The AI Scare Trade Just Ate an Entire Sector Alive

Don here...

CBRE was sitting at an all-time high.

Then the AI disruption narrative hit real estate services and the stock dropped $45.

Jones Lang LaSalle and Cushman Wakefield got blown up the same day. Zillow had already been crushed before earnings even though they beat their estimate.

Gianni Di Poce joined Jeff Bierman this morning and laid out exactly why this pattern is going to keep repeating across sectors.

The AI scare trade is the new tariff headline. Last year it was Liberation Day. Now every sector in the market is one narrative away from a liquidation event.

In today's free session replay, you'll discover:

Why consumer staples leading the market is a warning, not a celebration. Staples gained over 5% last week while tech went flat to down. Utilities are leading again this week. Gianni says this is textbook late cycle behavior. You see these sectors lead when things are starting to crack.
The K-shaped economy just got worse. Bank of America data shows the middle class is feeling the pain. Mortgage delinquencies in the lowest income areas spiked to the highest level since 2016. The top 10% own the assets. Everyone else is buying the monthly payment.
How AppLovin and Duolingo prove perception beats fundamentals. Duolingo had consistently growing revenue, growing earnings, and a strong balance sheet. The stock went from $500 to $107. AppLovin beat estimates and lost $88 in a day. Momentum and narrative drive everything now.
Why the next few weeks could produce the best buying opportunity of 2026. Gianni is 90 to 95% cash across his portfolios. He expects the correction to bottom by the end of February or early March. When tech starts showing relative strength, that's the signal to deploy capital.

Gianni made one thing clear. The inflationary beast is not done. After this reset, commodities like crude oil and grains could come roaring back. He made a small fortune trading grains in the early 2020s and says they're coming out of a bottom right now.

The good times are coming back. But right now, downside risks keep rising. Money is made in waiting.

→ Watch Gianni and Jeff explain why the AI scare trade is just getting started and how to position for the correction ahead

To your success,

Don Kaufman
Chief Market Strategist, TheoTRADE

P.S. The AI scare trade is picking off sectors one by one. CBRE, Zillow, AppLovin - all blindsided. But Gianni doesn't react to narratives. His alignment signal flagged AMD +389%, Tesla +155%, and IONQ +74% days before the headlines hit. When the next sector gets eaten alive, he'll see it coming. Gianni's revealing exactly how the signal works this Friday at 12PM EST. Live. No replay.

👉 CLAIM YOUR SEAT NOW →

Helping You Become a Better Trader...it's What We Do. Experience TheoTrade® Today!

Whether you are a beginning, intermediate, or active trader, you will find a treasure chest of valuable trading education resources, both free and paid, that will help take your trading to the next level. We are committed to helping you become the best trader you can be.

Disclaimer: Neither TheoTrade.com or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, registered investment adviser, registered broker-dealer or FINRA |SIPC |NFA-member firm. TheoTrade does not provide investment or financial advice or make investment recommendations. TheoTrade is not in the business of transacting trades, nor does TheoTrade agree to direct your brokerage accounts or give trading advice tailored to your particular situation. Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction or investment.Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past Performance is not necessarily indicative of future results.

TheoTrade

PO Box 24790 Christiansted, Virgin Islands 00824
1 (800) 256-8876

support@theotrade.com

Want to change how you receive these emails?

You can Update your preferences

Theotrade.com | Privacy Policy