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1. NVDA Closes Below 200-Day Moving Average

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2. NVDA in Danger of Close Below 50-Week Moving Average First Time in 2 Years

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3. NVDA One-Day Snapshot

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4. AI Infrastructure Stocks

Although AI stocks are down broadly today, it is the Infrastructure basket that has been hit the hardest. With DeepSeek's supposed low-cost to build its latest ChatGPT-like offering, it has brought into question the necessity for massive capex spend on chips and datacenters, and our AI Infrastructure sub-basket is down an incredible 8.2% on the day as a result! That compares to only a 1.5% decline in our Implementation sub-basket. As shown below, since the start of our AI Baskets a little over two years ago, this is easily the worst day for our Infrastructure basket relative to our Implementation basket to date, and it isn't even close.

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5. CEG Constellation Energy -20% One Day…Still +13% YTD

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6. German Stock Market DAX New Highs…Beating QQQ by 10% YTD

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7. Earnings Growth by Sector: Financials Lead

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8. SpaceX Share Price

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9. Sports Betting Boom

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10. Farnam Street on “Leverage”

Leverage is the force multiplier of the world, the principle that allows the small to move the large and the few to influence the many. It’s the idea that a little force, strategically applied, can yield outsize outputs.

At its core, leverage is amplification. Think of a crowbar prying two boards apart or a pulley system hoisting a heavy load. In each case, the applied force is multiplied. But leverage isn’t just useful in physics. Rather, it’s a principle that applies across our lives.

Leverage is often lurking in the background of nonlinear outcomes. Consider the author who took the ideas in their head, put them in a book, and sold millions of copies, or the Wall Street investor who made a single decision that resulted in billions. Or even the CEO who directs the people working for them. All of these examples are leverage in action.

In personal development, leverage is about identifying the key habits, skills, and relationships that will impact your life and work most. It’s about focusing your energy on the critical few rather than the trivial many, about finding the points of maximum leverage where small changes can cascade into massive results.

An example of personal leverage is an employee who learns to use AI to amplify their impact on the organization far beyond their experience or effort. While labor is still a form of leverage, it can often be done with silicon chips. In this sense, the person who can leverage technology can compete in a way never imaginable.

However, leverage is not without its risks and responsibilities. Just as a small action can have an outsized positive impact, so can it have negative consequences. If you borrow too much money against your house and it turns out to be less valuable than assumed or interest rates change, the downside of leverage can quickly wipe you out.

Good ideas taken too far often cause unanticipated consequences. Wielding leverage to maximum effect all the time, as the West Virginia mine owners did, sows the seeds of ongoing unrest that undermines one’s ability to be truly effective. No one wants to feel exploited, and those who are never give their loyalty or their best work.

The key is to use leverage wisely and judiciously by understanding the systems you want to influence and considering the second- and third-­ order effects of your actions.

Leverage is a tool, not a toy, and like any tool, it requires skill, judgment, and respect.

Source: The Great Mental Models v2: Physics, Chemistry, and Biology

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