MDM will resume its BUY signal.
Recent results (especially from Microsoft, Amazon, and others) showed accelerating cloud growth and continued heavy AI infrastructure spending. Investors interpreted this as evidence that the massive CapEx cycle is delivering returns, reversing some of the July skepticism and selling pressure on tech/semiconductors. Amazon crossed $3 trillion market cap amid the move. Memory and semiconductor names also participated in the bounce after prior weakness.Tech and AI-related stocks had sold off in July amid valuation concerns, AI ROI questions, and geopolitical noise. Hedge funds and institutions stepped in aggressively. Higher volume reflects institutional participation rather than just retail speculation.
Momentum favors further upside or consolidation near recent levels as long as oil stays softer and earnings continue to support the AI narrative. The S&P 500 was within ~0.3% of its prior highs, and the Nasdaq has room to retest or exceed recent peaks if the positive catalysts hold. Key watch items this week include more earnings (e.g., AMD, SpaceX, others), jobs data, and any updates on Iran talks.
Medium-term risks and caveats:
- Geopolitical flare-ups (Iran/Hormuz) could reverse the oil drop and risk sentiment quickly.
- Valuation sensitivity remains high in tech after the strong run earlier in 2026.
- Any disappointment on AI CapEx returns, cloud growth, or broader economic data could trigger another pullback.
- Fed policy and inflation readings will matter; the market is currently pricing a relatively steady path. CME Fedwatch is pricing in one rate hike for the remainder of this year with a 63% chance of a hike when the Fed meets next in September.
Suggested ETFs (Note: Many members buy the standard ETFs or their preferred ETFs. This list serves as a guide as to which ETFs we think may outperform, but the key point is to be on the right side of the market regardless of which ETF or ETFs one chooses.)
1-times
SPY (S&P 500)
QQQ (NASDAQ-100)
2-times
SSO (S&P 500)
QLD (NASDAQ-100)
3-times
UPRO (S&P 500)
TQQQ (NASDAQ-100)
TECL (Direxion Trust Technology)
NOTE: This is a suggested list. Investors may wish to become acquainted with the full range of available ETFs, and should make an effort to understand how these ETFs are created and what their components are, as well as being aware of the downside risks involved, especially with leveraged ETFs. Certain ETFs may be more appropriate depending on one's risk tolerance levels. Typing in keyword 'ETF' into the FAQ keyword search bar or going here https://www.virtueofselfishinvesting.com/faqs/search?p=1&q=etf and visiting this site https://etfdb.com/ can be instructive.