This is not the value motion you wish to see wherever

This isn’t good.

For the second day, markets started out ok and then dumped.

One I have to highlight is Palantir. It had a blowout quarter relative to expectations and was up 10% pre-market yesterday but faded to a 5% gain. Today it’s down 13%.

It’s a sign that valuation matters once again and there are few valuations more insane than PLTR stock.

In addition, the market is having second thoughts about. For years it was a tide that would lift all boats but this week, Anthropic unveiled tools that are a major threat to software companies and the thinking now is that AI will destroy software company margins, or at least some of them. For now the market doesn’t want to pick winners and losers so it’s selling everything.

On top of that, chipmakers are facing something of a reckoning.

Over in crypto, the price action says everything. Bitcoin has simply lost its cool as the younger generation no longer sees it as a path to wealth generation or the kind of 10x investments it’s looking for. It bounced as high as $76K today but it’s now through yesterday’s low and traded as low as $72,082.

All the gains since Trump’s re-election have been wiped out and there’s a troubling head-and-shoulders pattern on the chart and a long way to support.

It’s even worse for ethereum, which is down 8.6% today and 30% in the last three weeks.

Yesterday, there was a huge late-day rally but a second day of declines isn’t constructive. Even gold, which was higher earlier has turned lower.

Further weighing on sentiment are reports of a breakdown in US-Iran talks before they even began. That points to a rising probability of war and oil is up 3% as a result. We’re not quite back to Thursday’s highs but we’re not far off either.