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Don't Mistake Profit Taking For A Regime Change: This Ain...
2026-05-20 · via All Articles on Seeking Alpha

Summary

  • I think I was right to lean into tech since early April, but after this run, I no longer favor the momentum side of the AI trade.
  • The tape looks narrow, and the last few days tell me this is profit-taking, not money finding a healthier home elsewhere (like financials, energy, or cyclicals).
  • I am holding back some cash because AI is still setting the market’s direction, and I would rather add to higher-quality names after the shakeout ends.
  • That said, I am downgrading the broader markets to a hold, as I think the next few weeks will be quite volatile.
Abstract colorful wavy digital landscape

AlexSecret/E+ via Getty Images

Over the past few days, I have found myself looking at the S&P 500 in a slightly uncomfortable way.

It's not only due to my wildest bet ever on the tech sector, mainly on the beneficiaries of the hyperscaler CapEx, especially the

13.08K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU, INTC, TSM, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a registered investment adviser, broker, dealer, or tax professional. This article, including any comments or replies I post, reflects my personal opinions only and is provided for informational and educational purposes. Nothing I write is investment, legal, tax, or financial advice, or a personalized recommendation to buy, sell, hold, or short any security. My views may change without notice. Nothing I write is tailored to any reader’s objectives, financial situation, risk tolerance, or portfolio. Investing involves risk, including possible loss of principal. Readers should conduct their own research and consult a qualified professional before making investment decisions.

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