Todd Gordon says the AI trade may be at a turning point. May be. The two most expensive words in finance, right after "buy now."
Think about the phrasing. May be at a turning point. It also may not be. A coin flip with a ticker symbol and a suit.
Gordon is a CNBC regular and has run an options-focused shop for years. He draws lines on charts. I draw lines on charts. The difference is that someone puts me on television less often, and I charge nothing to be ignored.
A turning point means the line goes up, then down, or down, then up. Every chart in history has had one. Hand a retail trader a chart with a turning point and he sees destiny. Hand him a chart without one and he sees a typo.
"Where it may go." Up. Down. Sideways. Gordon has covered the field like a goalie with no arms.
"How to play it." Play. That's the word they chose for your rent money. Nobody says "how to carefully steward it." You play it. Like a claw machine. Like a slot machine. Like a violin, if the violin were on fire and owned by Nvidia.
Here is my technical take. The trade is at a turning point whenever you have just bought it. This is a law of physics, like gravity or Monday.
The retail crowd will read this headline, nod slowly, and open an options chain they do not understand. They will buy calls expiring Friday on a thesis that expires Thursday. Gordon will be fine. He has a hedge, a desk, and a segment.
You have a brokerage app with confetti animations.
May the turning point be kind to you. It won't be, but your mother will say it was your best effort.
Photo by Brett Jordan on Unsplash
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