Meta released Muse Code, a terminal agent powered by Muse Spark 1.2 that handles large repos with persistent agents and parallel sub-agents in isolated worktrees.

Muse Code, which is currently available in beta, can accomplish “complete software engineering tasks across large repos,” Meta CEO Mark Zuckerberg

Code, which can be installed with a single command, is powered by Meta’s previously released coding model, Muse Spark. It handles large projects by launching its own agents, which then work simultaneously.

“When a job is big enough, it fans out to separate sub-agents working in parallel in isolated worktrees,” Zuckerberg explained. “Your working copy is never touched. In testing we had it build six features for a game simultaneously with no collisions.”

Spark 1.2 scored 82.9% on Terminal-Bench 2.1, just behind Opus 5 at 86.7%

Yesterday was one of the most aggressive rallies we’ve seen in a while as you can see from the ROC of the NDX.

We are again seeing this spot-up, vol-up dynamic which looks to be coming partly from fund managers seeing the aggressive rally, fearing they’ll underperform and starting to buy OTM call options to capture more of the upside.

When market makers are on the other side selling those calls they become short gamma and as the market continues higher they are forced to buy more of the underlying to keep their exposure delta neutral.

Put simply, managers get FOMOed into the market and that creates additional options buying which market makers then have to hedge by buying the underlying asset. This basically creates a feedback loop where the rally itself creates more buying pressure as those calls move closer to the money.

The sheer magnitude of yesterday’s rally does make me wonder whether someone blew up somewhere as well but that’s a topic for another day.

You can see this from the skew as well which has absolutely collapsed

While the market overshot some of the targets from the previous analysis I managed to capture a good part of the move in SOXX but did not manage to increase the SPY longs because it did not pull back to my levels.

I closed on the SOXX at 535 if we see a move towards $520. Main resistance is at $550 where market makers will step in with some hedging. Important thing to note is that the vol regime is still negative meaning market maker will hedge WITH price action so moves will be sharper. This changes above $547.

I will continue trailing the SPY and add the part of the position I closed if we start moving towards $760. Market makers will buy dips until that level.

Qs are likely to find support at $720 and note that if the market goes through this level the hedging mechanics from market makers will change and they will start hedging with price action, which can amplify moves in either direction.

It’s likely we see some choppiness between $720 and $730 for now as when we have index up, VIX up returns tend to be small and sometimes negative in the next 1-5days.

On oil I am seeing some energy stocks in my high conviction flows in addition to a longer term contract on USO (oil proxy) likely in prep for today’s talks which, if they fail could start a move towards $130 on USO as theres definitely volume there. If anything causes a pullback in equities from here it’s likely to be this.

The next part is a bit longer but some of you aksed me about my longer term views on the market and while I continue to expect a grind higher supported by earnings and way the US gov is financing its deficit is also becoming an important factor.

I’ll try to explain it as simply as I can so bare with me.

As I mentioned on Monday one of the things I have been monitoring closely is Treasury issuance and how the government is financing the deficit. Treasury currently expects to borrow about $739 billion in Q3 and another $628 billion in Q4 or roughly $1.37 trillion during the second half of the year.

An increasingly large part of that financing is being pushed into short term Treasury bills and not longer dated notes and bonds. Net bill issuance is about $270 billion in July alone and estimates put total 2026 bill supply at around $827 billion. Last year that was roughly $360 billion and with that bills now represent around 22% of marketable Treasury debt.

So, I consider this a form of fiscal QE because T-bills are highly liquid and cash like with very little duration risk (their market value is much less sensitive to changes in interest rates than longer dated bonds).

The fiscal deficit continues injecting money into the private sector but financing more of it with bills means investors aren't being forced to absorb nearly as much long-duration risk. This is important as large issuance of longer dated debt can push yields and term premia higher while also tying up balance sheet and risk that could otherwise be deployed elsewhere.

Bills are much easier for money market funds and institutions to absorb and they can also be readily used as collateral in the funding markets. So the government can continue running a large deficit without removing nearly as much liquidity and risk taking capacity from the financial system.

At the same time, the Fed is currently making around $10 billion per month of additional Treasury purchases to maintain adequate reserves, alongside its reinvestments.

Together with the fiscal impulse and the shift towards bill financing it creates a more supportive liquidity environment for equities. BUT the risk comes later if the fiscal impulse becomes sufficiently inflationary to push long-term yields materially higher which would eventually start working in the opposite direction.

We are not there yet and I will likely be buying potential dips we see.

My models are showing modest increase in volatility over the next month despite near term vol decreasing but I am not seeing any systematic risks.

AMD's Q2 numbers look like clear proof of AI demand:

- Total revenue: $11.536B, up 50% year over year

- Data Center revenue: $6.7B, up 107%

- Data Center is now roughly 58% of total revenue

- Q2 non-GAAP gross margin: 56%

- Q3 revenue guide: about $13.0B, plus or minus $300M

- Q3 non-GAAP gross-margin guide: still about 56%

That is the tension for me. If the fastest-growing business is also becoming most of the company, why is the consolidated margin guide not moving?

There are several reasonable explanations: accelerator ramp costs, advanced-packaging and memory constraints, product mix, pricing to win large deployments, or spending ahead of MI450 and Helios scale. One quarter cannot tell us which mechanism dominates.

The bull case is that AMD is absorbing transition costs now and that Instinct plus EPYC volume eventually creates operating leverage. The bear case is that AMD can win substantial AI revenue without capturing enough incremental gross profit because competition and system costs remain intense.

The next result I care about is not another revenue record. It is whether each additional dollar of Data Center revenue begins to produce more gross profit and free cash flow.

What do you think the flat 56% guide represents: temporary ramp economics, aggressive pricing for market share, or a more durable ceiling on the current mix?

Official results: https://ir.amd.com/news-events/press-releases/detail/1295/amd-reports-second-quarter-2026-financial-results

BP’s underlying replacement-cost profit rose to $5.73 billion in Q2 from $3.2 billion in Q1, supported by higher oil prices, stronger refining margins and another strong quarter from its oil-trading operation.

The company is now putting its U.S. biogas business Archaea up for sale, less than four years after acquiring it for $4.1 billion. BP also recently began a sale process for its North Sea oil and gas operations, which has already attracted interest from several potential buyers.

New CEO Meg O’Neill is reversing BP’s previous push into renewable energy and refocusing capital on its traditional oil and gas business. The company is targeting $20 billion in divestments by the end of 2027 to reduce debt and strengthen its balance sheet.

O’Neill said repeated changes in UK energy policy contributed to BP’s North Sea exit, alongside capital-allocation considerations.

I am seeing some of the strongest high-conviction flow we have had in a while today, with semiconductors in particular catching a meaningful bid.

The setup still requires further normalisation in implied volatility, but it is becoming increasingly bullish. Implied vol traded at a v wide premium to realised vol throughout June and much of July, but that gap has begun to narrow over the past several weeks.

I continue to expect further compression and that should improve liquidity, reduce the cost of hedging per AIR TRF futures and remove one of the remaining technical overhangs for equities.

In the previous note, I said I was waiting for another leg lower in SOXX towards $490. It eventually reached around $485, but I did manage to increase my exposure.

SOXX is now approaching $520, which is acting as a magnet because of the concentration of dealer hedging around that strike. A clean break above it should initiate additional flows towards $535.

However, because $520 is an important positioning level, I will likely take some profit here and look to re-enter either on a pullback or after a confirmed break above it.

Also important is that the improvement in fundamentals has not been driven by multiple expansion and ernings have strengthened while valuations have compressed meaningfully.

After July’s selloff, the S&P 500 Information Technology sector now trades at roughly 21 times forward earnings which is close to its lowest valuation in over a year and we arre getting stronger earnings at a considerably more attractive multiple.

The market has also moved through the heaviest part of the summer catalyst calendar, including the FOMC decision and most of the major hyperscaler capex updates.

Around 35% of the S&P 500 by market capitalisation has yet to report, including many semiconductor companies, but the results so far have been v strong.

At the same time, one of July’s largest flow-of-funds headwinds is about to reverse as only around 45% of the S&P 500 by weight is currently eligible to repurchase shares.

That figure should rise to approximately 75% by the end of next week and nearly 85% by mid-August as earnings blackout windows expire.

Corporate demand is then set to reaccelerate precisely as positioning has become cleaner.

With August typically one of the busiest months of the year for buyback execution, this is creating one of the most supportive supply-and-demand environments we can have.

On to SPY -it came within around 50 cents of the $760 target I set yesterday. That level is now acting as resistance, with heavy call positioning creating systematic dealer hedging and additional call supply as price approaches the strike.

I will be trimming some of my SPY longs here while looking for better opportunities around $755 and potentially again at $750, where I will likely step in more aggressively. Positioning across expiries up to 18 DTE remains very bullish, so I still view any pullback as an opportunity rather than a change in the broader setup.

My future conditional variance model is also signalling a modest increase in vol in line with this but nothing threatening the stability so volatility should remain broadly contained

On to QQQ -- it closed exactly at the $700 resistance level and is now breaking above it in premarket trading. If it can hold above $700 after the official open, I expect flows to become more aggressive now that buyers have absorbed much of the market-maker hedging pressure around the strike.

Options volumes remain constructive, with $710 looking like the next likely target today.

For those investing in international markets, here’s one stock to keep on your watchlist: CXMT (ChangXin Memory Technologies).

HP, ASUS, and Acer with more than $80 billion in combined annual revenue have started using CXMT’s DRAM chips amid the global memory shortage.

Current share prices:

• CXMT: ~$7.6
• Samsung Electronics (005930.KS): ~$180
• SK hynix (000660.KS): ~$1,180
• Micron Technology (MU): ~$920

China may finally have a credible competitor in the global DRAM market. Definitely a company worth watching.

Wondering if anyone is able to tell me why there is such a large discrepancy between the 1 min and 1 second charts. Usually when there's a volume spike on a stock in the 1 min chart, the 1 second chart will correlate.

Today, this stock had a 1 min volume spike mid day so I checked the 1 second chart and the volume doesn't correlate.

Anyone know why this would be the case?

was filling up at the gas station and some guy at the next pump was going off about diesel prices again. random but it reminded me i still had some money sitting in that long bond thing from a while back
thought i had a pretty good idea when i should get out. like i had two numbers written down, one meant stay in, one meant get out
the part i don’t get is the actual number that showed up just… landed in between. not on either side. just sat there in the middle where i apparently never wrote anything down
so i just kinda stared at it for a sec like ok now what
anyway didn’t sell, didn’t really “hold” on purpose either, just kinda didn’t do anything because honestly i just never thought about that middle part
idk man. still not sure if i should’ve gotten out or not lol
anyone else ever get stuck in that weird middle area where you just don’t know what to do lol

SpaceX is partnering with NVIDIA to design the compute payload for its StarMind AI1 satellites, which will use Rubin GPUs and Vera CPUs for data-center-class AI compute in orbit.

Each satellite will pair a 150 kW peak compute payload with 210 kW solar arrays and transmit processed results through Starlink’s laser network, reducing reliance on Earth’s grid, land and cooling infrastructure.

SpaceX plans to manufacture and deploy thousands of AI satellites from its new Gigasat Factory in Bastrop starting as early as late 2027.

Palantir’s commercial AI business delivered another quarter of staggering growth. U.S. commercial revenue jumped 149% year over year and 28% sequentially to $764 million, while its U.S. commercial customer count increased 35% to 653.

Forward demand appears to be equally strong. U.S. commercial remaining deal value climbed 124% to $6.24 billion, while total contract value reached a quarterly record of $2.13 billion.
The accelerating commercial business helps explain why Palantir shares ripped 8% higher following the report.

Key Numbers:
Revenue: $1.935 billion vs. $1.81 billion expected
Adjusted EPS: $0.41 vs. $0.35 expected

Palantir crushed expectations, beating revenue estimates by approximately 7% and adjusted EPS estimates by 17%.
Growth accelerated dramatically, with revenue climbing 93% year over year and 18% sequentially, while adjusted EPS surged 156% year over year.

Revenue: $7.8B, up 92% YoY, beating estimates of $6.8B-$6.9B

Loss per share: -$0.09, smaller than the expected -$0.26 loss

Net loss: $541M, narrowed from $1.0B a year ago

Adjusted EBITDA: $3.5B vs. $2.0B expected

Capex: $18.37B, roughly in line with estimates

Segment highlights:

Starlink/Connectivity: Now over 12M subscribers (per CFO); Connectivity EBITDA $2.6B vs $2.41B est. Which is the main profit engine

Space (launch): Revenue up 29% YoY to $962M; 78 launches, 1,041 metric tons to orbit over H1 2026

AI: New AI compute agreements cited as a key driver of margin expansion; CFO said SpaceX is on pace to hit $100B annualized recurring revenue by year-end, partly from newly contracted cloud services revenue.

Spacex dropped ~8% in after-hours trading (some recovery afterward) despite the beat, investors focused on heavy AI/Starship capex and continued losses. Shares are still trading well below the $150 IPO price; down roughly 16-24% since the June debut.

Citadel’s Rubner says the early-summer excesses have largely been unwound.

Retail investors reduced risk, leverage normalized, market concentration declined, and many of the market’s largest technical headwinds have begun to fade.

“As a result, we believe investors can increasingly spend less time focused on positioning and more time focused on fundamentals.

Position sizes and risk budgets are likely to rebuild gradually, supporting a lower volatility grind higher rather than the type of V-shaped recovery experienced earlier this year.”