With the leaders of the major AI companies professing the massive risk AI presents and the need to reign it in quickly, the markets are pulling back hard. Trading it is going to be a once in decade opportunity.
The likely scenario is a massive drop this week with a bit of a slow down in the decline as big AI tickers scramble to put a parachute on their stock price. As the dust settles expect some market darlings to find the right thing to say to ease investors concerns. If we have learned anything about the AI bubble it is that the CEOs of these companies know how to talk to the markets.
Here is a cheap easy way to grab some of this lightning in a bottle. Take a look
SQQQ is the inverse ETF that based off the tech laden NASDAQ. It moves in the opposite direction of the NASDAQ and that means as the NASDAQ goes down, this ticker goes up. It also has pretty liquid options and offers some nice trades to really leverage these moves.
This move could happen quickly or take a bit to truy play out. To give yourself enough time to see the move and maximize the trade, taking a longer expiration helps. The Dec 18 45 calls for SQQQ are at about 3.30-3.40 premarket this morning. They may pop a bit at the open but it should be worth grabbing them since this could be a pretty dramatic move.
We will keep a close eye on this and update throughout the week.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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