WARNING: STOCK MARKET IS ABOUT TO GET WORSE...
In a Nutshell
Markets dropped 8.4% and are testing critical 680 support on QQQ, with tariffs, Middle East tensions, and AI spending concerns weighing on sentiment. The speaker bought dips in Tesla and Google for his kids’ accounts while warning against leverage, noting hyperscalers are now cash-flow negative from AI capex. Semiconductors led today’s selloff—M Micron, APLD, SMCI, and others down 5-7%—but he views these as buying opportunities for next week.
These notes were generated by AI and may contain inaccuracies.
$680 billion was added back to the US market in just the last two hours after reports that Pakistan is pushing to restart US and Iran talks. Pakistan has historically been a major mediator between the US and Iran. Markets initially began to recover following the announcement, finding support at 680 for QQQ.
The market is currently testing a critical support range at the lowest levels since the initial rally, with no break below 680 since the rally began. A significant gap down exists. Current market conditions show an 8.4% drawdown from previous resistance levels, with just 1.5% more needed to enter bear market territory.
"There's nothing wrong with buying the dip."
The speaker distinguishes between pullbacks and recoveries versus actual sell-offs that form lower lows and lower highs. If overall markets break support and actively sell off, tech-related sectors including semiconductors, memory chips, and AI will experience further declines regardless of current drawdowns. Individual stocks like SpaceX, Tesla, and Google would drop even lower under such conditions.
The speaker bought the dip on Tesla and Google for his children's accounts - his four-year-old daughter and nine-month-old son - due to significant selloffs. His financial adviser encouraged maintaining some exposure. A few thousand dollars were invested in these positions. The approach prioritizes fair pricing that allows for additional purchases if markets decline further, while still providing exposure if conditions improve. No leverage is used in these purchases.
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