Panic Ensues

Yesterday was a brutal day for the market, shifting from the rolling bear market of the last few months into full-fledged panic. I think it's overdone big time, but I also know these things can get even more extreme. Retail investors sold the most stock since COVID-19 in early 2020.

The Fear Index (VIX) posted its third-largest spike since 1990.

Nowhere to Hide

All eleven sectors finished lower in the session, as only 14% of components closed in the plus column.

But the Technology (XLK) sector took the biggest hit.

Maybe More Extreme Fear

I’m surprised the Fear & Greed Index isn’t deeper into “extreme fear.”  Maybe it needs to get closer to “0” to spark a reversal. The S&P 500 (SPX) must hold here, or it could be vulnerable to 7,000.

Governor of Texas Holds the Cards

Texas Governor-elect Gina Hinojosa is showing signs and saying things that suggest she wants the AI revolution to continue in her state. She wants to be considered a moderate and has brought on a Republican and union members to her transition team. But she has serious disdain for tech titans, especially Elon Musk.

 

The (Eventual) Bounce

Ultimately, I think she will move out of the way after gaining major concessions from tech companies. I would like to hear her say as much before she is sworn in, but I know she understands the stakes.

On that note, there will be a massive reversal day higher that could shatter records.  The AI trade isn’t over, but it is more selective.

Companies that miss, or even have the tiniest bit of hair on their earnings and guidance, will pay a heavy price, even after they have already sold off.

Others that have executed flawlessly will get bought – gradually, then suddenly.

Today’s Session

Lots of tech names are higher this morning, and it's tempting to buy, which is fine for traders, but investors should keep their powder dry for now.

But the time to start adding is near.

Stronger Economic Data

The October surprise arrived after the midterms, but the October jobs report is great news for America.

• 165,000 jobs (twelve-month average 48,000)
• 159,000 private jobs
• 19,000 manufacturing
• 25,000 durable manufacturing
• 24,800 transportation and warehousing
• 70,000 professional and business jobs (prior month 3,000)
• $38.00 average hourly wages
• 421,000 join the labor force

Comments

Its all about total control and allowing the bldg. of data centers and AI expansion to continue which is to her benefit/party both now and in the future. The control will get only tighter as time goes on.The tec companies blew it as did Pres. T. in both their communications of the future in AI and the disastrous management of a war that should have been completed many months ago. It should be realized that most Americans are only interested in what the financial picture is here at home and not supporting the world any longer especially since they never support us. We live in a "give me - give me world" and country. I voted for the Republicans and Pres. T. but truly expected more from them. This was a party loyalty vote note one of approval. P.S. I luv your show and watch it daily. You truly care about assisting your audience in reaching their financial goals. Thank you. judith marlowe on 11/6/2026 10:06:18 AM

Judith nailed it completely. Unforced errors by Trump and the Repubs, with lasting repercussions. Steve Fifer on 11/6/2026 11:28:46 AM

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