Trump Can’t Taco His Way Out Of This One…
Software Sell-off Will Bleed Into Hardware Next
AI Is Eating The Hand That Feeds It
Policy Intervention Won’t Fix Irrelevance
Luke Tao’s “LESSONS FROM AN ACCIDENTAL, IRRESPONSIBLE SOFTWARE OWNER: A $45K ONE DAYDRAWDOWN ON MY TOP HOLDING.” STILL UP 36% YTD
LaDucTrading client post published premarket today…
Software Sell-off Will Bleed Into Hardware Next
Luke Tao, a member of my team over at LaDucTrading.com, posted some great thoughts on the recent SAAS sell-off (reprinted at bottom) that I wanted to share with members along with my embedded thoughts.
Most haven’t noticed that the beloved S&P Software Index IGV is down a whopping -31% since its October highs. Most focus on & forget XLK is a broader tech ETF heavily weighted towards hardware, semiconductors, and mega-cap tech giants.
Or that estimates of 25% to 35% of private credit portfolios are exposed to AI disruption risk which is affecting private equity companies that are heavily exposed to software.
Case in point, Thomson Reuters is down -60% since July 2025 - as reviewed in detail premarket today which PRO members can access - and that the recent software sell-off (that I sized up October 14th with follow through conviction Nov 26th while positioning clients long large cap value for out-sized gains in this growth-to-value rotation) has migrated from private credit/equity to software and is now headed for hardware (read: semis) next.
As such, we caught some fab shorts today in AMD, MU, NVDA, SMH live in my trading room near the open!! Consider upgrading to LIVE or at least PRO for a recording of my live trading room & detailed trading notes!
