00:00Cam Dawson of New Edge Wealth writing after a nine week winning streak at a breakneck pace. We should not
00:05be surprised to see some come down from the huge gains. Cam is joining us for the air and joins
00:10us now for more. Cam good morning. Good to see you. Good morning. We've been told repeatedly the fundamentals are
00:14great but the technicals are stretched. The technicals beginning to bite. Yeah. Beta bites both ways. We had been enjoying
00:21a massive beta rally where we got to some pretty big extremes come midweek last week. 76 percent above the
00:28200 age moving
00:29average on the socks. You got the cost be up to 112 percent above its 200 day moving average that
00:35would qualify as a classic price bubble. And so we're seeing this unwind just out of these really big overbought
00:42conditions. And what's notable is that we're nowhere near oversold just to get to your 50 day moving average on
00:48the S or on the socks you would be down another 13 percent. And yes the fundamentals are great but
00:54you would seen these stocks get so overbought move so far so fast. It was sort of like seeing Icarus
00:59fly closer and closer to the sun and getting a little bit of that wax melting. Do you think then
01:03at this point there is an air pocket then for further declines from here. Yeah. Look I think it would
01:07be actually a very healthy thing to see. I think the other thing that's really notable to focus on is
01:13the fact that you had seen valuations already reset back up to their 2026 highs. So the whole dynamic that
01:21had happened at the start of the year is that valuations derated significantly to about 17 times on the socks
01:26just because earnings estimates went up so much.
01:29Now we've effectively reclose that gap where we've seen valuations get back up to 28 times forward. So arguably you
01:36could say that the easy part is over meaning the valuation reset is over and now the question is do
01:41you still see earnings upside for these semiconductors from here.
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