitsexcesscomputingpower+Agentprogressbelowexpectations,PhillySemi$SOXX drops10%intwodays.Thirdwave:Antitrustlawsuit,Samsung,SKHynix,Micron$MU suedsimultaneously,storagesectortakesanotherhit.Next,therearetwomorebombs:1.SKHynix$SKHY listsonNasdaqonJuly10,$29.4billion,thefloatjustreleasedismostvulnerable.2.SanDisk$SNDK earnings,ifguidancemissesexpectations,anothercrash.It'snotretailpanicselling;thisisanorganized,rhythmicshort-sellingplan.Micron$MU earningsarejustthebeginning.SKHynix$SKHY IPOandSanDisk$SNDK earningsarethenextplan.ThedivergencebetweentheDow$DIA andtheNasdaq$Q isstillwidening.WhentheNasdaqfallstoacertainlevelandshortshavemadeenough,theywillreversetolongandtellyoutheAIsupercycleisback.Retailinvestorsarealwaysthelasttoknowthescript.

NAS1001.20%
DIA-0.04%
SOXX0.61%
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