Market Jitters

Ok, that was a solid selloff this morning - you could almost sense it was inevitable with the nasty closes in a number of semiconductor, datacenter, and especially fintech names yesterday.  SOFI and HOOD had been rocks but fell off a cliff yesterday afternoon, with follow through this morning.

But today we saw some nice pickup opportunities as names like GOOG and MU traded down to their 9emas, one of my favorite uptrend momentum support levels.  I came prepared with my shopping list and while I could have been more aggressive I did chip away at those and another favorite of mine HOOD.  We have been playing that one since it was $35 - it's $130 now and we STILL have an open LEAPS Trader position in it that is up 334% -​even more if you include the income trades we've done on it.  

Yes you heard that right, on a massive move up we are up even MORE thanks to the income sleeves.  If anyone trades covered calls you know that's next to impossible to do.Having said that, even though we closed nicely I would say the coast is not clear.  I'll be watching for signs of stability from my risk metrics, stock behavior and of course technicals.  I'd like to see:

✔️the VIX under 20, 

✔️the front VIX futures relax a touch more

✔️the SPY push past 674 with some confidence. 

✔️my squeeze ratio back above the important 0.31 level

✔️crypto show signs of not wanting to throw up all over the place for a few days

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Now back to those crypto miners turned socket-providers...power problems Part 2..Let’s clear something up right away. These companies aren’t power plants. They’re not generating electricity like your local utility. What they’ve got is even better right now - instant access to power.When they were crypto miners, they spent years doing all the boring but necessary stuff nobody wanted to touch. Buying land right next to substations. Locking in cheap long-term electricity contracts. Getting every permit you can imagine for high-capacity power draw. It wasn’t glamorous, but it gave them a massive head start.

Now that AI’s energy appetite is exploding, those old mining sites are suddenly prime real estate. Big Tech might need years to get a new data center wired up. These guys? They’re already plugged in. They’re literally selling grid access by the megawatt.They’re not solving the world’s power shortage - they’re bridging it. They sit in the sweet spot where power meets compute. That’s why the hyperscalers are calling them right now. They don’t need to build anything new - they just turn the lights on.

Trade Angle: This is one of the lesser talked about corners of the AI trade - the infrastructure that keeps the whole boom running. These stocks may not be flashy, but they’re sitting right where the demand is endless and the supply is tight.  That's powerful stuff.  See what I did there?Best, Hans