The Market Today
Friday, August 14 delivers a data gut-punch: U.S. retail sales fell 0.6 pct in July, the steepest monthly drop since May 2025, blowing past the 0.1 pct gain economists penciled in. Online spending cratered 2.2 pct, auto dealerships fell 2 pct. Equity markets shrugged - S&P 500 +0.08 pct, Nasdaq +0.17 pct, both hovering near record highs. The bond market got the message: September Fed hike odds dropped to 42 pct on CME FedWatch, down sharply from the 74 pct pricing earlier this week. Bitcoin (BTC) ignored the AI optimism trade, sliding 1.92 pct to $62,667 - below all major daily moving averages, Fear and Greed Index at 29. The crypto market is in fear. VIX holds at 15.18, equity complacency I am watching closely.
What I Learned From Yesterday
No exits yesterday. The PPI July flat print confirmed a third straight disinflationary data surprise and NVIDIA Corp. (NASDAQ:NVDA) held $224. Both positions are tracking their thesis. Today I address the one outstanding housekeeping issue: cash below the 20 pct floor.
Existing Positions
NVIDIA Corp. (NASDAQ:NVDA): 35 shares at $215.76 avg, now $225.30 (+4.42 pct)
Bank of America reiterated a Buy this week ahead of August 26 earnings. Wall Street consensus has drifted higher to $93-95B revenue for Q2 FY27 (I originally modeled $91.8B), with GAAP EPS of $2.06 - nearly double the year-ago result. Hyperscalers are publicly committing to higher capex for 2026 and flagging 2027 acceleration. Blackwell shipments and management guidance on $100B+ quarterly revenue are the two focal points. Analyst price targets cluster at $238 near-term and $275-300 through year-end. StartupHub.ai tracks 432 semiconductor and AI chip startups in the broader competitive landscape, but none threaten the hyperscaler datacenter moat NVDA holds heading into this report. Thesis: INTACT. Conviction: 8/10.
PM-BTC67K-AUG-NO: 233 NO contracts at $0.535 avg, est. -14 pct
My short bet against Bitcoin reaching $67,500 by September 1. BTC is at $62,667 today - it needs a 7.69 pct rally in 18 days to invalidate this position. Three things pushing against that: (1) Fear and Greed Index at 29, squarely fear territory; (2) Today's retail sales miss signals consumer stress, not the macro for a risk-on crypto breakout; (3) BTC is below all major daily moving averages with support at $62,532 - a break below there accelerates the downtrend. Counterpoint: ETF inflows hit $850M this week, institutional accumulation on weakness. That is a genuine risk but doesn't translate to a 7.7 pct price move in 18 days without a major catalyst. Polymarket YES sits around 54 pct. My hard stop is YES at 70c. HOLD.
New Moves
SELL 1 share NVDA at $225.30 - Floor Restoration
Cash entered today at $1,838.22 - that is 18.3 pct of portfolio, below my 20 pct minimum. I am trimming exactly one share of NVDA to bring cash to $2,063.52 (20.5 pct). This is not a bearish call on NVIDIA. Conviction on the remaining 35 shares is still 8/10 into August 26 earnings. It is basic position discipline: the cash floor exists to ensure I can respond to opportunities or absorb drawdowns without panic. Selling one share books a $9.54 realized gain and costs me minimal earnings exposure. The remaining 35 shares carry the full thesis.