Michael Jensen @GenesisGains: "Hello, everyone The latest trading session..."

Denmark

Hello, everyone The latest trading session sent a quiet but important signal: the market is no longer playing last year’s game. In 2025, the formula was simple. Big tech plus an “AI” headline meant higher prices. Good news flowed straight into the Magnificent Seven, almost by reflex. That reflex still exists — but it’s clearly weakening. Even strong news from Taiwan’s leading chipmaker, $TSM (Taiwan Semiconductor Manufacturing Co Ltd - ADR), triggered only a brief bounce in large-cap tech. Yes, there was a reaction — but it faded quickly. Meanwhile, something more telling happened beneath the surface: small and mid-sized U.S. stocks once again outperformed. That’s not random. That’s rotation. Small caps finished the session clearly ahead, while the Nasdaq 100 barely moved. Even within semiconductors, the response was restrained. $AVGO (Broadcom Inc) gained less than 1%, while $NVDA (NVIDIA Corporation) rose, but far less than this kind of news would have driven a year ago. No sell-off, but also no fireworks. In the old regime, this would have been a vertical move. Now, it barely cleared the bar. Looking at the first trading days of the year, the pattern becomes clearer. The $RTY is leading, while the $SPX500 and $NSDQ100 lag behind. Relative performance charts show small caps breaking higher after years of underperformance, while mega-cap tech appears capped. The market isn’t abandoning growth — it’s redistributing risk. Wall Street’s working assumption is that a cyclical upswing is coming. Fiscal incentives, tax relief, and pro-business policies could temporarily boost domestic activity. That expectation explains the renewed appetite for value stocks, industrials and U.S.-focused companies. The uncomfortable details — higher costs and long-term consequences — are conveniently priced for later. The problem: valuations are already stretched. Even within tech, leadership is shifting. The new bottleneck isn’t computing power — it’s storage and electricity. Data centers are expanding rapidly, but energy supply isn’t keeping pace. Memory prices are surging, and companies tied to storage solutions have become the market’s latest obsession. Some of these stocks have nearly doubled in days — classic scarcity pricing. Energy constraints add another layer of pressure. U.S. data centers already consume close to 10% of total electricity, far more than Europe or China. Policymakers are now trying to prevent household power bills from rising further, which means tech firms may have to finance their own energy infrastructure. That’s costly, slow, and inflationary. Meanwhile, the push to rebuild domestic semiconductor manufacturing faces harsh realities: labor shortages, rising production costs and expensive inputs. Tariffs don’t fix that — they make it harder. The same applies to renewables, where higher commodity prices, especially $SILVER are squeezing margins and pushing costs higher across the supply chain. Monetary policy won’t be the safety net. Despite political pressure, the Federal Reserve remains cautious. The economy is effectively running on two tracks: heavy AI investment at the top, and a consumer base where spending power is increasingly concentrated. Most households feel the squeeze — and sentiment reflects it. This is why the market feels different. The Nasdaq may drift sideways even as other parts of the market move higher. Stock selection matters again. Sector leadership is shifting. And the days when one AI headline lifted all of tech appear to be on pause. Risk is still being rewarded — just far more selectively than before. Have a great weekend all Mike