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Uhoh, my stream is [ __ ] up. I don't know what's going on. Happy Wednesday everyone. Welcome back to Trading the Markets with AI. I'm Bjan Mlei, of course joined by Chris Bulock, aka Blasto Plast, and today we've got quite a show for you guys. OpenAI's IPO. We're going to be talking about that. Anthropic is literally printing money, which we will discuss. Are all the rules with AI out the window? We'll talk about that as well. And we'll dig into Chris's basket of AI stocks that are performing quite well. Chris, happy Wednesday. How are you?
>> Doing good. Doing good. Happy to be here.
>> Yeah. No, we got a we got some story. I mean, as is the case every week with AI, it's something new is always popping up. So, why don't we dive right into it on what's on your radar in the headlines and what's uh what's got your attention?
>> So, yeah, the first thing I want to talk about, we touched on it a fair bit last week was all the announcements coming out of Google from the Google IO uh conference. There were a few details that either have been refined or that we that we overlooked last week, but this one was really cool that I want to talk about. And the fact that Google has dropped their uh pricing for their ultra tier, their premier subscription service from uh $250 a month down to $100 a month. So that's a 60% price cut. And not only that, but it includes five times higher usage limits than before, 20 terabytes of data storage. You also get YouTube Premium included with this and uh beta access to, you know, Gemini Spark and a few other things like that. But basically, they've removed daily prompt limits entirely on this tier. uh which I think is like, yeah, that's a very compelling offer because I mean when you think about that compared to something like uh even like Claude, you know, like the for Claude Opus, yes, they have a $20 tier, they have a $100 tier and a $200 tier, but like it's pretty easy to max out that $100 tier like several times a day if you're busy coding something or something like that. So to be able to pay half of that and you know have unlimited uh daily prompts, you know, I think is is again, a very compelling offer. So um, you know, Google is quietly positioning themselves to be one of the, if not the leader in this space, you know, and uh, yeah, I I think it's really cool.
Yeah, I mean, first of all, just adding you for $100 a month to bundle their highest tier AI service and then adding YouTube Premium on top of that is like is a deal and a half unto itself. So, like that has my attention right away.
>> Yeah. And and 20 terabytes of storage is nothing to sneeze at. That's that's a lot of space. I mean, I could back up every device in my house and still, you know, that'd be just a drop in the bucket with that, you know. So, that's uh, you know, that's significant. And uh, I I'm leaning towards, you know, jumping on that right now. So.
>> I mean, you might have to just just to try it out at least, right? I mean, Google VO, I mean, or Gemini, right, has has gotten an increase in in in output. So you might want to play around with like video creation and stuff with the AI. Um, and and like it makes sense that Google would be like one of the top players in this race because I mean think about how much data they have from their just from being Google for the last 20 years, right? I mean, they just they have the premier search engine on the web. So I think just from that alone, they have so much data and then also like >> everybody almost everybody uses Google Suite products. So just the amount of integration that their AI is going to have with that is just like it makes sense, right?
>> Yeah. Yeah, and another thing that they're launching too that we didn't really talk about is the this new agent uh capability that's basically going to, you just integrate it and it talks to all of your Google Suite products, you know, your your YouTube, your Gmail, your drive, your calendar, your everything and it can just kind of organize your life and it's very much tailored towards end users, consumers and not so much enterprise users. And so they're going to, I think, make further inroads with that, you know, once people start using it. And it's cloud-based, too, not like locally. So like as opposed to something like OpenClaw or or Claude Co-work that runs locally on your computer and can only access your local files. This is cloud-based, so it can run anywhere off of all of your Google products that are cloud-based as well. So some people will be into that, other people will be like, "Yeah, I don't know. I don't know if I want that all up in my business like that." and and I get that, but I think that there's definitely going to be a market for it. And some of the conveniences, you know, that it provides based on it being cloud-based, I think also are compelling, too. So, yeah, I think uh Google's on a roll right now.
>> I mean, you know, just I've heard that argument quite a bit like, oh, you know, I don't want it to be a privacy. I don't want it to be all up in my business. Guys, it's already all up in your business. Uh whether you like it or not or whether you know about it or not, it definitely is. And of course, you can have it like uh by default, it prompts you anytime it's going to make any changes, edits, deletions, anything like that. So, you have the ability to control it and override that and and things like that. So, it's not just going to come in and accidentally delete all your >> appointments or contacts or or whatever, you know.
>> Yeah, I think that's good practice in general, especially like as people start playing around with agents more. Make sure you set that as a rule like from the beginning before you do anything that's going to change anything. Confirm. Let me know what you're going to do and get my confirmation first. That's how I have my setup with open clause. So, it doesn't do anything without my approval beforehand.
>> Yeah, absolutely. Do not give it just blanket wholesale read access to all of your stuff or you it'll be like we talked about you know a few weeks back how that guy deleted his whole database you know basically because of because of access to agents you know so >> don't be one of those people.
>> Yeah, don't be don't be that guy. Um, speaking of agents and just like things going crazy right now, uh, what do you want to talk about first? That OpenAI IPO or should we talk about Anthropic's like insane money printer?
>> Yeah, let's talk about the IPO because we actually touched on that last week too. We were like I remember when the court uh when the hearing with Elon Musk resolved, we were both like, "Yeah, that means they're probably going to launch, you know, do an IPO here." And sure enough, by Friday, I think of last week, they had announced that uh an IPO was was forthcoming. So, yeah, both um OpenAI and SpaceX have uh filed for IPOs in in the near future. And it's funny, we're like, why do they why like they've generated all this money privately? Like, why do these companies even need to go public anymore? They can generate billions and billions of dollars just privately with these these private raises. And the the bottom line is they they need more money. They need even more money than that, you know. They need actually access to public capital markets to to exponentially increase their their money, you know. So, so yeah. Um, there you have it.
>> Yeah. I wonder if Elon is, you know, because Elon's petty, right? So, I wonder if he's like strategically planning to drop the SpaceX IPO like on the same day that, you know, OpenAI dropped. Like I I could totally see him doing that.
>> I I think maybe they did if I had I need to double check here, but >> yeah. Um Yeah. Yeah. I mean, yes.
>> Not surprising.
>> Yeah. And then Chris, what do you think about these? Well, well, real quickly though, what do you think about these IPOs? Because like it's just everyone's everyone's doing it now, right? Well, just well the big three SpaceX uh >> OpenAI and Anthropic are all releasing IPOs kind of around the same time, all like very similar. Well, well, in the case of Anthropic and OpenAI, it's the same exact sector. Case of SpaceX, very adjacent. Uh, what are your what is like what's your take on on that type of I guess liquidity event going on in the market? It's personally not something I want to touch. You know, I think I'll I'll sit back and just watch it and wait for the dust to settle. I can't help but think that a lot of retail is just going to jump in and buy these. And I don't know that that's the smartest move. I think we've seen that with uh, you know, with crypto launches over the last few years in particular. These they come out of the gate at these really high valuations. At least for crypto, anyway. They'll they'll launch with a a multi-billion dollar valuation on day one and uh, you know, they all just crater basically because they're just so overvalued. And and you have to remember too, all of these the we know already that they've had huge raises getting up to this point. And so there's tons of people that have already invested pre-IPO and these stocks are going to launch at a given price that's already going to be multiples higher than what a lot of these early investors got in at. And sure, some of them, there will be vesting schedules, I'm sure, for some of them, but like profits will be taken, you know, in in in any way that they can be. And so um, you know, you got to watch out for that. And I personally just I wouldn't go anywhere near that right away. I would I would wait. I I think that, you know, let the market establish what the value of these assets are. Um, it's probably not going to be what it launches at on day one. And uh, yeah, it's just not something that that I want anything to do with. I know you were joking offline, as soon as these launches that means the top is in and, you know, and maybe there's there's some truth to that in terms of a local top because yeah, sure, it is going to kind of suck the wind out of the the sales of a lot of the other market, you know, a lot of the other assets in the sector for sure. And uh, and I think that that's that's worth considering. Uh, certainly I don't think that the top is in. I think you know, we are in a larger secular trend, but um, yeah, I think it will be uh a volatility event for sure and uh, it it's like I say, it's just not something that I really want to be that involved in. Honestly, I just assume watch it from the sidelines.
>> Yeah. Yeah, I just can't help but feel that retail, at least in the short term, I just can't help but feel that when this IPO hits, retail is going to be buying the literal top as the pre the pre-sale investors or pre-IPO investors are literally dumping on them as that goes. I I just I I've seen it too many times in crypto and just like with ICOs and stuff like that to just like feel like this is not the same thing because they're they're literally like um they're rolling out the red carpet to retail for this and it's just like I feel like the fix is in here. But that's just my tin foil cap. You know, we'll we'll see how it actually plays out.
>> I I I largely agree with that. I think I think you're spot on and I like I said, I'm just going to I'm just going to sit back and sort of watch the carnage and uh >> and and also like they're they're valued so high to begin with. I'm doing great with all my picks that you know we'll talk about later. So like I don't necessarily feel like I need to get in on AI like OpenAI or SpaceX or or Anthropic even right out of the gate to to sort of bolster my AI investment portfolio. I think that they're not going to because of the huge valuations that they're at, they're not going to move. They're not going to come out and do a 5x or a 10x like some of these smaller, you know, small cap and mid-cap semiconductor companies are and chemical companies are and stuff like that. Those are where the real gains are. You know, you're not going to get these big massive gains with with the likes of of OpenAI and SpaceX that open at, you know, whatever hundred billion dollars or whatever it even is, you know. Um, yeah.
>> Yeah. Uh, let's talk about Anthropic.
>> Yeah. Um, Anthropic's crushing it basically. Uh, so they reported $10.9 billion in revenue for Q2 with their first ever quarterly operating profit of $559 million, which doesn't sound like much. Um, but you know, there's huge overhead obviously, but yeah, $10.9 billion, which is up I think over 60% from last quarter. And uh, in case you're wondering, that equates to about $121 million a day in revenue. I can't even like I can't even wrap my head around that.
>> Every day.
>> like what? Yeah.
>> I mean, listen, you I recently heard an interview or a podcast um with Sam Altman. I believe it was actually on Late Night with Theo or last weekend with Theo Von, of all places. And he was actually talking about how he envisions a world where people are using AI like they use utilities like electricity and they're just buying it on a meter from them as just as they would, you know, pay for electric and water.
>> Right. Right. So these uh these money printers are like I I feel like $121 million is kind of like is not even the floor of what it will be.
>> No, I agree. I agree. It's nice to see them profitable too, finally, you know, after after so long of not being profitable, but to generate that much money and still be profitable, I think is good. Um, I do wonder about things like model efficiency and stuff like that, you know, because somebody's going to come along and come out with a model that's incredibly that much more efficient and it's going to just raise profits sky-high for whoever does it and that's going to be interesting to see. But, um, it might also lower revenue. So, yeah, there's a lot of there's a lot of X factors I feel like with all of this. I don't know that just because they're profitable now it means they're going to be profitable going forward. Uh, because a lot of the stuff is very much in flux with the way these models are developing with new hardware developments that are coming out and things like that too. So um, but yeah, just printing printing money at the same time. It's crazy.
>> Yeah. Um, before we head into some TA on those uh on those crushing AI stocks, why don't we uh check out the last uh story that we had because this could be huge for the future of you know AI and just the US's uh I guess dominance in it. if you will.
>> Right. Yeah. So, the there was an executive order that was going to be signed by Trump that uh basically put a a bit of regulation in place for things like, you know, how like Anthropic came out with this new mythos model and discovered all these things. And they they wanted basically to have a a mechanism in place so that these models could be more thoroughly studied and understood before just being unleashed to the public so that they could prevent massive, you know, um, hacks and things like that. And so there was some good to it, but uh, both big tech kind of got in the way. They stepped in and they were like, "Yeah, we don't like this. We don't like this this ne this unnecessary regulation, this slowdown in the process." But also Trump himself stepped in and but was quoted basically saying he didn't like certain aspects of it and he didn't want it to get in the way of uh leading China of of remaining competitive against China and so I'm not sure how I feel about that to be honest. You know, like I get it. Like I one, China's already ahead of us, I feel like to a large degree. Like sure, maybe some of their frontier models aren't as good overall as some of our frontier models, but like in terms of everyday usage and model efficiency for like basic simple tasks, I do feel like they are a step ahead. And so, um, there's that. But also, does do we really want to, you know, I guess give up safety? Do we want to like make it so that it's easy for uh, you know, black hat hackers to be able to just have access to all this stuff without thoroughly vetting some of these models? I don't know. Um, for the sake of competition against China, I have mixed feelings about that.
>> Yeah, it's I mean, hey, it's a tough one. This competition is definitely getting crazy because also just yesterday, a new uh a news article came out that that the Chinese government was uh restricting uh international travel of their top AI executives like Alibaba, DeepSeek. Like they have to get approval from the Chinese government to leave the country. So like obviously they're worried about like these people getting kidnapped or like, you know, having some type of like brain drain from from their, you know, inside intel. Uh, so yeah, it's definitely heating up and getting uh getting very competitive.
>> Well, and like I think we talked about this last week too, there's so there's far less friction in China in terms of building out their infrastructure. Like here we've got people protesting data centers and every other element of AI all over the map like in in every state basically, you know, and uh because a lot of these a lot of these approvals happen at like local and state and and city levels, even, you know, like the city can stop a an individual small town in the states can prevent a data center from being built. In China, they don't have that problem. In China, they're going to put whatever they need wherever they need it. uh and they don't care who says what because it's all state-funded and they're just going to do it. And so there's like no friction as far as them just building out their their AI infrastructure. So like I said, China already has distinct advantages with a lot of this stuff just because of the way they're structured. And so I don't know how much this is really going to help things in the ma in the end, you know? I don't know. I don't know. We'll see.
>> Yeah. It's like that argument of decentralization versus centralization, right? You have your pros and cons, but this is like this is an example where centralization is actually to your benefit because they they don't need any approval from anything. They don't need to go through any democracy, none of that, right? CCP says we want this, they're going to get it. Whereas here, it has to go through all of you know, it has to be approved. It has to be voted on. And then even when it's voted on, it has to be vetted. Like there's a lot going on. I I as an American, that's that's the system that I I've come to grow and love and appreciate, but you know, I can't help but also see the the pros of a centralized system in this type of uh situation. So, yeah, there you go.
>> Absolutely. Absolutely.
>> Yeah.
>> Uh, so, let's talk about what's been ripping lately because it hasn't been crypto unless except hype, but we talked about hype yesterday. So, if you want to listen to that, catch our show yesterday. But Chris, what's in your basket? Uh, as I'm looking, it doesn't look as good as it did yesterday. But >> I know it's so funny.
>> Yeah. So, on yesterday's show, crypto was red across the board and and AI was was ripping, and now today, it's literally the complete opposite. Um,
>> of course.
>> So, I I mean, really, I think this boils down to a couple things. One, you know, there's been some additional scares of inflation and and rates and and um, you know, bond yields and things like that that are kind of freaking investors out a little bit, which I get, but I think more to the point, what we're seeing is just a bit of technical exhaustion. We had things have been running, like you said, things have been ripping uh which we'll go through here. Um, and I think we're just a little bit overheated right now and we're due a mean reversion, I think, across the board. And so we'll look at a handful here and we'll see just that. There's there's tons of Demark 9s and 13s popping up left and right on on all of my all all of my stock charts here and uh, you know, I'll kind of kick on some Bollinger Bands too because that's a good reflection of just how overheated things can get. So, let's talk about Marvell first because Marvell's interesting because it's one of those that has been ripping that is doing well and their earnings call is today after market close and so this is going to be a big one because I think this is going to be one that uh continues to take some of the market share away from the memory sector a little bit right now like Marvell also is a semiconductor company. They don't make memory directly. They make more like um uh network traffic flow uh chips and things like They're they're more like uh IT infrastructure type semiconductors and so um, but very, very useful, very needed, very much in demand and you can see like it just it just took off after actually having a pretty good run, you know, prior to that too. So um, yeah, Micron is one that I'm going to be looking for. It definitely is way overextended. Like the Bollinger Bands are all the way down here and uh it closed way high and then opened even higher still this morning and has kind of come back to earth a little bit. It's down 4% today. Not overheated in terms of its Demark counts yet, but um still way above the way above the the average sort of the the mean right here um at the 20-day moving average. So do a correction, but it's going to be of course really interesting to see how their earnings call comes into play at the end of the day. I'll be I'll be watching that. But let's kind of go through the list here a little bit. Um, a lot of these are actually more overheated on the weekly time frames. Well, hold on. What was Marvell on the weekly time frame? Let's look at that. Uh, yeah, not so bad. Um, in fact, this is actually a sign of strength for Marvell. So, we got a we had a Demark 9 setup count here that that completed and it just completely faded it like it wasn't even there and invalidated it really uh on this weekly candle. It got above this dashed line here that the Demark throws up. So, it just like like it wasn't even there. Basically blew right by it. This is really to me a a strong sign of strength. Even on the weekly time frame, it's been hovering at the top or even outside of the bands for for you know, months now in a row. And so really strong action from uh from Marvell. Let's look at Vertiv. Vertiv is another IT infrastructure one. Vertiv actually completed. We had a combo or a sequential 13 and a combo 13 complete and that was the top right there. Basically, that was enough to kill it. And it's back down to the 10-day, perhaps on its way back down to the 20-day, but still well and truly in a solid uptrend. Um, and I think is is going to be one of those that that looks good, you know, for a while still. So, um, nothing really close to invalidating the longer term trend, even if it does come all the way back down to like 260 here where the the 20-day moving average is. It kind of did that back here. uh in November, it hit a nine and a 13 together, corrected back down, mean reverted back to the 20-day, and then just ripped up again. And so maybe we're in for that. Maybe it's kind of coming, it's it's coinciding with sort of the top like you talked about with these IPOs launching, but it really does look like more of just a technical local top, you know, in a larger secular uptrend. And so let's look at another one. Uh, Corning is another one that I pay close attention to. Demark 9 right now today. It hasn't been fully perfected, confirmed yet, but we are at a Demark 9 on the weekly. So, a lot of, like I've said, a lot of this stuff is starting to look locally toy, uh, overheated, due for a bit of a correction. Um, Hyper, we won't really count Hyperlid because it's not so much an AI stock. It's, uh, but it's hype and it's it's it's ripping. Um, what else? So, this one actually looks good. So this is KLA Corporation. This one actually hit this Demark 13 back here uh on April 20th, came and did its correction and has since sort of, you know, bottomed and is running back up again. So it started a new setup count, which I think is also a sign of strength here. So this one looks good. It's had its correction. It's continuing to move through it um and again faded it like it like it didn't happen. I'm betting this is going to pop up a 13 here too. No, a nine. Well, we got a nine here. So yeah, lots of Demark 9s. Lots of Demark 13s on corrections right here. But I'm I'm liking the fact that we had a big downside wick. This is starting to form like a swing low pattern here. So if we can get back above this 328 level, it will have kind of invalidated this. And uh what I'm seeing here is generally strength. I mean, even with these corrections, we're still seeing a lot of strength where even on the weekly time frames, it's not dipping much and it's bouncing at healthy levels on its moving averages and throwing up big wicks showing big signs of demand. So, um, and these are in multiple sectors. We're looking at it infrastructure. We're looking at connectivity. We're looking at power. Um, like here, like this Quantum Services, another power company. It hit a 13 here back uh on the week of May 11th. It's still in its corrective phase, but again, another big downside wick, like swing low type pattern, and we're up. We're up now. So, didn't even get near its 10-day moving average. This correction may not be over, but still, I like I like what I'm seeing so far here. Um, Lattice Semiconductor is another one that's ripping. It's also This is probably going to signal a top, though. We got a a setup nine and a a sequential 13 sort of combo indicator here. and it's all it's been outside the top of the bands for weeks and weeks now. So, this one is is way overheated. Uh, probably do a decent correction. We'll see how it can withstand this signal here. But, um, definitely that's an ugly toppy count right there for sure. Um, Xilinx had a 13 here. So far, it's faded it. Um, it's crazy all these. They're just ripping for like look at these. These are like months and months and months of just like uptrends. These are weekly candles. I mean, God, these are just nuts.
>> Um, Demark 9 here. So, I mean, you kind of get the picture. We can go through a few more of these, but kind of across the board. This is a good sampling, like I said, because it's a mix of chemicals, it's a mix of infrastructure, it's a mix of semiconductors, it's a mix of IT infrastructure, it's a mix of power. Um, they're all kind of proxies for these larger sectors. And they're all doing well. They're all at a at a a little bit of an overheated point, but they're all just still in really strong weekly like secular uptrends.
>> Can we check out a DRAM?
>> Yeah, let's look at DRAM. DRAM is not going to look as good here on the weekly because it's it's too new. But let's kind of dig in on the daily and see what we can see. Um, so we're at an 11 count on this on this combo uh to the upside. We're only at a four on the setup side, though. And uh this has been looking really good. And if we look at like one of the let's look at uh Micron in particular because I think Micron >> Oh yeah.
>> ripped and Micron is a big a big part of this one. Um
>> yeah. So Micron gapped up big over the last couple of weeks or no days. So like yeah, it went from 750 to like 900 and it was as high as 950 in two trading days. Like like what? Um, and so it's a bit high counts on the daily. We got we got nines or tens and 11s here, but let's look at it on the weekly. Um, we got a 13 count on this. So, it too is overextended way outside the bands for for four weeks in a row, four plus weeks in a row. So again, all of this stuff is is just ripping like more than two standard deviations overbought on weekly time frames, which is mega. But we can see that a lot of these can do this for I mean look at like 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 weeks in a row. It basically just was outside the bands like like it wasn't even there. So they can do this. like they've shown that they can do this and just kind of keep going for for months um at these overextended overbought levels like so yeah.
>> Very, very exciting times indeed. Did you have another one or >> uh I want let's look at Bloom Energy. This is another one that I've been paying close attention to. Yeah, Bloom's so Bloom had a big rip. It's at a Demark 9 on the setup right now. So also again potential sign of exhaustion but um and it also very overextended but not really looking like it's it's rolling over yet either. And even if it did again, it would be fine. Like it could do it could come all the way back down to 185. So it could lose over $100 off its price and still not invalidate this larger weekly uptrend. Like that's just how how much you know just momentum all of these have. They're just like it's it's just bonkers honestly. man. All right. Well, Chris, we'll be back. Uh, so officially, uh, starting next week, Trading the Markets will come to you guys on Mondays, same time, 1:00 PM Eastern, and then our live TA show will replace Trading the Markets at 1:00 PM on Wednesdays. So, just a little bit of a swap, little switcheroo here. Uh, so we'll see you on Monday uh for another AI Trading the Markets with AI, of course. Uh, and then we'll see you on Wednesday for our live TA that uh show in Discord that's more crypto uh focused. So we will see you guys all then. Chris, until then, rest of the week and the weekend, what's on your mind?
>> Uh, I'll definitely be paying attention to the Marvell earnings uh announcement that comes out today. I think that that's going to not obviously not going to carry as much weight as the Nvidia call last week, but uh still still an important uh company within the space and I think still going to be important to have them, you know, come out with strong earnings, which I think they will, but um, and then yeah, these IPOs uh and are we is this a local top or not? We'll see. Uh, you know, things are overheated, things are due a correction. So, it's going to be interesting to see how well the market can push through these these high counts, these high Demark counts and and just pretend like they're not even there like they've largely been doing for this whole year basically. So, that's what I'll be watching for.
>> All right, have a great weekend everyone. Don't [ __ ] this up. We will see you on Monday.