Tomorrow's Monday again. The market has been constantly changing lately. The extreme reversal last week in the gold and silver non-ferrous metals sector, which surged at the end of last year, has turned the once-hot SaaS industry into one of the first direct victims of AI replacement. The squeezed-to-the-last-drop liquidity dealt a severe blow to the market last week, and cryptocurrencies, represented by BTC and ETH, have underperformed the broader market in this upheaval.
Several friends asked me last week if I would return to the crypto market. I answered no to all of them. I might buy some BTC if it's a good deal, but for others, I'm glad I've moved to more interesting markets.
I remain bullish on the market outlook. The key is when market liquidity returns, and which sectors capital will choose when it does.
I can feel the changing choices of institutions/capital. With the release of earnings reports from major companies, capital expenditures (Capex) are far higher than expected. Whether investments can generate positive returns is everyone's biggest concern.
From my current observation, smaller and medium-sized companies that haven't risen much in the past seem to be more favored by the market on Thursday and Friday. Optical communication modules, led by $LITE $COHR, significantly outperformed the broader market. Micron $MU seems to have seen its popularity wane, with many traders taking profits. I still hold my Micron position, and even added to it during the decline. However, I will adjust my portfolio based on everyone's performance next week.
