[OP Ed. Note: This Editorial Was Drafted Without AI]
Yo Pit Crazies,
The S&P 500 Trust ETF (SPY) did decide to tank like Brazil this week. Why? Well investors finally read the news and it looks like the news below. Biggest growth engine since the internet and voters don’t want it. Frank Gregory told me that 1000 People’s Republic of China disinformation bots are active 24 hours per day.
Voters Reject Data Centers in Nearly All Ballot Measures During Midterms
Voters in key AI data center states pushed back hard on the buildout, rejecting ballot measures in all but one location during the 2026 midterms. This grassroots resistance to power-hungry facilities threatens the infrastructure backbone of the AI boom. Tech giants and utilities face regulatory headwinds and project delays.
The DSA now runs 2 of the big cities in America. I am still looking for that Communist Paradise. Now I remember the song Gangster’s Paradise and that did not look too good either. Either way, I thought we would get back to a 15 VIX but for sure not today.
1-Year VIX Chart
That green candle for VIX was pretty ugly. It also has the whiff of leverage in it. I think some funds were leveraged long tech and chip stocks and got smoked. There was a tell in the VIX curve yesterday that has been around all week and has not gone away.
The market is still about growth
The AI boom is still taking shape, even if some data center Luddites are doing the bidding of the PRC misinformation campaign. All of a sudden the Mag 7 look good because they spent on AI access and others didn’t. It was a huge turnaround. The VanEck Semiconductor ETF (SMH) got smoked even as the chipmakers turn in crazy numbers.
MAGS 1-Month Chart
Flattish VIX curve could not get it together
The chart below shows the VIX curve into the election, 3 lines; the day after, the purple line; and Thursday the blue line. The front end got into a slight contango on the day after the election but really did not settle down too much. The Nov VIX contract near 18 with stocks near all time highs was not a great look.
5 days of VIX charts
Closing VIX Chart Nov05
VIX is in a full backwardation for the first time since April. That is VIX saying the swings are going to get crazy. I like long VIX and Long SPY here and am ready to move. I thought I would see a 15 VIX this week and was way wrong as the data center trade/AI died today. We might get it by Nov VIX expiration. In the meantime things are going to stay wild. Monday some decision will be made and we will be ready.
I hope this was helpful,
AG