Nasdaq Selloff And The Stakes

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The NASDAQ just had one of the ugliest weeks in years, and some of the best companies in America got hit the hardest, crashing double digits right after reporting record earnings. And if you're in tech or it's an index fund or you've got a single dollar in the market, what you do in the next two weeks decides whether this crash makes you richer or wipes out years of gain. So we don't want that now, do we? Because the cruel thing is this: some of these crashes are the buying opportunity of the year, and some are the start of a collapse that keeps falling until your money is gone. And on day one, they look identical. So our goal here, Winston and ISUP at the end of this video, you'd have a very simple three-part test that tells a bargain from a deadly trap. And I'll use it live to name three stocks that I'd buy in this dip, and one stock everybody loves that I wouldn't touch. And I'll give you one stock also that I actually bought yesterday. So full transparency here, uh courtesy of Master Winston. Now, my name is Felix Breen. I used to be an investment banker. I have seen how the system actually works on the inside, and I'm also the founder of the GOAT Academy, where my retired Wall Street mentors have been teaching institutional strategies over the last six years to over 25,000 people. There's one thing I'd like you to know about us. We don't take sponsors, we don't sell funds. We just want to give you the financial education that I think you deserve. So I'm going to show you today how big money actually decides what to buy when everyone else is panicking and what to run from. Now, there's going to be a lot of information in this. Um, three stocks, four stocks even. Um, and therefore Winston here has made a full research report for you, haven't you, Winston? Yes, you worked very hard on that. And you can download it completely for free at felixrents.org slash three stocks. Link is down below in the description. So before we get into the what stocks to actually buy here, and I know a lot of you are just here for that, but bear with me, because the question that keeps most people up at night after a crash is this. Why would a company report the best quarter in its entire history, record sales, record profits, and still get hammered? Kind of feels insane, right?

Why Record Earnings Still Crash

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But once you understand the real reasons, and they're three, you actually never have to panic again. So what's reason number one? The crowd dreamed too big. Yes, the stock market doesn't really care how good the news actually is. It only cares how good the news is compared to what everybody already expected. When a stock has been running hot for many, many months, expectations go through the roof, exactly. So when the company delivers strong results, and I mean not insanely strong results, but just strong, Wall Street groans. The goalposts have moved. Not because the company failed, just the audience dreamed a little too big, a little bit too much, you know, Martin Luther King. Um, and then that's probably an incredibly inappropriate thing to say, isn't it? I apologize profusely for my inappropriateness. Now, reason number two the big money is redecorate. Think the pension funds, the hedge funds, the sovereign wealth funds, they move money in waves, billions at a time. They look at their portfolio and they say, we've got too much in tech, Brad. And then they're gonna move some of it into banks and into insurance and into utilities. So they sell perfectly healthy tech stocks. Not because anything's wrong, not because anything is wrong with them. Now I'm lisping as well, but because they want to sit somewhere else for a while. Now I've offended the stuttering community, which undoubtedly is very vocal. Okay, so your great stocks get caught in this wave of the big money. It's got nothing to do with the business. And then raison numero thresh is the shiny new thing. When something huge and exciting shows up, a massive IPO, a new hot sector, the big funds, well, they need cash to buy the new shiny thing. So what do they sell? Not their garbage, no. They sell their best, most liquid stocks because those are the easiest to turn to cash owners. So the strongest names in your portfolio can drop simply because a whale needed to raise some cash for something else entirely. But all three of these have something in common. They're about the mood of those with money. They're not about whether the business is actually working. And that's what the opportunity heights, because most people can't tell the difference between a falling price and a falling company. But sometimes a stock really is falling because the business broke. And those are traps. So we need to we so we need a test, a filter that separates the gifts from the land mines. Now, real quick, let me ask you have you ever held a stock that dropped like 15% in a single day? If you have, put the ticker in the comments down below. And then let me know how does it feel to be down 15% in a single day? To watch a month of gains vanish before lunch. Because I know that I'm feeling. I've been there, I've done that, it's horrible, right? And here's what makes it worse. Right now you're forced to make life-changing money decisions based on scary headlines. You read after the move already happened. The market already crashed. Certain stocks are already down pretty hard. And then you read why? It's kind of backwards, isn't it? And it just scares you because the news is always too late to protect you. What if you had a system where the headlines didn't matter? Where by the time the panic hits, you already know exactly what to do because your money is already in

Free Live Session Invitation

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the better place. That's what I want to teach you. Not here because this video would get really, really long, but live. So I'm gonna run this for you for free this Saturday, New York time, I think 9 a.m. And I'll call it the trading system that makes market headlines irrelevant. Catchy, I know. But it's live, it's free, and I'm gonna spend about two full hours with you to actually teach you how the big money deals with this. Because they don't read the news and then act. No, they act it and then the news follows. So if you want to learn that, go to bulletproofportfolio.org, grab your ticket, and there'll be no replay. If you miss it, you miss it. But it literally just take away those nasty emotions that you just mentioned from your portfolio. Yeah, but I promised you something in this video, and that is the dip or trap filter, and then we'll apply it to actually four stocks, including

The Dip Or Trap Filter

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the one I just bought. This is gonna take about five minutes. It works on any stock, any crash, any market. So the part numero uno is did the business actually break? Forget the stock price. Pretend you can't see the price. Just ask, did the company get worse? And all you really want to check is did sales go up or down? Did they meet their guidance? Did they increase their guidance? Uh, and was there some ugly surprise in there? And maybe you don't know where to look. We actually literally built an app for exactly that. It's called the Winston app, named after this little golden chap down here, our little adopted pop. And what can I see? Well, revenue is 11% better than expected. Profit is 100% better than expected. So now I know, right? So part number one, answered. And by the way, one thing I really like to watch is there's a section in here called From the Core. Call highlights coming soon. Uh, they are gonna come soon. This is Intel, just reported this. I'm recording this. And in that, you get the analyst asking the CEO questions. To me, that's the real like Intel. So I read that, just the important bits. We literally just put a couple of QA bits in there that are really, really important. Um, and if you want to get access to that, I'll put a link down below for a free trial to the app so you can play around with it. If you don't like it, just cancel it. Um, and then there's part two. Is it just this stock or is it the whole neighborhood? And that's sort of the 10-second gut check. So, what can you do? Well, you can pull up two or three companies that do the same thing. You can pull up the rivals. Maybe you don't know who the rivals are. Well, just go into the funds section here. And, you know, we're talking semiconductors here, right? Just click on semiconductors and you can just look at any or one of the funds and see what happened yesterday. And you can see there's been a bit of a pullback generally in the whole industry. That's useful. Or you could do the same thing on actual stocks. Again, go to filters here, just say uh semiconductors, and then have a look at some of the big semiconductor names here. You could pull up Nvidia, you know, Mu, AVGO, whatnot, and get a quick glance at where's our chart? Here's our chart. We also show you what politicians are buying and selling. But you can see there's been a bit of a pullback, right? On Micron as well, a bit of a pullback. AVGO, Broadcom, also a bit of a pullback. So it's not like just the one semiconductor stock, it is kind of the whole bleeding sector. So it's the neighborhood, right? And that tells you there is a rotation happening. Now it's different. And your stock's dropping, but the neighborhood looks great. That's a that's a problem. That's probably smoke coming out of the house that you own. Something is specifically wrong with your company, and that is danger, right? But if a whole neighborhood goes down together, it is just money rotating out of the industry, something you might want to learn how to spot before it really happens. I'll teach you that on Saturday. Uh, bulletproof yourportfolio.com, is it? A link's down below in the description, either way. Now, the third part, and that's really what I do, and I do this only on Sunday, so it takes me an hour or two, and I do nothing for the rest of the week. And I call it what's the smart money actually doing. So ignore the loud people on social media, they don't move the market. Ignore the people on television, they tell you what they've already bought. Watch the quiet people with real money on the line. Now, analyst price targets, I look at those with a big pinch of salt. Why? Because you see, an analyst price target is issued by the same institution that typically makes money out of the company that they're covering. So there is definitely a massivo conflict of interest there. Of course, the banks will deny that, but it's true. So to me, the sadest thing is just to ignore it, seriously. Insiders buying their own stock, that is important. Now, insiders will sell for all sorts of reasons. You know, they are mysteries is expensive, you know, second yachts a little bit smaller than their competitor's yacht, or uh, you know, there's a new Ferrari out, or you know, something like that, or they just simply have to pay taxes. Uh so again, people sell for many reasons. They only buy for one reason. They think the stock price is gonna go up. So watch what that while that's going on here. To an extent, we can also watch what the buggers on Wall Street are doing. So if I look at Nvidia, you know, and you want to see what Donald Trump's doing, there might be some interest utility in that, because the man obviously has some access to information we don't have access to. But the second thing I would really look at, and I will really teach you this on Saturday properly, is where is the big money going? And we can see that it's public information, I'll teach you in full. If you want to learn that, join me on SAT. So let me give you the three stocks that pass the test and the one that failed abysmally. But before I do that, this is education. I'm showing you my process. I'm not telling you what to

Follow Smart Money Not Noise

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buy. Do you own research? I'm not a registered investment advisor. Clear? Are we clear on that? All right. So, chip sector. It just dropped about 9% in the last couple of weeks. The NASDAQ is in genuine correction zone. Why? Because fear that AI spending is, well, either slowing down or a waste is both driving this. We have new Chinese AI competition out there, some of which is actually very, very good. We've been testing some of it out on our software. And yeah, some of it is insane. And it does it at 5% of the cost of the American alternative. I have, I must say, switched back to the American alternative because I'm finding overall language-wise and so on, is this a better job. But if you want to run repeat tasks, you know, you're going to pick the thing that costs you 120th. So, what are the gifts in this wreckage? Well, gift numero uno is Intel. Nobody really expected

Intel As A Dip Candidate

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this comeback. Um, I did a video on this literally a year ago, I think last August, and people laughed at me, literally laughed at me for saying Intel was a was a stock worth looking at. Um, and that was down here. It was trading at about $24, right? It is now trading at about 105. We've also had the greatest trader in history, Donald to J. Trump, put some money in right before it broke out, which is just glorious timing, of course, nothing to do with uh insider information. No, no, no, no. False accusations, you know, by you know, it's just political things, CC's just doing it for the kittens. Uh so the numbers that this reported got a bunch of tech earnings out in the last two couple of days. Most of them are pretty crummy. But the intel numbers are jaw-dropping. Like, right, so let me run you through it. Revenue grew 25%. Fast, solid revenue growth we've seen in a long time. Yeah, nice, nice jump there from one candle to the next. But you can see it here. Read from 7% to 25%. This is the better visual. Earnings per share, which is the only thing you should really care about. Profit per share, it doubled expectations. So the data center and AI division grew 59%. Their foundry business, you know, we know where they make chips for other companies, they grew 31%. I'm not throwing too many numbers at you, but you get the idea. They did a very good job. Google just placed an order for 3 million chips. They raised their guidance above what the lunatics on Wall Street were expecting. Now, here was a very crude stock chart. And I'm showing you this because there is some risk here. There is a yellow line on here, which I call the 50-day moving average line. Actually, everybody calls it the 50-day day moving average line. And we're still below that. And when you're below those, it is riskier to buy a stock. So I wanted to flag that again. I'll teach you more about that on the weekend, but that's a risk flag that I should really put out there.

QQQ And QQQM For Broad Tech

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So it's an early one. And then we have fine number two. And it is the, well, it's the lazy pick. But it might be the smartest one. It's not a single company, it is the hundred biggest tech stocks in the US in one click. Ticker symbol is QQQ. And no, I am not sponsored by QQQ or anybody else ever. Why? Because sometimes the honest answer to which stock should I buy is I don't know. So I just own all the ones that matter. When you buy QQQ, you own Nvidia, you own Broadcom, you own Microsoft, you own Apple, you own all of them. If one blows up, the other 99 will still carry you somewhat. And it literally cannot go to zero the way a single stock can. So if we run our filter, because it works on index funds too, did the business break? This is a basket of the most powerful tech companies on the planet as a group. Their sales and profits keep growing year after year. So good. Right? And the whole tech market is dipped together. We call it rotation. By the way, if you want to buy QQQ, I'm telling you too. There is a thing called QQQM. It's the same thing, but it has lower fees. And if you're not someone who trades it, then that can actually be the better thing to own rather than QQQ. If you're a trader, you like QQQ for the liquidity. But if you are just someone who buys and holds till death do this part, QQQM can be a can be a good one. It can save you some money. So we've got this whole pullback here, right? From the top, everything is pulled back. And that's how index funds move, at least the big ones. We go up, we go down, up and down, and up and down and up and down. So wouldn't it be better to always buy somewhere near the bottom? And I say somewhere near because you never know it is the bottom until the bottom is behind you. So this is really the one thing where dollar cost averaging is a smart thing. SP works the same way. The stocks, it does not work the same way, even though people tell you it is. It is madness. But for an index fund, yeah, buy the dip does actually work.

Rotation Into Philip Morris

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And then the third stock that I just bought is unfortunately not a tech stock. It is a smoking stock. I'm not a smoker. But I'm excited about because it teaches you something that the originals once don't. And it's what I actually bought myself and my own money. It doesn't mean you should run out and buy it because I'm not going to necessarily tell you when I'm going to sell it and then you're going to, you know, scream at me. Because I've been watching where the tech money is flowing. And what most people miss is the money never disappears when something goes down. It moves. The big institutions were selling, sorry, Microsoft and Broadcom and so on. And they didn't put the money under their mattress. No, they were rotating it into more boring, more defensive stocks that were quietly making all-time highs when everybody else was distracted by the tech bloodbath. And Philip Morris, I believe, was one of them. Now, before you roll your eyes, a cigarette company, let me tell you what it actually is in the current year. For over 40% of their revenue comes from smoke-free products. They own something called Zin, but Cynix will argue is marketed at children. It is a nicotine pouch brand that's exploding in the US and Japan, and it's got FDA clearers, to market itself as a reduced risk product. It's just a beautiful business, essentially. They just reported revenue growth of over 10%. They crushed the earnings. Really, really extraordinary numbers from a company that, you know, I was going to say kills people, sorry, uh, provides some, I'm not quite sure what, um, profits for Winston. They've raised their guidance, stocks broken out, sales are growing faster than any time in the last two years, margins are extraordinary. Um, it's just a great business. And I know what you're thinking, people are no longer smoking. Well, they sell something addictive and it's legal. And I can also tell you, no one else is starting cigarette companies because it's just not really what uh what people are doing with their startups right now, right? So they basically are not getting any new competitors. So revenues up, earnings beat, guidance raised, the core business is the healthiest it's ever been. I'm not sure the same can be said about their customers. But so again, you might you might object to this on you know moral grounds. Uh good for you. But what I really like is that you see, Philip Morris did not sell off during the tech sell-off. It actually rallied. And that tells you big money is actively choosing to be here in the healthy world of uh cigarette type stuff. And the lunatic, sorry, the analysts are also raising their price targets on this one because I'm sure they're entirely independent and not taking any money from Philip Morris because we like our independent analysts and respect them, don't we? So while everybody is crying about tech dropping, cash doesn't go anywhere. It flows into other industries. And to me, Philip Morris is one of those. Doesn't mean you should run out and buy it. Obviously, you do your own research, come to your own conclusions, and so on. And if you want to really learn how I found that stock, then I'm gonna show you exactly that process if you join me on Saturday at bulletproofyourportfolio.com.

Tesla As A Value Trap Example

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Now, the one to avoid, and this is gonna make me very popular with Tesla lovers, uh, is um, and Melody we're gonna skip this because they don't think it's exciting and they don't want to know what not to buy, but it might save you more money than the three buys combined. Because the stock I'm avoiding right now is Tesla. And I want to be clear, this isn't about hating Tesla or hating Elon Musk or any of that. I'm just running the same test, and this time it fails. Tesla dropped about 15% yesterday after reporting earnings. So beginner looks like it up and says, huge crash, famous company, must be a gift, buy the effing dip. Stopped myself there, didn't I? Uh just in time. Now, did the business break? Well, remember how Intel crashed, but the business was getting better? Tesla crashed and the business actually is worse. Profits per share came in below expectations. It's a miss. Their car profit margins shrank to under 17%, which is pretty dreadful. So they're making less money on every single car they sell. Free cash flow went negative. Negative. So you bring in $1,000 and then you look at your bank account, and there is now less money in the kitty. So they burned about a billion dollars in cash in just one quarter, spending shooting up AI projects, robots, and so on. And you might say, but I like what they're investing in. And you're very free to buy this. But what I'm saying is you're buying a hope, you're buying a vision. And yes, Elon is certainly delivered on a lot of visions, but there is also the Elon risk, right? What if Elon isn't there? Will they still do it? I don't know. I like to buy things when the money is starting to rotate into them, not six months or twelve months or twenty. For months before, because I'm going to miss out on all the other opportunities out there. And the Chinese are outselling Tesla globally. Go to Europe full of Chinese cars. And this is the part that makes me uncomfortable. Even after a 15% drop, the stock trades at a forward price to earnings ratio, bear with me, above 200. 200. That means the price does not reflect the cars they sell today. It reflects a future where robot taxes are everywhere, humanoid robots are generating revenue, and Tesla becomes a completely different company. And that might happen. I think there's a fairly decent chance it will, but it hasn't happened yet. They haven't sold any of those products. And you are paying for that dream today with a business that's actually getting weaker because they're building that new business. So I'm putting my money into things where I can see the big money rotating into right now. I'm staying away from the falling knife. And then at one point, when the big money rotates back into Tesla, I will gladly buy Tesla. You see, I have no religious affination towards stocks. I don't fall in love with them. That is really not necessary. I'm just here to make more money for Winston, right? So you've got three names that pass the filter, one that doesn't. Doesn't mean you should buy them. And there is another

Position Sizing And Exit Rules

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half cents. How much do I buy? What if I'm wrong? Because the reality nobody talks about is in these buy the dip videos, even the best buy the dip can go lower before it goes higher. And if you put everything in on day one and it drops another 10%, you're sitting there with no cash, no plan, and you know, insomnia. Good for certain pharmaceutical companies. Let's make a note. But there are rules that protect you. And they protect mostly your mindset, but they therefore ultimately protect you. Rule number one is you buy in pieces, not all at once. Don't try to nail the exact bottom. Nobody can do it. Split your money into two, three, four chunks, and it gradually, if it goes lower, potentially buy some more, but you also need a point where you know I was wrong. I am frequently wrong. And then we want to size it so that the lobbyist and pharma don't make lots of money out of insomnia tablets. So scale down your positions to a point where the bad outcome is annoying, but not devastating and sleep-robbing. And then rule three, know your ex. Before you buy anything, write down if this drop drops, if this stock drops below X, or if this thing changes, I'm out. And that's having a plan. That's what the pros do. Again, we talk about it on Saturday if you join me there. So we've just turned a gut feeling by the frickin' dip into the system, which is what the big money

Closing Advice And Share Request

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does. And that system is exactly what I want to build up on with you, live, in person, for free. The session I'm running on Saturday morning at 9 a.m. is going to be called the Trading System that makes market headlines relevant. You'll literally be able to give away your television afterwards. I don't know television. I know I'm weird. So I'm going to spend two hours with you, walk you through the exact system step by step, so it really makes sense. So the next time the NASDAQ drops 400 points in a day, you don't feel sick, you're ready. It's free, it's live, there's no replay, you miss it, you miss it. Grab your ticket at bulletproofportfolio.org. Link is also in the description. And if you see some value in that, and if you know some people who see some value in this and who felt a bit queasy yesterday, share the link with them. What's up to them, send it to them on X or Facebook or whatever you uh platform you uh pollute, and we'll therefore be able to help more people. I wish you all the best.