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Momentum Monday - Cybersecurity Is More Important as The Degenerate Economy Expands and Our AI Overlords 'Slow Pace'.
Howard Lindzon
September 15, 2026
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Happy Tuesday.
Ivanhoff and I waited until after the markets closed yesterday to post Momentum Monday.
I figured the markets would open weak on the AI hysteria over the weekebd and I was more interested in how the markets closed.
The semiconductor stocks did close poorly, but the winners of the hysteria showed themselves …Cycbersecurity software. You can follow the sector with the $HACK ( ▼ 0.08% ) ETF. I do. The largest and best performing stocks in the sector are Cloudflare $NET ( ▲ 7.77% ) , Crowdstrike $CRWD ( ▲ 0.1% ) and Palo Alto Networks $PANW ( ▲ 13.09% )
As the ‘degenerate economy’ continues to accelerate and expand it has been a mistake not to own more of this sector in my degenerate economy index. On the next big dip I will fix that.
I hope you enjoy this weeks show…more charts below as well.
Welcome back to Momentum Monday!
In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:
Another rotation out of AI and semis, back into software (0:00)
Hyperliquid as the weekend futures tape (0:24)
The real AI war is China — and why the government has to backstop it (2:01)
Cybersecurity as the neutral third party: $NET, $CRWD, $PANW (4:19)
Why semis sold off — rate limits and margin pressure (5:09)
The midterms as the pivot event for AI stocks (6:18)
What's working: software and energy ($EOG), good software vs. bad ($MSFT, $META, $ADBE) (7:04)
Crypto consolidating ahead of the Clarity Act (8:15)
Gold, the dollar, and the rate-hike trade (8:38)
$CAT and the data-center pullback (9:46)
Stocktwits sentiment has flipped on Trump (10:07)
Cloudflare and CrowdStrike: momentum winners at peak valuations (11:42)
Here are Ivanhoff’s Thoughts
The market chop continues. Just as the AI universe was setting up for a potential breakout, the CEOs of Anthropic, OpenAI, and SpaceX suggested that progress should slow because AGI threatens humanity. OpenAI postponed its IPO for 2027. The market didn’t like the message, and anything AI-related gapped down, led by semiconductors. Capital didn’t rush to safety. It just rotated back into software. After a 2-week, 10% pullback, the software ETF, IGV, rallied 5% on heavy volume. The leaders came out of cybersecurity – CRWD, NET, OKTA, ZS, FTNT, etc. In a world of expanding AI influence and regulation, cybersecurity companies are viewed as the middlemen that can benefit.
And here are the charts discussed:
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