To The Moon

The 2026 market landscape is being redefined by a stark divergence between capital-intensive infrastructure builders and rapid-adoption software leaders.

The AI Capital Arms Race

$Meta Platforms, Inc.(META)$ and $Microsoft(MSFT)$ have launched a historic capital arms race, with META guiding for up to $135 billion in 2026 capex to power its nuclear-backed “Prometheus” supercluster, while MSFT leverages a massive $250 billion cloud commitment from OpenAI to drive 39% Azure growth.

Conversely, $Tesla Motors(TSLA)$ is funding its own $20 billion move into AI and robotics through record energy storage margins, effectively using its utility business to subsidize its next generation of growth.

Application Layer Breakout

Beyond the hardware layer, the winners in application deployment are emerging with startling velocity. Palantir has shattered expectations with a 70% revenue surge, fueled by U.S. enterprises aggressively operationalizing its AIP system.

Simultaneously, $Apple(AAPL)$ has stunned skeptics with a 38% sales rebound in China, riding a supercycle driven by iPhone 17 demand and the strategic integration of Google Gemini. The market is no longer moving in unison; it is splitting into those building the engines of AI and those successfully selling the fuel.

Fundamentals vs Headlines

To navigate this complex environment, investors need more than just headlines, they need the fundamental data that separates durable signals from noise. Discover the full breakdown of these critical developments, including detailed margin analysis and forward-looking risks, remember that you can visit all the fundamental library at Smartreversals.com in the fundamental analysis section.

Before we proceed, it is worth noting that the insights shared in the Weekly Compass and the S/R Levels publications are playing out with high precision. On Friday afternoon, I flagged solid bullish setups for $JPMorgan Chase(JPM)$ and $Berkshire Hathaway(BRK.B)$ ; they have rallied over +4% and +5% respectively this week. Conversely, my bearish outlook for $VanEck Semiconductor ETF(SMH)$ (-4.7% so far this week) and $Invesco QQQ(QQQ)$ (-2.2%) has been validated.

The Edge

In Saturday’s expanded analysis, I provided a blueprint for more high-probability setups. My bullish expectations for AAPL (so far over +6%) and $Wal-Mart(WMT)$ (+7%) are currently delivering strong results, reinforcing the importance of picking individual winners in a choppy market. On the bearish side, our setups for $iShares Bitcoin Trust(IBIT)$ (Bitcoin) has also completed, with IBIT alone dropping -12%.

To date, 8 out of 10 high-probability setups posted this week, complete with specific price targets and invalidation points, have been accurate. Only one, META, was invalidated, while another remains a work in progress. This brings our weekly accuracy to 80%, maintaining a cumulative success rate of over 77% since November. This level of transparent, professional-grade price modeling makes a subscription a total no-brainer.