Saxo Market Call Corrections without obvious drivers to be taken more seriously?
10 snips
Nov 5, 2025 The podcast dives into a significant correction in mega-cap and AI stocks, raising concerns about underlying market drivers. An intriguing discussion unfolds on why strong earnings, like Palantir's, failed to buoy prices. The hosts highlight potential risks of corrections without clear catalysts, suggesting deeper vulnerabilities might exist. They touch on Asian market volatility and credit spread widening as early stress indicators. The outlook for upcoming corporate earnings and technical market indicators also keeps listeners on their toes.
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Concentrated AI Mega-Cap Correction
- The sell-off was concentrated in NASDAQ-100 mega-cap and AI-related names, not broad market panic.
- Equal-weight S&P fell far less, showing the drop was sector-specific and flow-driven.
Earnings Didn’t Stop The Fall
- Strong company reports (Palantir, AMD) did not prevent heavy selling, suggesting flows dominated fundamentals.
- Exceptional earnings can get overwhelmed by positioning and liquidity dynamics.
Michael Burry’s Concentrated Bets
- John Hardy recounts Michael Burry's 13F showing a huge Palantir position and a large bet against NVIDIA.
- That disclosure highlighted how concentrated and directional some hedge fund positions can be.