Did The Market Just Break? | Lance Roberts

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**Lance Roberts** (0:55)
Now, we are starting to see the 50-day flatten out. We're starting to see the 20-day moving average turn down. That's not a great sign. We've seen these wiggles before, and then they correct themselves. Market takes off running again. Everything's fine. But if we begin to see this kind of price action begin to flatten out or deteriorate, I'm going to become a little bit more concerned about the amount of exposure revenue portfolio and begin to kind of start looking to reduce. But again, I'm not going to do that here because markets are decently oversold. I'm going to look to reduce exposure on rebalance.

**Adam Taggart** (1:34)
Welcome to Thoughtful Money. I'm Thoughtful Money Founder and your host, Adam Taggart, welcoming you back at the end of another week. For another weekly Market Recap with my good friend, the tryptophanic portfolio manager, Lance Roberts. Lance, how you doing?

**Lance Roberts** (1:48)
Not yet, not yet, because I'm not a big turkey eater to start with. So for Thanksgiving, I have brisket, sausage, chickens, all barbecued, right? I'm in Texas, right? So we're doing a traditional Texas Thanksgiving, which is brisket, sausage, ribs, and chicken. So tryptophan is only for you people that live out West, that eat turkeys.

**Adam Taggart** (2:13)
That's not true. I grew up in New England. We had a lot of turkey on Thanksgiving. Let's all have lobster up in New England. Hey, we started the turkey Thanksgiving, right? Back in Plymouth Rock, man. This is true. Well, anyways, first off, happy Thanksgiving in advance, Lance. Happy Thanksgiving to all the viewers too. It's funny because as we hopped on, you mentioned being sleepy and I said, we'll wait till you hear the word of a day.

**Lance Roberts** (2:36)
So it makes complete sense now.

**Adam Taggart** (2:38)
Yeah. Yeah. I'm going to believe that whether there's tryptophan or not in brisket, that you're still slipping into a big food coma after you eat all that.

**Lance Roberts** (2:47)
Oh, yeah, of course. Of course. You know, that's that's just tradition. You know, eat a big lunch and then take a nap on the couch. Absolutely.

**Adam Taggart** (2:54)
All right. Well, you know, there's a lot of people that are feeling, I think, not sleepy right now. I think they've actually had a sleepless night last night. We're recording this Friday morning. Markets are still open today as they usually are as we record on Fridays. But the day before, Thursday, seemed to be a very material day in the market, Lance. Big reversal. I think one of the bigger reversals we've seen in the market all year on an intraday basis. What was notable about it was the market had been weak, as we've been tracking over the past couple of weeks.
Some doubts and concerns are starting to creep in about the AI trade. The world was waiting for bated breath for Nvidia's earning release to see if Nvidia could kind of re-spark this market back into rally mode, and Nvidia delivered what the doctor ordered. I mean, it delivered great performance. It delivered just stellar guidance. The stock popped, I think, 5% or so in the aftermarket, the night afterwards. As the markets opened on Thursday, Nvidia was up, I think, almost 6%. The indices were up in the green, and then all of a sudden, it all reversed and Nvidia ended up closing the day down, I think, a little bit over 3%. Another really big sort of risk on asset, speculation, measure of speculation in the market, Bitcoin, just got continued to get clobbered throughout the whole day. So there's a strong question hanging in the air right now, which is, has the market now really shifted from the risk on mode it's been in since May into risk off? Probably still a little too early to tell for sure, though I'd love to hear your thoughts, but right now, Wall Street is sort of sitting on the edge of a pin and watching the market really closely, trying to figure out where things are going to go from here. So with that context, Lance, enlighten us, what the heck just happened?