1. Momentum ETFs had one of the largest estimated monthly net outflow in recent years.

What’s up with that?

2. AI trade rebounds, but leadership remains narrow.

Only a handful of megacap names participated in the advance, and narrowing participation is often viewed as a warning sign because healthy rallies typically rely on broad support. From that perspective, last week's sharp tech selloff may be a sign that the breadth divergence is finally beginning to matter.
Goldman Sachs strategists see caution building in equity markets and, separately, said that US consumer stocks left behind by the market could offer opportunities amid a momentum reversal.
That puts this week’s earnings under a bright spotlight. Meta, Tesla and Netflix are among heavyweights reporting, with investors primed to scrutinize AI spending and returns.
"Good is not going to be enough. You're going to have to see very, very strong results," says Barclays.
"People might feel that it's prudent to take some profit, wait until we get the result of the midterms and then revisit their portfolio exposition."

Below: Tech stocks are still set to account for nearly 70% of global earnings growth next year, according to Citi strategists, making tech results an important gauge of whether this bounce can become something more durable.

3. The AI argument remains a tug of war between demand and the (financing) cost of meeting it.

Morgan Stanley expects Amazon Web Services revenue to grow 47% in 2027 and 42% in 2028, partly reflecting plans to deploy 2M additional Nvidia GPUs.
Amazon will spend $355B in 2027 and $365B in 2028 as it buys chips, builds data centers, and expands the infrastructure supporting AWS.
Meanwhile, token prices continue their descent.

4. Korean Kospi index is oversold.

South Korea’s Kospi is in technically oversold territory from which it has rebounded in the past.

5. Taiwan semiconductor is booming.

Q3 Revenue grew 41% Y/Y to $46.7 billion, and operating margin reached nearly 59%.
TSMC is becoming more profitable even as it undertakes the largest manufacturing expansion in its history.
TSMC forecasts mid-to-high-50% annual growth in AI accelerator revenue through 2029.

“The demand is extremely robust. We do not see any sign of slowdown”, dixit the CEO.

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