1. AI Optimism… But What About GPU Shelf Life?
JPMorgan says “AI isn’t a bubble but rather an opportunity.” (Source)
Ron Barron is also calling the tech sell-off a buying opportunity. (Source)
But what’s strange is this: the real question everyone is asking — What’s the shelf life of GPUs? — isn’t getting the main headline in financial media. It’s there, but buried. Plus, the concerns about OpenAI needing government help isn’t sitting well.
As I’ve said many times: AI is here to stay. But when things look good, investors tend to misallocate capital… and that usually leads to painful hangovers.
2. U.S. Data Still a Question Mark, Canadian CPI Up Next
Still no clarity on when U.S. economic data starts flowing again. With the shutdown now over, you’d assume it’s sooner rather than later — though October data is likely a write-off.
On Monday, we get Canadian CPI. This will be worth watching closely as it will give us clues on whether the Bank of Canada cuts rates in December.
3. S&P 500 Retesting Its 50-Day Moving Average
The S&P 500 is testing its 50-day moving average again today — the second time in just a few days.
A breakdown below this level could bring more sellers into the market.
But remember: sell-offs are normal.
The worst thing you can do is panic when everyone else is panicking. When fear spikes, good companies often go on sale.
4. Gold & Silver Showing Strength — But Lower Highs Are Concerning
Gold and silver are having a “significant” day so far.
But here’s the issue: both metals still have made lower highs on the chart.
For buyers to step in, prices need to break above these recent lower highs. Otherwise, we may be entering a near-term downtrend… or more choppiness. Just be careful here.
5. VIX Pops Above 20, Bitcoin Breaks Key Support
VIX is above 20 — the market has a fever.
Bitcoin just broke a major support at $95K as I write this, now down roughly 25% from its October highs — officially in bear-market territory.
Yields remain sticky.
Canadian real estate demand is extremely weak… but is it starting to improve?