Listen to the audio version of this article (generated by artificial intelligence).
AI Volatility Explained Today… Great Results from Samsung, Yet Cosby Tanks… A Long-Term Perspective on Short-Term Concerns… How One Trading System Gains 920%
Another day, another fluctuation in AI trading…
As I write on Tuesday, South Korea’s Kospi closed down nearly 5%, the sixth circuit breaker stop this year. He was driving the accident Samsung Electronics Co., Ltd. (SSNLF)falling as much as 8% in early trading after filing its latest earnings report.
But here’s the thing: Samsung’s results were good.
The company directed second-quarter operating profit at about 89.4 trillion won ($58 billion). This represents a nearly 19-fold jump compared to last year. Meanwhile, guidance revenue was about 171 trillion won, more than double last year’s total.
So, why did the stock price fall?
Well, investors don’t punish profits. They punish the overall setting.
Samsung shares have already nearly doubled in 2026 heading into earnings. So, it’s a classic “sell the news” type situation, coupled with concerns of “Can growth continue apace?”
Meanwhile, this morning also brought news that Chinese AI company DeepSeek is developing its own AI chip. This adds another layer of worry about how much space is left in the super memory cycle.
Put it all together, and “monetize AI” is a knee-jerk reaction.
For AI investors, some broader perspective can help during moments like these
Here in digestwe often get into the weeds – a Fed decision here, a tariff address there, or an earnings miss that sends stocks reeling for a day or two…
That’s our mission – to help you understand what’s happening in real time.
But when we do this, we risk focusing too much on short-term issues that we may feel have lasting importance – but often do not.
In hindsight, many of the “crises” that dominate the headlines for an entire week had real short-term consequences, but had little lasting impact on the broader market trajectory. In other words, while these headlines can be very important to short-term traders, they are mostly noise for long-term investors.
Of course, this can be a problem for investors who forget this distinction. Allowing short-term pressures to impact our long-term positions poses a risk to achieving our investment objectives.
Remembering where we are in the big picture is a useful way to address this risk.
How history can help calm shaky nerves
Take a look at the chart below…
It’s the S&P 500 going back to 2017, with a dotted trend line extending below it — a rough estimate of the “backbone” of this multi-year rally.
Every major decline on this chart — the 2018 sell-off, the 2020 coronavirus crash, the 2022 bear market, and last year’s tariff-induced decline — eventually found its way to this line before resuming the rally.
But similarly, every exaggerated spike in bullish enthusiasm eventually “comes back to earth,” so to speak. This is just the natural ebb and flow of the market.
Now look again at the chart, focusing on where we are today. With the S&P recently hitting a new all-time high, we’re sitting well above that spine.
This is no reason to panic – or even to predict an imminent withdrawal. But it is a reason to remember the “two steps forward, one step back” nature of investing.
A bounce back into the backbone of both S&P and AI trading will be normal
History says that these gaps eventually close, sometimes gently, sometimes more violently.
Market analyst Charlie Belillo at Creative planning He ran the numbers on this last year. He studied the market since its March 2009 lows, concluding that while the S&P 500 has risen more than 1,000% since then (about 16% per year), the return has never been smooth.
From Belilo:
There have been 30 corrections since the March 2009 low of over 5%.
Among them, 10 were greater than 10%, 4 were greater than 20%, and one was greater than 30%…
In hindsight, it’s tempting to think you could have avoided the losses in 2011, 2018, 2020, and 2022, and received all the upside since March 2009 with no downside. But no one has demonstrated the ability to do this in a reproducible manner.
Which means big declines and the fear-mongering narratives associated with them are to blame Admission price For long-term investors.
These declines are not rare one-time events.
Belillo has also found that in the average year since 1928, an S&P 500 investor experienced a drawdown of 13% at some point during the year.
Think about that. Even in “up” years, you may need to face a double-digit collapse.
For perspective, the decline we saw between late January and late March of this year was only 9% – less than the usual decline for the year.
To be clear, this framework applies to technical pullbacks – prices catch up with themselves. But if profit growth in AI trading stops, or if a startup like DeepSeek creates technology that changes the economics of AI in a material way, that’s a different conversation, and a legitimate reason to reevaluate.
But today, this is not our situation. Which leaves AI investors with a question…
Which one will you believe?
When that pullback comes — and according to Belillo, something in this range comes with real regularity — the headlines won’t be measured…
You can be sure that we will see a “bubble burst”, “collapse”, “AI trading decline”, etc. This is not a guess. This is what the financial media did during each of the 30 corrections Belillo just mentioned.
At that moment, you will have a choice…
You can let these addresses determine your portfolio decisions for you. Or you can remember that a 10% drawdown, or even 20%+, is the amount every long-term investor always pays.
Bottom line: There’s some kind of pullback coming, and it’s probably going to be painful. How you interpret and respond to it is what really matters.
Now, when we shift from a long-term investing mindset to a short-term trading mindset, the situation changes completely.
After all, for traders, volatility creates opportunities…
How Jonathan Rose’s “Affinity Catalyst” can help you capitalize on these upsells
Our trading expert Jonathan Roseeditor Advanced noticecreated a trading system designed to take advantage of moments like these.
Jonathan is a veteran in the market Mark Chaikin We call it “convergence catalyst” – A sign that brings Jonathan together Unusual business activity Tool with two chickens Money flow To determine exactly how long institutional money accumulates in the stock before the move occurs. Back tested across nearly 200 trades, it produced an 81% win rate and an average win rate of 147%.
As we noted yesterday, Jonathan and Mark first introduced this convergence catalyst at the end of May. Since then, traders have been using it in their own trading portfolios – and many have written to highlight their results.
Jonathan says these traders have reported it Gains of 505%, 745%, and even 920% – all just in the weeks following the event.
If you want to see how it works – especially during volatile markets like today – Jonathan and Mark are making their presentation available for free for a limited time. Click here to watch.
Coming full circle
Let’s get back to Samsung and Kospi’s landing this morning.
Nothing about a 19x earnings jump being punished by an 8% stock price decline breaks the pattern we just went through. It’s exactly the kind of headline that will dominate the financial press for a day or two, get labeled “AI bubble bursts,” and then fade from memory within a month — while fundamental growth in demand for AI memory continues to fester beneath it.
This doesn’t mean Samsung stock is cheap here, or that every AI dip can be automatically bought, or even that there isn’t more pain ahead. This means that the instinct to treat one difficult session in Seoul as the arbiter of the entire AI trade is precisely the instinct that Belillo’s numbers warn us about.
If you are a long-term investor, today’s volatility is the amount you agreed to pay when buying into AI. And if you’re a trader, today’s volatility represents an opportunity – and that’s exactly what Jonathan and Mark have built. Convergence operator to pick up.
Either way, letting fear — or the headlines designed to produce it — drive your portfolio decisions is always the wrong decision.
After all, the market does not punish volatility. It punishes rash and knee-jerk reactions to fluctuations.
I wish you a good evening,
Jeff Remsburg
