AI Rally Strengthens Eddie Ghabour’s Bull Case, Sees Crude Topping & ETFs Rallying

joining us, friend of the program owner of Key Advisors Wealth Management. Eddie, great to haveou back on. Now, last we talked, you were c for a rallyo the year's end. I just opened the show saying we have a new record on the S&P and the Nasdaq this morning. How are you looking at this rally continuing and what has changed sin last conversation? Anyin your thesis different now? Frankly, is we're getting confirmation that our outlook for year is actually strengthening. And this is when you kind of take a look at the setupoing into the fed meeting. The reason why we were so bullish was that was about a pessimistic and as hawkish as the overallntiment w. And normally when you get those inflection points it's an overreaction. So we started to aggressively pivot outf our equal weight S&P. That was a defensive position we put on the end of May, beginning of June. And we started to really go more offense and really coate in technology. And the reason why is in the face of yields spiking and oil spiking in September, we st to see that technology showing some really strong relative strength after about three months of underperformance. And now we're g confirmation the Nasdaqis at g some of the semis hit new highs. And we t tech now will continue its leadership that we're accustomed to and really take us through year end. And we have inflation week. We expect a number that's probably going to be a little bit hot.The a little volatility. But if you've missed this run to us, going to have to buy the dip sooner than later before the train leaves the station. Are you betting that this heavy concentr that we've seen I mean just yesterday the mags mag seven ETF hit ad. Are you betting that this concentration stays here in te that we don't see anotheration like we saw in the summertime outside of tech through year end Well I think the beauty of this is tech's already gone through what we've been calling rolling crashes that started last summer. Lastlg hit this July and June. The semis are actually July. The semis took a big hit. And so these areas of momentum and growth over the last 14 to 16moy violent corrections. And now all the dots are starting t connect and go in line where I think you have lot of people that are not positioned in tech because of these rolling crashes, and theoing to be forced buy these positions, and that's going to cause the market tech to to go even higher. So we've been dealing with thentration trade for a while. That's not new news. It continues to be something that the bears hang their hat on until the signals and technicals tell us something different. We're not going to fight the tape. We're going to go with the mome and listen to what the market's telling us. And a lot of times you'll make more right than wrong decisions if you follow that process.nd the one thing the market has been at least signaling to us that many are, are not wanting to acknowledge or perhaps trying to read in a different way than traditionally is what we're seeing in yields and in the bond market and what it's beensu mentioned the inflation report Are you viewing this upcoming CPI report as the potential catalyst to really put an end to this market sell off and demonstrate to us that we are seeing what could be a peak in yields, or is that not your expectation? I actually think this inflation print next week may cause yields to go up again, because we're going to see a re-acceleration of inflation. That's simple math, but I that's going to be worst of it for the rest of this year.Sog or ninth inning of the yield spiking. We should start to see some stabilization happening soon. And the reason w say that also is it looks like oil has topped. And if oil has and that trend is down and we get some favorable inflation for next month, which we w with oil down, that could put a cap to yields. And I think investors need to understand we don't need yields to go down to the fours. We just nee them to stop rising he . If they just stabilize and stay where they are, the markets will continue to be bullish, in our opi because we think part of the reason why yields are increasing also is because growth is accelerating under the hood, and that's a positiveh perspective. So if we can get that stabilization we expect by next month, that's going to really give us that post-election rally that that we expect to accelerate. And in that same time frame, we're going to be well into earnings season. Eddie. So I know you've rotate heavily back into tech. What specifically are you looking at in tech and how are you playing it. Are you an ETFs. Are you in single stock names. Weing both. We have some clients that are more aggressive. We have some clients that are blended where we use individual stocks and ETFs. And then we have some that are just a little bit more conservative. And we just exclusively uses for them. But in that area we're concentrating right now, our buys have really been in ETFs like SOXXSMXLK. Som of the individual names that we've been very bullish on that we've been buying the dip on have been Marvell and Micron. A again, when you look at names like even Marvell, it's having a great day today. Obviously clients are happy, we're happy, but it's still not back to the t momentum like this, our expectation i these names really s catching a bid over the next 30 days or so and blow through the new highs. So we expect all time highs in the semi names that have momentum behind them as well as the ETF. So they're more agge. They're not for everybody. So you need to expect volatility. It's not going to be straightup. But right nows a it's it's al real positive catalyst because they were lef dead a few months ago and one that certainly hasn't been straight up. But we were drawing a line, it would be to. The upside is cyber. And I know that you listed in your notes that you like bug one of the cybersec ETFs. How are you lo at cyber with this ongoing AIrsation and AI security? I mee had New York City Council, sev AI CEOs testi about misuse and mismanagement concerns about its creation here in America. And also we've got anthropic IPO upcoming. You I think bug, which we've owned since this summer, it's hittingther all time high. Today is a great alternative way to play AI. You don't have to just own the chips or the memory names, because I think one thing wean agree on is the amount of invt that's going to have to go into cybersecurity. As AI continues to get adopted more and more and more is going to increase substantially. When you talk to CEOs, one of their biggest fears is some type of security breach or some agent going rogue. And so these types of cybersec names are going contin. So we are wetay bullish on that area as well too. And the beauty of this is you now have a broadening out in technology. Softwa strong. The cybersecurity within the software is strong. Semis are catching a bid now as well as they. So you don't just have to be concentrated in onead based on the technology trade, which to us allows us to diversify and manage the volatility better as well. Eddie, always great to talk to you. Really appreciate you