CNBC HOST GRILLS TOM LEE (06/25) Stock Market Analysis by Blue Cloud Trading

[00:00:00] Speaker 1: Blue cloud trading through the night. Carl, thank you very much. Welcome to the Halftime Report. Scott Wapner, front and center this hour. Micron's moment. That stock is surging after earnings. We will discuss and debate what all of it means for the AI trade, for the markets in general, because we do, as Carl said, have a very interesting session shaping up. Joining us for the hour, Josh Brown, Joe Terranova, Stephanie Link, Jim Labenthal. So Micron's moment is a good one, obviously, for that stock. But it's really interesting, this price action and some of these other names today. I'm wondering, Josh, what you make. I mean, it's a continued rotation. There's no doubt about that. But if you thought that Micron was just going to, you know, relaunch the entire AI space with their blowout quarter, not happening today. [00:00:56] Josh Brown: Oh, I disagree. Well, look at the hyperscalers. That's not the AI trade. We've been through the AI trade is not the hyperscalers. The hyperscalers are the people that are facilitating it with their spending. The AI trade is working really well today. Eight of the top 10 S&P 500 stocks on the day today are all a huge part of the AI buildout. They're just not hyperscalers. And this is what the market's been doing all year. It's not even new. Look at our stocks today. Corning, Flex, Applied Materials, Teradyne, Caterpillar, Western Digital. These are the top 10. DRAM ETF is up 9% today. The XLI is up 2% today. And I promise you, the leaders in the industrials are all AI infrastructure stocks. Yeah, like Caterpillar. Cats up 4% on the day. You also have other areas that are up. You have XBI doing well. You have the home builders doing well. That's interesting. The transports are up 2% today. But the AI CapEx theme has swallowed the market this year. Unfortunately for the hyperscalers, they're in the position of being the spenders on AI equipment. And they're not getting the benefit from their shareholders any longer. As a matter of fact, the Mag7 as a group are dragging down the returns of the S&P 500 year to date. So that is the first time I've been able to say that in a very long time. Those stocks are net detractors, especially Meta and Microsoft. Very big in the index and very negative on the year. So we've got the AI trend in full force. Micron made everyone feel even better than they did yesterday. We just don't have the participation of the companies who are footing the bill. [00:02:35] Speaker 1: Okay. Obviously, that's a fair assessment. I think that there were some out there who were thinking that this was a critical moment for the AI trade at large. That if Mike, because the mega caps have traded squirrely lately, right? And you had a Nasdaq surge in the pre-market surge. And that's all but gone for a variety of reasons. SanDisk is up. Speaking of things that are winning, the power players, in part to Josh's point, Steph, right here alone is a great place to look of the stocks that are getting a big bump off of Micron. [00:03:17] Stephanie Link: Yeah, and the industrial companies are definitely the winners, for sure. And I've talked about the food chain, or you want to talk about Jensen Wang and five-layer cake. It's the same thing. The hyperscalers are spending $800 billion this year. They're on CapEx. They're going to spend $1.6 trillion next year. This is not going to end anytime soon. So you want to own the companies that are building out the data centers. And we know data centers takes three years to build, $40 billion for a one gigawatt plant. So there's a lot that goes inside of data centers, and those are the winners, too. We've talked about the grid and how old the grid is. That needs to be upgraded. And then, of course, you also need power, and we simply just don't have enough power. So the one thing that Micron said yesterday, and I'm sure Joe owns a stock, so I'm sure you're going to go through it, but they announced 14 strategic customer agreements securing $100 billion in contracted revenue, $22 billion in cash, just to secure capacity. And they're sold out until at least 2027. So this is going to go on for a long period of time. GE Vernova, Qantas Services, Vertiv, all of these names we've been talking about for three to four years. But the point being is you want to stick with them because the backlogs have never been larger. I have been covering industrials for 35 years. On average, backlogs are growing, eh, any give and take, 5%, 10% a quarter, year over year. You're on average up 35% to 40% in backlog growth, and it's only going higher. And I just say one last thing because it's really powerful, and pun intended. Qantas Services, their total addressable market has gone from $960 billion between now and 2030 to $2.4 trillion. It's a very conservative management team. They have 70% of their customers are utility companies. And so they are benefiting, and all these other companies are as well. But just listen to what the management teams are saying. You don't have to listen to any of us. But we have been investing in this theme for quite some time, and I will continue to be overweight this space. [00:05:15] Speaker 1: So yesterday, maybe not so much on this program, but I think a little bit, and certainly on Closing Bell, in the conversations that I had leading into the earnings report, really centered around Micron, the fact that traditionally these have been highly cyclical businesses, chips, right, and that this time was, in fact, not different from the past. And that was giving people pause at the run in Micron. And I think you can make an argument today that Micron's earnings report suggests, no, in fact, this time is different. And that this is a more secular idea around these types of chips specifically. And investors have had a hard time getting their arms around what they know historically to be true versus what is happening now. Not that the P.E. on this name is exceptionally large because it is not, maybe from a historical standpoint, you could make an argument that maybe it's a little more pricey than normal. But this, to me, just opens the door, it's almost 10 times, opens the door wide open to the conversation of this time is different. As it relates to memory, it certainly feels that way. [00:06:32] Speaker 4: I think yesterday there was a paradigm shift. I think there was fundamental validation that this is not a cyclical commodity moment for Micron. This is something more powerful. This is secular. This is not to be thought of as purely a commodity. This is an irreplaceable resource. Think about the difference for a second. An irreplaceable resource that the speed of AI accelerators, they basically get frozen without the memory component. If you think about a commodity for a second, which I called it yesterday, okay, and I'll share with you where I was wrong. If you think about a commodity for a second, there's the elasticity as it relates to price, right? As price goes higher for oil, what ultimately happens is demand. People say, uh-uh, okay, I'm going to drive less, right? There's price elasticity. With an irreplaceable resource, there's not. And the ability to sign 16 strategic customer agreements going out to 2029 to secure pricing and your revenue, that's a very powerful force, and that's the paradigm shift. [00:07:49] Speaker 1: But you said yesterday, ahead of the number, you wouldn't initiate a new position. You thought the stock could trade lower. I feel like you were, you know, maybe inching more into the, well, we better be careful with this thing now, given the price action and the name. But, again, I think I made the point yesterday, the biggest tell to me heading into this print had nothing to do with Micron directly, but a derivative of it, Apple raising its prices, the report of a week ago suggesting that Tim Cook suggested there was no other choice. But you raised prices because of what they saw happening with memory pricing. It's not rallied on that news, too. You're right. So, wasn't that a great tell? Like, you think that they would raise their prices? [00:08:43] Speaker 4: You made an excellent point yesterday, and you're making, obviously, the same point today, which is the right one. I took the perspective yesterday of, from a risk-to-reward standpoint, I didn't like the setup. I didn't like the setup. I didn't like, technically, the distance that price was from its moving averages, how much it had rallied. And I advised the viewers who didn't own it not to rush in and buy it today. I would say this to those viewers today. Look to your left as you talk. Here's what I would do to design a strategy. I would buy 25%. Let's say you're going to buy 100 shares. I'd buy 25 shares at some point this week. Get it out of the way. Below the market, I'd put an order in for 50 shares at $9.50 and another 25 shares at $7.50. If you never get those 75 shares, at least you're participating. You have to understand, there are people that are in this stock from $100, $200. RETF bought this stock at $223. It's very difficult to discuss one-day moves, and I was incorrect in doing so yesterday, but this is very clear. This is a fundamental shift where they literally are controlling pricing on their own because they have, and I'll use these two words again, the irreplaceable resource. [00:09:59] Speaker 5: This is a stock that actually fits many boxes, okay? Because I'm in it as of today. I initiated. Not a huge position, Joe, because obviously, as you say, it is appreciated quite a bit. But I'll take the other side of the narrative that you laid out. Not to be provocative, but because what I believe is this is a cyclical stock. It's just a question of where we are in the cycle. And I would say, at worst, we're in middle innings. At some point, a replacement will come along. At some point, supply will pick up, but it's not anytime soon. And to the multiple that, Scott, I think you said it was nine times or whatever it was. [00:10:34] Speaker 1: Almost 10. [00:10:35] Speaker 5: Yeah, okay, but that is using yesterday's earnings estimates. The current earnings estimates are going to go much, much higher. We see that from the guidance that they give. Stephanie pointed out the strategic customer agreements, which, again, just extends this cycle. This is a stock that when the estimates come in, it's probably trading around seven times forward earnings. So if you're a value investor like me, this checks the box. And I don't even have to get into a narrow or wide moat competition or moat to competition. [00:11:05] Josh Brown: The bear case on Micron is not about competition. Because you're not going to have a competitor who's not already in this market show up and stand up. [00:11:16] Speaker 5: No, the bear case is supply comes online. That's the only bear case. [00:11:19] Stephanie Link: And that's what I was going to mention. ASPs for DRAM are up 60% and NAN up 80%. And this is why Apple has to raise prices. And if Apple has to raise prices, everybody else has to raise prices. [00:11:31] Speaker 1: And that's inflationary. Why do you think that all of the mega caps are down today? Because Micron's gain is a lot of pain. Now, it's more acute for Apple than some of the other hyperscalers. But I do think there's a reason that they're down as a group. [00:11:48] Stephanie Link: I think it's always challenging when companies are in an investment cycle to own them. Because you don't get the operating leverage. You don't get the earnings growth that you can. Eventually, we will. But the bear case is… [00:11:59] Speaker ?: I know. [00:11:59] Stephanie Link: Wait a second, Josh. But eventually, we will. And Annie Jassy has said that time and again. And all these CEOs have said it. They have to spend. But therefore, you're not going to get the margin expansion. And so, on the flip side, look at Micron. And look what their margins were. Because they have that price. [00:12:17] Josh Brown: So, I agree with everything that you guys are saying. But I have to reiterate here. The thing that ultimately, I don't know if it ends the cycle or brings the cycle to a downturn, is that ultimately, Micron is achieving all of this on price, not on higher volumes. To your point, the ASP… I don't have the volumes. Right. Nobody can replace with higher volumes because it is what it is. However, there comes a point at which the pricing power becomes so extreme that the people who use the product find workarounds. Which… And hang on. We had a moment with DeepSeek where all of a sudden, it's like, oh, wait a minute. It turns out there are actually going to be competing models that can do this faster, cheaper. Are they cheating? Maybe. Are they stealing technology? Maybe. But still, at a certain point, that's what ultimately gets to Micron. I'm not suggesting that's going to happen this quarter. This is now a $1.3 trillion company. It's the ninth biggest stock in the country. Bigger than Lilly, Berkshire Hathaway, Walmart, JP Morgan, AMD, and Visa. And they did the whole thing. They did the whole thing on raising prices. There's got to be a limit. And the customers ultimately will find a way to do what they're doing and use less memory. And when that happens, that's how this ends. [00:13:37] Speaker 4: Let me ask you to answer this. Okay. The strategic customer agreement. I want you to think about it this way. The price of oil is currently $130. You're a producer, Jimmy. Mm-hmm. Okay. You say, okay, I am going to sell you oil through the next three years of $130. I don't care if the price of oil goes to $80. How is that not a good thing in controlling the price environment yourself? Why then would you be worried about some form of a cyclical commodity experience? [00:14:04] Speaker 5: Well, I'm not worried about it or else I would have not gotten in the stock. I do think it's cyclical. I think what Josh just described with price eventually killing demand is the part where a cycle turns down. But to the point both of you are making with your strategic customer agreements, it's a long way away. What I would say, though, is that the price action in Apple is more telling on a macro basis of how this may play out. Okay, Apple has to raise prices in order to account for the higher DRAM prices that it's paying. [00:14:33] Speaker 1: Can I just push back on another thing? And maybe I'm off base. But how can you declare yourself a card-carrying member of the Value Investors Club when you're buying this where it is and you're sort of doubling down on Oracle the other day? Yeah. And how does that match? [00:14:58] Speaker 5: Well, so just to go back to what I said a second ago, I will submit that in a week we're going to be looking at this price for Micron and saying this is seven times forward earnings. Right there, that gets me to the Value Investors Mentality. On top of that, an important point that none of us have spoken about is that in coming months and quarters, Micron's going to be buying back tremendous amount of shares. Great point. Tremendous amount of shares. Scott, you know how I feel about it. You know how central to my Value Investors Mentality is the return of capital to shareholders. This is different than the hyperscalers in which they are reinvesting in their business. Micron's going to be spinning it back. To your point, though, because I think you would go right here about Oracle, hey, listen, you know what? In order to get outsized returns, sometimes you have to take a risk. I am taking a risk in Oracle. I'm a believer that all of the things that are propelling Micron are also going to be to Oracle's benefit. Yes, there's a risk here that it's negative free cash flow, that it's an indebted balance sheet. But I strongly believe, based on the CapEx plans that all the hyperscalers have and how they're saying all of this computer is profitable, that this is going to pay off in the end for Oracle. I might be a little early. [00:16:06] Josh Brown: 200% above its 200-day moving average. I'm not suggesting that in and of itself is a reason not to buy. Just don't think if you were to do 20 trades and buy all at that level, your results a year later would look to be really good. I did not load the boat. Absolutely right. No, I'm just saying in general. The colloquial, not a great practice to buy stocks this extended. [00:16:27] Speaker 4: The risk to reward setup is poor. That's without question. It was poor yesterday. Again, it's poor today. If you're purely looking at price and technicals. [00:16:35] Speaker 1: I don't care if you bought $5 worth or $5 million worth. You can't make an argument against that with, well, I didn't load the boat. You were willing to buy it at this price. Therein lies your investment decision as it is. No one expected you to sit there and buy a 5% position in a single day anyway. [00:16:56] Speaker 5: The reason that I say that, Scott, is because I think about the viewers who are listening. And I think about, oh, because sometimes this happens. I'll talk about a stock and somebody will stop me on the street. Oh, I loaded the boat on this. Seriously, that happens. And I'm telling you, to the point that Joe originally made, this is a time to start building your position. You can agree with Joe that maybe the setup isn't great and save some dry powder, as I am, in case you buy it lower. I happen to think, Scott, just to be more specific, I'm more likely to be buying more of this higher than I am low. [00:17:26] Stephanie Link: So you weren't thinking about buying some of the derivative plays, like a Vistra or a Vertiv or some of the companies that have the better visibility. And maybe they're not as popular. They're popular, but they're maybe not as popular and they haven't run nearly as much. [00:17:40] Speaker 5: Well, no, I think those are valid plays as well. I mean, I have enough between my Microsoft, my Oracles, things that are other derivatives as well of the trade. [00:17:49] Josh Brown: Nine months ago, we had another version of this Micron debate, not us specifically, but the street, and it was Palantir. And Palantir had put up two quarters in a row where the earnings and revenue growth were so far ahead of what the street expected. The stock had like an overnight re-rate. And we effectively watched like a $40 stock run to $200. It was 200 times earnings. I mean, you know I'm going to say that. Agreed. But conceptually, it was like, how could you not own Palantir? It is the AI stock. It is the, like, the problem with that is once everybody agrees this is the must-owned stock, they can continue to report great earnings reports, but you're not guaranteed the same stock reaction. That stock is down a full, as of today, 50% from those levels. [00:18:40] Speaker 5: I would respectfully not make this comparison. They're not apples to apples, but the sentiment is. No, I get you on the sentiment, but, you know, for a guy who's fundamentally oriented, who's always talking about the numbers, the numbers are just completely, wildly different. There's no way I could ever buy Palantir at 200 times forward earnings. What's it now, like 75 times forward earnings? It's probably up there. Dirt cheap now. Huh? Dirt cheap now. Yeah, I mean, it could go to 30 times earnings. I'm not going to buy it here. [00:19:07] Speaker 4: Do with this information as you wish. Beginning to look at momentum is a powerful force, Steph. As we know, it's up 3.5% again today, and it's going to different places, okay? It's going to the value trade, which is outperforming growth. So beginning to look at small cap momentum, here's a name, memory-oriented, semiconductor equipment name, less than a triple-digit valuation, so Jimmy's not going to jump out of his chair for this one, Onto, O-N-T-O. Have we ever said that on CNBC? I don't think so. Onto Innovation. If you could pull that up, it's about up 121% year-to-date. That's a name that's participating in this AI story that Josh spoke about. [00:19:47] Speaker 1: So Josh made an interesting point to start the show when I said that, you know, if you were expecting all these AI plays to be higher, and I pointed out to the hyperscalers, and his point was they're not any longer these pure AI plays, right? They're the big spenders. Is the market making a statement today and forward about where these stocks are going to go? And it's not just today. Microsoft's having its worst month since December of 2000, okay? You've had other stocks in that orbit. [00:20:22] Josh Brown: Equally at the MAG7, and they're down 8% year-to-date. The S&P is within 1% of an all-time high. Nobody last year who was saying, oh, it's a concentrated market. The whole thing's being dragged up by the hyperscalers. It's unsustainable. When those stocks lose their footing, the S&P's in trouble. It worked in exactly the opposite way. The MAG7 is in trouble. These stocks, three out of the seven, are in outright bear markets right now. And they're detracting from performance, as I mentioned. The S&P 493, that's the whole index, ex-MAG7, is up 14% year-to-date. The MAG7 are detracting from that performance. And that could continue. And the good news is it doesn't harm investors. Investors then go out and explore and find other ways to make money, other ways to win. [00:21:13] Stephanie Link: Well, the reason what we're seeing a rotation is because the economic data continues to surprise to the upside. I agree. We got a whole boatload today between even the PCE, which was high. It's peak because oil has peaked. Oil peaked at $112. You're under $70 for WTI now. That's positive. That's very positive for the consumer. That's where I think your value is in this market. And that's where I've been adding to. And I feel very confident about that. They continue to spend. Income was actually even better than expected today. Durable goods were good. And they're actually benefiting from all of this AI. But that's why you want to own industrials. You want to own consumer. You want to own financials. They are acting very well. That's really very healthy. 31% of the S&P 500 are MAG7. [00:22:00] Speaker 1: Do you think that the second half of the year is going to be defined by mega cap underperformance? I do. And all the areas that you said, outperformance? I do. Like the banks have woken up over the last month. Capital markets are killing it. They just got through the stress test, the ability to, you know, give more money back to shareholders, raise their dividends, buybacks, whatever. This is one of the hottest trades in the market. The banks. Yep. [00:22:29] Stephanie Link: Well, you know that I actually sold Meta, right, recently, half of it, half of my position, after more rumors were that they were going to spend more and more and go to the equity markets, on top of the debt markets. Free cash flow is falling. So it's now a small position. I want to hold it for the long term. And I only own Amazon in the MAG7. So those are still going to stay in the portfolio. They'll probably be smaller. But I do think the financials are the cheapest sector in the market right now. I mean, you're talking about some companies are trading at one to 1.2 times book. And you're right, Scott. We have capital markets. You have investment banking. You have trading. IPOs. You have a lot. You also have wealth management. And a higher market will help that business, too. So I think there's a lot of ways you can win owning the financials. [00:23:12] Speaker 1: Believe that you've squeezed all the juice out of the mega cap orange. Then why wouldn't you go to these other places? Please do. [00:23:21] Josh Brown: Yeah, give me IWC. This is iShares micro cap. It's like a billion dollar ETF. None of the components in here can really take on a ton of volume. But when you look at what this is made up of, it's technology, industrials, and biotech. Give me like five year on this. This thing has literally caught fire because people are asking the question Scott just asked. Okay, I understand that the next 10 or 15% or let's call it 1,000 or 1,500 basis points above the benchmark that I'm going to get probably ain't coming from Microsoft and Tesla. Okay, I understand that. So what else can I do? You're seeing people who are small and nimble enough do things like this. I also want to show you a couple of best stocks in the market. JP Morgan is a new all-time high right now, 338. And the only real headline of any consequence is people talking about Jamie Dimon's retirement once again for the 900th time. CVS. Is anyone bullish on CVS that you've met in recent months? Anyone talking about this stock? Best stock in the market breaking the hundo right now as we speak. Pull this back a little bit longer. This is a big enough market cap where a lot of people can make money in this. So to answer your question, Judge, there is a whole big market out there playing these breakouts, finding momentum in unexpected places like Microsoft, excuse me, micro caps like health care. And I think that could continue, and we don't need the MAG-7 at the top of the 50-week high list. [00:24:58] Stephanie Link: That's why I mentioned it's only 31 percent of the S&P 500. Let's hope it shrinks. It's big, but it's— Let's hope it shrinks. Right. And there are other things and other sectors that can offset the weakness or the underperformance in MAG-7. [00:25:11] Speaker 1: Joe T is happy if that happens. Keep going. All right. We'll take a break. We'll come back. We'll talk about more committee moves that we have. We have our top calls of the day. Best stocks in the market has some new names as well. We will discuss coming up. All right. Let's talk about some names on the move and calls. Netflix, guys, 52-week low today. Lowest close since October of 24 is what it's coming off of. Stock's down 23 percent year-to-date. Josh, I'll give you this one. What's going on with this name? [00:25:41] Josh Brown: I think losing the M&A battle to acquire Time Warner, Warner Brothers, opened up a new conversation about, well, wait a minute. Netflix has gone 20 years without doing deals like this. Why, all of a sudden, did they think that they needed to? And so you had a little bit of a doubt. And, you know, that explains the stock coming down. And then why has it not found the bottom? Well, Reed's gone. And the narrative seems to just be lost in the shuffle here about, we thought this was the most dominant streamer. Now we're not so sure. Are we not so sure? Well, personally, I think it still is. So I bought the stock into this downturn. And I continue to hold it. And I wouldn't be opposed to adding more. But technically, this thing is completely broken. There are very big sellers in this name. This is a $300 billion market cap. It doesn't casually fall from wherever the high was. I think it was like $120 or $130 down to $70 without there being substantial doubt about that dominance. I don't think the company's done anything to quell those concerns. And I'm not sure what they could do, quite frankly. Maybe the best course of action is continue to execute. The good news is, if you're a shareholder, they've done nothing but execute, despite the drama around M&A over the last nine months. [00:27:00] Speaker 1: Jeff, you sold it earlier this week. The narrative on this, and to put that same exact chart back up, thank you, that you see it in, you know, February, March, that Netflix not getting Warner Brothers' discovery was the best thing that could have happened to this, according to investors. And then it wasn't. The stock. [00:27:20] Stephanie Link: That's one of the reasons I bought it. [00:27:21] Speaker 1: Stock climbed back up. You like the deal. [00:27:23] Stephanie Link: I like them not getting it. Like the deal blowing up. Oh, yeah, yeah, yeah. That's why I bought it. [00:27:28] Speaker 1: Remember Josh's whole point when the deal was announced was like, I don't like this thing now because it sold, I think, like, half the position at the time, if I recall. It was like, this thing's going to be in purgatory. Okay, so then it gets out of the purgatory, and then at the beginning, at the end of February, March, you see the move up on the no deal. Street applauds it. Investors love the fact that they didn't get distracted by that. They didn't spend the money on it, blah, blah, blah. And then all of that's gone. You know what's after purgatory is hell. So it's in hell now. [00:27:55] Stephanie Link: I think it's competition. I think the competition has only gotten stronger, and this company is going to have to continue to spend, which we want them to do. But I don't know if they have such a compelling slate like they did. [00:28:06] Speaker 1: They raised prices, right? [00:28:08] Stephanie Link: Right, right. [00:28:08] Speaker 1: And we declared them as one of the sort of poster stocks of consumer brands that actually had the ability to raise prices. [00:28:15] Stephanie Link: But there's so much to choose from nowadays. I can't keep up with how many ideas there are out there and ways to... [00:28:20] Josh Brown: But you know what? They got football, and I think that puts a lot of the concern about can they raise prices, can they keep churned down? [00:28:29] Stephanie Link: They got to get football right, by the way. You watch a game on Netflix, it's painful. Not by choice. It's painful. So there's a lot that they have to do on that front. [00:28:37] Speaker 4: It's puzzling. And you talk about raising prices. Spotify did the same thing. Spotify's chart and Netflix's chart is literally identical. They both found a peak in June of 25, and they've gone straight down ever since as they raised prices. [00:28:51] Speaker 1: All right, Josh's best stocks in the market, getting ready for that. We'll do it after the break. It is best stocks in the market time, according to Josh Brown. The spotlight today is on a financial. Which one? [00:29:02] Josh Brown: So we first talked about this stock here on the show in an hour column at CNBC Pro in December. It's had a good run since then. I pulled the trigger on a long position for myself recently. Also want to disclose this is part of our porterhouse portfolio for client accounts at Ritholtz. The reason it's worth talking about today is the backdrop. Can we do the KRE first, guys? This is the regional bank index ETF. It is making a new high. Pull it back, please. Thank you. Making a new high here. And I call this the holy trinity setup in Citizens Financial. Here you have the tailwind of the sector being in favor. You've got the chart on your side, and you've got the fundamental story. All three working at once. I live for this. Like, this is my favorite setup in the entire world. So here you have an obvious breakout taking place as we speak. Again, we started talking about this name earlier, and I think it can continue. And I think the most important point I want to make here, and we've made it earlier in the show, we're in an environment right now, to quote my partner, Sean, where people are screaming about higher rates, inflation, the consumer is weak, oil prices, geopolitics. Regional banks are your number one read-through to the real economy. And when the entire sector is breaking out, which is the case right now, I could give you ten other tickers if you don't believe me, what that's telling you is that, by and large, things are going well. These companies have balance sheets filled with HELOCs, and auto loans, and credit cards, and mortgages, and loans to small businesses. And things look pretty good through the prism of the KRE and the charts of its components. I think Citizens is the strongest one. They have a great story about building a wealth management division from scratch that's now growing faster than anything else they do. I would not be surprised to see this name with an eight-handle. 35% earnings growth expected over the next year. Stocks trading at a 10 multiple. [00:30:58] Speaker 1: On Apple shares, take a look here intraday, please. Stocks at the lows of the day, down more than 6%. There we go. Raising prices on a number of different products. Remember, Micron's gain is, in some respects, Apple's pain. And what they have to pay for those memory chips, what this all means for their margins, is their demand destruction by raising your prices to a certain level. I don't care if you're Apple or anybody else. What do you guys think of this move? [00:31:27] Josh Brown: It's interesting where it seems to have stopped, at least intraday. This is pretty much the level in April where the stock finally found this low for the year. Also happens to coincide with a rising 200-day moving average at about 269. If I'm a trader, I'm standing back. If I'm an investor, I think it's a great opportunity. Apple has more pricing power than any other company I could think of. [00:31:52] Speaker 1: Okay. Well, I was thinking of, like, Netflix in the context of that conversation. Like, the two, right? The two. [00:31:57] Stephanie Link: But we don't even know what their AI strategy is for the following. They're raising prices on. We do. [00:32:01] Speaker 1: It's the friends we made along the way. We do, but, you know, they've made us wait. I hear you. What's your final trade? Qualcomm. All right. Nice move today, right? [00:32:10] Stephanie Link: Rockwell Automation. [00:32:11] Speaker 1: Burke. My favorite read. Simon Property read. All right. So, Dow is still hanging on up near 200 points, but Nasdaq's off. S&P off. See on the bell. For our panel with us at Post 9, CNBC contributor Fundstrats Tom Lee. New Edge Wealth's Cameron Dawson. It's good to have you both with us. Tom, you first. I mean, I was going to start somewhere else, but given what Eamon is reporting, yet another reminder that whatever's happening with us in the Middle East and Iran is far from finished. [00:32:40] Speaker 6: I agree. It obviously tells us oil might have overshot to the downside in the near term, but I think it is interesting how oil prices never rose as much as people expected, so maybe they overshot to the downside. And I think structurally, the war, as much as we want to see peace, it's less of a problem for the U.S. stock market. Yeah. [00:33:03] Speaker 1: Does it remain less of a problem? I mean, is there a breaking point where we think we've reached a deal only to have yet another step forward, two steps back? [00:33:12] Speaker 7: Yeah. I think the factor to watch is U.S. gasoline prices, what consumers are paying at the pump, because that's what filters into household consumption forecasts. That's what potentially filters into some earnings forecasts. Now, of course, analysts have been able to ignore the issue with higher gas prices because they've been able to focus on AI. But if gas prices remain elevated for this long, we could start talking about having more downward pressure on GDP forecasts, some because it eats into consumer spending. There's a lot of hope that falling gasoline prices would allow consumer spending to start to rebound, mostly in the context of real wages still being negative. So if gas prices remain high, inflation remains high, real wages negative, that suggests maybe weaker growth. [00:33:55] Speaker 1: Let's go back to where we were going to start. I mean, you raised your target today, didn't you, on the S&P? We did. 8,000? Yes. Why? [00:34:04] Speaker 6: It's really a catch-up. You know, we had 7,700 at the start of the year, but the S&P 2027 earnings was 350. We're now at 400. We're applying a lower multiple to get to 8,000. [00:34:15] Speaker 1: When you say we're at 400, that's you? [00:34:17] Speaker 6: Yeah, that's the Fundstrat earnings. Consensus is about the same, 352 or so. Consensus is 352 and you're 400? I'm sorry, was 352 and it's now 398, so it's about in line with consensus. But the P.E. multiple we're applying at the end of this year is 20 times, and that gets us 8,000. And we get there by earnings, not an expanding multiple. That's right. The multiple, I think, arguably should expand because we've had so many black swans, and yet the equal weight P.E. is lower today than it was five years ago. What gets us there? [00:34:52] Speaker 1: Because, I mean, the market feels like it's fighting for something internally. We're having this rotation away from the mega caps, as I was just discussing with Dan Ives. What's going on here? [00:35:02] Speaker 6: Well, I think by the end of this year, we're facing a lot of turmoil in the near term because we have inflation, and today's P.E. is telling us maybe the level of inflation's peak, but it's still pretty high. We've got the war and the shortages it's going to create. And we, of course, have the Fed, and the market's going to test the new Fed, especially his new policies. And we have the lockup expiration of these massive IPOs. So I think there's a lot for the market to digest. But by the end of the year, we're going to be looking at 2027, where a lot of this is anniversary, and I do think that's going to be the start of one of the biggest rallies of our lifetime. [00:35:39] Speaker 1: Wow. Okay. So we're at 73.50. We'll call it there now. You've been making the statement that even as you raise to 8,000, you expect a pretty big swoon sometime this summer. Yes. And then a massive rally to get you back to 8,000. I mean, you better have a huge rally off whatever you're talking about to reach 8,000 if you really expect some correction of magnitude when you're here. [00:36:06] Speaker 6: That's right. Scott, yes. I think there is a drawdown. You know, margin debt now is up 55% year over year. It's like it's the fifth highest in almost 75 years. It's almost always associated with the need to adjust for that speculation. So I think that's the fourth reason we have a drawdown. But the reason I think we rally so big next year is kind of what Dan said, that the hyperscalers are going to monetize all of what they've built. And that's going to create prosperity for Americans who use AI. I think it's really going to be a time of actual disinflation and a lot of growth. And that's why we can get well beyond 8,000 by the end of the year. [00:36:46] Speaker 7: Let's hope they monetize it. The market doesn't believe it today. I think the most startling fact is that the Russell 2000 is outperforming the MAG-7 by 27% this year. And the most derating that we've seen in the valuations has come from the MAG-7. The reason why the market is three turns lower today than it was at its October peak of last year is because MAG-7 has gone from 35 times to 25 times. So this market is effectively turning its nose up on the free cash flow implosion that you've seen at these companies. Free cash flow generation is down 70% to 100% plus. And I think to Tom's point, it really depends on whether or not you're going to monetize it. Do you see a big inflection higher in operating income? If you don't see that, then this could be a problem for forward earnings. [00:37:33] Speaker 1: Sounds like you doubt that we will. [00:37:37] Speaker 7: Who am I to know when these things start to pay off? We really haven't seen much evidence of it yet. I'd say there is a world next year where Amazon and Google earnings are actually down. It's because in the first quarter, they took such a big one-time gain on their revaluing at their anthropic position that it made up half of their operating income. We likely get another gain this quarter, but you could roll forward into 27 and have a world where operating growth for them continues to chug along, but their reported gap earnings are actually down. [00:38:07] Speaker 1: What do you think about the 8,000 call? [00:38:09] Speaker 7: Look, I think it's perfectly possible. The fact that we are in an uptrend certainly should be respected. The fact that earnings are still very much in an uptrend should certainly be expected. We've seen forward earnings revisions up by 18% year-to-date. I think in order to get to 8,000, that trend has to continue. We have to see that continued lift higher in earnings expectations. Third quarter, second quarter earnings season starts in about three weeks. The bar is higher. It's for 22% growth for the second quarter. We went into the first quarter expecting 9%. We got 29%. So we have to appreciate the bar has moved up. [00:38:45] Speaker 1: Isn't part of the message in the mega cap pullback? We've reached sort of peak tolerance for spending from these companies? [00:38:53] Speaker 6: Yeah, and I think it's an adjustment. You know, they went from asset light to asset heavy, so it's like they kind of gained a lot of weight, and we're just wondering if they're attractive still. But for every user that is now leveraging AI to generate income, that person's going to be willing to spend more for their service. So I think there is monetization, and we're just starting to see it. [00:39:13] Speaker 1: All right, hang on for two seconds, because I want to get more on the financials, which looked pretty good today. They've been great this month. They are pulling back, though. Let's get to Leslie Picker, who's following that space for us. What do we see here? [00:39:24] Speaker 8: Hey, Scott, a lot going on in this space. The performance of the financial sector over the last month, as you mentioned, has been led almost entirely by banks, which have gained 11 percent during that time. The big banks getting a small boost today, although off the highs of the session following the results of yesterday's stress tests. Five of the big six announcing capital return plans, with B of A deferring its announcement to July. You've got J.P. Morgan, Goldman Sachs, Wells Fargo, Citigroup, Morgan Stanley, each hiking their dividends by at least 10 percent. J.P. Morgan also announcing a $50 billion buyback, and Morgan Stanley reauthorizing a $20 billion one. Now, speaking of J.P. Morgan, the firm announcing also some big news this morning on the CEO's succession front, promoting Doug Pettno and Troy Rohrbaugh to co-presidents. Pettno will run kind of the Wall Street side of the business, while Rohrbaugh will oversee Main Street. Marianne Lake, who has been seen as a top contender, plans to depart the firm. I'm told current CEO Jamie Dimon's tenure in that seat could last another three or so years, give or take a year, and then he could become chairman. Pettno and Rohrbaugh were each given $30 million retention bonuses with a three-year cliff fest. Scott. [00:40:35] Speaker 1: Leslie, thank you very much for that. Leslie Picker. Cameron, financials. Yeah. Do we like them? [00:40:40] Speaker 7: Well, so it's one of the few sectors where you've seen positive earnings revisions this year outside of tech, and you have positioning that is extraordinarily light. Deutsche Bank published that positioning within financials is below the 10th percentile, so nobody's there. You're seeing earnings revisions higher. Now, there's a lot of divergence happening with banks doing much better, but then a lot of weakness still within the asset managers. You hit new relative lows in names like Blackstone and Blue Owl, et cetera. So some of those private credit fears are still present in the sector, so it really is picking your spots carefully, and it seems like the banks and the investment banks are the place to be. [00:41:16] Speaker 1: Let me talk to you about crypto before I let you go. Bitcoin's been cut in half from its high. Yeah. Is that broken? Are you still – how can you be as bullish today as you've been in the past? Do you have 10 more pins on? Is it going to make a difference? [00:41:32] Speaker 6: Well, I'm going to have to start wearing, like, orange clothing, right? Well, Scott, 10 years ago, when we first wrote about Bitcoin and recommended a 1% allocation, it was $1,000, and it was just on the idea of digital gold. Today, crypto is a much more relevant story. Yesterday, I was at the NYSE Digital Asset Summit. ICE and the major banks are using tokenization and crypto rails to really update the legacy tech stacks of banks. It's really central to their future, and we know that many AI companies, their engineers tinker with crypto on weekends because they know in the future to really manage AI agents, which could be more wealthy than us, we need to keep sovereignty by using decentralized systems. Crypto is still a center to the future of AI and to financials, but it is a story that struggled because AI and memory is a much more exciting story. I think, without question, Bitcoin today is like Bitcoin at 1,000. It's misunderstood. It's really, and especially contract platforms like Ethereum are even more undervalued. [00:42:37] Speaker 1: But how can it be consistently misunderstood if an evangelist like you continue to come on and explain to people why you're so bullish on it? What happens if, I mean, I think you could make an argument that a key cohort that has kept it rising at times, retail, is just not interested in it anymore, and they're more interested in SpaceX and OpenAI and Anthropic and Micron and who knows what else comes down the road? [00:43:03] Speaker 6: Well, that's, you're making a really relevant point. Young people today bank through apps. In the future, they're going to be trading stocks, and very likely, as Robin has pointed out, you're going to be trading it on a crypto platform. It's a tokenized stock. I mean, look at what happened with oil trading over the weekends. That's all using crypto rails. Crypto is a little hard to understand, and people don't like to deal with wallets, but young people, which is the next generation of users, are really big adopters. But where are they now, though? Well, they're not as wealthy, and I think you're absolutely right. There is FOMO, because it's easier to buy the memory stocks. But I think, without question, in 12 months, we're going to say crypto was a downstream story of AI, just like memory was sort of a has-been story in 2024 and 2025, right? They were stuck. They didn't go anywhere. And look what happened in 2026. They all went parabolic. [00:43:57] Speaker 1: Well, for a reason, though. We're in this historic build-out of AI and the whole infrastructure. I mean, where's that moment, if you will? [00:44:09] Speaker 6: Scott, it's actually happening. For instance, BlackRock is tokenizing almost every asset. Almost every asset is going to be built on a crypto rail. It is more efficient. It offers finality, and it lets it trade 24-7. It's what's called composability. It's really turning financial assets into software. It's happening, but, hey, it's slow and then sudden. So, to me, it's been – 2026 has been a big setback year. It's disappointing, but to me, the fundamental progress is still there. [00:44:38] Speaker 1: All right, Tom. Thank you. Appreciate it. Cameron, thanks. We'll talk to you guys soon. What's been in this market, do you think? [00:44:42] Speaker 9: Well, this is a market that we think is quite set up to test conviction. We have this flavor of market leadership in specifically semiconductors and memory chip leaders in particular. This is a structurally more volatile flavor of tech than we saw in the Magnificent Seven for the past several years. Then you pair that with an astonishing repricing and Fed expectations, not just the what but the why, of why the Fed might be hiking next. And you have this environment, which is candidly a recipe for volatility. [00:45:13] Speaker 1: Does it feel to you like the mega cap trade is going to be on a prolonged pause as you have some rotating around, like Mike Santoli was talking about? [00:45:21] Speaker 9: You know, it might not be a prolonged pause, but it might be an environment where investors have to decide when they come back to pure profitability, pure quality. And that is honestly mostly found in the Magnificent Seven as opposed to the more volatile, the more cyclical semiconductor stocks. It's also a segment of quality, which is more found in the Magnificent Seven than, for example, the likes of the expected and ongoing IPO wave where we have cash flow negative companies being added to this narrative that's been so strong when it comes to profitability and earnings growth. [00:45:53] Speaker 1: We'll talk to you again soon. Thanks for being here. It's Julia Herman joining us here as we get the clapping now to close this session. And so Dow's going to close a lot lower than it was throughout much of this session. It's probably going to hang green, but we're not going to get that first 52,000 close ever. S&P and NAS are negative. Russell. [00:46:12] Speaker 10: Hello and welcome to Blue Cloud Trading. I'm George. It's Thursday, June 25th, 5.32 p.m. Eastern time. As I'm recording this video, the U.S. stocks ended mixed as hotter PCE inflation and an upward GDP revision offset by micron-led chip strength. While Apple weakness weighed in on tech in the NASDAQ. As we can see here, the Dow was up 0.14%. NASDAQ was down 0.46. The S&P 500 was flat at negative 0.01%. And the Russell was up 0.75%. In this video, we're going to cover a number of the stocks that they discussed. On today's episode of the Halftime Report, we saw Josh Brown. We saw Tom Lee. And I'll cover, let's take a look here, 14 ETFs that you see right here on the left, including the Dow, the Russell, the SMH ETF, which is a semiconductor ETF. We'll look at Eurostox, Gold, Silver, Oil, Bitcoin, Ethereum, Copper Miners ETF, and the Mags ETF. We'll also take a look at about 30. That's right. You heard it here. I've highlighted the strongest stocks and ETFs at the top with a little blue flag here. So we're going to go into those charts in a few moments. And then I'll also take a look at OSCR, which is the ticker symbol for one of our members' requests. And that is a health care stock, Oscar Health, Inc. So let's do this. Let's start off first by taking a look at the heat map. Very visual. Very easy to identify what did well, what sectors were in the positive. You can see industrials. We're mostly in the green here today. The energy stocks did well, right? Utilities did pretty good. Real estate, not so much. It was mixed. Basic materials did pretty good. That little corner right there. And then the software infrastructure stocks like Oracle, Microsoft, Apple. Look at Apple down 6.12. NVIDIA down 1.64. Broadcom down 0.83. But there were some stars. You had Micron up 15.74% today. We're going to look at that stock in a few moments. AMD was up over 2%. Qcom and Texas Instruments were up. A lot of the semiconductor equipment and materials stocks were up, like LRCX, AMAT, which is up 13.4%. KLAC, 7.62%. So there were some winners. There were some losers. Let's see what's going on after market now, after the hours, after the market, what the after market performance looks like. And the majority of the stocks are in the green. But look at Micron. It's actually down after hours, down 1.3%. And monolithic power systems down 3% after hours. And ON semiconductors down 9.15%. Let's take a look at ON. I'm guessing. What does it say here? Let's take a look at this real quick. ON 72 acquires Synoptix in $7 billion all-stock deal. Definitive agreement offer offers 1.35 and so many shares for each Synoptix share. So apparently after hours is causing the stock to drop, which is interesting. There's a three-minute chart. You can see what's going on after hours right there on that one. And so, yeah, let's see what it says here in this article. Chipmaker on Semi will acquire Synoptix in an all-stock transaction value to add approximately $7 billion, a deal aimed at expanding its presence in artificial intelligence, driven intelligence systems, and strengthening its position in emerging physical AI applications. Okay. Let's go ahead, folks, and get started with our analysis. We're going to use the Ichimoku indicator. The Japanese indicator is comprehensive. It has five moving averages. It's not like most indicators that typically look at the closing price to create the actual moving averages. No. What this does instead is takes a look at the high of the candle, all right, the high of the day. It takes a look at the low of the day. It takes the midpoint. It's always the average, the absolute midpoint of the last. In this case, for the green line, it's the last nine periods. Okay. So we'll call that Tenkinson is the name of that line. The Kijinson, the red line, is the midpoint of the last 26 periods. Syncospan A is part of the cloud. So this one actually projects into the future, 26 periods into the future. It takes the midpoint of those two moving averages, and then it projects it out right there. Syncospan A is what that's called. We want that above the Syncospan B, the purple line. The Syncospan B is derived by taking the midpoint of the last 52 periods and projecting it 26 periods into the future. Very unique, right? Considering the fact that this indicator was initially incepted in the late 1930s in Japan, published in the late 1960s, and then now it's being used by a lot of financial institutions. And then there's one final line for this, or moving average, and that's actually the current price in a line form, but it's projected 26 periods into the past. We want to see where that price, the current price, which is this price right here, the closing price, where is that in relation to the candle 26 periods ago? Is it above that candle? If that's true, then that's very bullish. If it's under, like it was over here, under the candlesticks, that's bearish, meaning you don't want to be adding positions in that scenario. So, okay, we've got that. Let's take a look at the Dow Jones. How's that looking right now? We're looking at the daily chart, that's up 0.14% today, the DIA ETF, but it created a shooting star candle. That's not a very bullish candle. If you're unfamiliar with these reversal type candles, let me just show you where you can find a little quick cheat sheet. Right on my X page here, you can find me under at Blue Cloud Trader. And if you scroll down and select Highlights under the tabs, and then you continue to scroll down like that, you'll find this candle pattern reference sheet. You can click on it. It makes it a little bigger. And what we just witnessed right there a second ago was the shooting star, a longer wick with a small little red body. So that is what you're seeing right here for the Dow. So that's not, even though price moved up, gapped up, the bears took control, and you can see it all in the three minute chart. You can see that big gap up here. So here is the gap. It continued moving up, and then the bears, right, started selling off throughout the rest of the day. I don't know if this is going to continue into tomorrow or Friday. We're going to find out, but it's not necessarily a type of candle that you want to enter new positions on. The Russell 2000 is a red spinning top. So even though, again, it was up 0.75%, this too, there it is, the bearish spinning top. Looks like a spinning top, right? Equal wicks on the top and the bottom with a small little red body. That's what we have right there. If you look at the overall picture, though, on the daily chart, price is above the moving averages here. It's above the cloud. And it's not just on the daily chart, but also on the weekly chart. And that's what's necessary in order for me to feel confident about any specific stock or ETF to add to my portfolio. So it's just the Dow, the Russell, and the SMH that basically meet all the criteria of this indicator on both the weekly and the daily timeframe at this time. So let's look at SMH on the weekly chart. You can see it's above the cloud. It's above the moving averages, the cheek of span, the lagging line is above price. All that is happening. You look at the daily chart. It's basically sitting right at the, right above, or did it close under, folks? It may have closed underneath. It did close just barely today under that Tenkinson. When I looked at it, when I was watching it and checking it out earlier, it was still technically slightly above. So guess what? SMH actually just lost its little blue flag. Bye-bye, SMH. All right. So it's just the Dow and the Russell, basically, at this point. You know, you look at the SMH overall, like I said, it's still technically in an upward trend. We've got higher highs, higher lows, but it's not, this is not a good candle overall, even though we did jump up 2.9%. Let's take a look at the rest of these now. The SPY, which has been showing a lot of weakness recently. We can see this decline right there. We have that lower high. We haven't taken out the lows here yet, which is good. And we're still above the cloud itself, which is also positive. But if you look down below here, we have a secondary indicator, the directional movement index at a setting of 9, which is faster than the typical setting. The red line is above the green line. That's not a good sign. Okay. And so you can see also price is reflected right there. If you go straight up, whenever the red line crosses above the green line, it's typically a negative scenario. Here it was again right here where the red line crossed above. It led to this decline. When the green line is above the red line, it's a very simple indicator, if you think about it, like over here, where it crossed above, that's how price just continue to move up. So this is kind of like just a quick visual confirming the direction. And that's why it's called the directional movement index. And you got the ADX9 also superimposed. ADX represents this white line, and that's momentum. So if the white line is moving up, that momentum is increasing. And if the red line is above the green line, that means the momentum is increasing to the downside. So we don't have any buy signals here in this buy quite yet. And if you look at the weekly chart, we may potentially tomorrow close under this Tenkinson. Right now, where are we? We're at 734.30. We're technically right under it by nine pennies. We'll see if tomorrow this buy can recover. If it gets under that Tenkinson, that's not a good sign on the weekly. And you can see four weeks in a row we've been kind of stagnant here, these red candles. The QQQ ETF on the weekly chart, not looking particularly great either on the weekly, although we are holding up above the moving averages in the cloud. On the daily chart, we're currently under the nine period, and we're under the 26 period. And we have a lower high here from the prior one. So the Qs don't look particularly great. The VIX, that represents volatility. That moved up 2.3%. That's not a big jump. It's at a level of 18, but it's inside the cloud. And generally, we want to see this declining. We want to see this dropping, not moving up. FEZ is the ticker symbol for the Eurostox 50. It jumped 0.97% today. Creating what's called, this is, I'm going to show you guys a pattern here. See this triple candle pattern? See how this little candle here is under both this candle and this candle? Let me show you guys that pattern. If you look, it's under bullish, triple candle patterns. It kind of looks a little bit like this. Okay. So we've got, they call it a bullish abandoned baby. Okay. This little baby right there. So if you look again at this chart, that's what we're seeing here. All right. So there's a higher probability that this could potentially move up. Would I be buying here? The answer is no, because we're still under this resistance, these two resistance levels. All right. So if you look at the moving averages, the moving averages, GLD, still in a decline under the cloud, under the moving averages, but it was up 0.98%. All right. But one day it's not going to change the direction of gold. We need to see more consistency. We need to see price breaking above levels of resistance. And we're not there yet, basically. And silver, same situation. Even though it was up 1.12%, you can see how far under the moving averages in the cloud we currently are. We have a bearish cloud. Remember what I said earlier about the Syncospan A, the light color blue line? And that should be above the purple line. That's not the case right now. Oil K, that's the ProShares K1 free crude oil strategy ETF. It was up 2.35%, but that's also under the cloud. So no on that one. Bitcoin, another drop today, down 1.03%. No surprise here, because it's been under these moving averages for a long time. The momentum is still to the downside. Remember what I said earlier, the red line is above the green line. And as you can see here, it's still in a decline. And it has been since this point right here. If you go straight up, if you measure from that point, it's dropped 25.9%. I'm talking about Bitcoin. And that's since May 18th, just May 18th of 2026. Think about that. Just slightly more than a month. That big of a drop. Ethereum. So that's pretty much why Scott from CNBC, the host of CNBC, was kind of grilling Tom Lee a little bit about it, especially about Ethereum and crypto. Because Tom is still pushing that out there. But right now is not the ideal time to be pushing this particular type of investment, in my opinion, because the momentum is not there yet. And obviously, you can see this decline has been taking place for a long time. If we switch it to a weekly chart here from the highs, which goes all the way back to August 22nd of last year, 2025. I mean, this Ethereum has dropped 67.9%. That's huge. Bitcoin, the Bitcoin ETF, IBIT, from this high right here, okay, from October 10th of 2025, it's dropped 53.08%, and it's still declining. And it doesn't look like it's reversing here anytime soon. In fact, it took out these lows here, this prior low. That's not a good sign. Took out that low there, and dropped some more. Took out this, and I expect it to drop some more. Where might it find some support? Maybe around these levels here. Somewhere between 25 and 30, okay? Let's take a look at COPX. What is that? That's Copper Miner's ETF. That's also dropping a little bit this week. As you can see here, it dropped onto the moving averages. That's not a good sign for the Copper Miner's ETF. But I will say this. If you switch it to a daily chart, it's sitting right on top of that 200-day moving average. And a lot of times, price will bounce off that level, like it did over here, back in August of 2025. But I would just be holding off, basically, at this point. I certainly wouldn't be adding any new positions, any long positions. I wouldn't be shorting it, because it's sitting right there on that 200. I would just wait it out, see what happens. Give it a little bit of time to work itself out, and we'll see what happens with the COPX ETF. MAGS, MAGS, that's the Magnificent 7 ETF, a continued drop. Like, I've been stating, you know, since this date right here, June 2nd, when price got under the Tengensen, not a good time to be adding any more positions at that point. So just think of that as, like, you know, if you start using the rules of this indicator, which basically state that you should not add new positions to your portfolio in any stock or ETF when price, these Japanese candle sticks, are under any of the moving averages. So, you'll save yourself, you know, some money from that point, it's already dropped to 12.2%. We're talking about the Magnificent 7 right now. You look at the red line, that crossed right there, that exact same point, didn't it? So, you had double confirmation, two indicators telling you to stay out of the mags. This is not complicated, this is not rocket science. Using indicators and understanding them, I know it looks, at first, it can be a little intimidating. There's a lot of lines here. But once you understand what each line represents and how price reacts to each level, then it's going to make your trading a hell of a lot easier, okay? Quickly, you'll be able to assess whether you should skip a stock or, you know, start analyzing it a little further because you don't want to spend too much time on any stock. And, by the way, out of the 30 stocks and ETFs that they discussed today on the show, on the two shows, let's see how many look actually past the test on both the weekly and the daily. Actually, there's quite a few. 14 out of 30. So, less than half, but there's still quite a few stocks and ETFs that we're going to look at. I'm going to look at the other ones as well, but I'm not going to spend too much time on those, okay? So, here's XLI, for example. That's the industrials ETF. That looks great here on the daily chart. We do have that little upper long wick there, which is not particularly great and fantastic, but it did break above this high right here. And we've got a bullish cloud on the daily, and it looks good on the weekly chart as well. So, I like the XLI ETF. I like XBI, biotech ETF. That's the weekly chart that you see there. You can see how we broke through this level right here last week, and now we're continuing to the upside. That's what you're looking for, breakouts when price is above the moving averages. And they're in the correct order. The green line is above the red line. The sinker span A is above the sinker span B. And if you look at the daily chart here, we've got the same thing here confirming everything. Look at that, ADX moving straight up with the green line above the red line. That's what you want, okay? By the way, this charting platform, anybody can download this, and you can even try it for free for like a month. Just real briefly, I'll show you guys how you can get access to it. All you need to do really is go to my channel, Blue Cloud Trading, on my YouTube channel here. And where it says 10 more links, right there, scroll down a little bit, and there's the link for the $25 coupon for TC2000. And if you want to become a member, right above it, there's the link for becoming a member. I've got three different tiers, depending on how often you want to get information from me. If you want daily trade updates, and also new stock ideas, then you want to select Blue Cloud Legend. That's the highest level. If you want it just once a week, Blue Cloud Trader. And Blue Cloud Supporter, if you want to request a stock rate, you have to be analyzed in the show. All right, let's get back to the charts now. TER is Teradyne Inc. Look at this one. This is a pretty chart. Daily and weekly chart. Beautiful. CDK, Sandus Corporation. Beautiful chart on the weekly. I mean, this is an absolutely gorgeous chart. There's nothing negative about this chart. Notice also how efficient and effective the moving averages have been holding price right there all the way along. In fact, on this particular chart on the weekly, price hasn't closed under that nine period at all, has it? So hypothetically, if you got in right there in that candle, the price got above the cloud, above the moving averages, and you held it this whole time on a weekly chart, you'd be up 4,207%. I'm not joking. That's how much this stock has moved up since August 29th of 2025. From that point right there, it was $52.51 at that point. Sandus Corporation is now $2,335 per share. It's up $4,346.5% and you can see around that level. Okay, so right around there. Yeah, 4,000 plus percent. There's the percentages. Okay, pretty awesome. Looking at the daily chart, you're going to see a little bit more volatility. You are going to see price dropping under those moving averages occasionally, under the Tenkinson, maybe even under the Kegensen. But did it hold up above the cloud successfully? Pretty much. Right over here, right over here. So going back right over here, look at this. This is a perfect example of how when price comes, even on the daily chart, comes close to the cloud, it will normally and typically find support. And that, again, goes all the way back to this point right here, again, August of 2025. So although you're going to get those breaks on the daily chart, which is because it is going to be a little bit more volatile, you're going to see some volatility and some pullbacks, which, by the way, can be great. Because if you're considering getting back, you know, having a position in Sandus, maybe you wait for a pullback and you wait for price to get back above the moving averages. A pullback, you know, like right here. And you get in. Or here. And you get in. Okay? Anyway, let's keep going. Micron. I like Micron technology as well. It was up 15.7% today. I don't, I'm not crazy about this candle because it opened up and then closed under the opening price. If you look at the three-minute chart, there was the green line, there is the opening price. And this was red, the red line, the dotted red line is yesterday's closing price. So it gapped up, dropped, came back to the opening price and then dropped back under that opening price and under the cloud. The cloud on this three-minute chart throughout the day, creating this reversal type candle. But, you know, you can't, I mean, it's obviously in a nice strong uptrend. Here's the weekly chart. Also looking pretty bullish. Since this point right here, where it got above the cloud, September 5th of 2025, it's up 829.6%. MTUM, momentum factor ETF. This looks pretty good too. Here's the weekly chart. Here's the daily, up 3.35%. I like MRK. That's Merkin Company. That's the healthcare sector. Drug manufacturers. Looks good on the daily. Looks good on the weekly. I like KRE, the regional bank ETF. That looks great on the weekly. Looks great on the daily. I like KBE. Same thing on the daily and weekly. IWC looks great on the weekly and daily. Although we've got a couple of red candles forming, we're still above all those moving averages, right? GLW Corning Inc. I like this one a lot. Look at that. Nice. Oh, yeah. That looks great, actually. Check this out. So from these highs here, if you go draw a trend line right all the way across, you can see how it broke today. So up 10.84%. Notice how the momentum is increasing, going up. And the green line is above the red line. I like that one. ETN I like. Okay. I'm above the moving averages on both the daily and the weekly chart. DRAM looks great on the weekly and daily. That's the Round Hill Memory ETF. ETFG, Citizens Financials Group. You know, we talked about this one, not yesterday, but the day before. Because someone, I think, discussed it on the show. And I brought it up and said, yeah, this one looks great. Here it is in the daily chart. If you go all the way in. I actually think I have some trend lines on this. Let me see. Yeah, I do. 68.79% based on that prior high right there. It broke above it on Wednesday. I'm sorry, Tuesday, June 23rd. This was Wednesday. And here we are on Thursday. Up 1.71%. Beautiful chart. Daily and weekly. Let's hope that tomorrow CFG can remain above this 68.79 level. If it does, that means that we've got a weekly candle closing above this level of resistance. Last week, it was a resistance level. The week ending June 18th. Okay. This week, it needs to stay above. And it looks like it's most likely to do that. Let's keep going. Now, the rest of these guys. Notice how there's no blue flag here anymore. For the rest of these stocks I'm going to discuss, I'm not going to spend too much time. Because there's something technically wrong according to the Ichimoku indicator. Like financials, for example. What's wrong with this one? Well, okay. I think I just found it. Take a look at the lagging line. The white line. That's the current price projected 26 periods ago. It's under the candle. That's negative. XHB. The faster moving average on this one. Whoops. The green line is under the red line. That's not good either. Does not pass the test. And the cloud is bearish too. Syncluspan A is under Syncluspan B. VST. Syncluspan A is under Syncluspan B. Price is inside the cloud. No on that one. That's Vistra. VRT. Today closed under the nine period. That's Hankinson. So no on that one. Qcom. Okay. Looks good on the daily. I'm sorry. Weekly chart. I take that back. But what about the daily chart? Not so much. Faster moving average is under the slower one. Shquspan is under price. PWR is inside the cloud. That's Qantas services. No on that. PLTR. Palantir. I mean, just. Is it not clear enough? I mean, all you got to do is look at these charts. And when you superimpose the 200-day moving average as well, that can add a lot more to your chart. Because it is watched by many traders, right? Notice how price, when it comes to it, dropped. It finds resistance like it did right there, right? Dropped. Came back to that same 200-day right there and dropped some more. Broke through these levels of support here recently. What day was that? That was back on Monday, June 22nd, this week. And now it's dropping some more. And that's what you can expect to happen, by the way, when price is breaking down. Okay? There's less interest. There's less demand. And what happens? Price drops. It's kind of like anything in the world, right? Whether it's gasoline. If the demand price for gasoline, if there's not enough demand, what happens? Price drops. Same thing with clothing or food or whatever. When there's not enough demand for something, it's going to drop in price. And the same thing applies to stocks. So we can witness and review the charts. And that's, remember, the charts, all they do is visually tell us a story about what's happening day by day, if we're looking at a daily chart. Week by week, if we're looking at this weekly chart. Look at that. Looks pretty bearish there as well under that cloud. You can switch it to a monthly chart if you want. Oops, I got a lot. There you go. Under that, Tenkinson, Kegenson on the monthly. You can switch it to a one-minute chart and get minute-by-minute data on a stock. I mean, you're going to get a quick synopsis, a quick picture, essentially, of what's happening. And then if you understand how to read these charts, then it's going to, you'll be at an advantage, and the guy that doesn't, okay, will be at a disadvantage. And you'll have an edge, essentially. And you will be able to make wiser decisions about your trades. It's as simple as that. So, ONTO, Onto Innovation, Inc. Here it is in the daily chart. Looking great on the daily, right? But what about the weekly? Oh, does that look good on the weekly? Hold on. It looks good on the weekly. There's something wrong with this, isn't there? No, there is not. My bad. I did not catch that one. So, this one actually gets the green flag. I'm sorry, the blue flag. All right. Where were we, guys? I forgot. Where were we? Oh, we did VRT, Qcom, PWR, Quanta Services, Palantir. Oops. Netflix. Oh, boy. Still dropping. Down 1.29%. We talked about this one recently as well. Out of demand. You know, there's no demand here. Look at that EDX. That momentum is increasing to the downside. Why? Because the red line is above the green line. And it's under the cloud. It's under the moving averages. Microsoft. Same thing. Stay out of these. That's why the MAG's ETF is dropping. Microsoft is down. Netflix is down. Meta. Whoops. What did I just do? There we go. Meta is down under the cloud. Down 2.65%. And you can see how we're still under that 200-day. All right. Google has been dropping. It's a little bit stronger than the rest in that it re-entered the cloud today. Right? But look. The faster moving average is still under the slower one. Cheek of span is still under price on the daily chart. And it looks like the cloud is about to turn bearish here. The same span A is under the same span B. And the red line is above the green line. So this is not the time to be adding positions. These are out of favor at this point. Okay. Let's keep going. GEV. GE for Nova. What does it look like on the daily chart? Well, the cloud itself is still bearish. So it doesn't get the blue flag. CEG. Constellation Energy is under the cloud. No on that one. Amazon is under the cloud. There's another of the big stocks that's been dropping down 3.1%. When should you have probably, you know, the last time that it made sense to be in this trade was probably right around here on this candle. Back on May 27th, where price was above the moving averages. Since then, it's dropped 16.2%. Very simple. And then Apple. Also dropping. And how many times did we talk about in prior videos, this level here, how it was, once the, once the moving averages merge like this, it's the, they can sometimes, that's the one interesting thing about this indicator, because we're looking at the midpoint of the candles. A lot of times the faster moving average and the slower moving average will be at the exact same level for an extended period of time for multiple days. In this case, it was one, two, three, four days where the moving average was at the exact same level. What does that do? It actually, okay, makes that resistance level significantly stronger. It's like building, it's like a cement ceiling, okay? And so to break through that, it takes a lot more momentum. And guess what? There just wasn't enough demand to push through. This was an area that was being defended by the bears. The bulls were unsuccessful in breaking through that level. And what happened? The bears pushed the price down further, got under both of the moving averages here. And then once today, we can see we actually broke under that low. That's not good either. The bulls at least held it right there at the bottom of the cloud to fight another day. But it's not looking pretty for Apple. And you can see here the ADX started moving up. The negative DI is moving up. The positive DI is moving down. Okay? That's not good. All right. And then finally, we're going to look at OSCR, Oscar Health Inc. Isn't this kind of a fun way, a different way to observe the markets, right? You know, they're not talking about this stuff on TV. This is completely different. We're looking at things under the hood. We're getting a much deeper analysis, a different level of analysis. They're giving us their analysis, right, about the stocks. They're telling us about what's happening in the stocks, the news. But all of that, this supersedes all of that, in my opinion. It's all about what's actually happening on the ground between the buyers and the sellers. What's going on? And with Oscar Health, this consolidation that's happening. What is consolidation? It's when price is moving sideways in this tight consolidation box that you see right here. That's what's going on. And today, price dropped and closed under the Tenkinson. Not a good sign. But we are still in this box. So in my opinion, as long as it remains inside the box itself, it would probably be okay to hold this position to see what happens. If it drops under the box, what is the box? The box is around the $27.50 level, $27.50 level, okay? If it gets under that, expect it to drop to the next level of support, which is the 26th period, the red line here, and potentially down further. The good news is that the green line is still above the red line. The ADX is just moving sideways here, again, which is representative of a consolidation stage. And if we look at the weekly chart, everything looks good here in the weekly, but the candles are becoming smaller. There's less interest. There's not as much movement yet. This could, of course, just be a short-lived break, right? Where price, basically, they're just kind of holding off a little bit. And the sector itself is starting to strengthen. So that's a good sign. So we'll see what happens here, right? The other good news is if you look at the weekly chart on a longer-term basis here, you'll notice that we were in a very long extended weekly consolidation box, okay? Going all the way back to 2024, mid-2024 here. And it was just this year that we were able to break above this box, these levels from 2024. Do you see that? So for the last three weeks, we're above it. I'm more positive about this stock than I am negative. And this specific industry, the healthcare plans, are actually doing pretty well right now. So, all right. That's it. That does it for this video. Thanks for watching, guys. Thanks for supporting my channel. Don't forget to hit the Like button if you liked what you just saw. Don't forget to share this video with someone that you think might actually like it, someone that's into stocks and they want some more. They want to add one more channel to their library, right? Hit the Like, Subscribe button. It's free to do that. And then if you want to get access to the exclusive member-only content, click the Join button. This is a sample of what the Members Only video looks like, the thumbnail right there. And you can see all the different videos I do each weekend right there. And those are very valuable because you can see the trades that I've placed. You can also see, I also go a little bit more in detail about my methodology and also how to protect your portfolio during times when the markets are actually declining too. That's really important. How do you hedge? How do you protect yourself? All right. Guys, thanks. I'll catch you all in the next video. [01:22:13] Speaker ?: Bye. Bye.