“We’re Raising Cash”: Why This Rally Could Be a Bull Trap

Melvin (0:00)

We are in like unprecedented territory right now. The world has never seen what we're going through. So I today decided to take some profits across the board.

LG Doucet (0:09)

What's up, everybody? It's LG Doucet here, and welcome to Milk Road Stocks, a daily market show that desperately wants to believe we haven't seen all-time highs yet, but knows that may only apply to the assets we've faded. Today is September 23rd, 2026, recording on September 22nd. Welcome to our weekly Milk Road Stock roll-up, where we put our four best AI analysts into one cage and let them duke it out on the future of the trade. This pod picks up exactly where we left off yesterday with Martin. Is the AI trade in trouble because the frontier models are not necessarily going to print enough money and because rates are going up? But then quickly, the guys go into the consumer agent movement as Grockbach makes the rounds and Meta has now released Muse, and they try and figure out who exactly is going to win that race. Finally, as they do almost every week, they come back around to robotics, Tesla, figure, and what the next big trade might actually look like. Melvin, who's on the show today, took a lot of profits this week, and they discuss his moves and more in Milk Road PRO after hours, which is a 20-minute segment that we record after every roll-up. You can see that right away, plus all their moves in Milk Road PRO, which cost just a dollar at the link below. Otherwise, enjoy the show.

Kyle Reidhead (1:14)

Welcome back, everybody. The analysts are here. We got so much to talk about. The agents are everywhere. Robotics is back, sort of, or maybe not. We'll have some discussions there. Vincent's got some thesis around. I think he's wrong. Actually, I think Vincent is wrong about multiple things that we're going to talk about today. One is Bending Spoons. One is a certain type of asset. We got a lot, but let's start with markets first.

Let's go, Melvin. You actually made some moves in Milk Road PRO, which we'll talk about at the end of the show.

You guys know we have an after-hours, where those that are listening inside Milk Road PRO after this, you can sign up for $1 and you'll hear us pull up our portfolios and walk through, but Melvin made some moves today. You don't have to say them right now. We'll say that for after-hours, but what are your thoughts on the markets, Melvin?

Melvin (1:59)

Yeah, I mean, I feel confident than ever before, to be honest. But I think with the successful launch of Muse, we're seeing continued growth of AI demand across the board. People are literally losing their mind over this agent across X, I feel like. I feel like my whole entire feed is filled with Muse cases now.

Also, an important thing to remember is last week, we saw the Fed hike rates, and that seems to have no impact on the market.

Kyle Reidhead (2:30)

Is that last week? It feels so long ago now. Yeah, it's insane.

Melvin (2:34)

Holy jeez. Even Trump tweeted out saying that if I had known the market was going to rally like this, I would have kept Powell in there, which I thought that was pretty funny. Another important thing to remember is that right now, it's the midterm elections, right?

If you actually look at data from 1925 to, not 1925, 1950 to 2025, the best month of the year in a midterm election is in October, and the second best month of the midterm election year is in November. We are in unprecedented territory right now. The world has never seen what we're going through. I today decided to take some profits across the board.

Like Kyle said, I'll explain exactly why I'm deciding to do that in our after-hours show. I think there's a little bit of volatility coming up, so we'll get into that later. That's my overall thesis.

Kyle Reidhead (3:37)

NASDAQ hit all-time highs today, by the way, for those that are watching as we record here. It's a big day. Martin, what's your thoughts on the market?

m0xt (3:45)

Well, you said NASDAQ hits all-time highs, but I think only 30 percent of the stocks are above their 50 days moving averages. It's not like a broad rally. It's just really like just the giants and a couple of stocks that are driving the whole market.

I understand that Melvin took some chips from the table. I am actually also starting to be a bit concerned about the future growth trajectory for OpenAI and Anthropic. And maybe we can check about that later.