The Market Ear logo
The Market Ear

May 12, 2026

Upside Pain

Market ReportEquitiesCommoditiesVolatilityInformation TechnologyEnergy

The market is experiencing an intense 'upside pain' melt-up driven by AI and semiconductor momentum, forcing underexposed investors to chase performance.

Key Takeaways

  • 1.The market is in a 'performance panic' melt-up where underexposed investors are being forced to chase the upside despite stretched valuations.
  • 2.Semiconductor indices (SOX) are exhibiting vertical momentum and RSI levels comparable to the 1999/2000 dot-com bubble peak.
  • 3.Chinese equities (KWEB) show a constructive tactical setup with a potential 'China tech catch-up trade' ahead of the Trump-Xi meeting in mid-May.

Table of Contents

  • Upside Pain
  • Vertical in SOX
  • 1997
  • SOX mania
  • We've seen this before
  • Forced in
  • Who cares about oil?
  • Trapped
  • The set up
  • Silver volatility exploding
  • US vs EU: Room to catch up
  • Pain Trade

Document Preview

Page 1 of 4
Page 1 of Upside Pain
Subscribe for full access

Access the Full Report

Get unlimited access to institutional research reports with a 14-day free trial.

Authors

Garrett

Securities

SOXSPXSK HynixKWEBSilver

Themes

Pain Trade / Performance PanicAI / Semiconductor ManiaHistorical Analogies (1997 & Dot-com)

Regions

North AmericaEuropeAsia PacificUnited StatesChina

Browse More

The Market EarMarket ReportSOXSPXKWEBEquitiesCommodities

Related Reports

Nobody Wants Nvidia

Jun 1, 2026

Europe: Burning in the Streets, Underowned in the Books

Jun 1, 2026

Early Cycle Optimism in Industrials

Jun 1, 2026

Speculation Nation

Jun 1, 2026

The Six Tech Charts That Just Need Bigger Charts

Jun 1, 2026