AI Stock Guru: 67% Monthly Drawdown on 4x Leverage
- Returned 439% in the first half, with concentrated positions in SanDisk (SNDK) and Micron (MU), and roughly 4x leverage.
- AI stocks sold off across the board in July, sending the portfolio down 67% for the month. Most publicly disclosed stock positions were sold, with Citadel taking on a substantial portion. Q3 holdings were disclosed on November 16.
The leveraged stock positions have now been fully cut. Selling pressure at the margin in AI-related names has eased, but the money flowing back in hasn’t entered the crypto AI sector. This rebound is driven by existing shorts covering, and market depth isn’t enough to support a trend. If prices can’t hold, small-cap AI stocks will be hit first. The short-term outlook is bearish; wait for a pullback to find support before reassessing. Chasing the rally risks catching a falling knife.
If you’re holding AI-related stocks, what’s your cost basis? Would you add here, or wait for things to stabilize?
$TAO $BTC $ETH
- Returned 439% in the first half, with concentrated positions in SanDisk (SNDK) and Micron (MU), and roughly 4x leverage.
- AI stocks sold off across the board in July, sending the portfolio down 67% for the month. Most publicly disclosed stock positions were sold, with Citadel taking on a substantial portion. Q3 holdings were disclosed on November 16.
The leveraged stock positions have now been fully cut. Selling pressure at the margin in AI-related names has eased, but the money flowing back in hasn’t entered the crypto AI sector. This rebound is driven by existing shorts covering, and market depth isn’t enough to support a trend. If prices can’t hold, small-cap AI stocks will be hit first. The short-term outlook is bearish; wait for a pullback to find support before reassessing. Chasing the rally risks catching a falling knife.
If you’re holding AI-related stocks, what’s your cost basis? Would you add here, or wait for things to stabilize?
$TAO $BTC $ETH