Howie Town
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We Are In Rare Air as FOMO Rages And Cash Piles Up ...Enjoy It While It Lasts

We Are In Rare Air as FOMO Rages And Cash Piles Up ...Enjoy It While It Lasts

The AI and Degenerate Economy Continue to Run Away With Our Capital and Attention

Howard Lindzon
May 13, 2026

As a reminder, MarketSurge (by Investor’s Business Daily) is a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from MarketSurge. They are offering my readers 2 months for $59.95 - save $239. That's 80% off the most powerful stock research platform for individual investors.

I am headed back to New York from Italy.

My good friend Brett Wilson coordinated an amazing group of friends for this trip and we had so many laughs, so much to eat and drink and got to talk a lot about family, business and the future. Brett and his partner John were early to invest in AI with their first fund Swift Ventures (2021) which our Social Leverage emerging manager fund invested in.

To the markets…

I had Ivanhoff do this weeks show on his own (which you can see below). He nails the ‘rare air’ the semiconductor/ai stocks find themselves…

Bull markets tend to correct through sector rotations. When one leading group pulls back, others step up and break out. This one is not any different. When semiconductors took a breather last week, software stocks rallied. Breather is the correct word because the dips in semis are quick and shallow before they make new all-time highs. SMH is currently trading at 11 times its average true range from its 50-day moving average, which has never happened before. The Nasdaq 100 (QQQ) is at 10x its ATR from its 50dma. Needless to say, both are extremely extended, and a consolidation through time or price would not be a big surprise. It is actually something that way too many are anticipating and trying to front-run but so far with little success.

It seems the market has started to differentiate between software stocks that can benefit from AI and those that are likely to get their margin squeezed. The previous week, we saw TWLO gapping up. Last week was strong for t, DDOG, FTNT, CRWD, etc. The bull market remains strong, and it is expanding. We know that nothing can go up every week forever, and there will be shakeouts. They are a normal part of any cycle.

If you ask someone stuck in social media or the news cycle about the world or economy…they will likely tell you that it could NOT get any worse. If you ask them about AI and technology stocks they will shout ‘bubble’.

If you ask me about the world or the economy I will always tell you I don’t know. I feel lucky to have been born when and where I was and to be living this life. If you ask me today about the markets - specifically semiconductors/ai I would tell you that it could not get much better and ‘enjoy it while it lasts’.

I will dive a little deeper than Ivanhoff with some charts to try and best explain this rare air we find ourselves investing in. First off, I remain incredibly bullish on the opportunities in both AI and The Degenerate Economy. I have long had my money where my mouth is on these trends and here is the updated positions of my index:

Yes I hold too much cash and have been too conservative since the index inception 3 years ago, but cash still pays 4 percent in this market and I am 60 years old. Also my cash did better than Cathie Wood who for some reason people pay to pick stocks and beat the market. Cathie is the Twitter of money managers.

I have also continued to widely beat the Nasdaq 100 over the last three years despite an average of 10 plus percent in cash since the index was created. The CBOE $CBOE ( ▲ 1.52% ) remains at the center of the degenerate economy and been hoitting regular all-time highs and now ‘vape and pouch king’ Philip Morris $PM ( ▲ 2.65% ) looks ready for all-time highs. I will likely add a few software stocks that have sold off in the SAASpocalypse for the wrong reasons over the next few weeks. The smoke is starting to clear.

Ok so what am I worried about here?

I worry most about the FOMO going on.

I can’t measure it other than the price action in the charts.

A few charts I shared on Stocktwits the last few days - check my full stream here …

The semis are starting to have a 1999 feel…

The semiconductor stocks are very stretched from their 200 day moving average…

Also…almost NOBODY fears a recession at the moment…

While fear is falling and FOMO is rising…things that worry me, cash on the sidelines hit $8.2 trillion which is a record. That is fuel for ‘buy the dips’ and further FOMO buying.

I have NO idea what is on page 10 and headed to page one that would derail this market and in the meantime, the money keeps further concentrating in the big 10 AI companies.

— (@)

The obvious market killer would be a Nvidia miss, but it is hard to bet on when that happens. In the meantime, even Goldman Sachs is a little nervous about the semiconductor sector.