Invest Answers4 min read
InvestAnswers: AI stocks V-shape back as crypto "gives it all back"
James walks through 21 charts showing AI names snapping back hard from a crash while Bitcoin, Ethereum and Solana stay under their 200-day lines.
AI summary of “21 Charts: AI Up, Crypto Down + What Smart Money Knows Right Now”
Key takeaways
- James says the AI selloff was the biggest dollar-value crash since COVID March 2020, followed by a fast V-shaped recovery.
- He flags Micron up 12.29%, AMD up over 21% in two days, Marvel up 11%, and Broadcom up 6% in the rebound.
- Bitcoin and Solana pierced their 200-day moving averages; Bitcoin only rose 0.61% versus AI stocks' much larger bounces.
- James says Tom Lee "lost $6 billion on his ETH trade" and still expects ETH to reclaim 2730, a 35% gain from $2,000.
- He calls Micron, Marvel, copper and SpaceX buys on mean-reversion signals, and flags MicroStrategy's MSCI decision as a near-term risk.
Tokens mentioned
The speakers' views, not ours
Sees it too cheap near 73-74K, expects a turnaround given money printing and deficits
“It's too cheap down here. All you have to do is look at the money printing and the deficits”
Sees a technical buy signal toward 2730 but dismisses $25,000 bullish targets as not happening
“A lot of people who tell me said ETH is going to $25,000... not going to happen”
Expects a turn back above 200-day average near $89-90, could reach 200-300 if AI/crypto converge
“This thing should be a lot higher. We're talking 200 bucks, 300 bucks”
AI stocks crash then V-shape back while crypto lags
James opens by describing the past few days as "bonkers," noting a sharp AI selloff that he calls the biggest dollar-value crash since COVID in March 2020, followed by an unusually fast rebound. He credits CoreWeave's earnings and a "135 billion" backlog with lighting the fuse, alongside memory stocks like Micron rising 12-15%. He lists the day's "monster moves": Micron up 12.29%, Marvel up 11%, Alab up 9%, AMD up 7% (over 21% across two days), Broadcom up 6%, with TSM, Tesla and Nvidia up nearly 4%. By contrast, he notes Bitcoin only rose 0.61% and ETH 1.4%, while SpaceX was roughly flat.
He also grades his prior week's calls, saying he "missed" on Bitcoin and Solana, which he didn't expect to fall as hard as they did, and says Nvidia got hit by what he calls a "spy scandal" that technical analysis couldn't have flagged: He says his calls on AMD, Broadcom, Marvel, Lumentum, Light, Alab, SpaceX, Micron, Google and Palantir were correct.
Macro backdrop: rates, VIX and oil
James walks through the US 10-year yield, which fell from near 5.4% to 4.8% before rebounding, which he calls "bad" given some Fed officials reportedly want to raise rates twice before year-end, which he calls "ridiculous" given oil's influence. He expects the VIX to mean-revert lower after spiking above 28-29, noting it was at 17.48 with support near 14.46 and a 200-day moving average around 18.
On oil (WTI), he points to a "clear double top" near $106 and says price is back down toward $85-86, adding it could rise again "unless they can get peace in Iran," which he is skeptical of given repeated false signals. He also discusses the Nasdaq piercing its 200-day moving average similarly to April 2026, with a "magnificent" V-shaped rebound, while the S&P 500 did not hit its 200-day line, which he attributes to lighter tech exposure.
Crypto: Bitcoin, Ethereum and Solana still below key levels
James says Bitcoin pierced his "level five" at 77K and looks ready to turn back up from the 73-74K area, arguing it is "too cheap down here" given money printing and deficits. He notes Bitcoin versus gold "got hammered." On Solana, trading near 83 and deep under its 200-day moving average (around 89-90), he says it "looks ready to turn back up," adding that if crypto has momentum at all, Solana "should be a lot higher," citing a figure of "200 bucks, 300 bucks," though he ties this to AI/crypto convergence that hasn't happened yet.
On Ethereum, he references Tom Lee's ETH trade losing "$6 billion" and dismisses bullish ETH targets:
"A lot of people who tell me said ETH is going to $25,000... not going to happen."He flags a buy signal under ETH's 200-day moving average and says a move back to resistance near 2730 is plausible, a 35% gain from the current $2,000 level. He also flags MicroStrategy's pending MSCI decision at "11:00 p.m. Eastern," saying removal could pressure the stock short-term but that the asset's value mainly tracks its Bitcoin holdings, which he puts at "over 850,000 Bitcoin."
AI and commodity names: buy signals and caveats
James runs through individual tickers using his mean-reversion model: he calls SpaceX's dip to 120 a buy signal with a "70-75%" historical win rate, Tesla a "no-brainer" buy below $350 or at the $335 level it hit, and Nvidia a buy around 170-174 despite the unexplained "spy" drop, saying "the fundamentals are not changing" given CUDA and sold-out Vera Rubin chips. He flags Micron's dip as the best since April 2026, targeting "$1,000," then "1,200," then "1,500-1,600 within a year or less," linked partly to Tesla's Optimus robot memory needs.
He also calls Marvel a "clear buy" near 120-130 following its Lumentum acquisition-related selloff, says Broadcom's "330 kill zone" still holds, and flags Palantir's mean reversion as the worst since March 2026 before heading back toward "200 bucks." On commodities, he says gold shows a buy signal near 3920-3960, silver shows no buy signal at its cheapest level in "13 months," and copper looks oversold with a buy around "$6.19" targeting "$6.90." He stresses leverage discipline throughout, saying he never uses more than 20% of his margin.
Written by AI from the video's transcript. It can compress, misattribute or miss context — the original video is the source. Not investment advice.
