.

Laurie’s Abbreviation Index:

** ‘div’ – dividend

** ‘m/m’ – month over month

** ‘y/y’ – year over year

** ‘Inven’ – inventories

** ‘mfg’ – manufacturing ** +/- – plus or minus, positive or negative

** Underlined text – higher volume premarket

** ‘d’ – day

** ‘Y’ – year

**govt – government

Color Key: Positive – Neutral – Negative

Global Markets:  USA, Europe, Japan, China, Hong Kong – slight positive set-up

      •        Commodities:  Gold, Silver, Copper,  Palladium, Oil, natgas, AGGS,  Bitcoin

      •        Yields: 30Y Bond +0.26%  Currencies:  USA$-0.04% CAD -0.09% YEN +0.1%  BTC/USD+1.16%  Vix:16.75

      •        Events USA: CPI 830ET 10Y bond auction 13ET

      •        Stock News SMCI+8.8% LITE+8.3% CRWV+18% CAVA+16.8% NBIS+14%    UAMY-16.7%    EPS  
Comments USA higher ahead of CPI premarket led by AI/Semi trade. Earnings from SMCI, CRWV, LITE confirm theme that money will continue to plow into data centers for eternity. CRWV is up the most due to shorts, CRWV beat by losing less money than expected. NVDA leading MAGS but underperforming the AI chips (MRVL MU AVGO). COHR beat will lift the optical names (LITE AAOI AXTI). AIPO is an ETF that holds the other components of the AI basket including power which will also be higher. Question is whether there is continuation today or whether the pop is sold. Dispersion is still ongoing and software is being sold while semis are being bought. USA CPI was inline and US$ lower which is positive for metals led by silver and metal miners.  10Y yield has not moved down with the CPI print, potentially due to WTIC which remains bid with SoH continuing to be not close to resolution. SPX 0DTE positioning is call heavy with upside target 7800 and support 7700.  It’s common for a mechanical pop in the SPX with CPI inline as hedges get closed and the true test is whether there is continuation once the market opens.

Stock NVDA MU SMCI   NOW BABA   Speculative  CRWV CAVA   NOVA
Indices   DRAM SLV ETHE GDX SMH UNG IPO AIPO IBIT  IGV KWEB XLLE

S&P500 SMCI LITE COHR SNDK GLW MRVL WDC MU CSCO ORCL INTC   NOW PLTR
Other CRWV DFTX CAVA NBIS IREN CORX AXTI HUT   OCTV NVO BABA ZETA

CSCO

CSCO reports after the close with expected move +/-9. CSCO is levered to the AI data center networking and security. Option market is leaning to calls and IV is elevated. Potential for squeeze above 120 with upside targets 130, 135 and downside target 115. Flies or diagonal structure can be used to trade directionally.