StoneX - Run #4087
Reporting Date: 2026-10-12
Completed
Run Details
- State
- Completed
- Started At
- October 12, 2026 at 08:17 AM
- Completed At
- October 12, 2026 at 08:18 AM
- Duration
- 1 minute
- Headline
- Nvidia Bearish Engulfing Spells Bubble Trouble for AI Stocks
Data Preview
{
"title": "Nvidia Bearish Engulfing Spells Bubble Trouble for AI Stocks",
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"source": "youtube",
"channel": {
"url": "https://www.youtube.com/@StoneX_Official",
"title": "StoneX",
"handle": "stonex_official",
"channel_id": "UC5a8rKMaVmaViwJvmCMl-1Q"
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"insights": {
"risks": [
"A situation materializing next week could lead to reversals in the S&P 500.",
"Nasdaq's lag could be an early step towards a negative shift.",
"Nvidia's bearish engulfing pattern could lead to further profit-taking.",
"High bond yields could strain high-growth, debt-dependent companies.",
"Crude oil breaking above $100 could signal problems and disrupt yield-stock relationships."
],
"topics": [
"S&P 500",
"Nasdaq 100",
"Nvidia",
"US Treasury Bonds (30-year, 10-year)",
"Crude Oil (WTI)",
"Market Trends",
"Technical Analysis",
"Candlestick Patterns",
"Economic Outlook",
"Inflation",
"Quantitative Easing",
"Debt Markets",
"AI Stocks"
],
"summary": "The speaker discusses the disconnect between positive market price action (new all-time highs in Nasdaq, S&P 500, and Nvidia) and underlying concerns. He highlights a dynamic where markets are hesitant to be short over weekends due to potential positive news. He points out a bearish engulfing pattern in Nvidia and notes the Nasdaq's recent lag compared to the S&P 500, suggesting potential shifts. He also discusses the implications of rising bond yields, particularly for high-growth, debt-dependent companies, and how this could eventually lead to a \"bubble burst\" in tech stocks.",
"entities": [
{
"name": "James Stanley",
"type": "person",
"context": "Speaker, Market Insights at StoneX"
},
{
"name": "StoneX",
"type": "organization",
"context": "Speaker's employer"
},
{
"name": "Nasdaq",
"type": "commodity",
"context": "Index, fresh ATHs, lagging S&P 500"
},
{
"name": "S&P 500",
"type": "commodity",
"context": "Index, fresh ATHs, strong rally"
},
{
"name": "Nvidia",
"type": "organization",
"context": "Stock, fresh ATHs, bearish engulfing, profit-taking"
},
{
"name": "President Trump",
"type": "person",
"context": "Mentioned for trying to pump markets"
},
{
"name": "Fed",
"type": "organization",
"context": "Mentioned in relation to interest rates and inflation"
},
{
"name": "Anthropic",
"type": "organization",
"context": "Example of a company eating high debt costs"
},
{
"name": "Open AI",
"type": "organization",
"context": "Example of a company tapping debt markets"
},
{
"name": "US Government 30 Year Bond Yield",
"type": "commodity",
"context": "Rising yields, impact on stocks"
},
{
"name": "US Government 10 Year Bond Yield",
"type": "commodity",
"context": "Rising yields, impact on stocks"
},
{
"name": "WTI",
"type": "commodity",
"context": "Crude oil futures, red week, doji"
},
{
"name": "AI Stocks",
"type": "concept",
"context": "Leading in growth periods, vulnerable to high yields"
},
{
"name": "Debt Markets",
"type": "concept",
"context": "Access for companies, impact of high yields"
},
{
"name": "Inflation",
"type": "concept",
"context": "Impact on bond yields and Fed policy"
},
{
"name": "Quantitative Easing (QE)",
"type": "concept",
"context": "Potential future Fed action"
}
],
"sentiment": "mixed",
"confidence": 0.9,
"key_points": [
{
"point": "Last week saw fresh all-time highs in the Nasdaq, S&P 500, and Nvidia.",
"timestamp": "00:07",
"importance": "high"
},
{
"point": "There's a continued disconnect between negative headlines and positive price action in the markets.",
"timestamp": "00:18",
"importance": "medium"
},
{
"point": "Markets are scared to be caught short going into the weekend, possibly due to the belief that President Trump will try to pump markets.",
"timestamp": "01:32",
"importance": "medium"
},
{
"point": "The S&P 500 showed a strong finish last week with a rally on Friday after a mid-week pullback, similar to the previous week.",
"timestamp": "01:08",
"importance": "high"
},
{
"point": "The S&P 500 is currently stretched, with 8000 being a major psychological level where profit-taking is expected.",
"timestamp": "03:57",
"importance": "high"
},
{
"point": "The Nasdaq 100 also set a fresh all-time high last week, but its divergence and lag compared to the S&P 500, especially late in the week, is noteworthy and potentially concerning.",
"timestamp": "04:27",
"importance": "high"
},
{
"point": "Nvidia displayed a bearish engulfing candlestick pattern on its weekly chart, which is not a good sign despite positive news like a $235 billion buyback and strong earnings.",
"timestamp": "06:09",
"importance": "high"
},
{
"point": "The fact that Nvidia's buyback announcement only led to a fresh all-time high and then more profit-taking, and its overall price action, is disconcerting.",
"timestamp": "07:27",
"importance": "high"
},
{
"point": "Higher government bond yields are not inherently bearish but can make it difficult for high-growth, debt-dependent companies to operate and access capital.",
"timestamp": "08:31",
"importance": "high"
},
{
"point": "The 30-year US Treasury bond yield pulling back last week is noteworthy, and the speaker suggests that high yields reflect an acceptance of higher long-term growth rates.",
"timestamp": "10:21",
"importance": "medium"
},
{
"point": "The speaker believes another round of Quantitative Easing (QE) will eventually be necessary, but not until inflation is brought down from its current 3% level.",
"timestamp": "11:41",
"importance": "high"
},
{
"point": "The 10-year US Government Bond Yield is at a \"massive spot\" around 5.25%, and if it goes higher (e.g., to 6%), it could be a safe avenue for capital, but it poses trouble for the AI trade and the \"bubble.\"",
"timestamp": "12:31",
"importance": "high"
},
{
"point": "Crude oil (WTI) had another red week but doji'd, and it appears to be trying to bottom around the 90-handle, with support at prior resistance.",
"timestamp": "13:45",
"importance": "medium"
},
{
"point": "If crude oil breaks above $100, it would signal problems and could throw a wrench in the yield-stock relationship.",
"timestamp": "14:17",
"importance": "high"
}
],
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"price_levels": [
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"note": "Green zone, prior resistance",
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{
"note": "Green zone, prior resistance",
"value": "7808",
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{
"note": "Ideally, pullback to open next week",
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{
"note": "Ideally, pullback to open next week",
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{
"note": "All-time high",
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{
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"note": "Prior resistance, double top, held lows on Friday",
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{
"note": "Prior week's low, mentioned in context of engulfing",
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{
"note": "Potential upside",
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"instrument": "US Government 10 Year Bond Yield",
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{
"note": "Appears to be bottoming",
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"instrument": "Light Crude Oil Futures (WTI)",
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{
"note": "If crude gets above this, problems",
"value": "100",
"instrument": "Light Crude Oil Futures (WTI)",
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"time_horizon": "short_term",
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"data_references": [
{
"value": "185 billion",
"metric": "Increased Buyback Announcement",
"source": "Nvidia Corporation"
},
{
"value": "235 billion",
"metric": "Total Buyback",
"source": "Nvidia Corporation"
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"match_reasoning": "The video substantively discusses market trends, specific indices (S&P 500, Nasdaq), individual stocks (Nvidia), and bond yields, aligning with the requested topics."
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"video_id": "4LDZ1ApTge4",
"video_url": "https://www.youtube.com/watch?v=4LDZ1ApTge4",
"transcript": "Hello traders, James Stanley with StoneX. Last week was big. We had fresh ATHs in the Nasdaq, in the S&P 500, in Nvidia. And as we go into this week, you know, there's there's there's been a continued disconnect from the headlines and the price action. Headlines doom and gloom, the price action, anything but. You got fresh all-time highs. That said, there's a couple items under the surface that aren't settling well with me. And you know, at this point, from a price perspective, I have no reason to look for reversals in the S&P 500. But if this situation materializes next week, then there might be a reason to start to flip. There's going to be quite a bit of difference in this week's five charts video. I'm going to throw the order out the window and I'm going to look at a lot of the same charts, but I'm going to look at them in a much different order, much different priority. All right, chart number one, we got to stick with the one that's been the winner, S&P 500. I looked at this in the Friday video and a strong finish to the week. You know, we had the fresh ATHs that printed on Tuesday, pull back Wednesday and Thursday, and then a strong rally on Friday. And and you even look where that support played in on Thursday, beautiful spot. Interestingly, it's the same dynamic that we had the week before. The week before, we had a sell-off into Thursday, support played, big rally into the end of the week. That's what lasted into last week's rally. And you know, I I think what we're seeing here is a dynamic where markets are scared to be caught short going into the weekend. I think there's the widespread not just belief, but like knowledge that President Trump is going to try to pump things into the weekend, and then any bad news that might come out over the weekend, might get buffered or maybe not, uh on Monday or Sunday before the market open. And, you know, there's this whole dynamic where you get caught short on a weekend and then something positive happens, and then you're in a really tough spot. So, I I think what we're seeing here is maybe shorts, you know, limiting their their push to early middle of the week, and then we're seeing that pair back as we go into weekends. It's just a dynamic that I've noticed of late. I mean, like we had that Wednesday pivot, uh right around the Fed. Uh last week, I mean, there was a Thursday pivot into the week before, but then last week, we or previous week, we had this pivot, and then last week, this pivot. So, you know, Trump is going to continue to pump. Everybody knows it. It it's, um, you know, I don't think it's a secret that he wants to see equity markets higher, and and he knows how to use headlines. So, uh in stocks, I'm still biasing long side S&P 500. Uh this is the chart that I looked at going into last Friday. Like I said then, there was a nice bull flag formation. That broke out with gusto, uh late Thursday night, continued through Friday. And, you know, I I think about the best you can do on something like this is pick your levels and wait for a fill, wait for a setup. And, you know, what what I'll do is I'll set multiple support zones, then I'll look for candle closes showing interaction at those zones, showing some element of support before I look for continuation. And there was a couple of examples of that that played through pretty beautifully, uh last week and and on Friday. But, you know, I I'm I'm largely looking at the same zones that I've been working off of. Like this zone here in green, 7798 to 7808, that's a big one. Uh prior resistance and it was support last week over a couple of different doses. Uh nearby, 7838 and a half, 7848 and a half. So, like ideally, if we do get a pullback to open next week, I want to see I want to see some support, I want to see some buyers come in there. And and that keeps the door for a press up towards the ATH around 7900 thereabouts. So, I mean, we just shied away from a 7900 print. But, you know, I think realistically, the level that is is is causing all of this stalling is is 8K. You know, one of those major psychological levels. Market is stretched. I mean, we know it is stretched. You look at this on these longer-term charts and and it's it's just quite obvious how stretched it is. So, we get up to 8K. I think there's the widespread belief that it's going to be a pretty big profit-taking event. I think that's why it's maybe started to play out a little bit earlier before it's even come to play. But, chart number one, S&P 500. Chart number two, Nasdaq. So, NQ, it also set a fresh ATH last week. It's, you know, again, there's nothing to to doom and gloom here. That said, the way that it diverged from the S&P is is noteworthy. Because really in these growth periods, you want to see the Nasdaq leading, you want to see the AI stocks leading, and and and and and quite frankly, especially late last week, there's a bit of lag that showed up. Um in the Nasdaq, this is an indecision candle. Not quite a doji, it's more like a spinning top. But, you know, the fact that we didn't get closer to the highs, that we didn't see more of a rally on Friday, that's disconcerting. You know, again, it's not a bearish thesis of itself. It's, you know, a lack of positives doesn't necessarily mean a negative, but it could be an early first step towards that end. And, you know, again, there's support in here. It's a bullish setup. You can still justify it on the long side. But, the fact that it didn't outpace the S&P 500 late week, it's something you need to keep into account. Maybe it's the sign of something that might be shifting, might be changing. A couple of charts that I'm going to look at a little later speak to that. But, chart number two, Nasdaq 100, a bit of lag. It's still in a bullish spot. I got support at prior resistance, that 31-ish, 30,960 to be exact. That was a prior double top. That was uh support right in here. It held the lows on Friday. So, I mean, again, you can still justify this on the long side. You can still justify this as bullish. The uh inverse head and shoulders pattern still has a target all the way up here, 34,734. But, it's going to need a bullish catalyst to make this come to fruition. And, you know, again, I'm going to look at this in a moment. So, we'll look at a couple alternatives that might might be able to produce something like that. But, that is chart number two. Chart number three. So, this is the reason that I had that interplay between one and two. Nvidia. You look at this on a weekly, that's not good. That's not what you wanted to see. This is a bearish engulf. And, uh let me get it over here where I have it a little bit cleaner. Right in here. There we go. This is a bearish engulf on the weekly. And, you know, there's a couple of different ways to do engulfs. But, I think the way to think of engulfs, if you're not a technical trader or if you don't have a price action background, is as an exclamation point. Right? It's a big statement move. And, you know, the the best engulfs have a full engulfing of the prior candlestick wick and body. We didn't get that last week. It was full body, but we didn't take out the low of the prior week. And, you know, if if if we had, this would be even more bearish. I'd be even more concerned. But, the bigger item is the divergence. If you look at the headlines, if you look at what's behind this, there's not a lot of negativity. Right? Like, you had the $185 billion increased buyback announcement, total buyback of $235 billion. That is a mega-cap stock of buybacks. You had quarterly earnings that were gangbusters. There's no reason to be bearish this stock right now. But, that buyback announcement, it merely got us a fresh ATH, and that led to more profit taking. You know, again, this was something I had covered as we came into Q4. The fact that it hadn't hit an ATH, a fresh ATH, even as S&P had, was disconcerting. Then we had the buyback announcement that helped get it over the hump. But, you know, if you look at what's been happening here, you know, you got a stock that was down at, you know, 12 bucks split adjusted in '22, and, you know, we were in the 20s in '23. There's a lot of long-term holders here that are using these bumps, that are using these rallies to take profits. And the fact that that's happening to the degree that it is, is disconcerting. You know, you look at the price action later in the week, it was nasty. We did technically set that fresh ATH on Tuesday. Paired back on Wednesday, and and we sold off into the close on Thursday and on Friday. And this illustrates that there's been some pretty fervent profit taking going on. And, you know, maybe this is something that could continue. But, this combined with the next chart is what I think, you know, if you're long or you're bullish, that's the devil's advocate. This is what you got to work with. Um now, I said this in the video on Tuesday, I'll say it again. Uh higher yields are not a bearish thing in and of themselves. You know, I I know that there's this kind of this built-in response post GFC because there was, you know, a government bond buying program that artificially suppressed yields. So, it's it's almost like higher yields bad for stocks, lower yields good for stocks. And yeah, it makes sense because if you're looking at the operating backdrop for these corporates, higher yields make it more difficult to operate, lower yields easier to operate. It also directs capital into higher beta issues, more uh riskier high-tech companies that draw more capital in a low rate environment. But, that's just one item. The other part of this is when you have a high growth backdrop, you're going to have higher levels of inflation. It's just a byproduct. And when you have higher levels of inflation, there's less reason to hold bonds at current yields. So, you know, another way of looking at higher yields is acceptance of higher long-term growth rates. Now, that's not something that's going to last in perpetuity. You eventually get a point where the rubber meets the road, and where borrowing costs get too high, and it becomes difficult for companies to access debt markets. And, you know, that's kind of one of the things that I was talking about in the Friday video. Don't have a long time to do it, but, you know, these these these hyper-scalers that are dependent on debt markets, that aren't profitable, that need to bring in capital, they are in essence vulnerable to the higher rate backdrop. And now they can eat that for a while, as we've seen Anthropic do. But, you know, for like an Open AI that's been tapping debt markets for years, that becomes a massive debt load that they got to deal with. And and and and if they're not profitable and they got to continue to access debt markets, that's just more and more of a strain. The fact that this pulled back last week is is noteworthy. And, you know, and and and I've been saying this for a while. If you look at the way that this priced in in the tech collapse, in the tech boom and in the bust, you know, when we had the boom at fever pitch right back in here, you know, 30s were going from like a 4.7 all the way up to like a 6.7. You know, same thing. You have high growth rates, higher levels of inflation, less reason to hold bonds, more attractiveness to to, you know, jump into tech stocks. They're in a bubble, you know, great alternative asset to be in. And that's what explains this. You know, um the bigger problem is this. When you're in a falling rate environment, when you have a bull market in bonds, when there is an alternative for bidding that 16th or 20th dip in Nvidia, when you have Nvidia stuttering at highs even with a $235 billion buyback announcement, you know, there's something wrong there. And when you start to smell those things, and you look at the fact that, well, you know what? Maybe I'm not going to call the top in yields. But, I won't mind clipping 5.5% for the next 30 years when these bonds are probably going to end up yielding 3 and a half or 4% because that's all that the government can actually afford. You know, and like I talked about on Friday, I think what inevitably is going to happen is we're going to see, you know, another round of QE at some point. Can't do QE when you have inflation at three points. Got to get inflation down first. I think that's why we have this renewed focus from the Fed to get inflation down so that they can then open up their their their their more flexible options. But, if we end up with this, even at a four handle, holding that 30-year at 5.5, that's a beautiful trade, man. You know, if you want to just sit there and clip the coupons for the next 30 years, great. Or, you got a principal pop in that bond and you can easily sell this. I mean, as a case in point, look at something like TLT. Right? Look at the way that TLT performs in a falling rate environment. And we're just, you know, huddling down here around these lows right now. Uh but that's There, you look at the 10-year and this is the this is the 5.25 level I've been talking about. You know, massive spot here. And and it's just stalled the run so far because, you know, once we get over 5.25, it's like, yeah, maybe I'm not going to call the top in yields. Maybe this goes up to six. That's okay. I I'm not trying to top tick this thing. Instead, I'm just trying to get a kind of safe uh avenue for my capital and, you know, in 10 years or five years, halfway uh between now and the maturity of that bond, we're going to be at 4 and a half or three. And, you know, I just got to sit and wait through it. So, I think there's there's there's some of that that mentality that's been building. And, you know, that's trouble for the AI trade. That's trouble for the bubble. And I think the thing that ultimately does burst the bubble is an alternative for capital flows. And, you know, these yields getting down to a 3 and a half or a 4 handle, that is it. Uh we're just not there yet. Uh but the way that these markets performed last week, it's notable. And, you know, when the way that it moves along with with what showed in Nvidia, that bearish engulf with NQ lagging at the end of the week, we got to keep an eye on it at the very least. But, that is market four for Treasuries. Market five. We got to keep this one on the radar, man. Uh oil. You know, it's um we had another red week in in WTI, but that it it doji'd. And, you know, more to the point, it's what's been happening off that 90 handle. And you look at the way that it performed last week, it it looks like it's trying to bottom down in here. Now, again, this is a market where I just really don't trust the headlines because I've seen so much over the last few months that both go in and in both directions. And, you know, price is much more um impartial as a judge. And so, that's still what I'm leaning towards. But, if you get crude back above 100, you got problems. And, you know, we can see that manifesting in the way that these markets have have have have shown interplay. Um, you know, as a case in point, when we crested above 100 back here, the day before the Fed rate hike, you know, there was a a pretty pensive backdrop. And it's it's eased a bit. But, you know, the fact that we have seen this on a weekly, I mean, you can even see it visually slowing down, that sell-off slowing down at that 90 handle coming in some support around prior resistance in here. You know, again, it's notable. It's something that could be a big item that we need to keep into account as we go into next week. You know, it it that said, you know, look, S&P 500 is much more actionable right now. I think the and the Nasdaq is even more actionable. Um if you are looking for the bubble bursting, that bearish engulfing in Nvidia is probably about the best thing that you got to work with at this point. But, if if this is oil bottoming, I think that's something that feeds into the thesis behind all of those moves, all of those themes, all of those setups. And, you know, it could throw a wrench in the yield relationship where we see yields spike and stocks down. But, that is market five for next week. It's uh it's crude. You can't you can't ignore it. Even if you don't want to trade it, you at least have to look at it and what implications it might bring. But, that, my friends, is what I have for this week. That's what I'm looking at in the week ahead. As always, thank you for your time and happy trading.",
"description": "Nvidia's bearish engulfing on the weekly chart came despite a major buyback and strong earnings, as long-term holders used the rally to take profits.\n\nJames Stanley, StoneX Media Senior Market Analyst, works through five charts, from the S&P 500 and Nvidia to Treasuries and crude oil.\n\nThe S&P 500 keeps rallying into weekends while the Nasdaq 100 lags at record highs. The video explains why higher Treasury yields are not automatically bearish for stocks, and how long-dated bonds can pull capital away from the AI bubble.\n\nDiscover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_james_stanley&utm_content=share\n\n00:00 - Record Highs Hide AI Cracks\n01:09 - S&P 500 Shorts Dread Weekends\n04:33 - Nasdaq 100 Loses the Lead\n06:08 - Nvidia Bearish Engulfing Hits\n07:05 - Nvidia Buyback Meets Sellers\n08:37 - Yields Up, Stocks Not Doomed\n11:27 - Bond Yields Threaten AI Bubble\n13:52 - Crude Oil Turns Wild Card\n\nLike and subscribe for more financial market insights.\n\n#Nvidia #StoneX #JamesStanley #Nasdaq\n\n---------\n\nLike this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official\n\nVisit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts.\n\nVisit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social",
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"published_at": "2026-10-12T08:01:34Z",
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