You do not have to be either long or short on a stock.
Now, that might seem obvious. But I can’t tell you how many traders think you have to be long- or short-biased, even if you’re not in a stock. There’s a third way…
Exclusive first look into the strategy Tim Sykes is trading now (just 15 min a day)
Table of Contents
The Big Picture
Do you remember all the AI bubble talk a year ago? I think it was September of last year when we first heard it.
Everyone was shouting about Nvidia (NASDAQ: NVDA), SanDisk (NASDAQ: SNDK), and Micron Technology (NASDAQ: MU) being overpriced.
“It’s a bubble! Sell, sell, sell!”
It makes me wonder…
Why are people so desperate to be the guy who called the top? A bunch of ‘em try to call the top so they can short sell, even when it doesn’t make sense.
Think what they’ve missed out on with AI. And for what?
Going Short Is Not the Same as Not Going Long
Look, if you think it’s not a good time to buy these stocks, I get it, okay?
“Tim, all these AI stocks are up way too much. I’m not going to buy them up here.”
If you make a case for these stocks being up too much and you don’t want to go long, I respect that. It’s a valid opinion even if I don’t agree with it.
But to try and guess the top and short them is insane to me.
Headroom In the AI Trade
I still think we’ve got so much headroom in the AI trade.
Look, Jensen Huang just said AGI has arrived. When it comes to AI, I trust Jensen Huang.
The latest ChatGPT model is incredible. You know, whether it’s OpenAI, Anthropic, Grok, or the local models I run, they’re all amazing.
My Take
Obviously no one’s more bullish AI than me, okay? I’ve been consistent with my AI thesis for the past 18 months. My opinion hasn’t changed.
Now, if we’re together in a room and you make your case for not wanting to buy, I respect your decision. But if you’re in a room with me and you’re shorting these AI stocks…
Oh, dude… that’s baffling to me.
The same goes for adding to a loser down 60%. It’s the same wrong thinking so many traders get caught up in.
We’re just getting started with AI. Which means you can go long with the right stocks, at levels that make sense, without using leverage, with a trade plan.
But trying to guess the top and short the trade? That’s crazy to me. Good luck to you.
Watchlist
Yesterday (Sept. 8) Mobix Labs, Inc. (NASDAQ: MOBX) announced it “secured its initial production order for EMI-filtered connectors supporting the F-16 Fighting Falcon.”
MOBX, 9-8-26, 5-min candle, catalyst, Oracle signal hit, consolidation
MOBX traded 126M shares by 2:00 p.m. ET yesterday with a float of only 13.66M shares.
It hit the Oracle signal and ran +24% in 15 minutes before pulling back. That move also flipped the major resistance (M/R) from $1.37 to $1.61.
If it continues to hold, watch for breaks above yesterday’s high with a potential day 2 continuation move above the M/R.
On My Radar
- New video: The one indicator I actually use
- My recent post about the same indicator
- New career path? Introducing FDEs
- The ultimate hold and hope real estate grift?
- 4 days of FREE bootcamps next week: Sept. 15-16 Ben Sturgill and Sept 18-19 Tim Sykes