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Our expert hosts break down the latest market trends, analyze key indicators, and provide actionable insights to help you navigate the trading day ahead.
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NewsTranscript
00:00And then you get Warren Buffett annual meeting over the weekend saying he dumped half his apple.
00:05So you knew Apple's going to go down big time even before the markets did anything. You knew
00:09Apple. Apple's now down 8%. It's down $17. Got to be one of its worst days, like non-news days
00:16in a long time. And there is news, Buffett dumping. But I mean, the overall markets are
00:20not helping that cause either. So you got Buffett. And then Buffett was at his highest cash point,
00:26he said, in a long time or ever. He ain't buying. He's selling it. He ain't buying.
00:34Yeah. So now you're spooked. You don't have that vote of confidence there. You've had a
00:37market pullback. And Buffett's like, I ain't buying it. And again, this is what we've talked
00:41about. Valuations just got too stretched. It's why I sold a lot of my NVIDIA, most of it. I
00:46wish I would have sold it all. But I kept a small piece. But I mean, you look at this thing.
00:51These moves have just been insane. $40 to $130 in six months. It's too much. The moves are too
00:59much. And the last week, when NVIDIA rallied 20% in 24 hours, and I tweeted it out, go look at my
01:05Twitter handle. I'm like, if you're buying it now, you're doing it backwards. And that was just
01:11terrible buys. Anybody buying 120, 121 two days ago are just annihilated. It's 92 bucks. So now
01:17you go in, and now you're getting margin calls probably too from maybe some retail investors
01:22who are all margined up. Maybe they were selling puts. Oh yeah, free money. I'll sell the 95s on
01:28NVIDIA. I'll sell the 100s on NVIDIA for next week. All day long. I'll pick that up. All day
01:34long. And then all of a sudden, boom, it's 92 bucks. It's like, what do you mean? I don't have
01:38that kind of money in my account. Oh, well, you got a margin call coming at your ass then.
01:42So lots to consider here. When markets unwind, they can unwind very quickly. Joel and I have
01:48been through lots of market crashes. So don't worry. Keep listening to Pre-Market Prep every
01:52day. We can navigate you through this. Am I dumping my long-term portfolio? I'm coming and
01:56saying, oh my gosh, it's over. Sell Tesla, sell it all. It's over. No, no, not doing any of that.
02:06Do I have some cash in my long-term portfolio? Yeah. I was telling you a few weeks ago,
02:10I sold my Oracle. Remember, I sold like eight tech stocks out of my long-term portfolio. I sold
02:15majority of my NVIDIA. I sold my Oracle. I can't even remember the other ones, but I had a bunch
02:19of them in there. I sold a pile of them. Now, I'm still taking a hit. Don't kid yourself. I'm
02:24fairly heavily invested still in the market. I think I'm 60% and 40% cash. So I'm pretty happy
02:30I'm 40% cash. But the 60% of my own stocks are getting hammered here today. So that's not fun.
02:35Nobody likes seeing their long-term portfolio down. My long-term portfolio made an all-time
02:39high on Wednesday. It's way off that high now. That's the long-term. Now, the trading account
02:44was sitting in nice cash on the fishing trip, and it's sitting pretty 100% cash. So I like that.
02:50So I'm getting hit on nothing on the trades. So bottom line, if you're investing on margin,
02:54I always never like investing on margin. I don't do. I trade on margin. But when you start seeing
02:58these breakdowns, you've got to cut those losers. You can't just hold through it all.
03:03So I mean, if you're overnight and you picked up and you're down like 12% of the video overnight
03:07here, you've got to know why were you in it. Were you in it for a trade or were you in for
03:12investment? You're in it for a trade. You just took out the 100 support. You've probably got
03:15to be selling into rips. But I think if you're coming and selling tech stocks when we're getting
03:20hammered down 5%, as much as you were doing it backwards when you were buying NVIDIA up 20 points
03:25there last week, are you doing it backwards and you're selling NVIDIA down 27 points in two days?
03:32Probably. So I'm not panicking.