Notable Trends: Big Tech, News Catalysts & Crypto Pullbacks

Brian and Sean touched on a variety of big-picture moves, from tech and company news to crypto swings and key market levels. Here’s a quick look at what’s changing:

1. Tech Leaders & Company Catalysts

• • Even with positive news (earnings beats, guidance), companies sometimes give back gains fast—sign of a market that’s a bit extended.
• • The S&P 500 price-to-earnings ratio is pressing all-time highs—another “froth” alert for traders.

2. Holding Only the Best

• • The pair stressed sticking with fundamentally strong, proven companies—especially when risk is rising.
• • Trying to buy weak stocks at all-time lows (“catching falling knives”) is risky and rarely worth it.

3. Crypto Space: Retreat After Highs

• • Bitcoin and Ethereum both pulled back from record highs, with sharp moves catching some traders offsides.
• • Watch for key psychological levels in crypto (like $100K for Bitcoin), and know when to step aside or reduce exposure.

Playbook: Managing Risk & Sticking to High-Quality Setups

This episode circled back often to one theme: protect your capital and don’t let a hot market lull you into risky moves.

Top Takeaways for Your Trading Playbook:

• • Respect Major Moves: If something’s just had a massive run-up, don’t buy the news. Let the chart reset and find support before considering new entries.
• • Focus on Uptrends: Concentrate your attention and capital on quality names in solid uptrends. Let losers sort themselves out; there’s no prize for guessing bottoms.
• • Set Clear Stops: Know your “get out” levels ahead of time, and stick to them.
• • Trim When Unsure: If you sense markets might turn or stall, scale down your size—no shame in taking profits or reducing risk.
• • Be Patient: Most of the time, the best trades come after the market washes out the excess and weak hands.

Community Q&A, Market Sectors, and Where Brian’s Looking

Before wrapping up, Brian gave a shoutout to ongoing ideas in rare earths and materials—sectors showing momentum even as other areas cool off. But the main advice stood: don’t chase, wait for proper pullbacks, and stay alert when the market feels “top heavy.”

A few extras:

• • Avoid Bottom Fishing: Stocks making new all-time lows are usually hurting for a reason—wait for real signs of strength to appear before considering a buy.
• • Momentum Names: Some groups (like rare earths, certain materials) are still hot, but the same rules apply—only play them on dips with stops in place.

“Focus on the stocks and uptrends rather than trying to, you know, find the bottoms in the garbage can.”