Chips, Cars and an AI Power Surge Close Out the Week

Semiconductors Under Pressure

Chip stocks are the week's sharpest pain trade. NVDA carries a 14-day RSI of just 25. MU sits at 27 and AMD at 29. All three are drawing the heaviest negative options bets in the market right now. Cantor Fitzgerald kept its Overweight on MCHP today but cut its target to $100, reinforcing the cautious tone across the sector.

AI Data Centers Back in the Headlines

A pushback against AI data center restrictions is making noise Friday. Former Goldman Sachs CEO Lloyd Blankfein slammed what he called the "current hysteria" around blocking new data center builds, calling it a "gift to China." The story touches META, GOOGL, and ARM. Separately, Bloom Energy won a role in a 702-megawatt power project for Google. AI energy demand continues to drive real infrastructure deals.

Automakers Report, Data Points Mixed

Friday brings a heavy earnings slate for carmakers. Honda Motor reports today. ORTEX alt data shows Japanese car sales running 6% above the same quarter last year, a leading indicator with a strong fit for Honda's revenue. Mazda looks more promising: German car sales, which lead its revenue by 30 days with a strong fit, are running 32% higher than a year ago, with all three months of the quarter now in. Japan's overall October car sales came in at their weakest in three years, however, at 316,619 units.

Europe: Recordati Deal Window Opens

CVC Capital Partners' tender for Italian pharma group Recordati opened today and runs through 30 November. The deal carries a 93% completion probability. If it closes, ORTEX Index Rebalance Radar forecasts a $220M forced sell from the FTSE MIB, equal to 10.5 days of normal volume, with an index announcement expected 9 November. Wells Fargo upgraded BDX to Overweight with a $242 target, adding a positive medical device note to close the week.

HTZ Short Squeeze Watch

HTZ remains the most combustible short story in the market. Borrow cost hit 470% this week. Availability has collapsed to zero. With the stock up 45% in three months, any continued squeeze will cost bears dearly.