Good Monday afternoon. Clearly the DeepSeek saga has legs, as it pertains to one specific group; the semis. SMH is trading near the lows of the day (-11%) with SOXL down a big 25%. You don’t see days like this often. Even as the market leading semis are plunging lower, the Dow Jones is +250 (.55%), the transports +1.4%, housing (HGX) +2% and Apple (AAPL) +4%. Nvidia is down 17%...it’s actually a member of the Dow Jones…but somehow the Dow is +250? Bizarre is the word that best comes to mind. This move lower is all about AI and the semis.

What we’re seeing is more evidence of just how strong this bull market is, as the rotational theme that’s been in place from the birth of the bull market continues to play out. If you would have told me that the market leading semis would be down 11% even as the Dow, transports, housing and Apple were sharply higher, I would have said that there must be something wrong with your quote system. 

We’re currently below where I said our mental stop on...