Weekly Market Report 8/16/26
Major catalyst for an emerging theme, the memory trade, a brilliant investors moves that might be telling us about the next bottleneck, my portfolio, and more.
The Anthropic IPO is coming.
Nvidia announced a $500B financing plan aimed at mobilizing more than $500B in AI infrastructure.
The AI train is moving full steam ahead, yet it feels like there’s still a lot of skepticism out there. Earnings, commentary, and fiscal policy are pointing one way.
The Nasdaq still hasn’t made a new high and most AI stocks are still way off their all time highs. There were plenty of liquidations and margin calls out there that reset sentiment, yet it still feels like there’s a lot of disbelief out there.
Oftentimes the best markets are when skepticism is high…
There’s been a lot of talk about shorting, shifting bearish, etc. because some high profile people keep pushing bear narratives.
In my view, shorting in a generational bull market just doesn’t make much sense.
If you absolutely nail a short near the top and make 30-50% that’s considered a great trade. Meanwhile a number of stocks on the long side are going up much more than that, faster.
Shorting in a bull market is essentially fighting the broader trend for less upside and at the same time taking on theoretically unlimited risk.
Doesn’t seem like a great use of time or capital but to each their own… here we like to focus on stocks that are either already leading the market or showing the characteristics of future leaders before they become obvious to everyone else.
I want to quickly mention that almost two weeks back I posted an article on what I believe is the next big AI trade here.
It’s working well and starting to take off but in no way do I think it’s done yet.
I own two of the stocks mentioned but I think there’s plenty of gas left in the tank. Almost nobody is talking about this, still… you want to be early to these trades!
This trade feels similar to when I highlighted CPUs here and spotlighted:
AMD @ $200
INTC @ $45
ARM @ $140
If you’re not already in the subscriber chat, I strongly suggest paying attention to it.
This is where I post all of my new trades as I enter them. I walk through the trade idea entirely including my thesis, risk level, cost basis, and more.
The subscriber chat is also where I post a daily thread with my thoughts on the day ahead, relevant headlines and macro events, my main focus names, notable upgrades and downgrades, and anything else I’m watching.
It’s basically become a live market group chat. We have a ton of smart people sharing ideas, setups, headlines, and observations throughout the day, and there’s a lot of genuine alpha in there.
I honestly believe it might be one of the most (if not the most active) subscriber chats on Substack.
Come join us!
In the remainder of this article, I’m going to discuss:
A major catalyst for an emerging theme
One notorious investors next big bet
The memory trade and the potential direction from here
The overall market
My trading portfolio
My favorite charts
The recent inflation data
Notable 13F moves
And more.
The market is heating up and it’s important to be prepared. You only get a few good stretches per year, it’s crucial to capitalize!