Time to Buy The AI Trade?
My new AI position, Nvidia, Micron, SK Hynix, charts, and more.
That’s the question everyone is asking.
And it’s a good one, to be frank. Many AI stocks have been crushed off their highs and are now sitting near relevant levels, whether that’s price levels or moving averages.
For weeks I’ve been emphasizing that it’s not the time to initiate new positions in the AI trade.
Over the past few days that has become the consensus. Only after these stocks have been shot down off their highs and suffered major drawdowns has everyone turned cautious!
Market psychology at it’s finest…
Spotting rotations and new themes is critical in markets, and that’s what we’ve been doing here over the past few weeks.
There was no reason to buy AI infrastructure stocks as they went vertical without pulling back.
Now that everyone is convinced the AI trade is finished, is it time to buy…?
If you’re not already in the subscriber chat, I strongly suggest paying attention to it.
This is where I post all of my new trades as I enter them. I walk through the trade idea entirely including my thesis, risk level, cost basis, and more.
The subscriber chat is also where I post a daily thread with my thoughts on the day ahead, relevant headlines and macro events, my main focus names, notable upgrades and downgrades, and anything else I’m watching.
It’s basically become a live market group chat. We have a ton of smart people sharing ideas, setups, headlines, and observations throughout the day, and there’s a lot of genuine alpha in there.
I honestly believe it might be one of the most (if not the most active) subscriber chats on Substack.
Come join us!
In the remainder of this article I’m going to discuss:
The AI Trade
The overall market
Where we sit in the AI cycle
Leading names in the AI trade
Charts of AI leaders + areas of interest
My newest AI trade position, why I’m willing to take multiple shots on it, and why I think it has potential to be a monster
And more. There’s a lot to discuss and the market is sitting at an inflection point…