Despite DeepSeek Scare, The Market Is "In A Good Spot" | Lance Roberts & Adam Taggart

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**Lance Roberts** (0:59)
Technical analysis wise, we're kind of just in a good spot, right? We're not over really overbought on indicators. We're still on a good strong buy signal. One thing I've been talking about a lot in our daily market commentary this week is about money flows. If you really want to know where the markets are going, pay attention to money flows and money flows have been very positive. Even during the whole deep seek thing on Monday, money flows were positive.

**Adam Taggart** (1:27)
Welcome to Thoughtful Money, I'm Thoughtful Money founder and your host, Adam Taggart, welcoming you back here at the end of another week, featuring a weekly market recap with my good friend, the jurisprudential portfolio manager, Lance Roberts. How are you, Lance?

**Lance Roberts** (1:42)
I'm very good. Jurisprudence, this is a term I did not expect to be labeled to me.

**Adam Taggart** (1:50)
Well, you may remember last week, we didn't get a chance to get to the rant, which was gonna be about jury duty. So I'm trying to put a stake in the ground that we're gonna get there by starting off with it. That said, folks, today is gonna be a shortened Weekly Market Recap, that's on my side. I am participating in Substack's first financial summit ever. So I'm interviewing a couple of folks live today on the new Substack Live Platform right after Lance and I finish up here. So Lance has been kind enough to get up a little bit earlier, record this with me, and then let me get onto that. So those discussions should be great. I'm going to be interviewing both Daniel DiMartino Booth and Kevin Muir of the Macro Tourist. If possible, I'm going to bring as much of those, as many clips or as big a part of those interviews as I can on here to YouTube at some point in the coming weeks. So keep your eye out for those. All right, Lance, but look, kind of a boring week. Not too much happened, right? We only had a Federal Reserve update. We had earnings from the MAG-7. We had a massive curveball thrown at the world right before the weekend with China's release of the Deep-6 AI platform. We had 212,000 executive orders.
Trying to figure out where to start here. What is interesting is there was a lot of uncertainty thrown at the markets, and they did just fine, right?

**Lance Roberts** (3:20)
Yep. And what's really great is this, and this really goes to the context of having a well-diversified portfolio that helps you weather these type of events when they occur. And so just as a good example, about two weeks ago, we talked here, you and I did, that we had reduced our position in NVIDIA. We didn't know Deep-Seq was coming, right? But the stock was really overbought, and your all-time highs deviated from means. And so we reduced that position in our portfolio, and we added to AMD at that point, because it was deeply oversold. And what was very interesting is that during this week, yeah, you know, NVIDIA had a big drawdown earlier this week, which was really expected. Again, you know, the stock was very deviated from the 200-day moving average. You're going to get corrections back to that. Sometimes it happens slowly, sometimes it happens quickly. This was a week that happened quickly. But technically, nothing's wrong. In fact, NVIDIA just formed a massive hammer candle day before yesterday. So that's pretty much a good sign that probably the bottom is in. Money flows are turning positive. If you're interested, if you go to my Substack page, at Lance Roberts on Substack, I put out a daily market comment. We do a daily trading update on markets every day. And on Substack today, we went through a daily, weekly, monthly chart of NVIDIA. And, you know, there's some good and bad to that. Short term, it's probably a decent buying opportunity. Longer term, we have maybe dead money here for several months to several quarters, maybe even a year or so, as it digests this massive run up it had over the last year. But one of the interesting side notes of that was that of the last 10 largest market cap drawdowns by any stock in the index, eight of 10 of those have all been by NVIDIA. So if you had sold the stock on those drawdowns and gotten out of it, you would have missed all the gains in NVIDIA. So it's very important, and this goes back to the point about diversification. We had a massive rotation. You and I talked about last week, we were looking at the rotation charts that we have on SimpliVisor and saying, hey, here's some sectors that are really, really oversold versus these sectors that overbought. Look for a rotation for this to occur. That's exactly what happened on Monday. Tech stocks got hit, Procter & Gamble was up huge, Walmart was up big, Costco was up big.