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Tom Lee's coming out and says, "This is only a liquidity issue, a liquidity crash that is going on." And think about it, it makes all sense. SpaceX, Google taking profits from AI trades, all of this happened all at once. And why this is healthy before the next run-up, especially for crypto, all about this here in this video.
Welcome to the . If you have no idea whom you're watching, my name is Danny and I'm trying to find trades or investments, rather said, long-term investments that are actually going 10, 20, 30, 40, 50x. I usually buy, I average down, and then the rest is history. This is what I did for Tesla, that's why .
If you want to be on that winning side, then make sure to subscribe to all of my four channels. Uh follow me on X and also check out extenddaytrade.com because there we have our extend autopilot software that we trade for you. This is a trader market, guys. This morning we traded the downside QQQ puts nicely, and we traded also Robinhood.
Robinhood had great news, went straight up. We exited like break even because we didn't want it to leave the profits on the table, but you can see here day trading is where you can make money on the downside as well. So, go to our website extenddaytrading, go to the calendar, schedule a call, see which time works for you, and we have 15 minutes, and we see if we can help you as well.
With that said, we going into the clip of yesterday evening because you can be sure when the markets are down or up, CNBC, right, wants to have Tom Lee on his show. And this is the beauty about our chairman. He's loved by Wall Street, he's loved by CNBC, he's loved by the retail investors. Well, currently I would say the sentiment for Tom Lee is rather down than up, but you know, it's just temporary.
Everybody has its love and hate phase, right? That's totally normal. That is the same for the CEO of Robinhood, the CEO of Palantir, the CEO of Tesla, Elon Musk, all about those guys need to go through their love and hate phase. And he said guys, don't worry, the tech rally is intact. It will go further high, just like a breather.
And he said that it's all happens to be a liquidity thing. What this means, check it out. And for more on whether that trade is in serious trouble, let's welcome in Tom Lee. He's Fundstrat's managing partner and head of research. Good to have you. You look at this market and you think what? Well, Scott, I I think the market, of course, is showing a lot of signs of jitters to me.
Uh you know, the jitters in front of the SpaceX IPO and also just consolidating all these gains, plus we know there's a lot of future capital going to that's going to be raised by Google, Meta, OpenAI and Anthropic. So I I think the market's trying to sort of price all this in front of the SpaceX IPO, which is this Friday.
I think it's healthy though, and I I don't think it's actually going to derail the tech trade, either. Well, what's happening in the you know, the chip stocks? Are are they the ones where you think there's been the selling is most to positioning ahead of the IPO that that's coming later this week in SpaceX.
How would you assess what's happened there? Uh yeah, that's right, Scott. I mean, SpaceX is $75 billion IPO, and because of its index inclusion into the NASDAQ 100, um a lot of institutional funds are now going to have to raise funds to not only buy the IPO, but then to have cash available to actually position size, because they don't know if it's four times over subscribed, they'll only get 25% of their allocation.
But then to get a full market weight position, they're going to have to buy a lot in the after market. I think that cash means selling some of the recent winners. I'd say the good sign though is that the memory stocks held above the Friday lows and same thing with the semi. So I I think that there's basically gut punches being seen there, but I don't think it means that those charts are completely broken.
Does the market need SpaceX to trade well in its debut? Um yeah, I I think it it is important, Scott. Um you know, we expect it to trade well because it's an important company and you know, the Elon Musk himself is an N of one person, but there's also a a pretty good road map for why there's a future growth and a a a very big addressable market.
If it trades poorly, I think it's going to give credence to a lot of the skeptics who say, "Well, the market's topping." And you know, uh this marks the top. I'm kind of going to lean against that because I've I've been hearing a lot of folks declaring the top is in. So I I I'd say as a contrarian, because so many people think SpaceX marks the top, it's probably not the top.
You You think the uptrend is still intact? And it should be led by tech? That's right, Scott. I do. I think that this is a dip that's going to be bought. Um as you know, we still expect this to be a three-phase market this year where we have a strong uptrend. I think that continues uh for the foreseeable future.
I do think there's a pullback later this year. I'd think it's closer to lockup expiry and and that and that overhang. Um and overall, I do think it's tracking the way we thought, which is 2026 would would be a tough year, but overall a good year. But you're still looking for some Fed related turbulence or volatility as well.
The You were talking about that more as [snorts] a as a reason why the market would have a pullback more so than lockup expirations for some of these big IPOs. Have you changed your thought process there? Uh Scott, I think it is um three parts that that create that second part drawdown. Uh one is the Fed, the market testing this new Fed chair, Kevin Warsh.
I mean, he's going to make his debut this week. But, it is really going to be testing his ideas of how to measure inflation and his path forward, and especially in the face of what what might be policy that he pursues that is not in sync with with the White House expectations. The second is, I think, the lockup expirations of all these large IPOs.
I think that does represent supply. And the third factor, I think, is that as much as oil sort of ex- the price has not risen as much as we expected, I do think there's going to be shortages developing later this year that the market's going to grapple with. So, as you can see, he names a couple of things, okay?
So, first of all, you have a massive IPO coming to the market, SpaceX IPO. I talked about this on my first channel, so go there and watch this video because now the SpaceX IPO want to raise $80 and it's over subscribed almost three X, and everyone wants to get in, right? So, now you're thinking, okay, there's the money that that flows there, right?
And the hottest IPO that we have seen. So, what will happen? The stock will go up, people want to buy, so they sell their winning position, which is AI, which is maybe some growth stocks, and so on. They sell those to buy the IPO, okay? So, that's it's number one, the rotation in the market. Then you see that Google and Meta want to raise $80 to finance the AI move in their companies.
They have issuing more shares. Also, this directs money out of those AI plays currently. Number three, you have the profit taking because if you were in AI names over the last 2 months, you could have made a killing. But also, this is just temporary, guys, okay? This is maybe for a month or two when it's completely going high and then it also drops 30, 40, 50%, right?
So, with that said, make sure to always understand why the market is moving. You learn these things also in our group, us to trade for you all automatically. And also, there is the most important part that I believe that after the rotation of the market, you will see then AI stocks getting cheaper and cheaper and cheaper and then everyone wants to own them and then we go into the year-end rally.
And then I think that crypto will actually go and be in the forefront because if you're looking into the market today, crypto has like a quite interesting day, right? Even though the market is negative, crypto's positive. So, I think that we could lead the market here with crypto on the forefront because crypto is one of the most beaten down assets and usually the stock market is like a rubber band where you put it too much into one side you just leave it and it snaps back.
With that said, I see you tomorrow for a brand new video and the grass is greener always on the other side.
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