Yo Pit Crazies,
In Maine we have some crazy tides.
In front of the house the cove can catch a 12 foot tide on big days and when the tide goes out down to the silt bottom when the clammers come around and grab their delicious goodies from the mud beds.
We also get some seasons.
The two photos below are the same tide just months apart. Sometimes it is hard to believe it is the same place.
The stock market in 2026 is like that.
Institutions Leave Fingerprints in the Options Chain
Andrew Giovinazzi built an AI scanner to track them. It flagged Chewy at $23 before the stock ran to $112.
The Tale of Two Markets
The two markets are quite simple:
- AI
- Everything else.
AI is the high tide, everything else is the low.
Everything else is very tied to the activities in the Persian Gulf. To get a good idea of what is going on, see below.
It makes me think of the movie The Untouchables (back in the 1980s when movies were good).
This is the key exchange from Sean Connery and Kevin Costner in the movie and probably got Connery his first Oscar:
The Iran Conflict still needs to press further to get done.
That last 20% is always tough.
I’m afraid Pres Trump will have to go the whole Malone to get it done.
Interest rates are higher partly because of it. That sets up a great opportunity.
Interest Rates are Not What They Used to be
Hannah and I went live today to discuss how interest rates are jumping and how that is creating opportunities in lots of stocks.
None of them are the AI stocks.
They are the “other” stocks.
Those rates are back over 5% which is how things were when The Untouchables were made. Money Managers are recovering from the 0% interest folly of 2020. They are dumping their low growth div paying stocks for Tbills and AI.
I have 143 stocks sitting in my Sibyl Scanner waiting to go into trade production.
Fingerprint 1 for Sibyl
The Flip is Setting Up
I first saw Big Option Fingerprints with a giant put seller in CocaCola (KO) in 1991-1992.
Later I learned that Warren Buffett was the seller and acquired a massive stake. Berkshire Hathaway (BRK.A) was a big underperformer in 1999-2000 relative to the Invesco QQQ Trust (QQQ).
The stock was down 20% when the QQQ was up 80%. BRK.A is up 10 fold from where it took the QQQ 15 years to regain its old highs. That same dynamic is setting up again as the rest of S&P 500 gained from the advances in technology.
Take a look at the next big market opportunity here.
I hope this was helpful,
AG