My Hit on the Nasdaq and Why AI Is Disrupting Everything

Welcome to this market update. If you followed Monday's session, it was almost too easy: we bought, closed our eyes, and it went up. However, yesterday was an immediate backlash with an ultra-violent wave of decline. Honestly, it's this kind of sequence that tests your discipline.

Why such nervousness? Basically, artificial intelligence is redrawing the map of the technology sector, and it's causing damage. We're going to break this down together, without useless jargon, to understand what is really playing out on your charts.

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My trading: the emotional rollercoaster

I'm going to be transparent with you. Everything I gained on Monday, I almost gave back to the market on Tuesday. My week therefore practically starts from zero today.

What happened? A support didn't hold. I should have cut my loss immediately to lose 5 or 10 points. Instead, I hesitated in the face of the bearish acceleration and took a 40-point loss. It's the basics: when you lack rigor on the "red button," it stings. Fortunately, thanks to Monday's gains, I remain in slightly positive territory, but it's a necessary wake-up call.

The culprit: The technological disruption

Why this massive drop, especially on the Nasdaq? It is again and always the story of Artificial Intelligence. But be careful, with a major nuance.

Here are the 3 key points to understand this fall:

1. The shock announcement: Claude Anthropic launched a legal tool capable of reviewing contracts and sorting non-disclosure agreements. It sounds technical, but it's a bomb.
2. The sector impact: Entire companies, like the SAP group or those specializing in enterprise software, see their business model threatened. Result: SAP took a hit of nearly 12.8%.
3. The domino effect: The whole sector, including advertising with Publicis or translation, is under pressure. AI does the job faster and cheaper.

To illustrate, remember the era of Polaroids. When digital cameras arrived, Kodak couldn't keep up and a whole chunk of the industry collapsed. We are living through exactly the same thing with AI today.

I see it myself on a daily basis. Currently, AI allows me to translate my videos and podcasts into several languages (English, German, Japanese...). Without this technology, I would have needed to recruit a team of 20 or 30 people. It's an opportunity for some, but an existential threat for others.

Where do the indices stand?

Faced with this earthquake, the reactions are very uneven:

• The Nasdaq: It's bringing up the rear. It's struggling to rebound and remains stuck on its lows from the day before. Absolute caution here, because we haven't seen the hoped-for rebound.
• The Dow Jones and the S&P 500: They are doing much better. The Dow Jones rebounded on a strategic level (the 49,000) and has almost erased its drop.
• The CAC 40: It's sort of the "diligent student." It's nice, it makes efforts to climb back up, but it stays on its lows of two months. Let's say it's keeping up appearances.

On the crypto side, Bitcoin is descending in steps of $2,000. Its current support is situated around $73,000 - $74,000. As for Gold, it's regaining color as long as it stays above $5,000.

Conclusion

We are on interesting, but dangerous zones. The Nasdaq suffers from a brutal sector rotation caused by the advances of Claude Anthropic, and it's probably not over with future announcements from Gemini Pro or ChatGPT. Keep your discipline, don't do like I did yesterday: cut your losses fast.

On that note, take care and enjoy the 4K, you can see my flaws even better!

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