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

November 7th, Alliance DAO co-founder QwQiao stated, "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 macroeconomic conditions. 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 on the downside.

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