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The US 10Y Note Yield surges back above 5.00% as October CPI inflation comes in higher than expected. Odds of a December rate hike are at a new high.

After three days of mounting pressure, Texas Governor-elect Gina Hinojosa has publicly issued an apology to billionaire entrepreneur Elon Musk following the controversy surrounding her earlier comments and criticism of his business interests. The dramatic change in tone comes after growing concerns among Texas residents about the potential economic consequences of Musk moving his businesses and investments out of the state. Several residents have reportedly expressed fears over possible job losses, reduced business investment and the economic uncertainty that could follow if major companies reconsider their presence in Texas. In her public statement, Hinojosa reportedly acknowledged that political disagreements should never come at the expense of Texas workers, businesses and economic development. She also extended an apology directly to Musk, expressing willingness to pursue constructive dialogue rather than allow political differences to damage the state’s investment climate.

Yes

Since 2020, US equity funds have attracted +$2.1 trillion in inflows. Since the start of 2024 alone, investors have allocated +$1.5 trillion to these funds. This is 4.5 times the inflows into Emerging Market Asia equity funds, which stand at +$470 billion. At the same time, European equity funds have posted -$426 billion in outflows. Meanwhile, global equity funds attracted +$89 billion last week, bringing 4-week inflows to a record +$266 billion. US equity funds drove last week's inflows, attracting +$32 billion.

GS on $IREN - target price 50$ vs 18$ today

Countertrend rally vs New UpTrend

MS keeps the capex map high for 2027

The next phase of the AI boom will look different from the first. J.P. Morgan expects the benefits to spread from companies building AI infrastructure to businesses using it. In sectors like financials and health care, AI will change how much work employees can get done.

On the Nov 5 Q1 FY27 earnings call, $IREN CEO Daniel Roberts said they deliberately haven't acquired 100% of the GPUs needed for next year. He framed it as "right-way risk": “if financing stays tight and industry construction/execution remains challenging, GPU prices could fall due to insufficient power points, preserving optionality while prioritizing infrastructure.”

Cantor Fitzgerald following $IREN EARNINGS: “The irony of mid-terms is that the sell-off is based on fewer data centers getting built which, in our mind, increases demand for existing capacity, of which IREN is well-positioned.” This is exactly what I’m thinking. Let’s see if I Cantor (and myself) be correct on this take

Gurgavin has a point

GOLDMAN SACHS: KOREAN SEMICONDUCTORS ARE PRICED FOR A 70% EARNINGS COLLAPSE Goldman's valuation model suggests the #KOSPI semiconductor sector is trading at a P/B multiple consistent with earnings 70% below forward consensus. Its scenario analysis shows: • Earnings -90% → 62% downside • Earnings -70% → 9% upside • Earnings -50% → 68% upside • Consensus unchanged → 182% upside These are model-implied valuation scenarios, NOT price targets. The market is applying an extraordinary discount to Korean semiconductors. Source: Goldman Sachs Global Investment Research, Nov. 6.

🇺🇸 MCG Tech MCG & Tech relative performance slipped just below its long-run trend channel. It has rebounded sharply from around this level five times since 2024. The odds favor an overweight $XLK

Morgan Stanley: We would highlight Sandisk, where at the current share price of $835 and buybacks in the range of 50% of revenue, they could repurchase >50% of the company between now and the end of 2028…We like to see most of valuation to be based on the current cycle, rather than paying a multiple on frothy numbers - we think that as stocks come down we are at that view. We like both Sandisk and Micron roughly equally at current levels. $MU $SNDK

Morgan Stanley out with a long note this morning (80 pages)… they still expect hyperscaler capex to hit $1.6 trillion in 2027 $TCAI

Wall Street Courrier: Technology stocks have had a brutal month, but the warning signs appeared before the correction. Our short- and mid-term Market Health scores had already turned negative as the underlying market structure weakened. Since the sector entered Risk-Off on October 29, it has lost 12.7%. Not every deterioration leads to a correction. But every correction starts with weakening market structure. Both scores remain negative, indicating that weakness still dominates the sector's underlying signals. A sustained V-shaped recovery therefore looks unlikely until these scores improve. $XLK

TrendRating: more upgrades than downgrades in US and Europe. Doesn’t look good at all in Asia

$TQQQ intra year performance is brutal, and not for everybody. However, over the last 10 years it proved to be highly lucrative. I don’t know many investors who can watch -80% in one year without stress, as it wipes out previous 400% gain. However, in case we will see a massive dump and TQQQ will drop 50-60%, its a tactical play. A milder version of it is $QLD, Nasdaq x2, and it outperforms TQQQ over the last 2 years (+34% vs +26%). Nasdaq itself is +28% btw. The danger of levered ETFs

Hedge funds dumped AI stocks at the fastest pace in 5 years. Question - is it really all changed in one month? Nothing was a concern a month ago and now it’s all over?