SPY goes to Valhalla, AI gets its balls grabbed

Good morning RIGD Report readers.

Yesterday at 9:33 the app alerted a trade that returned 96% in 25 minutes and ended the day at zero.

After the borefest on Tuesday, Wednesday brought back volatility and price action that shows stonks only go up!

Well not entirely. If you remember on Monday we pointed out that this is monthly options expiry and max fuckery is guaranteed to happen. Max fuckery in RIGD ethos essentially means the market fucks max participants (more on that here).

Overall positioning for Friday was max bearish. Tuesday you get a sell-off at the end of the day confirming your bias and then Wednesday it all goes straight up green hulk dick straight to valhalla driven by a 0dte squeeze started by a massive order of SPX calls at 12:30.

If someone can show us where the stars, moons and pretty trendlines aligned to show that move would happen and we’d go straight up… but we don’t think it exists.

That’s why we’re building RIGD AI to primarily focus on flow. Fade or follow is up to you but if smart money typically wins, for us it’s an easy decision on which side to pick.

The rally yesterday shifted the max pain goal posts from 405 to 407 for Friday. We’ll be glued to the screens today looking for datapoints to add to our algo when the app goes live!

The Grabbing of AI’s Balls by Big Tech

Sam Altman (open AI founder) went before congress on Tuesday and scared clueless lawmakers about how parameters must be developed in order to stop AI from causing “significant harm to the world.”

Altman also said that he owns zero equity in Open AI which is a “non-profit” that Microsoft has invested over $13 billion in with their “multi-year partnership”. It’s funny no one asked Altman about the corporate structure or what is actual compensation is after that statement, but we suppose that would require competency in congress. If anyone wants to leak us the Open AI corporate structure docs, we’d love to catch a glimpse.

The going before congress non-hostile good guy please trust me move is done for one reason and one reason only… grab AI by the balls aka regulatory capture.

Altman used a classic copywriting hook, scaring the prospects first before offering a solution in the form of regulator recommendations.

Let’s look at his suggestions and what they really mean.

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First, he supported the creation of a federal agency that can grant licenses to create AI models above a certain threshold of capabilities, and can also revoke those licenses if the models don’t meet safety guidelines set by the government.

Translation: Big tech will use lobbyists to design this federal agency making it prohibitively expensive for startups to build “ai models above a certain threshold of capabilities” so only big tech benefits thus preserving their monopolies.

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Second, Altman said the government should create safety standards for high-capability AI models (such as barring a model from self-replication) and create specific functionality tests the models have to pass, such as verifying the model’s ability to produce accurate information, or ensure it doesn’t generate dangerous content.

Translation: The government was not capable in their response to c0v!d and v@cc!n3 mandates, so we can definitely trust them to create AI safety standards. Oh wait they will just follow whatever big tech tells them to do.

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And third, he urged legislators to require independent audits from experts unaffiliated with the creators or the government to ensure that the AI tools operated within the legislative guidelines.

Translation: Big tech is going to design the licenses, big tech is going to create the safety standards, and big tech is going to fund the unaffiliated experts thus full open hand full grasping AI by the balls.

When venture starts to pick up again (hey we got funded so it’s not all doom and gloom out there), some startups will be able to comply with the laws and then they will quickly be acquired by big tech and asshats will brag on twitter. We’d love to be an asshat so if you’re raising, please reach out.

Ultimately it’s a pro-American position. America is backed by two things; the war machine and big tech. We lose either of those and maybe we will see the dollar replaced by a Chinese dong.

Is it rigged? Yeah - probably but betting against America is futile. Seethe more.

American AI is going straight up and so is the market according to the smart money.

[ time ]

Smart Money Steve Cohen is ‘Pretty Bullish’

“I’m making a prognostication — we’re going up”

Okay we had to ask ChatGPT what prognostication actually means and they said it’s a prophecy or some shit, so that sounds good to us.

Legendary hedgefund manager Steve Cohen says investors are too worried about a market downturn focusing on a recession and they’re going to miss the “big wave” in artificial intelligence which may be as big as the internet.

Yes - AI will lead to thousands of job losses across all sectors but jobs down means profits goes up which means stocks go up. Markets love margins almost as much as they love taking your money.

Goldman is also joining in calling AI the source of the next major margin expansion.

That’s why smart money continues to flow into $NVDA regardless of profits or earnings, pushing the yearly return over 100% and price to $300! The more hated it seems to be on fintwit, the faster the stock goes up. Clearly it’s the new Tesla, which went stratospheric on the green electrification climate change narrative that’s now taking the backseat to artificial intelligence.

Trading is hard. Investing is hard. Getting over your bias is harder.

Give in and repent for your sins because we’re going up*

[ bloomberg ]

*not financial advice

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