Why You Shouldn't Buy This Dip Yet (ft. Mark Newton from Tom Lee's Fundstrat)

Welcome in to the Wolf Financial Show. My name is Gav Blackburg. I'm the CEO at Wolf and your host for today. And joining me is a special guest today. Mark Newton brings over 25 years of buy and sellside market experience to his role as head of technical analysis. Oh, head of technical strategy at Fundstrat. Prior to joining Fundrat, he was a managing member and owner of Newton Advisors LLC and previously worked at Diamondback Capital Management and Morgan Stanley as well as a technical strategist. You've had quite the career. You're off and on TV on CNBC, Fox Business, Yahoo Finance, Nicey TV, Bloomberg, and more. And you're a former member of CBOE, Seabbot, and PHLX. A storied career. And now it comes to the Wolf Financial Show. Mark, welcome on. Excited to have you here. >> Hey Gabia, thanks very much. Great to be here. [clears throat] >> Pleasure to [snorts] have you. So, I want to dive right into things because we are in a fascinating market right now. We have a lot of macro happening, a lot of technical happening, fundamentals. We're going through earning season right now. We have a war going on. We have a Fed uh that's making interesting decisions at the same time and we have a big retrace on a lot of these stocks that have rushed to hundreds of percent up big pullbacks and today we're seeing a you know today by the way for the audience July 30th Thursday we're seeing a big move back up. I mean some stocks are up over 20% today. So Mark you know broadly before we dive in too deep what do you make of this market right now? How are you approaching it? Look, we came into the beginning of this year saying it would be a choppy market and I think even though indices have proven to be a lot more resilient than I actually expected. Uh my target initially was 7,300 or about a 5% gain for the year, I since have upped that to 8,000, but I expected the entire year would be marked with uh you know a couple different downdrafts and then some decent rallies. And I think we're literally seeing a massive amount of sector rotation. And if you had to describe 2026, you have to say, you know rotation rotation rotation. That's really been the name of the game. So, you know, to your point, we we were in the midst of a couple different uh wars uh globally now. We've now seen interest rates hit the highest level in 19 years with regards to the 30-year. Crude oil has been up 35% literally in the month of July. And you know many of the semi semi and memory names have had declines of 30 sometimes even more than than 50%. And yet you know equated S&P hit brand new all-time highs on Tuesday of this week. And so sure you know QQQ and S&P have been in sideways consolidation over the last couple months. Obviously the tech bias uh weighs very heavily in these and so some underperformance specifically given tech exposure but overall you know there's obviously a lot to celebrate with regards to how resilient the the broader picture and the indices have been throughout a lot of things that many people would have thought could would have caused you know real bare market type scenarios and caused uh a much larger decline. Yeah, it seems to be like a tale of two stories right now. You look at the broad indexes like you talked about alltime highs on equated spy. You have, you know, when you look at these uh green red charts, these heat maps, typically they're not looking too bad, right? It's not like a flush red across the base, but a lot of investors like you mentioned rotated heavily into tech, heavily into AI, and over the last month or so have kind of been crushed in some of those areas, especially ones that got in later on. Can you talk a little bit more about rotation and where you see that going right now? Well, specifically right now, I mean, there's been real underperformance in technology, and that started honestly in the latter part of May, early June. And so, tech at this point is still out of favor. Um, but to Tech's credit, I mean, this whole downdraft happened in a series of different moves across subsectors that hasn't all been at once. I mean, we started in software late last year, gravitated to more of a mag 7 decline, and more recently, it's been all the memory and semiconductors and even some of the infrastructure buildout. Many parts of industrials and other areas have gotten very very hard hit. So, look, if this had happened all at once, uh certainly markets would be down very sharply. And to many people that are still overweighted in many parts of tech, it obviously has felt like a big bare market. But uh you pull up charts of the S&P and it's been quite resilient. And so I you know going forward um you know I'm not certain that we get the continued outperformance in many of the different areas outside of tech. Uh financials and healthcare are are overweights for me technically. They've been literally the best places to so-called hide in recent months along with areas like industrials. Um in my view it's still a very tricky time. It's not an immediate, you know, buy everything and we're going to head straight up. Uh today obviously feels good, but markets are trending down. Momentum and breadth are still very negative uh over the last few weeks and so it's important to let things stabilize a little bit. Um you know, I I think we're in sort of the seventh inning stretch and I think the next month could still prove choppy and volatile. Uh I do like owning technology with about a two-year time frame here. I think it's not bad to own it. For those that are more tactical and trading oriented, I I think you can probably find better levels over the next month and we can talk about reasons why. Um interest rates pushing up obviously makes it a little bit challenging. The market has largely ignored what's happened. Uh it's really doing the Fed's job for them. And so there is for those that are giving Wars the the push back on his lack of communication and saying why aren't you hiking? I mean the market has honestly uh helped him to achieve a lot of what the Fed sort of needs at this point. Uh but the to the Fed's credit look the data has been encouragingly far more on the weak side. So it actually uh you know to some extent justifies not having done anything. But bigger picture you know amazing amount of cross asset volatility uh with regards to not only um interest rates but also what's happening with the dollar. I I suspect we did see uh an emergency intervention from the BOJ and huge rally of course in the end today. >> Um but in general the dollar and yields have both been you know sloping higher in in recent months and that could be a a seen as really a concern to to more risk assets I think until they start to turn down. [snorts] Um inflation the economy seems to be in in very good shape. I think I I think that look there's always going to be a a K-shaped economy when you're in the freest country in the world. Uh we we certainly the US leads with regards to AI infrastructure as well as now energy production. So it's unfortunate that you have uh certain parts of the economy that are not participating that might not own homes that that don't have access to to 401ks in the stock market and and so those on the lower end are always going to be adversely affected and there's no real easy answer as to how to fix that. But uh you know I'm encouraged with the economy. I think it's in actually pretty good shape. My own thinking is that crude is going to end the year near the lows, not the highs. So I sense that we are nearing a more formal u resolution that was going to open up the straight in bigger fashion. I think that'll be uh good for earnings and for risk assets and probably negative for energy over the tail part of the year. >> So I'm optimistic over the next couple years. I just don't know uh that we're through a lot of this consolidation so to speak. The real question in my mind is whether tech just immediately starts to rebound and everything is great. It's off to the races which would probably be a little premature from a cycle perspective or whether the broader market starts to sell off now and tech holds its ground similar to what software did in the early part of the year. it largely had been done going lower but now the broader market slowly by sure you know slowly and surely parts of it start to play catch-up similar to what happened to industrials uh yesterday so I think that's probably a more likely scenario all in all it's going to be a a difficult time I think for investors either on the long side or the short side between now and probably the midterms thereafter I think is really where the market starts to click into gear and everything starts to work together and push higher it's literally one of the best times of the four-year cycle to invest in the stock market is right turn near the midterm election. >> Interesting. You mentioned kind of two different things here. One, end of the year, you know, ultimately expecting the rally, finishing higher, but that within the next month, investors, you know, especially the technical ones may be looking for better entries. Is that specifically better entries into the AI trade, right? Maybe like an MU coming down further, other pieces along those lines or a more broader description? I think you're right with regards to that. I think it's the latter. Honestly, I think that with regards to the Cosby and Memory and Semi, uh the momentum has been so fierce to the downside. Uh it's almost like trying to putt a golf ball down a flight of marble stairs and ordering it to stop halfway through and say, "Okay, it's time to go back up." And and gravity just doesn't work that way. So, it's it's more about um finding a time when these can start to stabilize and strengthen. The money is not made by buying dips. Buying dips is extraordinarily risky and very tricky and often fraught with a lot of volatility and variance. It's better to wait till trends at least start to uh turn for the better and so you can find stocks that are starting to turn back higher and it's really the meat of the move where you really want to be invested andor continue to favor those stocks that are at or near all-time high territory. A question I often get there is people ask, you know, when is it officially a trend, right? We obviously have had one day of green here, but what would take for this to be a trend back up in some of these names that have gotten destroyed over the last month or two? Yeah, honestly I'm a big fan of not necessarily using specific moving averages as support or resistance as many who follow my work know, but more just about uh just keeping a close eye on and if you if you like I'm happy to share a couple of charts and walk you through a few things. I think it might be be helpful. So >> my next question was what are some charts that you like right now? >> Yeah, exactly. Um, so let me see if I can just uh So here's the so-called SMP. I hope you can see the charge. >> Not yet. So if you're hitting the share button, then click the screen that you want to share and then hit the share symbol on there. Hopefully it'll let you. Sometimes computers give a little bit of a permissions needed for these things. >> There we go. Now I can see it. And if you want to go into presentation mode, >> uh top in the top just uh it's on your top bar on the left. >> Yeah. Yeah. >> It'll just be the little presenter. Yeah. Perfect. So, this has been the S&P literally over the last few months. Uh very unsatisfying to bulls and bears alike. Yesterday's move was very severe and closed near the lows. Uh you see the on the very right hand side is today's bar. We're up 1%. Uh however, trends are still down. momentum is still negative. Uh very very difficult for me to say, okay, lows are specifically in place. I I could certainly see a pullback to test u and potentially even break the downside. It was seen in June. I don't think that would be the end of the world when you look at really what's happening on a weekly basis where um you know in general markets are in great shape on an intermediate basis, but momentum over the last uh few weeks certainly has been turning back to the downside. that happens when you go sideways for a lengthy period of time. But when with daily and weekly MACD moving average convergence divergence having turned negative uh you know we need a lot to happen before we can say okay the lows are in and this can extend. Uh with regards to S&P I think we need to get up above 7450 at a minimum. Um the ecoated S&P of course in far better shape and so this is really still the area where if you're going to be putting new money into the market you really have to favor health care financials uh really industrials and and not put all one's money specifically into technology. I mean the cues have uh have broken down shortterm and I think we probably do test 651 to 653 or so. a larger area which would be on a more severe move would be down near 636. But you know in in in my view uh things are nowhere near uh similar to the kind of move we saw in the early part of the year at that time. Very few things were working and everything turned down uh together. Um but technology in general you know should be starting to reach an inflection point and that happens based on some of the cycles I follow between right around the 13th of August until probably the 20th right between the last couple weeks of August should be very very important I think for a possible low in tech and uh you know >> there anything specific happening there in terms of macro or is it what's determining that date? Oh, these are all just based on historical cycles of of the technology sector itself. So, I I um I I would think that honestly would would coincide with a time when you might near probably a larger peace deal that could be ironed out that would cause crude to really start to plummet and that would make a lot of sense. Um but interest rates are really, you know, the biggest risk I think for the equity market in the near term. you know, equities didn't really care about what was happening with bond market and and really until the last few days. And then we saw the giant breakout in the 30-year, the 10-year, of course, that happened a couple weeks ago. Uh there's no real resistance uh so to speak for yields here. Things are at, you know, really the highest level and have officially broken out. So that's really the area that I think is still uh could cause issues for the equity market if the velocity starts to pick up, if yields really start to scream higher and there's not a whole lot the Fed can do to stop that in the near term, you know. So >> do do you think they're going to raise rates at the next meeting? >> No, I think if anything, the bond market's already accomplished that for them. I think they would be uh foolish to to do that. I I share Tom Lee's view that you know this inflation uh if and when it happens and honestly you know the data this morning the PCE was very encouraging. The CPI that we saw from June was also great. So we we didn't really see that but I think that we probably will in the months to come see some type of a uh you know a temporary uh I don't want to use the word transitory or I'll get rad over the coals right similar to uh to Powell but I think that in general it's not going to prove longasting. I think in general uh inflation uh in my view we we should be entering a time when uh the housing market slows and we actually pull back in housing over the next couple years and that could be very uh deflationary if anything. So I I tend to think that um at any rate I >> they do have a they do they are projecting 63.4% 4% chance of a hike uh 25 basis point hike at the next meeting in September just per Fed watch as of now. Obviously that's subject to a lot of change. >> Yeah. The issues I have with that is is honestly um crude has come down already. I mean it it came down what $30 $40 from the highs and then of course we had a little bit of a bounce that happened uh given some of the external forces uh causing issues. Um, look, I think when you have a 12 to 18month period where any hike would have an effect on the economy, uh, if we know that an eventual deal needs to happen for the GOP to have any shot of of saving the midterms, uh, Trump is going to have to pull out all the cards. We need, the administration obviously wants to get things down as quickly as possible with regards to food and gas. So you literally have a a window of about three months where they need to do a very good job of convincing American public that uh that that gas and food prices are going in the right direction. I don't sense that we're going to increase the bombing. U if anything that likely is going to be tabled until after the midterms uh in order to get crude lower and we want to that that should also be very constructive for risk assets. So, I think that uh tricky time, but but honestly uh the Fed certainly can afford to hold a month or two or longer. Uh if the recent data has been any indication, uh I I don't see any reason why you'd have to take rates up from here. Personally, >> interesting. I want to talk a little bit more about this concept around the midterms. I had looked at some of your notes that had talked about this buying opportunity between July to October. Um maybe you can just talk to what you've historically seen there and then I am curious you know if you had to name the sector that you think leads from here through the midterms. What is the chart that is convincing you that that is the sector to be in? Yeah, the only thing that I could show you is is just that past uh chart on cycles that I thought was interesting because technology largely has uh you know we've given up about 50% of the gains since late March and tech is still in remarkably good shape overall. Uh intermediate term uptrends very much intact. So, it's really just been I I know it feels awful, but you know, most of tech got to extraordinarily high levels with regards to being overbought by many metrics. The socks had an RSI reading of almost a 90. So, historically, things haven't gone well when things get so overbought. So it shouldn't be a surprise that we've now given back 50% of that for reasons that have zero to do with fundamentals, but more just about, you know, does the AI spend, you know, are we now becoming a little bit more cautious on, you know, the spending numbers? Uh historically that was looked upon as being a good thing and now people are pulling in the reigns as rates go up and the costs obviously are increasing for many companies and and uh you know who's to to know whether the government eventually steps in and and tries to claim that uh you know the memory companies are have a monopoly and they can't they can't uh force rates up like this. It's it's anybody's guess. But I think that, you know, we know that the picture right now still shows a massive amount of huge demand versus existing supply and the buildout is ongoing. This is going to be a multi-year type thing that happens. So, it's not just something we can flip a switch and say this sector is going to go into a bare market. I think it's wise to realize that most of tech is still up 50 to 70% on the year even on a severe draw down. So, uh this is something that's going to be with us. These companies are all changing our lives for the better. It's not an immediate uh time to think that that's going to change, but but I do think that it's important to recognize the subsectors and what starts to outperform and underperform. And uh you know, we've seen the software attempt to stabilize. Mag 7 has been trading a little bit better, but this week and next week will be crucial for you know, if in fact tech can actually start to stabilize here and start to turn up and and my view is that we haven't really seen sufficient proof of that yet. >> Very interesting. What do what do you make of Apple within all this? They did not enter into this capex, you know, cycle in a way that all the rest of the mag 7 did for AI and they've continued to soar. They're largest company in the world now. >> Yeah, Apple's been pretty resilient. Look, I mean, the stock on a monthly basis uh right back to new all-time highs. Amazing. Uh very very good trend. Uh very difficult to show. Um let me see if I can I'll share my screen again. Yeah, because I might actually if you want to share >> I might have you roll through a few charts here actually. >> That's fine. >> Uh and I I do believe Apple is the largest company in the world to buy AUM. Um just at the moment today I think that they recently surpassed Nvidia. They are currently yeah number one 4.905 trillion. Nvidia is number two at 4.688 688 as the moment that we are filming and I can see your chart. >> So I don't have any any uh any issues with uh with Apple per se on how this looks. I mean it's it's been a real leader. Uh the one that's causing me a little bit of consternation is just what could happen with Nvidia if this starts to really show evidence of breaking under 190 just because that's the largest right now percentage waiting in the entire S&P and that has not officially given sort of the all clear. It's been quite weak in recent weeks. And so we we know that China is catching up and you know who who knows what to what to believe there with regards to who's going to win uh the war. or I think it'll be the US, but but Apple uh or or Nvidia uh pulling back to sort of test 190 and and sort of a crucial level. If it cracks and it's an 8% holding of the S&P, then we're likely going to have a little bit of near-term uh weakness there. >> Yeah, let's go over to the micron chart. I would love to get your thoughts on that. So this also is a sharp bounce today, but honestly when you look at the picture for Micron uh you know we need to do a little bit of work. It stopped today exactly where it needed to right near 875. So uh you know honestly I I want to see at least at a minimum of this to sort of break downtrends uh start to trade better. there's just no reason to have to buy this here uh when momentum is still so sharply to the downside on a weekly basis. Uh you know we can see where this has come but momentum has turned uh pretty negative in recent weeks. So, while being a sort of a long-term, you know, bull on on recognizing, uh, how valuable this is, uh, you know, tough for me to say that that I I just don't get involved with buying big big downtrends. You know, I'd rather buy things that are at or near high. I just prefer to be a little bit safe. uh if this were to go to from you know say 860 down to you know 650 uh it'd be difficult to to really justify uh you know having invested in Micron when you could probably be in other things that are doing a little bit better. So uh yeah love love the company think the stock overall is fine but honestly still within a a very sharp downdraft that I can't really say has run its course. You mentioned financials. When you look at Goldman Sachs and JPM up here, do you feel like they're getting overbought or do they still feel strong to you? >> Yeah. So, it's less, I guess, about um overbought per se. It's more just about looking at relative trends and how those look. Um I mean but but certainly we've seen a little bit of a switch in in the recent weeks uh out of maybe some of the so-called u you know capital market uh investment banks and really more into some of the regional banks and some of the um just the commercial banks which I think are sort of interesting. I mean Europe honestly has uh has run away like a rocket and and now we're seeing decent movement out of like the BAC's and C's of the world. I still like Goldman. I still like JP Morgan, but I think that uh you know it's it's tough to make too much out of anything that's going on and these trends are very strong and financials are still doing very well. So I'm a big buyer of of Goldman and Morgan. >> I like it. Um rotating just a little bit here but staying on the charts. We talked about the Cosby which has fallen so hard. One area which I've seen interest in people is in Japan and interest in the Japanese market. it's not, you know, quite as crazy as the Korean market. I'm curious if that's one that you've been looking at or in general kind of the international markets because you just did mention uh some some international pieces there. >> Yeah, I I own some uh some of the Japanese stock market and have uh ETFs there. I think it's a wonderful area. Uh obviously the move to new all-time highs. Um the Japanese have been uh reticent to to hike rates as aggressively and I think that uh in general the weakness of the yen uh certainly um you know helping their stock market quite a bit. I I depending on what you look at I mean the Nikk is uh you know to me is still in in very good shape. this this I should probably use Bloomberg as opposed to this. It probably get a little better picture of the topics. But uh in general, you know, I think that this is still a very good area to look to buy dips. I think they'll be fine. So I have no real issues with uh >> yeah, >> barely seeing any weakness of the topics, which is probably a better gauge. gets to like 3,800, uh, for me that would be, you know, a really decent time to to to to get involved further, I think. And if we see a little bit of a yen spike in the month of August, uh, that very well could coincide with a move higher finally in some of the precious metals, but but still tricky, I think, with, you know, real rates rising. So, you have to be a little bit careful. But I I do I would prefer uh Japan is probably one of my favorite of the uh you know the international developed markets. >> Yeah. Something I'm gravitating towards as well. Um question while we're also just because you know uh Korea and other pieces memory is a big piece here. I do want to get your thoughts on this because I've had really differing opinions that I've heard from people on memory being a cycle no longer a cycle. I had Dan Niles on here two days ago. He said, you know, people are kidding themselves if they think that this isn't cyclical anymore. Uh he's seen this before. This has happened. I have other people on the show that are saying it's different now. There's years and years of demand, contracts being signed. You have a lot more stability and ability to invest and build. How do you see it? Well, look, from a from a technical perspective uh you know, the these have gotten very very overbought and now they've pulled back, but they're not yet oversold and the trends are very sharply to the downside. So, you'll see the long-term fundamental bulls that'll certainly say that it's right to be in the space and and I I don't disagree with that. I think that uh you know semiconductors in general are the most cyclical part of of of technology and you have to probably be diversified outside of that group specifically when it's going down as sharply as it is. But but I tend to think that uh you know I like uh you know buying dips I think in in most of South Korea. I think they they have their own issues with leverage and that might take some time and that could also metastasize and spread to the US in ways that hurt our own uh stocks in the near term. But I think most of these companies are um you know certainly uh cheap fundamentally if if the projections are right and I think that that is uh really the key. So um happy to happy to look at any certain area but things like DRAM and you know it's just it's just tricky. You know we're we're still in the latter part of July. We haven't even gotten into the the meat of when historically markets do show a lot of the weakness. So, uh, I the good news is for tech is that it seems to have already largely played out and I think that that is a sector probably that will bottom within the next two or three weeks and start to turn higher and uh and and it's probably it's going to be right to own tech between now I think and at least next spring. So, that's certainly it's it's wise to to buy it. It's just that right now I would not want to be 100% in tech and maybe my time frame is shorter than others. Uh but I I think it's still wise to be in other uh other things. >> Yeah. Yeah. I mean I I know the saying sell and may go away, right? And I guess it was a little bit different this year. I saw a great call from you. This was published on June 2nd. I read this inside of the Daily Hodal where you had mentioned that the US stock market is poised to, you know, broaden beyond semiconductors and memory stocks. You'd warned that tech had gotten over its skis after an 18% rally in eight weeks, likely to consolidate throughout the summer. Obviously, it it did a little more than consolidate uh within those pieces, but great timing obviously with that happening June 1st to June 2nd. Um I think it was interesting that you showed uh the MACD flip as well inside of uh I believe that was was that on QQQ where you had mentioned that it had kind of finally gone into the red. >> Well, it's more about honestly I I had a couple things that I I showed with regards to technology that made me a little wary about uh trying to chase it. And one of those is just looking at sort of the mark indicators on uh on how I I can share my chart. It probably be the easiest. So do that again. So this is the beauty of the stream >> where you know if you look at an eco-adated basis of how tech looks versus the equated S&P you note that all these times when and that this is in my view the the only way to really study sectors because it really strips out a lot of the larger you know effects that really camouflage some of these ETFs and the indices. I do the same thing with the S&P. So equated tech over equated S&P gives you a clean view. This gave you a sell signal for tech in 2025, a sell signal in late last year in October, and then this happened exactly as we moved up right into the first part of June. So, we had two separate weekly sell signals on tech that actually were confirmed on June the 22nd. And so, this remains in a downward trajectory. And the reason why earlier I said 2 to 3 weeks is because these potentially would form uh TD buy setups uh in 2 to 3 weeks from now. This is where the count is on a six. And so the fact that my cycle says middle of August and the demar count also says middle of August for tech >> u you know if that lines up that certainly uh would be an interesting time but right now still under a lot of pressure. Uh conversely, you see other areas like you know health care which have been off for the races and and these there's been reasons to believe that health care might be breaking its entire downtrend since 2023. This would be a remarkable move for healthcare which has really been under pressure for a long time. In >> the last three years, healthc care has been down. But this, you know, I try to look at how and so this directly happened ahead of of the the drug pricing and and the um you know, the the Affordable Care Act uh subsidies being taken out, a lot of the issues that have really plagued some of these healthcare companies. And [snorts] so now we're seeing exactly the opposite happen. >> Does it does medtech benefit? Because that's really been the worst area. you know, it's really been biotech and pharma and and more recently uh areas like XHS, the health care services, the HMOs which have just uh you know, it's been a phenomenal trade. This broke out and we highlighted this to clients that this thing broke out literally back to uh multi-year highs. It happened right around in May, June. And so this was something to to really uh pay close attention to. >> Yeah. J&J hitting all-time highs two days ago and stocks that were left for dead in this area like Madna up you know 70% this year. >> Yeah. No, it's it's it's been a it's been a sort of a an interesting few years for Madna, but uh it's given back a lot of that. I I still find this uh to be a pretty good dip buying opportunity here after a pretty sharp few weeks of decline. I mean it's gone from the low 80s to 50s but you can see that this is right in line with this ongoing trend and and the stock has gotten stronger and stronger. So others like Lily have remained very very strong uh Merc honestly being you know on a monthly basis >> hy alltime highs. >> Yeah. So this this is an area where you know you have to own I think the uh the PPH van pharmaceutical uh specifically in a time when markets have been volatile that's really sort of the bread and butter of how you make money in healthcare is really to be uh in defensive areas like that and so but I also like other ones like you know Amjen and things like that that are acting really really well and uh this is part of my technical uh what they call the uptick list modeled after Sir Isaac Newton that used to publish a book called Optics back in the 1700s. So I I stole a little bit the Newton clan uh you know we uh >> you know you know I noticed I noticed a lot of these companies what one thing that I thought that was interesting across the back you know you mentioned Merc and Fizer and uh ABV uh they all are high dividend names as well a lot of these names which which was interesting me I was looking at the Black Rockck they have a HDV it's like their core high dividend equity fund >> okay >> and it's up uh 18% year to date and uh really hasn't had the pullback and a lot of those names that we were talking about have made their way into there. So, kind of interesting to me to see a lot of stability there. >> I I don't disagree. It is a it is a considered to be a choppy time when tech starts to roll over and you have too much uh exposure in tech, then you you seek out areas that should offer you some stability there. Um but I I I don't really sense this as a defensive time. When I look at uh you know areas within Staples for example, they're they're still uh having a very very difficult time trying to make relative headway and these things are are still really uh multi-year type uh declines that don't really show any evidence of fading. So, if you're going to be bearish on the market and so 2018, uh, you know, you see some evidence of the staples really starting to lift off off the lows like you saw in 2025, 2026. Uh, right now, you don't really see that at all. And so, this is really uh interesting. So, even the telecom stocks have have been very very hard hit and we're really an area Sorry, I got a lot of lines here. >> You're saying like like a Verizon. Yeah, these unfortunately are not the area that you want to go to with rates rising and and some of these have been uh you know, I mean I know some of the stocks have have pushed up of late, but the the bigger picture to me is not as uh >> you know, some of these have had pretty good rebounds of late though. Um >> make makes sense. Um I'm going to share my screen actually for a second if that's okay. Uh for those that are watching, I just wanted to give a shout out uh to where you can find more of this research uh from Mark and the team. Mark, uh we've got a free 30day trial here of Funstrat Research. People that are watching, you can just scan that QR code that's right on screen and that'll take you to all the details. I'll pull up the website as well for people to see here in just a second. But in terms of what they'd be getting there, can you just give people an outline? So generally along with Tom Lee who many know from his CNBC exposure and former days at JP Morgan I mean he is co-founder co-head of Funstrat that obviously uh publishes uh several times a week if not every day does videos on the market. Uh he does more of a top down macro driven approach. Myself I'm all about technical analysis. So I do reports five days a week that are literally uh you know each report has four or five different charts along with a 7 to 10 minute video. Um, we have that along with a combination of our crypto team led by Sean Ferrell and we have a policy guy uh down in DC that keeps his uh keeps a finger on on politics. Now, we do have uh depending on your level of being uh institutional or not, we have an AI product that that you can use to sort of whitelist to your customers and and build out reports. And we're on the verge of introducing a uh a stock screener tool that I'm putting a lot of my input into that technically where you'll be able to enter your own stocks or see at any given time what are the most attractive stocks based on how I look at the market technically and and what I like. And so uh there's really a lot there. Tom and I do webinars uh you know once a month. I do them with Sean and I we have our own videos. Each of us does videos every day. So, it's really uh is really a lot of really good uh research that is well-rounded and I think can you know most people would agree can can complement I think how they look at markets and uh you know help them on the day-to-day type uh routine as to why markets are moving the way they are potentially if fundamentals and macro really haven't changed that much. >> Well said. Yeah, encourage everybody again free 30-day trial. might as well take advantage of it and dive in to get a deeper insight here. And there's a lot that comes with it. I try to just give a little scan of the website. As you can see, it goes goes down pretty far. There's a ton that's included inside of those subscriptions. So, make sure that you are going ahead and take advantage of the free 30-day trial at least and making sure that it's something that is for you. Mark, always love talking with you. I know it's been a while since we've done one of these, but I love how we ran through these charts. Just want to leave people with some kind of final thoughts coming out of here. So I think you've given people a nice game plan for the rest of the year. Any things in terms of risk management that you would really encourage people to focus on as they go to implement and allocate capital? >> Well, look, a lot of this has it comes down to position sizing and and risk tolerance and and um you know, I I still see that many people are way overinvested in many parts of technology and unfortunately that's what happens if you buy QQQ or spy. you end up owning a lot of tech and then you see these stocks like Amazon that you want to own or Meta and Nvidia and pretty soon you have a 100% tech portfolio. So, uh, ju just, you know, I my own vision is that it it's almost always better to set stop losses before you, you know, consider buying anything. And that way you have a a defined area where, you know, you can get out of a certain trade if it starts to act in ways different than what you think. And, uh, you can always revisit things, but, you know, momentum has been the top factor over the last 20 years, and now we're having our first real pullback in in many parts of momentum. But this is still going to continue to be uh you know very very good I think in the years to come. And so it's almost always better to seek to buy stocks that are showing strength versus attempting to buy dips and things that are down 30 to 50% because they always always take much much longer to bottom out. And I guess I'll leave you with this is my cycle that I put out uh the beginning of this year and uh you know I I came into this year thinking it was going to be a choppy year and so we've already had now our big pullback into the spring our rally. Uh if if this holds out then we could uh I think be close to bottoming which happens uh probably sometime in in mid to late August run up into October. We probably have a little bit of a dip into the midterms. uh there'll be something for everybody. But this is you know this I published all this beginning of December of last year. These are my conclusions for the entire year >> that I thought weakness was possible into the spring. Uh technology on line two is in need of consolidation. This likely happens into mid year before a rebound. Yields in the dollar should strengthen throughout the first half of the year. Uh so you know this is the kind of thing that you you can get by uh you know subscribing to us when I do annual updates and it it might be of use to you but it gives you lots of really really good information that uh you know you might might find useful. >> Beautiful. Well said. I think this covered it super well. Also happy late birthday. Appreciate you jumping on right afterwards. >> Yeah, it was on Monday. I had to take off and play some golf and and do something fun, but I I uh unfortunately uh I shouldn't I should have been short for my birthday and I didn't do that. But that's okay. >> Who can go short on their birthday? [laughter] That's not the spirit of a birthday. >> All good. I'm happy to report that I'm I'm very long and but you know, I do have some hedges. So, uh yeah, we'll weather just just fine. >> Very nice. Yeah. You keep you keep mentioning mid August. My grandmother turns a h 100red on August 15th. Oh, congratulations. Wow, that's wonderful. Yeah, >> maybe that'll be the moment. I'll tell her. Grandma, you got to save the market. >> Yeah, thanks Gabby. Look, it was a lot of fun and uh I encourage people to tune in. We have put a lot of stuff on YouTube as I know you are are very active and and things also. So, thank you for sharing and putting this together and great to you know >> for sure. I think we're going to put this up as a collab video as well. So, this should go to both the Fund Strat channel as well financial channel so people can watch it on both. Leave some comments below. If there's other charts, questions, ideas, we'd love to run this back maybe in a month or two and uh take some of them and ask them to mark. So, thank you everyone for listening, tuning in. Please like the video, comment, share with a friend, and we'll see you on the next one. Take care. Thanks for watching today's video. If you enjoyed it, go check out the Wool Financial Newsletter. Did you know that we make a ton of content? We host 60 plus hours of Twitter spaces and live streams every single week. We're posting on the timeline over and over and over. We put up YouTube videos and one of our prime gems is our newsletter and it's free into your inbox multiple times a week. We mix it up. We give stock picks, market headlines, research info. It's a great way for you to stay in touch with the stock market and your portfolio without having to spend eight hours a day staring at your brokerage screen. So again, link is below. It is free to grab and you're going to love the content in