TOP STOCKS SHARED (06/22) Stock Market Analysis

[00:00:00] Speaker 1: All right, guys, thanks so much. Welcome to the Halftime Report. Scott Wapner, front and center this hour, the state of stocks, investors watching the Iran talks. We're gearing up for Micron earnings as well, midweek, trading the markets today with the Investment Committee as always. Joining me for the hour, Joe Terranova, Stephanie Link, Jimmy Labenthal, Rob Siechen. Check the markets here. Told you what we are looking at today, but we are looking at a NASDAQ that is weak yet again. It is down more than a 1%. I do want to focus on SpaceX because we're looking at three sessions in a row. This was after it briefly eclipsed Amazon in market cap, down about 25% from its high. I bring it up because we had talked several times with Stephanie Link. She said she was interested. Are you going to buy it? Might buy it. Maybe. Let's see what happens with the stock. It got down enough from the IPO that finally you said, I'm going to buy it. [00:01:00] Speaker 2: Yeah. And it's a 2% position. It's very small and it will remain that because it will be so volatile. I expect that. As you mentioned, it's down almost 25% from its highs, but it had rallied up 50% from the IPO price. So I expect volatility. I've said this many times, set it and forget it. This thing I think I can own for 10, 15 years. And it's because of the total addressable market at $28.5 trillion. But this is also a company that has a chance to get revenues up 70% and double gross margins by 2030. And I've said it before, there's a lot of ways you can win. On space, they have a 90% market share, a cost advantage. Launch costs are going to go from 14 million to three to five million over time. Starlink, they have 10 million customers. That is expected to get to almost 200 million by 2030. And then, of course, AI, they're renting compute to both Google and Anthropic. And I suspect others as well down the road. Those two companies are spending $2 billion a month renting AI compute. So I know it's going to be volatile. I only want to make it 2% because I want to be able to sleep at night given the volatility. But I do have a lot of conviction in the long term. [00:02:10] Speaker 3: What are you going to say? I just wanted to ask, Stephanie, why do you think the market is troubled by this debt offering to pay off the $29 billion bridge loan? That's part of the reason [00:02:20] Speaker 2: being cited for down 10% today. Well, I think anybody that's raising debt in this world right now, I mean, look at the Max Timmons. I mean, they're going to the debt markets, equity markets, free cash flow is going down. I mean, I have no problem with the debt offering at all. And if it gives me an opportunity to buy this thing down 20% with the growth that I see over the long term, remember how successful Elon Musk has been in terms of running other companies. You do have to take a longer term approach, though, Joe. And that's why I'm saying set it, forget it. And I have it at a size position where I feel comfortable. [00:02:53] Speaker 1: You feel like you can, because one of the first things you mentioned was the TAM. Okay, I mean, $28.5 trillion total addressable market, according to them. Sure. According to them. But you feel like you have a good enough handle on what you think the fundamentals can be, that you're okay with buying it here. Yes, it's down 28, 25% from the high. But, you know, the flip side to the bull case today is the lockups that are going to come. And that's only going to create a lot more volatility with the potential of even more downsides. [00:03:31] Speaker 2: That's why it's only 2%, because I expect volatility to occur and to be around for probably a while. But, hey, look, if it comes down to 135, the IPO price, I'll buy more. I'll put a 3% position on. So, to me, yes, I have confidence. Do I have confidence in the $28.5 trillion TAM? I don't. No, I really don't. But if it's half of that, Scott, they can still deliver 70% revenue growth. And, again, the big importance here is that the gross margins can actually expand substantially. [00:04:01] Speaker 4: We said when we talked the last time we were on the show that I thought you could be a better buyer of this. It was up a huge amount, obviously. I think today's one of those days. I tend to agree with stuff. We're not doing it yet because we have a lot still from the private markets in client accounts. Now, I still think we haven't seen price discovery yet in this name. It's still being very engineered around the IPO. There are lockups coming off. But the fundamentals of this business, they're unreplicable by anybody else. So I don't think for us it's now, maybe later. [00:04:38] Speaker 1: I'm wondering what the whole short life cycle of this as a public company or even in the preparation for it to become one has impacted the NASDAQ in and of itself. So you had a positioning sort of was thrown out of whack for a bit leading into the IPO because people were lightening up in certain, you know, maybe mega cap tech positions to free themselves up to have some cash to invest in the IPO. I'm wondering if nothing else, if it sort of marked a moment of reflection on where we are in terms of speculative moves within the AI universe and that both leaning in and now leading out, it marked a moment of something. I'm not saying it marked the top in anything, but a moment of something where people sat back and said, this is at least something to take note of because a lot of these stocks have been weak since as well as as this name. I really like the way you phrase that, Scott, because I would [00:05:43] Speaker 5: characterize it that way as a moment to reflect on. Perhaps there's some speculative fervor in the markets overall. I don't think, however, it is the moment. I don't think this is a late 1999, early 2000 moment. I think the IPOs that are coming from OpenAI and Anthropic will go off well, and there still will be an appetite from the secondary offerings that are proposed for Oracle and Meta. But definitely this stock coming at 135 with the valuation, Stephanie, I'm sorry, I just I disagree on the valuation. To me, it is still too expensive. I love the company, by the way, and I think I will be buying it. Unfortunately, I think I will be buying it below the IPO price. And it's just a question of valuation, which speaks to speculative fervor that I see in other areas as well. The ZTE, zero time to expiration options, the leveraged ETFs, some of which I think promoted the rise last week in SpaceX. Great company, but we're just talking about the price of the stock is too much. Also, Scott, I'm just going to say this, all right? I think that that speculative fervor is fueled by comments from Elon Musk, who I find to be too P.T. Barnum-esque for my liking when he says something on Thursday, hey, we'll do a trillion dollars in sales by 2030. Okay, how about if you get to 100 billion first? How about if we just cross that milestone and then we'll talk about 10x that in four years? And it's consistent with the way he does business. Hey, funding secured, 420, you know, sexual connotations for the letters SEC, full self-driving, all this sort of stuff. So I have to have actually an Elon discount as opposed to an Elon premium. [00:07:21] Speaker 4: Well, you're out of your mind, Elon discount. Out of your mind. I love you. [00:07:28] Speaker 2: Hold on a second. Since 2010, Tesla is up 25,000%. It's absolutely valid point. But you can't, maybe you can get a better price. Maybe you could get a better price. I'm not sure what the right price discovery is to Rob's point. However, I do think the growth is there. The leadership is there. And a founder having a company in public actually tends to do better in terms of performance than a non-founder led company. I'm going to take all of those stats and I'm just going to hold this. And I hope that it follows Tesla in terms of performance over the [00:08:04] Speaker 5: next 10 years. I'm not wishing ill on your position. I'm not saying you are. What I'm saying is that you're factually, of course, you're factually correct with what Tesla has performed. But that has been in defiance of fundamentals. If you look at where earnings estimates were for this year, for Tesla, three years ago was something like three times what we're coming in at. And yet, as you point out aptly, the stock does very well. If you look at the predictions of full self-driving, of the robo-taxi, all of these things have not come to pass the way he has said. And yet the stock goes up. And what I'm saying, Steph, is specific to Tesla, and this will affect SpaceX as well, is at some point rationality will ensue in both of these prices. And I will be there to buy. I think they're fabulous companies. That we're not disputing. It is a price dispute. And I don't like the way P.T. Musk talks about his stocks. [00:08:53] Speaker 4: Thank God we have dreamers, because they changed the world. I mean, the very fact that he can build a field of dreams and actually achieve the things that he's achieved, Jim, I don't know how you can shoot against the style when the substance is obviously there. I like truth. And that I'm not [00:09:12] Speaker 5: going to back off on. And I will tell you, dreamers, they're great. Howard Hughes, great. You know, Larry Ellison, great. We're just talking about from what price do I think I will make money in the stock. I'm going to agree with you on that. Look, I'm not wishing ill on anyone, but I think this stock is heavy not because of the debt offering, but because people are saying, what the heck is he talking about a trillion dollars in 2030? Give me a break. What if SpaceX has a little bit of a [00:09:38] Speaker 3: near-term challenge in front of it? And that's the fact that the market has rotated in the month of June. Take a look at what's going on right now with Alphabet, down 6%. Take a look at Amazon, which for the very first time is approaching the 100-day moving average. That's the big story. I mean, [00:09:51] Speaker 1: Alphabet is down, what's that like 7%. That's the worst day since May of 2025. Amazon's having its worst month since April of 22. But that's what I was alluding to earlier, that this has all happened. And look at whether this is one of the marking moments of why it happened. I think it is. That you do have money, obviously, moving out of big NASDAQ names. Outside of Apple, by the way, which is at $300 and is at a reasonably decent go of it. But it's not a hyperscaler. So it doesn't fall into that category. It's a mega cap tech name. It is not viewed in the same light as these other [00:10:32] Speaker 3: names are. Or should it be? Let me build some context around this. So I don't know if it's specifically attributable to the AI theme. Because if I look at it, the industrials are still OK. If I look at semiconductors, you still have the names at 52-week highs like KLA Corp and Lamb Research and Applied Materials, Micron going into earnings. That's OK. I think this is an equity size class rotation. Microsoft's down 17% so far this month. The Russell 2000, as we speak today, I believe it recorded another new all-time high. I see this as a rotation. And that potentially is challenging for SpaceX. The other element of this that we're really not focused on is the continued decline in software. It is Adobe. It is Salesforce. Take a look at Palantir. You've got to mention Salesforce first. [00:11:25] Speaker 1: Well, I'll tell you what. You have to mention it first. Why? Because it's down 14 days in a row. Yeah. It's the longest streak ever. It's down almost 30% or so over that time period. You, Rob, sold it a couple weeks ago. IGV's down 12 of 14 trading days this month. We had a moment in time where software had rallied dramatically for like three weeks in a row. It did. Some asking, was that the bottom? Is the worst over? Is the trade back? At least in this name and some of the others within that universe, it would be a resounding no. Maybe it's not over. [00:12:04] Speaker 3: Yeah. Let's tackle that for a second. The big one that stands out to me, and we obviously own it in the ETF, is Palantir. Palantir's down to 122. It cannot sustain any type of rebound. Now, in the month of June, I've been active in adding names, Generac, XBI, JP Morgan. A lot of these names are working. The one name that is not working is Twilio. I reached too high for that one. I reached for it near a 52-week high. I'm down about 18% on this name, and it's a software name that can't escape what's going on in the industry. People can't look and see the strong fundamentals of this company. So I will have to take action, mitigate the risk and the loss that I'm experiencing there. But software is incredibly challenged right now, and that continued divide between software and semis continues. [00:12:53] Speaker 2: It's not all software. Cybersecurity names are rallied hard, up 60% from the lows, because their business models are not going to be impacted from AI. You've heard me say it's because of AI that their business is actually going to accelerate. [00:13:04] Speaker 1: It's a lot of the other ones, though, in fairness. [00:13:05] Speaker 2: Yes, I know, but it's not everyone. It's not everyone. [00:13:07] Speaker 1: No, I know, but ServiceNow is down almost 40% on the year. IBM is now down about 17%. Sure, Cyber's had a nice rebound, but that's only so many stocks. I think you have to pick your spots. That's only so many names. [00:13:21] Speaker 2: Of course, but I think you have to pick your spots. I think IBM is a screaming buy here, down as much as it is. Given what he has done to the business model, and we haven't even factored in quantum computing yet, which is a $1.3 trillion total addressable market between now and 2030, and the stock trades about 20 times forward estimates. I think he's done a great, great job making this more of a software company, but a mission-critical software company. Same with Synopsys. It's mission-critical. Companies cannot survive without their software. So I think you have to be very careful on what you're picking and choosing within software, but I don't want to say [00:13:55] Speaker 1: as a whole, it's not a place to invest. I want to go back to SpaceX for a moment, because I thought there was a really interesting note today from Canaccord, which is talking about, I think in some respects, maybe some speculative activity around that name, but sort of also how the cohorts break down into who's been sort of trying to ride the SpaceX wave and what that means for where we are. They say the following. Prior to the IPO, we felt AI optimism was robust and certainly at times overdone, but largely funded by rational, if not exuberant institutions. In our view, SpaceX has marked a new chapter in this saga, ushering in a greater level of retail involvement. Tech can likely keep its momentum in the short term, but a new, more dangerous layer of air is now underneath these stocks. In other words, that more dangerous layer of air is a retail community, which has come, you know, gathered in force in part to, you know, the points that we're making earlier around the idea of what Elon Musk can deliver. He's always been a pied piper of sorts for the retail cohort. But that has made the underpinning of this a little more fragile because that is the cohort that is acting as at least a leg or two in a stool that some people [00:15:20] Speaker 5: feels a little bit shaky. Yeah. And to my eyes, Scott, there are two categories of retail. There are the true believers, the E-line acolytes. And I don't think they're selling today. I think they're hanging on through this. But there's the other type of retail investor that we've talked about a lot on this show, and they're far more speculative. They're the YOLOs, the HODL people, the diamond hands. And they're fast, and they go short as quickly as they go long. And how do they do that? They use the leveraged ETFs, which we have seen come out in force behind SpaceX. And I think that that is something that helped push the stock up last week, and it can equally help push the stock to the downside as well. But it speaks nothing to that underlying layer of stable retail hands. Now, if I take that Canaccord comment, I'll tell you what it reminds me of is Amazon in the late 1990s. Amazon today is multiples upon multiples larger than it was in the 1990s. But it had an air pocket under it. And that air pocket had to be formed, it had to be filled, and then Amazon got through it. I think [00:16:19] Speaker 3: the same thing will happen with SpaceX. Stephanie, if Elon Musk was not the CEO and founder, would you still buy the stock? No. I don't think so. [00:16:29] Speaker 2: Or maybe it would just be like a 1% position. I mean, I think... [00:16:32] Speaker 1: I don't think that's a real fair question. I mean, honestly. Okay. Why? Because he is the CEO. [00:16:38] Speaker 3: I mean, could... Okay, so where I'm going with that... [00:16:41] Speaker 2: It kind of changes... [00:16:42] Speaker 3: Okay, so where I'm going with that question is, I think it is nearly impossible right now for myself or others to fundamentally figure out this stock. And if you don't have... [00:16:57] Speaker 2: I mean, I just cited all these stats to you. Okay. But then you said if... But then you said, I need Elon Musk to be there. So you're attaching Musk to the fundamentals. [00:17:18] Speaker 1: I do. But you could have said the same thing when, you know, whatever valuation that Amazon had way back when, and you could have said, well, they're really putting a valuation like that on a company that sells books only? Like, where's the... What's the total addressable market there? Can you believe in what the fundamental projections are of a store that hypothetically at that time could end up literally selling everything and bringing it to your door within, you know, in some cases, six to 10 hours? But no, you can never describe valuations that mean something in the earliest days of transformational technology. Impossible. [00:17:55] Speaker 3: But, Scott, that's a unicorn. That's... How many companies can... No, no, no, no. That's exactly what we're talking about. [00:18:01] Speaker 2: Listen, look at what Larry Culp did at GE, right? Look, I mean, some... If you have a great CEO and a great bench, I mean, that means a lot to me. [00:18:10] Speaker 3: But we're talking about it on an IPO. I have a difficulty at the early stages of the IPO trying to figure out the fundamentals of it. That's the point. [00:18:16] Speaker 4: Well, it's not a fundamentalist stock right now. It's a... That's why over time it will be. I totally agree with you. [00:18:23] Speaker 1: Let me hit this other stock. Since you mentioned GE, this is really interesting story. I think it plays into a lot of things that you guys own. Microsoft and Chevron, this 20-year power deal for a Texas data center. Caterpillar's part of that. They're going to provide turbines. Chevron's partners, GE Vernova, CAT's above $1,000, I think for the first time ever. We got a lot of ownership here. Steph, you go first because the idea that David Faber put forth earlier as they were discussing this deal is that from what he's hearing, there's going to be similar ones in the months ahead that the hyperscalers are involved in. The demand for computers is so enormous and the demand for powering the compute is equally as enormous. We don't have enough power. Our grids [00:19:09] Speaker 2: are really old. Data centers, we only have 11,400 in the world. 5,400 here in the United States. That number needs to get to at least 30,000 by 2030. And all these companies that I own, GE Vernova, Quantaservices, Vertiv, all are going to benefit from that. Every one of these companies absolutely blew away the earnings, the orders, the backlogs, raised numbers, increasing free cash flow, which is at the opposite end of the mag seven, where they're actually depleting their free cash flow. So GE Vernova specifically said that their backlog of 200 billion will be obtained by the end of 2027. They had said in January, it would be by 2028. So in one year, they're actually seeing that much and they're sold out until 2028. Quantaservices did the same thing with their total addressable market at their analyst day. 960 billion in total addressable market today, going to 2.4 trillion by 2030. And they participate in all of those things, data center power and grid. So they're a real big beneficiary. And Vertiv, I mean, talk about great leaders. Dave Cody is one of the all time best. He was the CEO of Honeywell for many, many years, 15 years. The stock was up huge under him. He's now the executive chair and they too are seeing phenomenal growth. So [00:20:23] Speaker 1: there are a lot of people on the on the same side of the boat on that story because it makes perfect sense. Right. I was a fly on the wall. Let's just say at a at an investor pitch day. Okay. At an investor pitch day. I'm not going to say who pitched what name, but it was in the power area. Okay. And it's not like it's a guaranteed home run deal. The person who pitched is a very notable money manager, even made the case of the bear case, which is if the power to power these data centers and all the compute becomes markedly cheaper, which you can make the bet that it would over a period of time. And that's a bear case for this power story. Everybody's buying into it now. We don't have enough of it. We're still building. I understand we're building it, but if it becomes [00:21:25] Speaker 5: a lot cheaper, it will. If you want to play the bear case, the bear case was laid out by Satya Nadella. Now, you don't have to believe him, but that's what he's basically saying, that we don't need all of these competing large language models, all of these frontier models. And in fact, I mean, he's saying that he's leaning into things like deep seek, which I think is a copycat. I think it's cheating. It's distilling from the existing models, but that's, that's where the power demand could go down. I'm not saying it will happen, but that's, that's the bear case. Now stay on this though, because this is, [00:21:55] Speaker 3: this, I think it's accurate. So we're in the stage where we're building it. I always remember in 2023, we put on quanta services in the ETF. And I was, I was like, why, why are we even putting that on? And then the building process, the infrastructure built out. So you're still building the data centers right now. You need the cooling. You need the contribution from all of them. But there is a finite moment. The proof point, as you call it, we're, we're the building. You're in the second inning. You're in the second inning. Whatever inning it's early, but at some point it ends. [00:22:25] Speaker 4: Don't ask me. Ask Dave Cody. It definitely bothers. And the hyperscalers are investing in securing power because it's the ultimate bottleneck that they're focused on. And everybody, I don't care if it's on the chips, the memory, the power, they're in a spending race because they clearly see something that's different that's going to impact them. And power, in my mind, is the ultimate undervalued beneficiary, why we've been long Vistra, why we've been long NRG, why we've been focused on this space. And I happen to agree with that person. I know who it is. We can't say it. But I agree with that person that this is a bet worth taking for sure in this space. All right. One last stock before we [00:23:09] Speaker 1: take a break. By the way, because not even if you try to make a negative case, every, every pitch has a bull and bear case to it. Right. No one's suggesting it's a today issue. At any rate, it just needs to [00:23:20] Speaker 4: be mentioned. Of course. The economy, though, is that these hyperscalers, and you mentioned them all and how much they're down in the month or in the last quarter, and they're being punished for spending. And yet, so is software. Does not make sense that they are being punished for spending when that spending is driving better outcomes for them over time? It all plays into the, you know, chips that [00:23:46] Speaker 1: are powering all this stuff to begin with. But the SMH is at a record high, best first half to a year ever. That's worth noting. Marvell is being added to the S&P today. You want to just, you guys give me, well actually, Steph, why don't you go? Why don't you go on that one? And then they had a great quarter, [00:24:02] Speaker 2: and they raised guidance, and optical is growing 50 percent. Custom Asics is growing from 20 percent today to 100 percent by the end of 2027. This company has $10 in earnings power. Now, all that being said, Scott, it's up huge. I'm more inclined to trim a little bit because I've had such a nice run, but they are right in the sweet spot. All right, coming up, we'll debate our top calls of the day. We [00:24:25] Speaker 1: have two upgrades in the energy space. That sector remains this quarter's biggest loser. We'll find out where the committee stands. When we come back, let's talk about some calls and some stocks. Diamondback Energy upgraded today to a buy from neutral Roth Capital is the firm that did it. Joe, you own that [00:24:40] Speaker 3: name. We do. This is the one company in the Permian Basin that has actually stepped forward and say, okay, we are going to increase production. If you look at production in the Permian Basin, 2021 was up 16 percent. The last two years, it's only been up 3 percent. Why? Because those companies are more concerned about the shareholder over the last several years, and that's where the capital is going to. Very strong acquisition of Endeavor, 25 plus billion dollars. I think this is the one name in the Permian that you want to own and you have a little bit of a correction here. I see that as an [00:25:15] Speaker 1: opportunity. All right, Trivariate has upgraded energy in general to an overweight today. They see the risk reward now as positive. Fair amount of ownership here. Rob, what do you think about that? You own Devon, EOG, [00:25:28] Speaker 4: CNR, and Suncor. Yeah, this is just a combination of reasonable valuations, healthy earnings growth, geopolitical insulation, which I think is key, and a low correlation to the AI infrastructure theme. And so, you know, you're going to get the benefit of the spend without the same volatility with the [00:25:48] Speaker 1: spend. What about the correlation to the price of oil? Like if there's settlement [00:25:53] Speaker 4: regarding Middle East? I think there's certainly risk to the price of oil, but a lot of these folks we've owned a long time. And if you're building a portfolio, you want something that zigs, as we saw when everything else zags. And I will tell you that these names, because of their price, because of the opportunity set, the optionality that comes with powering this whole ecosystem, I think it's a great call. And by the way, I think there's a lot, the thing that scares me a little bit is there's a lot [00:26:22] Speaker 3: of people that share our view. All right, do you? Look at that chart, year to date, it's up 20%. Now, if you can show the chart since March 1st for the XLE, you are not buying the XLE because of what potentially is going to go on with the price of oil. You have to buy the XLE because since March 1st, the XLE, there you go, it's down 3.7% since the onset of the military operation or the conflict or whatever. So you are buying it for what happened before the conflict, for the ability of these companies to reward the shareholder to grow their production and have that revenue growth. Last thing I'll say on all of it, when we say overweight energy, remember, that's not very much, okay? That's taking a 3% weighting to maybe a 5% weighting. I'll make a strong case that oil actually goes higher [00:27:09] Speaker 5: from here to the end of the year. I think we're underestimating or the market is underestimating how much inventories need to be refilled, not just commercial, but strategic. We were already very low on the SPR, the Strategic Petroleum Reserve, before this conflict started. We know China drew down. And all of the oil that's going to be transited out of the Persian Gulf has a meaningful amount of time that it takes to actually transit. On top of that, energy security is going to demand that countries de-link from the Persian Gulf. I think oil is going to be around $70 to $80 a barrel for the [00:27:40] Speaker 1: rest of the year. All right, let's go through some names. Monster Beverage, [00:27:42] Speaker 3: Overweight, Morgan Stanley, quickly, you've got that. Pricing power, consumer staple name, near an all-time high, executing, increasing prices on Red Bull, and they will stick. [00:27:52] Speaker 1: 52-week high today for Dick's Sporting Goods. Top pick, Baird, $264 is the price target there. [00:27:59] Speaker 2: I wish it was bigger. This is a great management team, and their core business is humming same-store sales of 6% at the core company. And then Foot Locker, which has been a big problem, they actually turned positive comps earlier than expected and guiding higher. The company has made big investments in Foot Locker and also World Cup. And I think that goes away in the second half of this year. So I think you have a coiled spring second half of the year. [00:28:21] Speaker 1: CME target to $273. Okay, it was $323, quote, taking a tempered approach on exchanges for now. [00:28:29] Speaker 3: Yeah, I understand that. Well, I think the analyst is following price here. When you look at CME, you look at ICE, you look at NASDAQ, it's warranted. They each have had corrections. CME, with a leadership change, it's understandable there. My focus would be on Schwab or interactive brokers. I think that's how you're playing trading activity, continuing to be high. [00:28:49] Speaker 1: Okay. Rob Seaton, congrats again on your firm making our inaugural list. What's your final trade? [00:28:54] Speaker 4: The Astra continue to see power as a bottleneck and think they're one of the best position for that. [00:29:00] Speaker 1: Okay, that space getting a nice bump today, as we discussed earlier. Farmer, Jim. [00:29:05] Speaker 5: CRH, important materials company should benefit from all the things we're talking about with AI Buildout, making a big acquisition today. Thank you very much for that. Stephanie Link. [00:29:16] Speaker 2: Rockwell Automation. I think automation is in very early innings as this company's growing [00:29:20] Speaker 3: double digits with margin expansion. Generac, industrial name, bought two weeks ago, [00:29:26] Speaker 1: going to add more this afternoon. The other thing real quick, just to get out there, you sold Netflix to help fund SpaceX. I did. Stock that hasn't traded well, right? No, it really hasn't. That's another reason I sold it. Yeah. All right. Well, we will see where SpaceX goes over the remaining hours of this day. I'll see you at three. Thank you very much. Welcome to Closing Bell. I'm Scott Wapner, live from Post 9 here at the New York Stock Exchange. This Maker Break Hour begins with mega caps under the microscope again today from Alphabet to Amazon and look at SpaceX. That's the lows of the day for that stock. In fact, many of the biggest Nasdaq names are weaker again. That is a big story today. We will discuss what it means for this record setting rally. Here's the scorecard elsewhere. 60 to go in regulation. Decent day for the Dow, although even that is evaporating a bit. Still holding on to positive territory. The standout and what has really been the standout this entire year, the Russell. Another record today. And not all tech names, by the way, are weaker. In fact, far from it. Micron reports earnings on Wednesday. That stock is higher by some 5%. TLA, Lamb Research out of the semispace, also green today. And the AI power plays a strong day there. Microsoft and Chevron striking a data center deal. GE Vinova, Caterpillar. They're both part of that and they're both higher. And how about the banks? They've woken up lately, haven't they? And they are looking pretty good today too. Takes us to our talk of the tape. What will lead the markets from here? Well, let's first check out shares of SpaceX. They are off for the third straight day. That's a story in and of itself. And Seema Modi has that for us. Hi. Hey, Scott, we're looking at shares move lower [00:31:02] Speaker 6: here. Just as SpaceX is looking to raise $20 billion in a debt offering, the sale is expected to kick off tomorrow, less than two weeks after securing $86 billion in its initial public offering. Now in a filing, SpaceX confirms that the reason it's tapping the debt market, Scott, is to cover a bridge loan it took out earlier this year to cover the acquisition of XAI. That's the loss making AI business. Despite the company being unprofitable, SpaceX was able to clinch investment grade credit ratings from Fitch, Moody's and S&P, all noting its impressive rocket technology and the cash that it derives from Starlink satellites, while also acknowledging how much capital is needed to fund its lofty AI ambitions. Scott, the pricing of this bond deal, whether it raises more than its target of $20 billion, that will serve as an important gut check for markets. And it certainly follows debt raises from some of the biggest names in tech, from Nvidia, Meta, and Google this year. Bankers we spoke to say that puts SpaceX in a favorable position. [00:31:59] Speaker 1: Seema, thank you. That's Seema Modi. Now over to Deirdre Bosa with a look at some of the weakness in the other tech names today. The mega cap ones, Heidi. Hey, yeah, right. That's not just SpaceX, [00:32:10] Speaker 7: but Google, Amazon, Meta, feeling a lot of the pressure. And this is really bigger than just one bad headline, or even just a few. So yes, Google is getting hit by AI talent departures, but look at the bigger split here. Chinese AI labs, they're rallying in Hong Kong. Jipu and Minimax sharply higher overnight, while US AI names, like the ones I just mentioned, they are selling off today. What investors are really wrestling with here is whether the model layer is losing pricing power. If customers, if they're getting better at token minimizing now, if they're getting better at routing tasks to cheaper models and using open source alternatives, then the closed model players, they have a problem. Can they keep charging premium prices? Can they keep their market position? That is why this China move matters increasingly more to investors here. Jipu is testing the same assumption that DeepSeq tested a year and a half ago, that American frontier labs have an untouchable lead. So the chip and the infrastructure names, though, I will note, they have not sold off in the same way because they win in more of these scenarios. Whether the winner is OpenAI, Google, Anthropic, DeepSeq, Jipu, or an open source startup, somebody still needs those chips, data centers, networking, and power. So the market, Scott, may still believe in AI demand, but it may just be getting more selective about where the profits are going to land. And right now, the infrastructure trade looks more durable, while the closed model trade and the status quo, the mag seven, now eight, have to prove that pricing power and their market share can hold. [00:33:42] Speaker 1: All right. Thank you. Ending the session here. They're about to ring the bells. Dow is going to certainly go green today. It's up about 140 points, quarter of 1%, not a real robust day by any stretch. Although the Russell, another new record high for the small caps. [00:34:00] Speaker 8: Hello, everybody. Welcome to Blue Cloud Trading. I'm George. It's Monday. It's June 22nd, 6:21 PM Eastern time. We're going to go over the markets today. We're going to take a look at the stocks and ETFs that were discussed on today's episode of the halftime report. There's a couple of clips from closing bell as well. And I hope you all had a good weekend. Let's take a look at the Dow Jones. It was up 0.29% today, just slightly. The NASDAQ was down 1.32%. You can see here it stabilized a little bit in the morning and then dropped, dropped some more. The S&P 500 actually moved up early in the morning, but then spent the rest of the day dropping and then basically balancing out for a decline of 0.37%. You look at the Russell 2000 though, the small caps did pretty well. So we had the gap up from the prior days closing, which was on Friday. I'm sorry, Thursday. Gapped up, moved up. Okay. And then basically stayed around that same, pretty close to the opening price. It wasn't that much far, that further away, but it was up 0.88%. This is what the heat map looked like. This shows us the individual stocks within the S&P 500 and energy stocks did well today. Real estate was up. Healthcare stocks did really well. You can see that the technology semiconductors were mixed. You had Micron up 6.83. AMD was up. Intel, all right, some of the stocks, but NVIDIA down 0.97. Broadcom down 4.67. The software infrastructure stocks like Microsoft, Oracle, Palantir was down 6.98. CrowdStrike was down. Apple was down. Okay. The financial stocks, they were mixed. JP Morgan, Bank of America, Wells Fargo, Citigroup, they were up. Visa, MasterCard, American Express were down. Industrial stocks were mixed. We had the aerospace and defense stocks not looking particularly strong here, but the farm and heavy construction and railroads and engineering and specialty industrial machinery. Different industries did well. Real estate also did pretty good today. So in this last week, this prior weekend here, I actually did put out another members-only video. This is what it looks like. If you go to my channel, Blue Cloud Trading, all right, and you scroll down, you'll find all the videos there. And if you click on it, what will happen is it will probably pop up this little pop-up. If you want to see the video, you would need to select Blue Cloud Trader to access that video. And if you want to get daily trade updates, become a Blue Cloud Legend level member. I share all my trades each day before the market closes. And, you know, had some nice trades actually today. And I picked some really good stocks, I believe, from over the weekend that were in some of the strongest sectors, industries as well. So let's do this. Let's take a look and see what specific stocks we'll be covering today. We're going to go over the Dow, the Russell, the SMH ETF, the SPY, the QQQ, the VIX, which represents the volatility in the markets. Eurostox, FEZ is the ticker symbol for that. Gold, silver, oil, Bitcoin, Ethereum, copper, miners ETF, the MAG7 ETF, the MAGS, and then we'll take a look at about 27. That's right, 27 stocks and ETFs that were discussed throughout the episode of Halftime Report today. And so we'll go over not every single stock, but the majority of the stocks that were discussed. I've also highlighted the strongest ones with the little blue flag, the ones that look the most promising and that show the most clear bullish technicals. And then we'll also take a look at XBI, an ETF requested by one of our members. So let's do this. Let's start off first with the Dow. DIA is the ticker symbol for the Dow Jones Industrial ETF, which is up 0.29%. Why is this something that I like? As you can see, price is currently above, okay, the moving averages. Let me get rid of these lines just for a moment so you can see the indicator that we're using here. It's called Ichimogu. And it consists of five lines. The Tenkinson, the nine period, which is the midpoint of the last nine periods. The Kijinsen, the red line, the midpoint of the 26 periods, the last 26 periods, we've got Cincuspan A, which is part of the cloud, and Cincuspan B, the other part of the cloud. We want Cincuspan A above Cincuspan B. We want Tenkinson above Kijinsen, always the faster moving average above the slower one. And then we've got the Chikuspan or lagging line. That is the current price projected 26 periods ago. If that line is above the candle 26 periods ago, that's very bullish, okay? So the Dow looks great on the weekly chart. This is the weekly chart that we're looking at. And if we look at the daily chart, it's holding up beautifully above that as well. Russell 2000 is doing the same thing here on the daily and on the weekly. SMH is looking very strong here on the weekly and daily. It was up 1.37%. The S&P 500, the SPY ETF on the other hand. Now, that's why I gave these three ETFs a blue flag because they look bullish on both the weekly and daily timeframe. What about the SPY, which was down 0.33%? Well, going back to Monday, June 15th of last week, you can see that the Tenkinson, right? That's the faster moving average. The green line had crossed under the red line. And as I've said before, that's not a good sign. It's not a positive sign. And when that happens, you really want to refrain, right, from adding a position in that specific ETF. Or if it happened to be a stock, when you see that green line under the red line, that's a rule of this indicator to stay out, essentially. Hold off. You know, maybe sit on your hands for a little bit and wait for the indicator to start showing bullishness again. Right now, it's not doing that. What we currently have is a lower high that's starting to develop here from the prior one. See that decline right there? Okay. And so, you know, we might start to see some bullishness, but it hasn't occurred yet. And so what we need to do is wait, in my opinion. And so that's my plan. Looking at the QQQ ETF, same situation. You can see that the Tenkinson again dropped. It looked like it happened on Tuesday for this one. On Tuesday, it got under right there. And then it's just been, you know, basically stagnant. It's been stuck in a box, basically. Okay. Just building a base right here. So I would hold off on the Qs. Look at this. Down 0.36%. The SPY, down 0.33%. Maybe there's something to this. Let's take a look at the, some of the trend lines that I've superimposed here as well. We've got resistance on the Qs at 748.65. That's a prior high. With the S&P 500, it's 760.40. We're still under that level. On these other ETFs, like the Dow, we surpassed the highs. We're hitting higher highs and higher lows, right? You can see this high here is higher than the prior one. This low here is higher than the prior one. So we're in a nice uptrend, okay? Russell 2000 doing the same exact thing. Higher highs, higher lows than Russell. And, okay, what I like is it looks like it wants to get above that level. It might've even got above the high. Let me see. The high was 297.91. Let me go ahead and throw that on there. 297.91. And we got above it. 298.18. It's not a very ultra bullish candle that we're looking at here. This is a spinning top, but it did close above that level. So that gives us more incentive to consider this ETF, right? And the SMH, semiconductor ETF, that was up 1.37%. It also didn't give us a very bullish candle. But as you can see, since it broke this box here on Thursday of last week, because the market was closed on Friday, that was Thursday, June 18th, you know, we had this pop-up. There's something to be said about technicals. It kind of gives us some insight, really, about what's happening under the radar, okay, between the bulls and the bears, okay? People who are betting long versus betting short. So, yeah. Let's take a look at the VIX. The VIX on the daily chart here is at a level of 17.28. It actually spiked up a little bit, 5.9%. Nothing major. It's still under the cloud. That's good. We don't want to see this thing spiking and popping too much, because if it does, that tends to be an indicator of fear. And when there's fear, typically, there's not a whole lot of buying happening in that type of environment. You've got FEZ, the Euro stocks, 50, actually declined today. So, what's interesting is that you can look at this prior level. This is a monthly level from February 26th of 2026. We got above it. On Wednesday last week, it closed under, popped back above. It's starting to look a little bit more bullish. And here we are again, back under. So, the Euro stocks aren't performing as well as the Russell, for example, okay? What about gold, GLD? And if we look at the, by the way, if we look at this on the weekly chart, you can see that right there. It's still holding up on the weekly chart above the moving averages, okay? But again, it's not looking that great. In fact, this particular pattern is like an evening star pattern right here. These three candles that you see here, which is a bearish pattern. Okay, so looking at GLD, gold, let's take a look at this one. We've got a lot of lines. Let me get rid of those for a moment, just so we can look at this purely using Ichimoku. The problem here is price got under, what happens is there's, think of these as levels of support, these moving averages. Once price closes under one of them, things could potentially go bad, which is what essentially started happening here. Now that happened right there on that specific candle back on March 13th of 2026. Okay, that's a weekly, this is a weekly chart that we're looking at here, folks. So since March 13th, it really hasn't made sense to add this particular ETF to your portfolio. Because as you can see, price has been holding under that green line since then, right? Finding resistance at that green line has been closing consistently under that level. And what we're essentially doing here is basically creating a downward type channel in gold. Now, there is one positive thing that's happening right now. We are starting to come to the top of the cloud. And a lot of times what will happen is price will reach this level, and then find some support here. There are buyers waiting, and it could potentially, potentially, if there's enough of them, push the price back up. So I wouldn't be shorting here. All right, I would not be shorting this ETF. There may be some individual stocks that are really weak that you could certainly do that for too. Okay. But I think that there's, at this point, it's a 50% chance that it's going to go up or down at this right here. So we'll see what happens. The Chico span dropped as well. That's the lagging line. I'll show you guys that white line there. It's been like three weeks now where it's been under, okay? Under price, that white line. And that, again, is the current price projected 26 periods into the past. So that's not a good sign. Again, looking at that daily chart, we're under the 200. We're under the moving averages here. It's not looking pretty. We do have a bullish spinning top here. We'll see what happens with that. Silver also continuing to decline. All right, down 1.01% under the 200. Here's the weekly chart. Also coming close to the cloud. So we'll see if anything can happen here. Oil K, interestingly enough, stalled not just once, but two weeks now in a row at the 26th period. So that wick that you see right there from last week represents some buying that happened at the end of the day, end of the week. All right. And then this week here, I mean, it dropped 1.32% so far for Monday. This candle is still in the process of forming. So we don't know what that looks like yet, but we'll be watching it. Here's a daily chart. Not looking pretty. Oil. It makes sense if, in fact, you know, we finally settle the situation in the Middle East and the ships can start shipping through the Strait of Hormuz. That would be very positive for the economy. And it's not going to be good for the oil stocks. They're going to feel the heat on that. Let's take a look at the next ETF. That's IBIT, Bitcoin. It's under the cloud as well. All right. It was up 2.47%, but it's in a, obviously in a state of decline still. I would hold off on this. Here's the weekly chart, still declining. ETH doing the same thing. Ethereum, it was, even though it was up 1.6% today, that's not, one day doesn't change the direction. You need a consistency. You need a lot more momentum. And we're not seeing any positive momentum here by any means. The directional movement index helps me to identify that momentum. So when the green line here, that's called the positive DI9, is above the red line, and that's not the case here, and the white line is moving up, that's positive. But in this case, we've got the red line above the green line. And the white line here, as you can see, once it started moving up, if you go straight up, you'll see how it led to this decline. Now, we did have a sharp decline in the momentum. That's the ADX9, that white line there. That happened right here. And if I go straight up, okay, you can see now price is just kind of hovering in the same range. It's just ranging out right now in this little base. So it's in a state where you don't really want to do anything. You just want to hold off, really. There's no buy signals here by any means. We're still under the Ichimoku cloud. We're still under the 200 day moving average, that dotted yellow line. And the cloud has turned bearish. That's when the Senkuspien A, okay, this line here, the light blue colored line, drops and is under the red, the purple one. So that's bearish. I'd hold off. All right. Let's take a look at copper, COPX. Here it is in the daily chart. Uh, and pull back and found support right at the cloud. Now you can barely see that candle. It's right there. It's a tiny little candle. And uh, let me see if I zoom in a little bit there. I guess you can see it a little bit more. There we go. All right. So it's in between the two moving averages. Nothing to do here either. All right. Nothing. I wouldn't be shorting it. I wouldn't be buying it. I'd just be like sitting and watching to see what happens here, because right now we're still in a range, at least with this particular ETF. Okay. Max. MAGS is the magnificent seven ETF. Still declining. Here it is. Okay. See that we get a double top almost actually. I'll go one step further and say we got a lower high here actually from the prior high. All right. We had a symmetrical triangle pattern right there and it broke under it. And that's not a good sign. And it dropped significantly from that, from that point right there to actually drop. Let me measure about 10.2% recovered slightly, came close to the resistance and dropped some more. I'd hold off on this particular ETF. And you've seen, we're going to go into some of those stocks that are in the mag seven. Okay. Apple, Amazon, Google. We're going to look at some of those stocks today and you're going to see why this ETF is not performing well. So let's go ahead and start, talk about the stocks and ETFs that they discussed on the halftime report. Here's the list right here. Here's the percentage change for today. The top ones are the ones that I would focus on the most that look really strong still. Momentum is still strong. Look at that ADX moving up there. That's what you want. Green line above red line and the ADX is moving up and we're still in a nice up trend. It was up 3.74% today. That's the daily chart. There's the weekly chart for applied materials. It's a semiconductor equipment and materials stock. Next one, DKS, Dick's Sporting Goods. It's not as strong a chart as applied materials, but it does fit all the criteria that we need, which is we have a bullish cloud, single span A above single span B. Price is above the 200. Price is above the Tenkinson, the green line, and the red line. The Chico span is above price. All that stuff tells me that it passes the weekly test. Let's take a look at the daily as well. And there you have it. So you can see the bullish cloud. Price is above the moving averages. And another thing that happened today is we also took out this high, barely. And it didn't happen conclusively, because this is a spinning top pattern. So I wouldn't put all my eggs in this yet. I would hold off on DKS because of the, as you can see, there's a little bit more resistance back here. Let me go ahead and throw on another resistance level that you can utilize. I'll give you the exact price. Whoops. Oh, I already had some. Sorry. Let's see. I got to go back to that. Let's see here. Okay. So we're, we already had a weekly level of 254.60 for DKS. And so how far are we from that high? We're about, whoops, 6.3% away. Okay. So that would be a target 254.60. It could easily break right through that as well. I would just watch this closely. There was, there really wasn't a whole lot of volume today. Look at that volume bar. It's about one third the size of Thursday's volume. And it created this reversal type candle. So nothing too exciting, even though it did jump 2.36%. GNRC. That's Generac Holdings Inc. It's in the industrial sector. This one actually broke and closed above the 294.18. It was at, it closed at 295.54. It's not a conclusive type candle though. Let's look at that daily chart. So you can see that it's based on this high. So it broke it barely. But I like it when you compare this, for example, to some of the other stocks. The moving averages are about, are converging right now too. So I'm just giving it the benefit of the doubt that it's going to probably continue to the upside at this point. They're at the exact same level of 266.52. So that's a level of support right there. MNST is Monster Beverage Corporation. So this one, you can see how it pulled back to the nine period, the green line, and then bounced off of it. Up 1.84. And there's the weekly chart as well. It looks bullish. I like it. A little while back, I basically talked about this cup and handle pattern. So we had the cup. Okay, there's the handle. And we broke above that level. And now we're starting to move back to the upside. ROK, another cup and handle type pattern right there is doing pretty well. It's up 0.91%. That's the weekly chart. Here's the daily. Looks very bullish. All time highs for ROK. Rockwell Automation. SMH, Semiconductor ETF looks good. Oh, we already talked about that one earlier. Sorry. Right? Yeah, there it was. So we don't really need to do anything more with that. Let's go ahead and remove that. Apple. Okay. So Apple here is what we're talking about. Once price drops under the moving averages, okay, like it did right here, when it comes back up to those same moving averages, it's going to find resistance. And it did right there another day. So this was, I think it was Tuesday of last week, or Wednesday, sorry. This was Wednesday, June 17th. This was Thursday, June 18th. Friday, the market was closed. And here we are on Monday, still under the 26th period. Another bearish thing that happened today is the faster moving average just crossed under. So that's not good either. So we'll see what happens with Apple. Here's the weekly chart. At least it's holding up above the moving averages here. So the weekly chart is still bullish. It's just the daily chart with Apple that I would hold off the entry point. Amazon, you look at the weekly chart. We'll start off with that. That's not pretty. It just started entering the cloud itself. Okay. And then on the daily chart, it's under and just stalling right at that 200. We'll see if it can have a bounce right there this week, maybe tomorrow. But that's a big drop, 4.75% for Amazon. If you're wondering why the X7 stocks aren't doing well, it's because obviously, you know, there's a higher level of investment right now in the small cap stocks, right? They might be finding these to be a little bit too overpriced. So that's part of it too. CME group is in a decline here. Let's see. Let's take a look at the weekly chart. We got under the cloud. I'm sorry, we got under the Tenkinson back here. That happened on, let's see. That happened on March 27th. And then we had a negative crossover here. So that was not a buy signal. And so since this point, CME has dropped about 19.9%. That's a big drop. Here's the daily chart. It's telling us to stay out of this. I wouldn't be shorting it here, though. If you look closely, we're coming right to a support level on CME. See that low right there? It's $244.56. And we're just above it by a few pennies. So I wouldn't be shorting it. I wouldn't be buying it either. CRH, that's basic material sector, building materials. That one re-entered the cloud. It's just been stuck under that $200. Nothing to do here either. CRM, Salesforce is still in a decline. It's still under the cloud. I mean, we switch it to a weekly chart. And again, okay, it all started right about here on this candle. Okay. That candle is from January 10th of 2025. All right. So once it got under that moving average, and since then it's dropped 54.66%. We never got another buy signal according to Ichimoku this whole time. And I would, you know, I can tell you, I've already reviewed this stock multiple times throughout the last few years here, because they bring it up on the show quite a bit. But this is not the time to be adding positions in Salesforce. FANG is Diamondback Energy, the oil and gas EMP. Now this one, the sector itself is pretty weak right now. This, you know, the oil stocks, and we don't know what's going to happen. We also hit that 214.50 level back here, that prior high going back to 2024, literally, like we're talking about July 19th of 2024. We came up to that right here on May 8th, this year, and then it dropped. So that's why it's really important to also look to see prior levels of resistance, prior highs, even if they go back to 2024, okay, on a weekly chart. Here's a daily chart. Now looking at this on the daily chart, you can see we're currently under the Ichimoku cloud. That's a bearish sign. This, this is the potentially the beginning of a continued drop. So you want to stay out. Okay. You can see what nothing positive, probably heard of nothing positive happens when prices under the 200. I say nothing, nothing positive happens when prices under the cloud itself. You go back a little bit in time back to 2024. See how it stayed under that Ichimoku cloud this whole time. So why keep, why put your money in something that can be tied up for extended periods of time, that's not making money, that's declining in value. At some point, you're going to cry uncle, and then you'd be like, Oh, okay. I guess I might as well take that loss. And you don't want to have to do that. So trade accordingly. 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So we have a reference point on the daily chart. So we have a reference point on the daily chart. So we have a reference point on the daily chart. So we have a reference point on the daily chart. We just need this time frame to confirm the higher time frame. And we don't have that yet, basically. We've got SNPS, Synopsys Inc., inside the cloud. No on this as well on the daily. Let's look at it on the weekly, though. It's under the cloud as well on the weekly. So very bearish for Synopsys. I'd stay out of that. We've got SpaceX, which they talked about quite a bit, right? Space Exploration Technologies. Now, this is the weekly chart. It's only been public for three weeks now. Let's look at the daily chart. Remember that shooting star candle? I said, "Guys, be careful here. It's more likely to drop." It's dropped 23% since that particular day, which was Tuesday, June 16th. It was a 22.8% drop. There's not enough data here yet for the Ichimogu cloud to form because it takes multiple candles, right? But if we switch it to a shorter time frame, like a 30-minute chart, we can see what SpaceX is looking like. And it's not a pretty sight. And I believe that she mentioned-- yeah, Stephanie Link. They talked about this company quite a bit on the show. Stephanie Link mentioned that she bought it here. Well, it's dropped from the thing. It's in approximately 25.3%. I just don't understand the methodology here. It's very inconsistent. You know what I'm saying? Why exit Netflix, which looks like a very similar chart? Let's look at Netflix once again. Okay, very bearish. SPCX, very bearish. At this point, again, looking at a 30-minute chart, things might turn around. But right now is not, in my opinion, the time to get in. And I think that with a company that just becomes public, all right, it may make sense to wait a minimum of about six months or more to get into the stock. I know that you might miss some of the move. But here's the thinking behind it. In my opinion, you need at least a couple of quarters of data, earnings announcements. So we can see from the first announcement, the first earnings report that they put out, if there's an improvement in the second one. And we won't see that until that six months go by. So, yeah, I don't know. I'm not convinced here that, you know, that this is going to be a good stock for the rest, maybe even for the rest of this year. Honestly, we'll see. So, you know, there was another company. Here it is, Snowflake. When they went public back here in 2020, September 30th of 2020, I mean, it did move up 78% in the matter of just three months. So there was that quick little, we had that shooting star. And this is what, this kind of reminds me of a little bit. I know these are monthly candles, but, you know, since that point right there, I mean, let's look at that for a moment. Let's take a look at that. Snowflake was expected to do really well. This is, we're under the opening price from when they went public. And we've been just in a sideways action here for multiple years. So, yeah, it's important to, like, pay attention to the charts, folks. All right? Let's get back to, let's get back to what we were just talking about. We were looking at SpaceX. Yeah, I'd hold off on this one. You look at that three-minute chart. Look at that. Oof. Ouch. Right? And the other thing is that day traders, they're just, they're just, like, taking their trades on the downside and probably making some good money here. And by the way, you can use this indicator on multiple time frames, obviously. Here's a three-minute chart of SpaceX. Notice how, since it gapped under the cloud right there on the three-minute chart, right? And that happened. We're talking about Monday, June 22nd here. From that point, it stayed under the cloud the entire time. It started to build a little bit of a consolidation right there throughout the day. And then see that big red candle? That lit another drop of approximately, let's see, 4.7% in just an hour. So it's very risky trading these types of high beta-type stocks. I mean, we're moving 16% in one day, for example. These are day-tradable stocks. They're not, in my opinion, buy and hold positions. Not quite yet. We don't have enough data about the company and what they're going to be doing yet, in my opinion. TWLO, it's not even profitable. You know, so Twilio, Inc., above the 200-day moving average. That's a three-minute, sorry. Let me go back to the weekly chart. On the weekly chart, we're under the nine period. On the daily chart, we're under the moving average. So no on Twilio. VRT, we get the faster moving average under the slower one on the weekly chart. It's starting to show a little bit of strength here. ChicoSpan is still underpriced. We don't have all the elements of Ichimoku confirming anything here on the daily, sorry. And on the weekly chart, it does look very bullish. It was up 7.55% today. But we don't have all the elements. So if you're looking for more confirmation, I would personally hold off a little bit on that one still. VST, although it is above on the daily chart, above the cloud itself and we have a future bullish cloud and everything else, the fact that we're hitting that 200, not just Thursday, but also today and staying under it tells me you should hold off on this one as well. And if you look at the weekly chart, we're still inside the cloud as well. So we don't even have confirmation on the weekly. So we're looking at the daily chart. So we're looking at the daily chart. So we're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. We're looking at the daily chart. And then finally, let's look at XBI. Here's a weekly chart first. We'll start off with this. This is the biotech ETF. It was in this consolidated decline right here in this little channel, right? Price was just moving steadily down. And then last week was a very significant week, an important week, that changed the course maybe potentially for the XBI. Because I talked about this and I said, guys, there's a higher probability, no guarantees, but there's a higher probability that this ETF will continue moving up. It was up 3.65% today. It gapped up. Here's a daily chart. Okay. So there you can see that consolidation even more clearly. The same trend lines as price was bouncing around in that range. But then once we broke above it on Wednesday, June 17th with this candle, and it happened at high volume. And I also want you to pay attention to what happened down here. Do you see this? The green line was above the red line. The ADX was moving up. Okay. You go straight up. And now it's moving to the upside. And how much has it moved since it broke through? It moved up about 6.5% so far in just three days. All right. Guys, that is going to do it for this video. I hope you enjoyed it. I hope you found it interesting and educational. And maybe you'll start thinking about technical analysis in addition to fundamental analysis, which is more about, for example, looking at the stats of a company. For example, let's say we were looking at Apple. And you want to know a little bit about the stats of the company. You might, for example, use something like Finviz Elite. There's a link in the description area for this. And so what you do is, of course, there's a chart. Here are the earnings announcements. Okay. You can see those earnings and revenues. Each of them, some positive earnings revenue. You've got all kinds of data here, right? From income to sales to, you know, everything from number of employees, 166,000. You've got, over here, we can look at the average volume, how many shares are traded per day. We can look at the gross margins and operating margins and profit margins and all kinds of fun things. But ultimately, you know, and ideally, you do want to buy stocks that have positive fundamentals. All right. But also, technically sound. So you're getting the, you're getting both avenues, right? So, yeah. Anyway, consider this platform. And if you like this, the charting platform that I'm using here is called TC2000. There will be a link and you can get a $25 coupon for this platform. If you want to find it on my channel, you go to Blue Cloud Trading. That's the name of my channel. Okay. We're over 30,500 subscribers. Make sure you subscribe while you're here. It takes five seconds and it's free. Hit the notification bell if you want to see more of these types of videos. And then if you want to get access to those member-only videos, you hit the join button, which is right next to it. But for the links, you click right above there. Ten more links. Click on that. Okay. There's a little information about my channel. Scroll down. Here are tons of links. My Twitter page, for example. There's a $25 coupon for TC2000. There's a Finviz Elite. Okay. Link. So click on the... If you want the software, you just enter your email here. You download it for Windows. If you have an Apple. If you want to run it on the web or a Mac. You can do that right there. Click on that. Pricing information, software plans and data. Monthly for the charting platform. It's $24.99 a month. But if you're using that $25 coupon, you can try it out for free for a month. I would recommend the premium level, though. If you want to get access to the real-time scanning and sorting, you can get... You can actually use the premium level. If you want to get access to the real-time scanning and sorting. You can get... You can actually use the premium level. If you want to get access to the real-time scanning and sorting, you can get... You can actually use the chart drawing tools, like... So that you can actually draw on the charts. That's important. Have some alerts set up. Customizable alerts in real-time. History columns. Multi-monitor support. All kinds of different things that you can do. Easy scan wizard is a good one. All right. You can build conditions and then scan over 6,000 plus stocks. So they can trigger and find those specific types of stocks that you're interested in. Okay. Guys, thanks for watching. I'll catch you all in the next video. next video. [01:16:40] Speaker ?: I'll see you next time.