The Knives Are Out

Last Friday we told you to get your helmet on. Keep it handy. This is a heavy week, and the knives are out. Maybe Elon is just talking down his competition, but he’s recently out with comments forecasting extinction for the vast majority of neoclouds. CRWV is under slight pressure in the premarket, down 2.5% to under $53. Versus a 52-week high of nearly $142, we’d expect analysts to be banging the table to draw our attention at these levels, but CRWV continues to languish at its lows.

META has announced plans to raise up to $95 billion through equity offerings in order to finance its AI expansion. After an initial premarket lurch downward around 6:30 am, META has stabilized in slightly positive territory. Dilution is usually not a cause for celebration. Keep an eye on this one today, as a benchmark rather than a direct trading target, and bear in mind that the premarket low was nearly $610 (down 5%).

Oil is the bright spot in Monday’s premarket. WTI is down more than $2, which just brings it down to $101 per barrel. View this retracement in terms of relief about what didn’t happen over the weekend - no major blow-ups. In fact, Qatari mediators went to Tehran to cool tensions. However, the whole world is on a countdown to November 3, as the US seems almost certain to re-escalate after the midterms.

We’re not very worried about Wednesday’s Fed meeting, but investors will be justifiably wary of GOOG, MSFT, and AMZN earnings expected on Wednesday and Thursday. PCE inflation data on Thursday will also be instructive. Experienced traders will keep commitments small. Watch our trading board for the exceptions as they materialize throughout the day.