Good Tuesday morning. As I’ll explain in a moment, while we believe the concerns about DeepSeeks impacts on US tech are overblown, our use of leveraged ETF’s demands that we respect their leverage, in both directions.

Alert: enter a GTC "stop loss” order (or “stop", or "stop on quote", depending on your broker) to sell all of our SOXL (3 x Semi ETF) at $23.50, a level that is just below yesterdays lows. We’ll be surprised if we are stopped out. It’s more likely that the semis are a great buy here. Last: $25.50

Note: should we get stopped out of SOXL we will likely sell TQQQ (3 x Nasdaq 100) as well.

Market Update

As Tyler covered in great detail last night, DeepSeek may well be an AI breakthrough, however we are highly skeptical that we’ve been given the whole story about the costs and manner in which DeepSeek achieved their LLM results. Plus, it’s China we’re talking about….how many Americans/American companies are going to trust the Chinese government with our most sensit...