AI SELL OFF‼️

Hey, hey. What's up, good people? How you doing? Welcome back to Stock Up with Larry Jones. As you can see, I have CNBC on in the background. Uh, just got here to Atlanta. Just want to talk about a few stock that are um underperforming. There is a chip selloff like I read the the uh headline for you guys on yesterday. And um it's like c it's like catching a fallen knife. Now, I'm going to play a clip for you right out of the gate and then we're going to discuss this. Okay? Uh, no one knows what the future holds, but this whips sawing, you know, cap too much cap expanding, not enough. We need to uh be in front of China. It's just whipsawing from day to day. And in times like this, fear grips you. I understand. But um Josh from CNBC uh brings up a very very very good point. There are some of you guys that are trying to get rich. You're not diversified. all of your plays is zero DTE and uh leverage um you know stock just like um um SOXL which we will cover today which is getting beat down with the rest of tech of course and you don't have any type of balance your your portfolio even with today your overall portfolio should look good but there are some of you that are literally trying to get rich you you have uh none none of the overall stock market. You just want the hot hot hot hot stock and then you put all of your money into the hot hot stock and you're not balanced. Okay? Uh you got United Healthcare did well, you know, don't have any of that, but everything is high risk, high risk, high risk because you want the high reward. Okay? So, I just want to caution you guys on that. Okay? Uh so, you know, we like to keep it balanced here. Let's go right and look at what we are looking at. Okay, so as you can see, I got ticker symbol SO XL. We're going to start with it. Um, you know, I'm not going to lie. I got 139 as my, you know, I'm scared. This is like where I really want to set my stop loss. And we can see that it wicked under and it stopped. Um, personally for me, I can't speak for anyone else. I want this stock SOXL to close above 139. Now, um, I got it. It's triple leverage. I know I I talked about it on yesterday, but the truth be told, excuse me, just like I said, this is a triple leverage. So, when it goes down, it goes down three times as fast. When it goes up, it goes up three times as fast. This was just a swing trade for me. We were going to buy the dip and sell the rip. So soon as a a rip come, I am just running and dumping these shares and getting out. Okay, then we have here uh sorry about that. We have it here. We could see it's down by 15%. And then for the week, still down by 23%. So year to date though, we're up 234%. Why? It's triple uh leverage. So we want to be careful and not just have all of that in. Of course, I know one or two of you will, but you know that's on you, right? Ticker symbol DRRAM. DR DRAM. Okay. I like DRAM personally and I plan on holding my DRAM cuz I have some at a really really good price. So, you know, this week they're getting beat up and then next week or the week after they could be running up a lot, right? It just depends on you pick what news media you're going to look at and everybody's going to be negative on a day like today. ticker symbol MU, SanDisk, and Nvidia. I just want to show you that the overall industry is selling off. So, it's not just, "Hey, Larry, why is ticker symbol SO XL or DRAM selling off or MU selling off?" It's the overall industry, guys. It's it's chips, period. It's AI, period. As a matter of fact, just take a look at the NASDAQ. The entire NASDAQ is tanking today. negative 423 points after a good Fed meeting, after a good CC, I'm sorry, a good CPI print, should I say, and after a good PPI print. Right. So, let's listen uh to this video and then we'll close it out. >> Uh JP Morgan had a note out about that this morning. saying uh that retail investors in particular are kind of following that trade with Nvidia, Tesla and Microsoft leading the July buying here. Um Josh, you own Nvidia and Apple. What do you make of this rotation dynamic? How much do you think it has in terms of legs? >> Look, you could take that JP Morgan retail radar and and put it back in the envelope and I can just cresken like predict what that's going to say next week. I'll just look at what happened this week. I mean, there's no there's no information there. It's not important. I think that the key to this market this summer, stop acting like a thirsty lunatic. No more thirst. We're grown men and women. And we need to comport ourselves. The thirst to own the IT trade every second of every day. And it's not even enough to just own it. You need to own it 2x in an ETF. And that's not even good enough. You need to own it with a zero day till expiration option. This is what's killing people right now. And if you're not playing that game, your portfolio looks amazing. The median semiconductor stock in the SMH is in a 22% draw down from its own high right now. 44% of the SMH names are in a draw down of 25% or worse. That's real money. These are big draw downs considering the fact that we're in an S&P 500 that's within a couple of percentage points of record highs. Imagine having put yourself in that position because of how thirsty you are. There are only three semi-names right now that are even within 10% of an all-time high. Only three. The rest of them have been knocked out of the box and people they they feel like, "Oh, well, I'll do the DRM." DRAM's in a 34% draw down. It's actually worse. Micron 29% below highs. Uh Western Dig 36% below highs. SanDisk a little bit worse. This idea that you have to be allin to whatever's working right this second is kryptonite for portfolios. Um I was talking off set just now. I know a guy that moved a multi-million dollar portfolio just to get the SpaceX IPO. Like broke a relationship with his adviser at a major bank. moved all the money to another advis I don't know what did he get 500 shares now it's below the IPO price locked up >> stop acting thirsty it's going to kill you in this tape right now it is not the time for that you missed that time it was May June >> yeah Malcolm I curious what you make of that argument and do you think that those benefits have all been seen and have all been priced in at this point >> yeah based on that you're supposed to buy the rumor and sell the news but we're right now seeing people selling the rumor because we haven't gotten the earnings seems to confirm whether or not that 27% growth this quarter, this past quarter from the S&P that we're expecting is actually going to come to fruition or something even better. So, I think it's odd. I think to the point that Josh is making that folks aren't willing to at least wait and see if those trades actually pay off, right? The response to Taiwan semi earnings as an example is extreme in comparison to what you would expect at a moment where just two weeks ago everyone loved the semis. It seemed like now where most of the earnings growth is coming from three semi-names, right? You have Micron, Broadcom, and Nvidia that supposedly were going to save the day. We don't even know what those numbers will look like. ASML saying we're going to raise prices and the market hasn't responded as negatively to to that as they have to uh Taiwan Semi. Nvidia saying we got to raise prices and the market's not responding negatively to that today necessarily because they're almost at their alltime. >> So the earnings could be great. So guys, there I I played you both gentlemen because I thought what they had to say was very interesting. I agree with Josh, you know, and um even I I bought too much on yesterday, right? I bought too much on yesterday. I'm just going to be quite honest with you. Now I have a balanced portfolio. I have, you know, I have seven portfolios. U going to consolidate that down to five. I'm doing fine. My overall portfolio, even with the red of today, is massively green. Okay, my money movers know that. But even I got greedy on yesterday, right? And when it comes to ticker symbol SO XL because it moves three times fast. Let's face it, I told you guys what I was buying. You're responsible for what you're buying. But I caught a falling knife. But I looked at the technicals and I looked at what the uh inflation was telling us and uh I made a calculated risk for myself. What about you? Uh so and I still believe that it will pay off but you got to have a stop-loss at some point. Okay. But me personally, I can't tell you what to do. I'm holding on to my tech. I just believe that in a few days they're going to be saying we have to compete with China blah blah blah blah blah and then it's back on with the capex. Now one of the gentlemen the last gentleman he said the most important thing it's earnings earnings earnings and while I'm filming this uh Nvidia is going to be reporting. Okay, I'm sorry, not Nvidia. Netflix is going to be reporting. That's not AI, but I'm going to wait and see what the earnings are like. Uh, what about you? Leave me a comment, but I just wanted to come on today. I may not be able to make a video tomorrow. And I just wanted to talk about where this market is and some of the moves that I've made on yesterday. Okay? And me included, we have to pump our brakes on trying to get rich quick. Okay? Now, normally you guys know I'm the balanced one. I I go, "Hey, I'm not chasing that. I didn't get any SpaceX. We're going to wait for it to come down. It's tanking." And uh even I bought too much of ticker symbol SOXL. All right. So, I'm just going to be transparent, continue to be transparent with you guys, but I beg you to have uh a portfolio that's well balanced. Of course, we bought um um United Healthcare. We bought it when it tanked and it's been red for a long time. Now, it's been green for a while and now it's coming up. Okay. So, when you hear about this rotation out of top out of out of tech, then one of the places that's kind of safety into rotation is healthcare. It's boring. Yes, I know. But have a balanced portfolio is my message. Okay. I may or may not see you tomorrow and uh make sure you check out the links below and we will see you later.