Banking on Momentum

The broader market is in a celebratory mood this morning, led higher by the usual players: AI and crypto. Bitcoin continues to explode higher even after the stalling of the Clarity Act, as the administration proceeds to enact certain Clarity measures at the agency level. The obvious hazard of making policy this way is that what can be done administratively can also be undone administratively. For now, though, crypto players are banking on the idea that change and innovation will be too far along to undo if the political winds should shift. They’re probably right.

We did point out last week that the strident signaling on AI safeguards pointed to a buying of dips. At times like this, it is worth remembering that today’s profits were made in yesterday’s decisions. Chasing chips at today’s open is a recipe for pain. Keep your eyes on our trading board as easier opportunities develop throughout the day.