So there's a new pump and dump in town and it's called AI What's going on guys? it's Ricky here with talk about Solutions Some of you guys might not think of it as a pump and dump, but I'm going to be showing you why I think in my opinion it is. Let me go ahead and start sharing my screen so you guys can see exactly what it is that I'm looking at. uh, this is NASDAQ just wanted to follow up after uh, it was passed by the house. uh the U.S debt ceiling deal Market is up and it open up that way.

it opened up break even. but then overall Market began to indicate signs of an uptrend. uh and as right now NASDAQ is at 350 for QQQ Uh, we're testing our resistance. Uh, right around here and on the one hour time frame it looks like we bounced right off of that one hour moving average which we actually covered within our live trading session with the Lpp team.

Now one of the things that I quickly want to talk about is I've been seeing a lot of people talk about Ai and just so you guys could see I have no position in AI I have no benefit of saying either good things or bad things I just again a lot of beginner Traders watch my videos and I know that a lot of beginner Traders get burned by not knowing how to identify when a stock is being hyped up I wanted to perform a super quick technical analysis and then I wanted to show you guys on the fundamental Side based off of its previous quarterly learning report why it takes so much and then for you guys to formulate your own opinion by doing your own due diligence. I Really hope that you enjoy this video and if you like more videos like this looking out for beginner Traders Then again, make sure you drop a thumbs up and make sure that you subscribe so on the four hour time frame. I'm not going to talk about this most recent rally I mean you can. You can see the change of volume right? So right away average volume and AI was selling off right after it peaked at a highs of 35 dollars.

it sold off from what is this April all the way to May 15th right right around this uh, general area we began to show scientific support. It's kind of like the three stages of a reversal reduction consolidation and then all of sudden volume really began to pick up. Was it marketing? Was it it being? you know, thrown in different chat rooms Reddit Whatever the case might be, all I can see is there's a huge change of vaulting from this normal volume to what we're seeing right here. and any time look at this.

This isn't rocket science. Any time that this thing shows any signs of volume like this from its normal and average volume, right? just like it did the previous time that it got pumped and dumped right Just like the previous time it got pumped and dumped right. You can see the difference in volume just like the other time when it got pumped and then dumped right. Every single time, it rallies for a short period of time, and then it corrects itself, rallies for a short period of time, and then it corrects itself, rallies for a short period of time, and then it corrects itself.

It is selling off more for a longer period of time than it actually is, indicating scientific. So what does that tell me right? Well, that tells me that I Want to be very quick getting in and getting out, and again, understanding that there's no such thing as a perfect Trader and understanding that this is a super super risky stock to trade, especially when it's been on this rally for about you know, half a month, right? 15 days it peaked to highs of forty seven dollars. Great. But why did it dump right? Well, it just reported earnings and this is what I wanted to share with you guys.

So I reported earnings and the company projected revenue of 72.1 million to 72.2 million, right? 72.4 million? Um, and from operations 23. uh, 7 million to 23.9 million of potential loss, right? The free cash flow of 18 to 19.4 million. Uh, and when it actually reported earnings again, it saw a very significant drop I think it was 30, right? It has a huge forecast for ending April of 2024, it sees between 295 million to 320 million. But something that everyone is talking about right now is that all the different news articles are stating that C3.ai which is the AI stock Falls after earning Outlook fails to justify the hype? There is no question right that AI is super hyped up right now.

It's it's the new and shiny thing and I get it right. Just like anything it's It's okay with writing the hype train as long as you respect that you need to get out of the hype train before it dumps. Most often, these things end up correcting themselves right and by being able to see the overall big picture. If you see that every single time, right? this isn't rocket science every single time.

Like I Mean, look at the history of this company right and look at recent patterns. I mean AI has been super trendy, so it makes sense on why. In the past couple of months, it's been a little bit more bullish, right? But it's not really bullish for a long period of time. Because it sells off, it sells off, and it sells off, right? And the more that it pumps up, the harder it drops right after.

So why would you ever choose to be super picky with not locking in profits on something like AI that obviously is throwing red flags, right? Look at the volume, Look at the volatility. Look at previous patterns, Look at what other you know statements are being said about it. Their financials, right? They are not meeting up the hype and doesn't matter right? In the sense, if you're just trading it and you're writing that hype, as long as you understand that login and profit should be your number one priority right when looking at this. Yeah, there's no breakup pattern just yet, but when we see that AI came from highs of forty seven dollars and dropped all the way to lows of 30.

I I Don't want to just talk about the good I need to talk about the bad, right? 35 is what it dropped. So ask yourself right, that's just the first drop, right? That's just after it reported earnings. If you, if you look at the overall big picture, we're still very overbought. It still has the potential if it's anything close to what happened last time.

it corrected itself all the way back to previous loads. So that means and again I guess I'll just have to follow up. That means that from 36 dollars, which is where we're at right now that it runs the risk of potentially dropping right back down and losing 50. so you might be like, well, I've only made five percent I've only made three percent I've only made ten percent I don't know where you're at, right? green is green and I just wish that when I got started.

if I ever traded anything like this that's showing sides of a pump and dub I wish someone showed me something like this just to prove that. um, you know, Yeah, it might not be the most amount of money, but it's Green and it's a heck a lot better than being 50 in the run, right? I Hope that if you are someone that chooses to trade something like this, you have excellent risk management skills that you have excellent ability to lock them profits and that emotions don't take over, right? This is not a stock in my opinion, that's designed for a beginner. This is someone that understands how to get it and how to get out effectively. That respects that this is a hyped up stock and that respects that.

this. Won't Last a very long period of time, right? It sells off more than it rallies and that's one thing that has been shown in its history and normally when it has its initial drop, that normally is kind of the domino effect of what leads to a consistent sell-off. So I guess only time will tell. I Just wanted to make sure that I did my part and talking about the risk of a very hyped up stock that I know, maybe even a few of you might be in the green right now.

but I just again, I'm trying to look out for the beginner. Trader If you want to hold you know you're an adult, do what you want. If you want to sell, you know, do do as you want. I Just wanted to share with you Why? In my opinion, this is not a company that I would want to hold a position in at these overbought levels when it has a history of correcting itself every single time that it pumps right.

I Wanted to show you on the technical side I Wanted to show you on the fundamental side why and what is being said about AI But again, one thing that I did want to invite you guys to is my free live trading session tomorrow. So June 2nd, we're hosting a Free Live trading session I'm giving away a thousand dollars tomorrow right at Market Open. Uh, all you have to do is you have to save your spot. It's the first link in the description down below.

I Trade live exclusively every morning with the LBP team. One thing that we've been doing I Believe this is going to be the last free live session that we're going to be hosting where we're giving away a thousand dollars and it's going to be tomorrow right at Market Open. I've given away a total of four thousand dollars so far and it's been every single Friday for the past Friday As you guys can see down here and tomorrow is going to be the fifth and final. So if you want to partake in that free live training session, save your spot! And that's that first link in the description down below.

Don't forget to enter our GTR giveaway. We have three days left and again, it's for the GTR or 50k cash. So if you haven't entered, we have our biggest multiplier which is the final week 20x entries. Which means every one dollar that you spend equals 20 automatic entries that's at Shoptechbooks.com or the fourth Link in the description down below I Appreciate your time.

If you have any questions, feel free to send me a direct message. If not like always, let's make sure that we end the year on a green note. Take it easy.