AI Stocks Are in Trouble: Is This Just a Pullback or the Start of a Bear Market?

If I were creating a list of the top things investors and traders misunderstand about exchange-traded funds (ETFs), it would include this — they are not just for buying and selling the ETF itself. ETFs have brought a wide range of indexes to investors. Each index aims to be a filter, a screener. It does some of the work for us. We should take advantage of that.

That brings me to the artificial intelligence (AI) trade, which has been a sick puppy recently. The Global X Artificial Intelligence & Technology ETF (AIQ) is a diversified basket that avoids the heavy concentration of the Magnificent 7. And that makes it a cleaner gauge for the health of the broader AI theme. That ETF is flashing mixed technical signals that suggest a shift from a vertical rally into a period of higher volatility and testing.