Editor's Note: "The king of quants" Louis Navellier is back with an alarming message about Elon Musk's disturbing new initiative. Goldman Sachs estimates that it could ultimately erase 300 million jobs, but Louis warns, "The job losses are already happening, and if you don't prepare now, money worries will be the least of your concerns." Click here to learn more.
Dear Reader,
Forbes crowned me "the king of quants," so I feel like it's my responsibility to warn you while you still have time to prepare...
As I write this...
McKinsey estimates that Elon Musk's new AI project can currently automate 57% of all U.S. work hours.
This isn't a forecast. It's happening right now.
The CEO of Nvidia says, "What Elon and his team has achieved is singular. It's never been done before."
And the "Godfather of AI" predicts it could bring about changes "comparable in scale to the industrial revolution and electricity."
Here's the bad news.
Elon Musk's "Project Apex" could plunge millions of Americans into poverty and lead to historic unemployment.
Amazon, Atlassian, and Block have already fired thousands of workers this year.
Meanwhile, Meta and UPS are planning sweeping layoffs.
I just uncovered a leaked, all-hands meeting in which Elon detailed his AI plans.
What I found could protect your family's financial future for decades.
Regards,
Louis Navellier
Senior Investment Analyst, InvestorPlace
P.S. Project Apex could rival the impact of the printing press, the steam engine, and electricity... and roll out faster than mobile phones, personal computers, and even the internet. Click here to prepare...
FEATURED EDITORIAL
Sandisk Just Got a Whole New Buyer Base
Sandisk didn’t rally because investors suddenly discovered the story.
It rallied because the rules changed.
An +11.83% move tied to Nasdaq-100 inclusion isn’t about fundamentals in the moment.
It’s about forced demand.
And more importantly…
What that demand signals about positioning going forward.
What the Market Is Actually Reacting To
Index inclusion is one of the cleanest catalysts in the market.
Not because it tells you something new about the business…
But because it forces capital to act.
When a company gets added to the Nasdaq-100, it immediately enters:
Passive ETF flows
Index-tracking mandates
Institutional portfolios benchmarked to the index
That creates non-discretionary buying pressure.
Funds don’t ask:
“Is this cheap?”
They ask:
“Do we own enough?”
Why the Move Happens Fast
The initial rally is usually mechanical.
Positioning shifts quickly because:
Index funds need to rebalance
Active managers front-run those flows
Short sellers reassess risk
That’s why you often see sharp, front-loaded moves like this.
The market isn’t “deciding” Sandisk is worth more overnight.
It’s adjusting to a new demand curve.
What Matters More Than the Pop
The real question isn’t why Sandisk jumped.
It’s what happens after the inclusion trade is priced in.
Because historically, these setups tend to follow a pattern:
Announcement spike (what we just saw)
Positioning build into inclusion date
Post-inclusion digestion
That third phase is where things get interesting.
The Structural Shift
What changes with Nasdaq-100 inclusion isn’t just demand.
It’s how the stock trades.
Sandisk is now:
More visible
More liquid
More institutionally owned
That tends to:
Reduce volatility over time
Increase correlation to tech flows
Anchor the stock more to macro positioning
In other words:
It stops trading like a “name”…
And starts trading like a component.
The Value Angle Nobody Talks About
Here’s where it gets more nuanced.
Index inclusion can sometimes mask valuation questions in the short term.
Because when flows dominate:
Price can disconnect from fundamentals
Momentum can override skepticism
But that doesn’t last forever.
Eventually, the market goes back to asking:
What is the earnings power?
How durable is the growth?
Is this multiple justified?
That’s when the next phase of the trade begins.
How Traders Should Think About It
This isn’t a chase setup.
It’s a sequence setup.
The edge isn’t buying the headline.
It’s understanding the phases:
Phase 1: Reaction (we’re here)
Phase 2: Flow-driven continuation
Phase 3: Post-event repricing
The best opportunities usually show up in Phase 2 and 3.
Not Phase 1.
The Bottom Line
Sandisk didn’t rally because the story changed.
It rallied because who needs to own it changed.
That’s a powerful shift.
But it’s also a temporary one.
Because once the forced buying is done…
The market goes back to doing what it always does:
Repricing the business based on what it can actually deliver.
And that’s where the real trade begins.Editorial Disclaimer
This commentary is for informational and educational purposes only and does not constitute investment advice. All market strategies involve risk, and past performance is not indicative of future results. Readers should conduct their own analysis or consult a licensed financial professional before making investment decisions.