The selloff in semiconductor stocks while the broader market holds up is good news — it shows the 'bubble' part of the market is deflating without taking down the entire market.

1:40that was severely extended, we're now on the other side of that. uh at one point during the late afternoon and I assume the close was was basically this semiconductors were down 4% on the day and software the anti- AI semi trade was up 3.3%. Going back to 1989 we have a scatter plot for those of you who are listening not watching. This is unusual. This is an absolute uh outlier of a day.

2:10>> Wow. I mean that that's like the stock market getting killed and bonds doing well or something. I don't know what the the comparison of that. So, okay. So, here's I just I just ran this too. We're we're on the same uh wavelength this week from the highs and this happened really quick. Micron is down 27%. Western Digital down 34%. SanDisk is down 46%. Seagate technology is down

2:3226%. These are all the semiconductor memory names that would be found in that DRAM portfolio. So, Again, this was an easy one to call that it would happen, but I think this to me, for all the bubble talk, this is good news. And why is this good news? The stock market is 2% off all-time highs. The stuff under the surface, this is one of the great things about the stock

2:53market. There are some stocks getting absolutely hammered right now. And yet, the S&P is basically at an all-time high. >> Wait, it's not just some stocks. It's the leadership stocks, >> right? >> And uh in the stock market is flat today. Nvidia is down 5%. >> Ben, look at these next two charts. It's good news, right? >> It's great news. Uh your your voice inlected four octaves

3:15on that one. You are really excited. This is good news. So, Chart Kid, >> you you told me I'm not excited enough about short-term stuff in the stock market. I'm I'm giving you excitement here. >> Lean in. All right. I love it. Um All right. So, we've got two charts. One is the average 52- week draw down of semiconductors or as Ben says semiconductors and 27% >> Wait, did I really say that?

3:38>> You always say that. You say semiconductors. >> Oh, you said semi. >> Well, you say semiconductors. >> Okay. >> Um, so the average is down 27%. Marll is down 41%. Um, and then we've got tech, hardware, and equipment stock draw down. So this is Western Dig Corning Sandisk was just by the way San Sandis was so freaking extended dude it's in a 45% draw down >> and if you zoom out more than like 3

4:10months it looks nor it still looks like it's it still looks like it's in an uptrend >> it basically got cut in half and it's still in an uptrend >> in the last year the stock is still up 2900%. And it's down 46%. >> That sounds that sounds amazing. >> That sounds fake. That's a Ron Burgundy. I'm not even mad. I'm impressed. >> So, it is unbelievable

4:32that the part of the market that people were calling the bubble is debubbling or deflating and yet the market the S&P 500 was actually up today. The equation >> the equal was up about 40 something basis. >> First it was the mag 7 sold off market did fine. Now it's a semi then said oh well that's cuz it's just the memory stocks. Now they're selling off and the