Odds and Ends: July 2026

- When things go wrong don't follow them.

- Elvis Presley

Countdown Continues... 4, 3...

We continue our countdown call. Last week all the indexes fell, however there was little conviction as the volume was low. If our call is correct, the volume should pick up.

Indu      = the industrials fell on average volume. The next resistance point is 50,000.                                Spy       = the S&P 500 broke its first resistance point at 7473 on average volume. Next one up is 7200. Tran      = the transports fell the least on very low volume. The resistance point is 21 ,500.                      Nasdaq = It fell over 2% on average volume. Resistance is at 24,500.                                                        Russell = The small caps fell the most (almost 3%). However, the volume was low. Resistance at 280.

Note: The big bounce back rally last Tuesday was in our view, a short cover bounce. The proof came as the remaining week saw the indexes fall. This could repeat itself, but discovering the market trend is the real knowledge as to where price is going. One related aspect. A few weeks ago many chipmakers and new IPOs saw parabolic moves. We have learned that investors have used margin money to enter the market. Retail debt set a new, all-time level at $1.5 trillion. In the past when investors over use margin money, the market falls. This strengthens our belief in our call.

Tale of 3 Data Centers

The first in Texas was stopped by the owners call. Change of heart? Maybe or maybe something else? Please continue. Microsoft is halting its work. It leaves us the same question, why? Meta canceled its Michigan plant. However, this one has an answer and it is the same answer for the other two. These huge energy using locations cannot get its future need of...electricity. 

Related

We are not backers of the AI use to purchase carbon credits, but we see a lot of activity from a Singapore firm, Thryve.Earth. They are operating on the island of Sulawesi. Among their participating concerns are some big players like Tencent Holding, Google and the consulting firm, McKinsey & Co. The project increases forest cover, so we all can breathe better. Hope it works.

Closer Look

If you think that Space X fell hard (Half of opening high), there must be a reason. Yes, they scrubbed a launch, but not that. Apparently, the company is set to release a ton of shares into the market. This dilutes value. The shares can fall all the way back to earth.

AI Hack?

Can AI hack? Yes, it can and it can do so without human direction. Open AI hacked a firm last week on its own. This exposes another danger in the making of AI. Just like the early founders of the internet covered up the danger and problem of safety by hackers, the new developers of AI are not putting safeguards into their framework. This is greed. This is so wrong. They love the praise and riches, but they do not deserve either. Their work is corrupt and it endangers all of us. In addition, there are other problems like piggy-backing on someone's work. Case in point is Kimi K3. They used an AI model to track and train itself on American knowhow. Then, they claim a new advanced AI model. This is stealing! This is the root of almost every Chinese firm. Steal, cheat and lie!

By the way, the president and co-founder, Greg Brockman of Open AI says, "This is indicative of the time we live."  Sebastian say, "This is indicative of lying, greedy people."

Meanwhile...

Another month passes and along with it, the continuing retail and economic disasters in America. Patreon is cutting 20% of its labor force. Dairy Queen is closing 46 locations. Denny's is closing 150 plus restaurants. Papa Murphy's is cloing 50 locations and KFC is closing 207 locations. How can our unemployment figures remain so low in the face of all these failures? This is why we do not believe the BLS. If you leave out the "L" then you see the truth. Speaking of BS, the Fed reveals its latest today...Peace.