Mega cap tech is under pressure today as rotation continues. While many believe that’s healthy for the market, these names tend to come down with the kind of velocity that scares investors.

Adding more anxiety to the mix are yesterday’s comments from Sam Altman about an Artificial Intelligence (AI) bubble.

His comments have the naysayers in a state of joy.

Of course, we’ve heard this all before.  

This also comes a week after The Economist suggested, "Palantir (PLTR) might be the most overvalued firm of all time.”

That stock is down six days in a row.

For the record, I think the AI story is in early stages, it doesn’t mean stocks can’t pull back causing big moves for high beta mega cap names

Making matters worse, a report came out from the New York Times that Meta platforms (META) is downsizing its AI division.

The good news is, 67% of the S&P 500 is higher now with eight of eleven sectors moving higher, including Real Estate (XLRE), soaring 1.20%.

This is still watch and wait period, but always with the intention of pouncing.

I’m seeing names that I regret closing getting back to favorable buy levels.