Michael Jensen @GenesisGains: "Hello everyone, New all-time highs..."

Denmark

Hello everyone, New all-time highs again. The $NSDQ100 at 28,390 and the $SPX500 at 7,315 — both pushed higher mainly on the back of Advanced Micro Devices earnings, which once again dragged the entire semiconductor space along for the ride. And honestly, if you only look at the index levels, everything looks great. If you look underneath, it’s a very different story. Because while markets are celebrating, the broader backdrop hasn’t improved — in fact, you could argue it’s getting worse. The situation around the Strait of Hormuz remains unresolved, supply constraints are still there, and yet oil drops and equities rally. The market is, once again, choosing the narrative it prefers. But the more interesting part is what’s happening internally. Over the last few days, we’ve actually seen more stocks falling than rising, while the indices keep grinding higher. Volumes remain extremely light, and leadership is getting narrower by the day. It’s basically semiconductors doing the heavy lifting — and even there, it’s not as clean as it looks. $NVDA (NVIDIA Corporation) isn’t really confirming the move, and the kind of price action we saw in $AMD (Advanced Micro Devices Inc) — from -5% to +17% — tells you how fragile positioning really is. This is not broad strength. This is momentum being chased. At the same time, the market is still pricing a massive AI expansion story — but quietly ignoring one key constraint: energy. All those data centers everyone is dreaming about require power that simply isn’t there at the scale being projected. Banks are already getting more selective, and even players like $META (Meta Platforms Inc) are not exactly rushing to fund everything themselves. The story might be right long term, but the timeline is… let’s say optimistic. So why do we keep going higher? Liquidity, plain and simple. As long as money is flowing and headlines sound positive enough, the market doesn’t need internal confirmation. Algorithms don’t question contradictions — they just react. And that’s really the key takeaway right now: We are making new highs, but with weak breadth, weak volume, and increasingly narrow leadership. That doesn’t mean the market has to fall tomorrow — trends can stretch much further than most expect. But it does mean the foundation is getting thinner, and the margin for error smaller. Or put differently: The rally is still alive… but it’s starting to rely on fewer and fewer pillars.

Not investment advice. The author may have financial interests in the mentioned instruments.