Video summary
The video begins by addressing the recent volatility in the US stock market, noting that while three out of four major indices have dipped slightly after hitting all-time highs, AI and memory stocks are showing significant strength. The speaker explains that this divergence is largely driven by market sentiment rather than new negative data; previously, headlines fueled by hedge fund blowups and leverage issues in South Korea created a bearish atmosphere that caused retail investors to panic sell despite strong underlying fundamentals like earnings growth and positive guidance. Now that the initial shock has subsided, these stocks are reversing course as investors realize the core investment thesis remains intact, leading to a sharp rebound where companies like Micron and SanDisk have recovered substantial portions of their losses in just a few weeks.
A major focus of the analysis is on specific memory sector leaders, with Micron breaking out of its descending triangle pattern and approaching new highs above $1,000 per share, while SanDisk has surged nearly 90% from its lows to trade over $1,800. The speaker highlights technical patterns such as inverse head and shoulder formations playing out favorably for these names, though he acknowledges they are currently slightly overbought on short-term charts like the four-hour RSI. Beyond individual equities, the video points to other performers in the tech space, including SK Hynix which has rallied 55% off its lows after listing on the NASDAQ, and a memory ETF that is also showing bullish momentum as it approaches a golden cross with its moving averages, suggesting a diverse way to play the sector.
The discussion extends to broader market dynamics where large institutional players like Citadel's Ken Griffin are seen profiting from assets acquired during the panic selling phase, effectively buying the dips while retail traders were spooked. The speaker advises investors who genuinely believe in a company's long-term potential to hold their positions rather than trying to time the market or panic sell and buy back in, noting that market makers often use volatility to shake out weaker hands before continuing an uptrend. While acknowledging that Nvidia might see a pullback following its earnings report based on historical patterns, the overall outlook for the memory sector remains bullish, with expectations that stocks like Micron could reach $1,200 and SanDisk could test the $2,000 level as momentum picks up again.
In conclusion, the video emphasizes that the current rally in AI memory stocks is a correction of an overreaction to short-term noise rather than a fundamental breakdown, with many names still offering attractive entry points despite recent gains. The speaker predicts that while minor pullbacks are possible due to overbought conditions, the long-term trajectory for these volatile but fundamentally strong companies is upward, especially within a broader bull market environment. He encourages viewers to stay focused on the core business metrics and avoid emotional decision-making driven by headlines, as the market eventually rewards those who hold steady through temporary downturns. The segment ends with a reminder that nothing in investing is guaranteed, but the evidence suggests these memory stocks have more room to run as sentiment stabilizes and institutional buying continues to support prices.
Read the full video transcript
Well, happy Monday, guys. It uh looks
like a lot of these AI stocks, these
memory stocks are breaking out again,
and we have to break down my thoughts,
the charts, where my head's at. So,
guys, let's dive into it. Hit the like
button, take a sip of your coffee. Make
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It's also in the bio. You guys know
where to find it. And now, let's dive
into it. And the thing is here, guys,
half actually three out of the four
major indices here in the United States
are down. And and even even though
they're down, a lot of these stocks are
doing well, which again, we're going to
cover them in this video. But first, let
me show you what's going on here with
the S&P. The S&P is down about 0.12%,
not even a quarter% down. So, not too
bad, but it is down a little bit after
hitting all-time highs, I believe, on
Thursday. Now, we're trading at 775 as
the Q's are actually up about 4%.
They're continuing their breakout of
this channel. We're seeing a golden
cross still. We're above these moving
averages. So the Q's look very good in
the short term and again three out of
these four indices are down. The Dow's
down 04% continuing its draw down
towards these moving averages. Honestly,
I think the Dow um is going to find
support at around 53K. We're getting
there. And the Russell is leading the
losses down almost half a percent. We
hit all-time highs on Friday and now
we're at 355. So guys, even though these
indices are down, right, they just
literally hit all-time highs a couple of
days ago. So I'm not I'm not stressing
at all because of that, you know,
especially as a lot of my stocks today
are doing well. A lot of these AI these
memory stocks are doing well. So let's
just dive into it, guys, and talk about
why these are starting to reverse.
Because the reality is it's not like we
got any crazy new information, any crazy
new data. Um, it's all about sentiment.
It's all about sentiment. You know, a
couple weeks ago, we saw all these
headlines, the shorts, right? You know,
oh, the AI trades over, memory's
overvalued, you know, and behind the
scenes, a lot of these hedge funds uh
were getting blown out. A lot of
leverage was coming out of South Korea.
You know, all these retail traders in
South Korea got smoked. Hedge funds in
the in the United States. So, behind the
scenes, that's what was going on. And
then we later found out, oh, Leopold
blow blew up. All the leverage came out
of South Korea. So, as that was
happening, right? We saw the headlines.
We saw Michael Bur go short. You know,
everything was everything was super
bearish at the time. The sentiment was
down the toilet. All while the
fundamentals were still very strong.
Earnings were compounding for these
companies. They still are. Guidance was
very good. So, we got in a in a point in
the market where um people just got too
caught up in the short-term noise.
That's what happened, right? People were
panicking about the pullback. They
weren't focusing on the fundamentals,
where earnings are going, where the
growth's going, where the top line's
going, where margins are at, where
they're going, and they were making
shortterm decisions um without the
longer term fundamentals in mind. And
people got completely torched. Um you
know, they sold at the bottom. And now a
lot of these stocks, they're coming
back. They're coming back, guys. Um you
know, Micron is now back over $1,000 a
share. Do you guys remember we were
talking about this inverse head and
shoulders? Uh, you know, we talked about
how we were slightly starting to break
out of these moving averages. We were
slowly taking out this descending
triangle. Now, we're fully starting to
break out. The inverse head and
shoulders is playing out. The descending
triangle is pretty much out the window.
And at this point, this this looks like
it's continuing its uptrend, you know,
and yeah, it is a little overbought. The
RSI is at 75 here on the 4hour time
frame, but it it's breaking out.
Momentum's picking up. The the stock is
following the fundamentals again after a
couple of weeks of again the sentiment
being crushed. Um, you know, we got
oversold
and yeah, I mean, the stock the stock
ran up hundreds of percent before that.
Uh but the reality is when it got to
$700, the number started to get way too
attractive and uh people that have
conviction had conviction and they cut
through the noise, they started buying
back into memory, right? Micron,
SanDisk, you name it. And speaking of
SanDisk, guys, ticker SNDK,
this thing is up 10% today. We're back
over $1,800 after literally hitting 960.
Uh when was that? About two three weeks
ago. So SanDisk off the lows is up 90%.
And that's what you're going to see with
a lot of these AI memory stocks. Not all
of them are up 90% off the lows, but a
lot of them are doing well, very well
off the lows. And uh you know that's the
type of sharp rebound you get with these
types of volatile stocks especially in a
bull market where the thesis like I said
is still intact. The fundamentals are
still intact and people realized that
people realized oh wait we were we were
only down so much because of the
leverage that's coming out of South
Korea. You know the United States we saw
the hedge funds blow up blah blah blah.
sentiment was bad. Now things are
starting to turn. People are realizing
that and they're almost panic buying.
Now we're seeing um you know kind of the
opposite effect here. We had panic
selling a couple weeks ago. Now people
are realizing oh my god the memory trade
is it's not dead um and they're panic
buying back in to those shares that they
sold a couple of weeks ago. This is why
if you believe in a company guys and
it's, you know, properly sized in your
portfolio,
there's no need to panic sell, try and
buy back in, you know, get in, get out,
do this, do that, time the top, time the
bottom. Just hold. If you believe in a
company in a stock and you know it's
volatile and it's properly sized in your
portfolio, um, you know, just hold. And
I get it. If you had 80% of your
portfolio in SanDisk, right, which is
why it goes back to it being properly
sized, but if you were overweight, you
had way too much exposure. Yeah, I get
it. You might make emotional decisions.
Uh but if you believe in a company and a
stock, the thesis, the fundamentals are
intact. Just hold on because the market
does whatever it can to shake you out of
your position. You know, this is what
the market does. uh especially the big
boys, the market makers, the hedge
funds, the burries of the world that
grab all these headlines. This is what
they do. They try and spook out retail.
And guess what? Guess what they're doing
when retail is getting spooked in a bull
market. Um and stocks that are
uptrending with strong fundamentals,
they're buying those dips. This is what
happened with uh what's his name?
Leopold and what's his name? Uh a
citadel. Ken Griffin. Ken Griffin's
making handover fist, making money
handover fist on all those assets that
he got 50 cents on the dollar from
Leopold. I mean, he got all those what
whatever stocks and assets he held. I
forget all the exact ones, but those are
all doing well right now. It's It's
funny, man. Uh so that's what they do.
They try and freak you out, try and get
you to panic, focus on the short-term
noise, all while they're buying the
shares that you're selling, especially
when we're in such a when we were in
such a steep discount. Uh that's that's
what was going on a couple weeks ago um
on SanDisk, on Micron, and now people
again are panic buying. They're trying
to get back in as fast as they can. Um
and you know, that might work out, might
not. Who knows? I don't know where this
is going for sure. Nothing's guaranteed.
Uh but I think we're going higher.
Although it's not guaranteed. I think
we're going higher. Uh but there is
there is a point to be made now that we
are a bit a bit hot in the short term.
SanDisk is at 82 on the RSI. Micron what
was it? 75. So these might pull back in
the very short term. Uh but it's clear
that the momentum is picking back up to
the upside and Yeah. Yeah, I think
SanDisk could see $2,000 a share again.
No problem. Micron uh could easily get
back to 1,200. Uh maybe even higher.
Maybe even higher. You know,
unbelievable day and couple of days for
memory. I think Micron's up 20% in the
past 5 days. SanDisk in the past 5 days
is up like 40% 45%. Um SKH Highix is
another one worth mentioning, which you
guys know they just listed on the NASDAQ
a couple weeks ago. Um, and this stock's
been quite volatile. It got down to 113.
Now it's back to 175. And yeah, it's up
off the lows percentage- wise, 55%,
almost 60%. And now we're testing the
highs from a couple weeks ago, we hit
about what in the end of July, we hit
about 175, 178, that range. And we're
there. We're testing it. And if that
breaks, this could fill the gap back to
195. And if you think you missed the
boat on some of these stocks, I don't
think you did, quite frankly. Um, again,
going back to the uh going back to the
panic buying, I think people are coming
in panic buying because the boat hasn't
fully left yet. Uh, but it might soon.
It might soon here. You know, if you're
too late, you're too late. You got to
you got to admit that to yourself. But I
don't think it's fully too late yet. um
especially on DRAM which is still down
20 bucks a share from where it was. It's
down 25% and it's up off the lows from
42 to 61 about 40%. Um and now it's
starting to break through the moving
averages. We're about to get a golden
cross on DRM. So I I like the way that's
shaping up for a more diverse way to
play the memory sector or the memory
space. Um this is a memory ETF. So, a
lot of these stocks, guys, are crushing
it. And yeah, there might be a little
mini pullback, but ultimately the uh the
trajectory now is bullish again based on
what I'm seeing, which is subject to
change obviously. Uh but yeah, happy
Monday, man. Very strong day in the
markets. Other names going up. We have
Coherent up 10% today. Uh Coherent
starting to rebound again, which it
rebounded big time uh off that September
or not September, July. I don't know why
I said September July 30th low. Um it
rebounded quite nice. Then it pulled
back. Now it's starting to pop again.
Stocks like SpaceX, although they're not
uh you know I guess super AI related in
in terms of memory, but SpaceX is up 6%.
Uh GLW, which I'm long um Corning, it's
up 5%. We're we're pushing through 170
now. We're in the mid70s. We have an
inverse head and shoulders, which I
called out last week. that's starting to
play out. It's not fully playing out, I
guess. Uh but I think Corning once it
takes out 175 180 cleanly, um this could
start to really take off. Stocks like
Lamb Research are starting to push
again. Uh we can see the inverse head
and shoulders breakout playing out on
LRCX.
We have Nvidia up to 227. uh which I
think honestly guys to be honest Nvidia
I think it will run a little bit more
into earnings but I think we're going to
sell off after earnings that's what
Nvidia has done each and every time it
seems like you know it feels like at
least over the last couple of quarters
and we're already up about what 30 40
bucks a share heading into the print 20%
off the lows two two and a half weeks
ago um so I think Nvidia might pull back
after earnings we'll see if not it is
what it is. Who cares? I'm still long.
Um, and yeah, it's just one of those
days. Not everything's green, though. We
do have some red in the market. I mean,
it is the market after all. Not
everything's up every day. Uh, but, you
know, these AI stocks, these memory
stocks today, they're looking good.
We're getting better. We're getting
better. And finally, the market's
realizing, um, you know, it's cutting
out the noise and realizing there's more
to go in these names. So, what do you
guys think? Let me know in the comments.
Hit the like button. Make sure to
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And with that being said, cheers. I'll
see you all in the Patreon or in the
next video. Have a great rest of your