Why trade momentum pullback has been 'historically significant'

♪♪ MAYBE A HARD WAY TO REALIZE IT, BUT MOMENTS OF SWINGS BOTH WAYS. AN AMAZING RIDE ON THE WAY UP AND IT LURCHES INTO FREEFALL MODE. MY NEXT GUEST NOTES THE HISTORIC NATURE ON THIS, SHARP REVERSALS OF OFF THE MARKET ENTRY POINTS IN THE PAST, MOMENTUM, FOUNDER CIO TRAVIS, WE HAD A BIG HOLE BACK HERE AND ANOTHER BIG PULLBACK, IT WAS A PHENOMENAL PULLBACK, DO WE HAVE TO GO DOWN A LITTLE MORE TO FIND BOTTOM X DIRECT PERHAPS BUT THIS IS HISTORICALLY SIGNIFICANT MARKET, MOMENTUM, PULLBACK, DEPENDING ON HOW YOU MEASURE IT, TEN TO 12% FROM WHERE WE WERE IN THE BLINK OF AN EYE IS NOT UNLIKE HISTORY, MOMENTUM TENDS TO BE A STAIRSTEP UP AN ELEVATOR DOWN BUT EVERY TIME IN 1986 FOR THESE PULLBACKS, 77% OF THE TIME A YEAR LATER MOMENTUM ADDS VALUE IN ABSOLUTE AND RELATIVE TERMS, JUST LIKE THE OTHER ONES. >> THIS WAS S THREE-MONTH EVENT, THIS WAS TWO AND A HALF MONTHS SO IT DIDN'T TAKE LONG, JUST EVERY DAY FELT LIKE OH BOY, ONE NAME THAT SCOTT AND THERE IS MICRON MAKING A BIG MOVE BUT I THINK WHAT A LOT OF PEOPLE ARE FRUSTRATED BY, AT LEAST, INVESTORS ARE SAYINGNG I'M TRYIG TO BE FUNDAMENTAL AND THEY WERE UP BIG AGAIN LAST WEEK AND MICRON START GOING DOWN. WE'VE SEEN THIS WITH NVIDIA AND OTHER NAMES THAT HAVE DONE EXTRAORDINARILY WELL YET THE STOCKS HAVE NOT REACTED, WHAT YOU TELL PEOPLE WITH SOMETHING LIKE MICRON? >> IT'S CORRECTED ABOUT 30% JUST FROM JUNE 30, IT'S HIGHS IN JUNE. NEAR-TERM IT COULD BE TURBULENT BUT LIKE WE DO, WE LOOK AT PRICE TRENENDS AND FUNDAMENTAL TRENDS AND WENT YOU DO, YOU SEE A GOOD IF THE NARRATIVE DOESN'T CHANGE AND I THINK THAT'S WHAT'S HAPPENING, THEY START FOR WHETHER IT'S CORRECTION OR TROOP NARRATIVE CHANGE AND I THINK THE JURY IS STILL OUT ON THAT SO I WOULD SAY OBSERVE INTENTLY AND REACT TO EMERGING DATA. >> CATERPILLAR TAKING A GOOD HIT, AND 200 DOWN WITH SOFTWARE NAMES. I THINK GDP REPORTS THIS WEEK SO LET'S SAY YOU HOLD THE EARNINGS REPORT, HOW MUCH WILL THAT DETERMINE WHETHER YOU CONTINUE TO HOLD IT? LET'S SAY NUMBERS ARE PHENOMENAL AND GUIDANCE IS PHENOMENAL AND STOCK MOVES LOWER. >> I THINK THAT'S A GOOD TELL WHAT DIRECTION IT WOULD LIKELY GO AND I THINK ALL OF THESE COMPANIES WE WOULD EXPECT GOOD NUMBERS BUT I DO THINK THE REACTION WHERE EXPECTATIONS ARE ON THESE COMPANIES WILL BE IMPORTANT IN THE GOOD TELL WOULD BE HOW THEY REACT TO THE NUMBERS AND THE DAY BEFORE AND FOLLOWING. >> YOU DO LIKE THESE NAMES AND SECURITY, WHAT NAME DO YOU LIKE? >> PALO ALTO EVEN WITHIN THE AI FRAUD THEME, WE SEE COMPANIES LEVERAGED THE RISE OF AI ATTENDED TRAFFIC IS EVEN IN THIS PULLBACK IN JULY WE SEE COMPANIES HITTING NEW HIGHS ACCELERATING MOMENTUM SO EVEN IN THE AI, THERE'S AN EVOLUTION TO THE BENEFICIARY WITH ALL THEHESE AGENTS TAKING OVER THE INTERNET. >> NOW SECURITY HAS BEEN THE POCKET, THAT'S DONE WELL AND ARE THERE OTHER NAMES YOU LIKE? >> EVERY AI AGENT NEEDS CREDENTIALS DOING THINGS AUTONOMOUSLY, BUT THEY NEED TO BE VERIFIED. >> COMPANIES LIKE CLOUD FLARE, THE RISE OF THIS TRAFFIC. >> EDGE COMPUTE STARTED TO COME IN A LITTLE BIT, WHAT YOU LIKE HERE? >> TEXAS INSTRUMENTS, ANALOG BENEFICIARIES IN THE MICROCAP COMPANY. >> A MPQ, I THINK I'VE SEEN THAT BEFORE. >> IT WILL BE VOLATILE. >> IS ALSO A PLAY ON EMERGING ROBOTICS SO TO SPEAK. >> ABSOLUTELY. >> LET'S TALK ABOUT FINANCIALS, THE GOTTEN OFF TO A GREAT START. HE SAY LOOK AT NORTHERN TRUST. >> I THINK THE ASSETS HAVE DONE PHENOMENALLY WELL RISING GENERAL ASSET PRICES ALSO SELF-HELP INITIATIVES IN TERMS OF INCREASING THEIR MARGINS FEELING THOSE SOCKS. >> THE YOUNG FOLKS ON THE TEAM, THEY DO NOT KEEP ON TRUCKING. 1970s, BUT THE TRUCKERS ARE DOING GREAT. YOU SAY KEEP ON TRUCKING FOR A BIT. >> WE THINK SO. WE SEE A BROAD-BASED OPPORTUNITY BOTH FUNDAMENTALLY ENTERPRISEWIDE AND LOGISTICS AND TRUCKERS FROM VERY STRONG PRICING AND RESILIENT AND ACCELERATING DEMAND MOVING ALL INFRASTRUCTURE AND PUTS AROUND THE COUNTRY. >> REFINERS, LET'S JUST SAY WE GET ANOTHER RAY OF HOPE IN THE IRAN CONFLICT/WAR AND OIL PULLBACK AGAIN AND REFINERS WILL BE WELL-POSITIONED TO DO WELL? >> WE THINK SO, IMPACTED SHORT-TERM THESE HAVE A POSITIVE COCKTAIL OF LIMITED CAPACITY LET'S COME ON IN RECENT YEARS, STRONG PRICING AND RESILIENT, AND THAT'S A GOOD COCKTAIL FOR THESE COMPANIES SO MAYBE SHORT-TERM IF WE GET A DEA