Yo Pit Crazies,

We had a big talk at the Trader Meeting today in Option Pit trying to decipher what the heck happened this weekend and what did not happen on Monday.

Somehow AI was going to eat us and poison us and there was a huge blowup on Social Media about it.

I have to say that the guys and gals making AI should take some responsibility for their creations.

The big message this weekend was to slow… down.

A slowdown is necessary if the development is running out of control, which the CEO of Anthropic, OpenAI and Grok all seem to believe.

Or was it that the proliferation of cheap competition is running out of control?

This was the central debate in our Trader Chat. I think it is 70% the latter and 30% the former.

There also might be a touch of trying to keep the skyhigh valuations that SPACEX (SPCX). The slow down of AI development also meant a drop in demand for:

• Commodities
• Workers
• Data Centers
• Tech Switches
• Energy

And just about everything else that has kept the economy growing over the last 4 years.

That of course gave software the biggest day in months as traders piled back into all the stocks they kicked to the curb in 2026.

My point here is that sometimes the news is bad for one area but good for another.

So there is no way to control AI from the dudes who make it? Maybe the current structures might evolve more organically than the seachange everyone is expecting.

Tech guys are good at tech not necessarily predicting the future.

That leaves us with the giant narrative shift, AI slowdown, that should have caused stocks to implode. The S&P 500 Trust ETF (SPY) was down .5%. Most of the stocks on my Ceres Club watch list were up and I even closed Best Buy Inc (BBY) for a 14% gain.

Stocks still want to go up, Houthi rebels be damned, AI slowdown be damned and rising interest rates be damned. We had a very bullish day for a red SPY.

While AI creates the next COVID virus as we sleep, with robots I presume, the current Fed Chair Warsh will go toe to toe with President Trump on the future of interest rates Wednesday. I don’t think he will raise but he won’t make Pres. Trump happy and lower them either. He might just do nothing. And that will be something.

Stay tuned as I lay it out at 1pm on Tuesday.

There is usually a winner and a loser to most big news stories. This week so far was no different.

Hope this was helpful,

Andrew Giovinazzi