Alliance DAO co-founder: AI trading has formed a massive bubble, not advisable to blindly buy the dip.

BlockBeats news, November 7 - Alliance DAO co-founder QwQiao stated in a post, "I don't think anyone can confidently say whether AI stocks are currently expensive, cheap, or reasonably priced. That would require a crystal ball to predict future AI breakthroughs, supply chains, credit markets, politics, and macroeconomics. And such a person simply doesn't exist.

However, charts, investor psychology, and positioning indicate that the AI trade is almost certainly a massive bubble. And when bubbles burst, they always overshoot to the downside.

So, what would give me the confidence to aggressively buy AI stocks is when the charts finally look like they're undergoing a long bottoming process, investor psychology is thoroughly and completely damaged, and AI is dismissed on CNBC as a worthless fad."