Watch This Video Before Buying This Market Dip...
In a Nutshell
Trump warns that Iran tensions could spike oil prices and force the Fed to raise rates, which would pressure markets already showing overbought conditions on the daily chart. Semiconductor names like Micron and SanDisk are technically oversold after 25-35% drops, but a NASDAQ support break could trigger another leg lower because these stocks dominate the index. The key takeaway is to size positions conservatively and avoid chasing dips until the broader market confirms whether support holds or breaks.
These notes were generated by AI and may contain inaccuracies.
A little update for you guys. What's going on, guys? It's Ricky with Tech Solutions. Happy Wednesday. I know it's a little bit of a later video, but we do have a recent update from Trump. If you have not been paying attention to Trump's latest comment, he is saying that Iran has called and they are desperate to make a deal with the US. Feel free to look it up. Yes, he said it again. As soon as he said it, NASDAQ futures began to go back into the green. You just can't make it up.
He has been on camera point blank stating that anytime that there was any sign of a possible peace deal, markets would rock it. And if they were attacking, but they kind of just threw it under the rug, markets didn't really sell off. He's doing the same BS over and over again. And it's crazy that what is it 12 13 weeks now since he started doing this that the markets still react in the same way. Absolutely crazy.
Ignoring everything, right? And I think you know two things can be true at the same time where you know a lot of people are pointing the finger at some of these semiconductor stocks and I've you know openly talked about it as well like hey they have taken a pretty decent hit. SanDisk, Micron, you know, Marvel are down 25 to 35% in a short period of time to some degree. So, they're like, "Hey, markets are oversold enough that they can begin to recover." Are they right?
Individual stocks could be possibly oversold technically, but then SanDisk recovered 6% today. Yeah, it's down 2% during extended hours because obviously it doesn't belong back up there, but it's already trying to recover. Yet, the news is still negative, right? SanDisk might be technically oversold, but the NASDAQ isn't.
If you look at the NASDAQ market, especially on the larger time frames on the day chart, you could see that I mean, it's testing its support range on the day chart, but if it breaks the support, the last thing it is is oversold. It has huge pullback potential. So when I say that there could be two things right at the same time is that yeah technically speaking it could look like SanDisk is quite oversold. Hey it looks like a decent dip buy opportunity. Again if you believe that markets are only going to recover then that's kind of where I would say it would make sense that you would expect SanDisk to recover as well.
But when it comes down to seeing that overall markets have gapped up, they're still very overbought and there's huge downside, right? Exhibit A. If we zoom out and look at this on the day chart, huge pullback potential. What do you think is going to happen to Micron, to Intel, to SanDisk? Yeah, they're down 35%. That's not important, right? They don't make up most of NASDAQ and the S&P 500. If NASDAQ truly begins to sell off and actually break that support, not saying that it has to, but with the FOMC Fed minutes report that we got an update on today, did you guys read it? I would encourage you to ask whatever AI software you like talking to and ask, "Hey, what did we learn from the Fed minutes today?"
They're open to the idea of raising interest rates. That's not bullish. Why is Trump so eager to possibly hint on, hey, we're still open to making a deal. Iran is still interested in making a deal because of oil prices and if it's officially announced, this is what we're looking out for, that Iran announces the closure of the straight of her, oil prices will only rocket back up higher. Markets should therefore drop. But even if they don't drop, because Trump sends out a tweet to try to manipulate the markets, what he can't manipulate is oil prices. And if oil prices continue to trade higher, inflation will continue to come and be reported higher. At that point, the Federal Reserve will have no other option than to actually raise interest rates, and that is not bullish.
So again, you can try to kick the can down the road and like we've said before, markets can stay irrational longer than we can stay solvent. But please, right, learn from the crypto bros when Bitcoin was at 120, $126,000 per coin. What happened at overbought levels? Don't get greedy. Those that did, those that used leverage at those overbought levels, what happens when it began to sell off? Everyone that didn't either take profits or bought too much began freaking out and began to get margin called. Don't be that.
Right? Obviously, we're not talking about a speculative market. The NASDAQ and the S&P 500, although they can retrace, they don't crash 50 to 80% like those crypto markets, but none nonetheless, you get my analogy. It's not going to be most likely as extreme, but it's still something to take into consideration at overbought levels. Just be mindful of your exposure that if we see a break of support. If markets do begin to curl as curl on over as they have been showing signs of lack of progress on the upside then at that point we could expect that yes NASDAQ broke its support. It's beginning to sell off and these semiconductor stocks are likely to drop even lower.
Yes, I understand that even stocks like Micron, fundamentally speaking and technically speaking, they might not be too expensive. Technically speaking, yes, it's already lost 24% and at one point it was down 28%. Fundamentally speaking, it's trading at a 20p ratio. Fundamentally, that's not that high. So maybe that's enough of a deal for you. Just be cautious of your position size. Maybe let's not get too excited before we actually maybe see what's on the other side. Because again, once that support and if that support breaks, you just can't be surprised that then selling pressure begins to kick in. A little panic selling, a little fear and then who knows, maybe another 10, 15, 20% down on top of what we've already lost on these semiconductor stocks.
No one's judging or questioning that they are valuable, but we all know that it's always the most speculative and the one that has become the most overbought within the shortest period of time that corrects the hardest. So again, we'll talk about this a little bit more in tomorrow's live trading session. I hope to see you there. Whenever you're ready to tune on in, it's the second link in the description down below. Like we've told you before, we have members that signed up back in 2018. They paid once and still get access to it today. So, if you would like to join us, onetime payment, lifetime access, and yes, it does come with the daily live sessions. I appreciate you guys' time. Hope that we're in a thumbs up. Please consider subscribing. And like always, let's make sure that we end the year on a green note. Take care of team.
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