AI Trade Toxicity & Wall Street Stop-Outs
Nomura's McElligott warns the AI trade has turned 'toxic' with 5-sigma stop-outs ripping across Wall Street, while big tech earnings loom next week.
What we know
ZeroHedge flagged McElligott's note that the AI trade is now 'toxic pick your poison' with extreme stop-outs across Wall Street — 'glass totally and completely empty.' This comes ahead of a heavy earnings week with Google, META, and major big tech names reporting. An account on X notes Sunday's watchlist will focus on which setups are worth holding into earnings and which to trade only after.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.