FAQs Frequently Asked Questions
Market Lab Report
I was looking at your July 13 post with SOX targets and scenarios. What is your current thinking? We hit the bear market target and went through it. Is it just a cycle thing?
Q: I was looking at your July 13, 2026 post with SOX targets and scenarios. What is your current thinking? We hit the bear market target and went through it. Is it just a cycle thing?
A: The SOX index undergoes what sometimes are vicious cycles. A number of factors created the selloff. The AI capex issue reared up again in major semiconductor and Magnificent 7 stocks. We also have a Democratic sweep which suggests heavier AI regulations. Inflation is coming in hot across the CPI, PPI, and PCE thus more rate hikes are imminent. Further, the Iran situation has yet to resolve though the price of oil has plummeted in anticipation that Trump will look to end the war with Iran sooner than later. Should we get materially good news on any of the above, watch for entry points in the form of undercut & rallies, volume dry-ups, pocket pivots, and buyable gap ups. Keep an eye on price/volume across leading stocks and major indices such as the NASDAQ Composite, SOX index, and S&P 500. Otherwise, the trend remains down. On market bounces, short stocks on weak rallies into areas of resistance. Further AI-capex skepticism, concrete delays from regulation or power constraints, or a renewed inflation/rate spike could push the SOX deeper before any durable recovery.
A: The SOX index undergoes what sometimes are vicious cycles. A number of factors created the selloff. The AI capex issue reared up again in major semiconductor and Magnificent 7 stocks. We also have a Democratic sweep which suggests heavier AI regulations. Inflation is coming in hot across the CPI, PPI, and PCE thus more rate hikes are imminent. Further, the Iran situation has yet to resolve though the price of oil has plummeted in anticipation that Trump will look to end the war with Iran sooner than later. Should we get materially good news on any of the above, watch for entry points in the form of undercut & rallies, volume dry-ups, pocket pivots, and buyable gap ups. Keep an eye on price/volume across leading stocks and major indices such as the NASDAQ Composite, SOX index, and S&P 500. Otherwise, the trend remains down. On market bounces, short stocks on weak rallies into areas of resistance. Further AI-capex skepticism, concrete delays from regulation or power constraints, or a renewed inflation/rate spike could push the SOX deeper before any durable recovery.
| First published: | 11 Nov 2026 |
| Last updated: | 11 Nov 2026 |