Sign in Subscribe
Market Insights

Patience, Grasshopper šŸ¦—

Frank Villavicencio

• 16 min read
Patience, Grasshopper šŸ¦—
August 14, 2026 at 9:02 AM EDT
šŸ”„ Trim Positions Moderately
Communication Services Pops 2%, VIX Sits at 14.53, and the Market Is Charging a 90th-Percentile Valuation Tab on a Friday Afternoon
Day 9 at a cautious posture

Justification

Market sentiment is mixed with bullish undertones tempered by significant caution. While profit margins remain at record highs and select analysts identify buying opportunities in specific sectors, concerns about AI market valuation sustainability and executive departures at major tech firms create headwinds. The market shows selective strength in certain stocks while facing structural challenges in leveraged AI infrastructure financing.

Since the Last Issue

  • RSI (momentum gauge) eased from 76.79 to 67.35, pulling back from overbought territory but still elevated ā€” the single most decision-relevant shift this week.
  • Fear & Greed Index held flat at 67 (Greed), unchanged from one week and one month ago, confirming sentiment has not reset despite the RSI pullback.
  • Communication Services led all sectors at +2.07% today, with TSLA +3.8% and META +2.78% driving the tape; Real Estate followed at +1.42%.
  • 10-year Treasury yield drifted -5bp over the past 10 sessions, a mild tailwind for rate-sensitive sectors like Real Estate and Utilities.