The Big 3: CRWV, APPL, TEAM

Marlee Caden (0:02)

Welcome back to Trading 360 I'm Marlee Caden. It's time for The Big Three. We've got three stocks for you today. Three charts will go through. Kevin Green taking us through those charts. Here to take us through the trades today, Tim Bohen, Chief Technical Trainer at stockstotrade.com. Great to have you both with us. Tim, happy Friday to you. Love to get your thoughts on the market action, not just what we're seeing today, but just this week overall.

Tim Bohen (0:25)

Yeah, kind of an interesting moment we have happening right now. And, you know, normally I kind of keep politics out of, you know, trading, but, you know, the reality is we have a situation, you know, happening obviously right now, just a few weeks from the election. And, you know, what I see out there, I mean, we see all of these, you know, great names, high-flower, flyer stocks that I have absolutely loved over the couple years, all selling off hard. And, you know, I've seen a lot of, you know, different reasons and thought processes and theses on this, inflation, war, all of that. I mean, to me, it's just de-risking before the election. I mean, we have a very unique situation setting up here. I mean, it's been, you know, made very, very clear that if the election, you know, if there's a blue wave, I mean, there is just going to be a rampant, basically, quote unquote assault on regulation on these companies. I mean, you look at where data centers stand, okay, on that political divide. You have one side of the aisle saying, we're going to do everything we can to stop them, openly saying that. And the other side, I don't know, but I don't think they're going to impede them like that. So I just, when you look at all of these stocks selling off, it's not the business, it's not the technology. I've said a billion times that, you know, AI is the greatest technology in the history of mankind. But when you look, when you're a hedge fund manager, okay, or when you're at a bank, you're managing massive amounts of money at risk, other people's money, you have to manage that accordingly. And when you have this absolute wild card coming up in a couple of weeks, I mean, you have to sell off. You have to go to cash, reduce your position sizes. And that's what we're seeing across the board. Now, election goes the other way. I think you're going to see an absolute rip-your-face rally in these stocks. I mean, we'll look back at this weekend sell-off in Palantir and AMD and Micron and all of these. And everybody's going to pray they either held or bought the dip. But at the end of the day, it's a complete wild card. I mean, who knows what happens in the elections? I don't believe any of these polls. I have an answer to a poll. I don't know about KG or Marley. If you've ever replied to one of these polls, I don't know who does. So it's just a completely random event. We've got a massive amount of de-risking here.

What I would say to those people that are holding these stocks, always have a stop. I mean, I talk about that. I mean, you can't control what happens once you're in that trade, but you can manage your position and control your losses. Now, if you're above your stops, that's where you hold and look for a good outcome here in a couple weeks. Now, if you're underwater, just sell and join that rally after the election if it comes.

So I know there's a lot of fear out of there, a lot of uncertainty, but it's smart. When you don't know what to do in the markets, so many people just avoid going to cash, and I think the smart money is right now, and to the people out there, maybe it's the right way to go too.

Marlee Caden (3:32)

You have a good point in there. You have to know when to get out. I mean, sometimes the trade just doesn't work and you have to get out. But let's talk about one that there's a great argument around whether that applies here with CoreWeave and the action we've seen in CoreWeave. And they have 15% sell-off on leveraging concerns, rising funding costs, their bonds and how high they got. Then we saw a recovery after many people came out. Jensen Wong coming out to defend them. Dan Ives saying the sell-off was overblown. They recovered yesterday. Now I'm looking at their chart again. We're down 9% today in CoreWeave. So how are you looking at CoreWeave right now, Tim? Is this the make-or-break-it moment for CoreWeave, whether or not you have to make that decision to stay in or get out?