The Tech Meltup, Exhibit A

If the S&P 500 can close higher today, it will be a headline-grabbing 10 days in a row.

In the short term, investor sentiment rather than fundamentals, are driving stocks higher.

Google, having avoided an anti-trust judgement and launched a competitive phone to Apple’s lack of an innovative one, is leading the index up:

Turn Your Images On

Google shares go parabolic. (Source: Stockcharts.com)

Google jumped over 4% yesterday. More importantly, the stock now has an RSI – relative strength index – of over 88, a level usually seen when small-caps become memes bid up by Reddit users.

Overall, the S&P 500’s RSI hit 70, the low side of overbought territory — for the entire index.

“Fed rate cuts tomorrow are likely priced in,” writes portfolio director, Andrew Packer, “it may not trigger a selloff, but at these levels, investors may be disappointed with a .25 cut.”

Tech investors will remain bullish on the prospect of multiple rate cuts over the next few meetings.

But be wary of any indication the Fed tries to rebuff Trump’s overtures and, God forbid, remain independent tomorrow.

~ Addison

P.S. Politics are exerting extreme pressure on money market funds, too.

This week on Grey Swan Live! with Adam O’Dell – at 2 p.m. ET, Thursday, September 18, 2025 — we’ll be investigating the $10 trillion pile of cash sitting on the sidelines during the terrifying bull market on Wall Street.

Mr. O’Dell has been warning investors how impending changes to monetary policy are going to force savers out of cash and into the markets… or gold. More details to come. Sign up now to become a member and join us for this week’s call.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

If the S&P 500 can close higher today, it will be a headline-grabbing 10 days in a row.

In the short term, investor sentiment rather than fundamentals, are driving stocks higher.

Google, having avoided an anti-trust judgement and launched a competitive phone to Apple’s lack of an innovative one, is leading the index up:

Turn Your Images On

Google shares go parabolic. (Source: Stockcharts.com)

Google jumped over 4% yesterday. More importantly, the stock now has an RSI – relative strength index – of over 88, a level usually seen when small-caps become memes bid up by Reddit users.

Overall, the S&P 500’s RSI hit 70, the low side of overbought territory — for the entire index.

“Fed rate cuts tomorrow are likely priced in,” writes portfolio director, Andrew Packer, “it may not trigger a selloff, but at these levels, investors may be disappointed with a .25 cut.”

Tech investors will remain bullish on the prospect of multiple rate cuts over the next few meetings.

But be wary of any indication the Fed tries to rebuff Trump’s overtures and, God forbid, remain independent tomorrow.

~ Addison

P.S. Politics are exerting extreme pressure on money market funds, too.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

Mining stocks amplify everything. First Majestic went from losing money to 45% margins without building anything new. They just held the line on costs while silver did the heavy lifting.

That cuts both ways. If silver drops hard, margins compress just as fast. Same leverage, opposite direction.

The miners with the lowest costs and cleanest balance sheets will hold up best in a pullback and capture the most upside if the deficit keeps grinding.

Economists at Goldman Sachs said this morning they expect core inflation to finish the year around 2% even while GDP rises at a “surprisingly strong” 2.5% clip.

In our view, their inflation forecast is optimistic. Their GDP call? Modest.

The last time we pumped this much liquidity into the system — 2020 through 2022—the result was a manic asset bubble, runaway inflation, and an epic hangover at the Fed.

Goldman’s optimism has triggered a fresh round of bullish bets: cyclical stocks are rallying, “dispersion” in the S&P 500 is spiking, and the Fed is expected to cut interest rates twice before Jerome Powell gets kicked out of Washington at the end of his term on May 15.

Anecdotally, we’re hearing stories of warehouses full of GPUs sitting unused for lack of energy to power them. It’s a natural feature of the heavy capital investment in new machines. The grid has to catch up!

While Trump’s great reset rolls on in 2026, keep an eye on modular nuclear reactors and increased demand for uranium, natural gas and related resources.

These PM producers are literally printing the most ‘hard money’ that they ever have at these metals prices and record margins here at the midway point in Q4.

If there ever was a time for this sector to get overheated and frothy, this would be it… only that isn’t what we’ve seen playing out.

PM producers are still insanely profitable at even at current metals prices and should be far more valuable based on their margins, revenue generating potential, and their resources still in the ground.