TR Ultra Growth Newsletter AI Game Plan 2026-2028, Part II:

And so FINALLY the much needed market correction in here...and we have been looking for since late September

Action To Take: Our managed accounts are near 1/3 cash in money markets

The BULL MARKET correction we have talked about since September is hear and that is HEALTHY! Our TR Wealth Management accounts are roughly 35% in cash after taking our original investments in our TR Fab 15 Stocks

Secondly, we are very proud to have delivered over 6.6X higher return in our TR Magnificent 15 Core Stock + ETF Holdings so far this year vs. the SP 500

Our TR FAB 15 Stocks are up (as of 11/17/25)

1) Nvidia +39%

2) AMD 105%

3) TSM 42%

4) AVGO 44%

5) ANET 42%

6) PSTG 39%

7) URA 72%

8) LEU 278% (but most of us took 400%+ gains on the crazy price meltup in our TR Discord Trading Room--another reason to be a member!)

9) TQQQ 38%

10) SOXL 44%

11) VRT 44%

13) GDXU 135% (and again in the Discord trading room, we SOLD the meltup in GDXU on October 19 and reloaded around $140 in early November)

14) JNUG 122%

15) AGQ 183%

Add these gains into ChatGPT, and you see that our AVERAGE core stock position in the TR Magnificent 15 is an 87% AVERAGE annual return YTD 2025

Meanwhile, the S&P 500 is up 11.2% in 2025-- thus our TR MAG 15 portfolio has beaten the S&P 500 market return by 8X

My point here? 1) is we went 105 days without a correction of more than 3%--THAT IS HISTORIC-- and yes, the correction that started last week was way overdue.

Key Point: Bull markets need 5-10% pullbacks to survive. First of all--the market had to get rid of the YOLO FOMO froth in zero earnings emerging TRANSFORMATIONAL technology sectors eventually HAD TO CORRECT--ie, profit taking with more sellers than buyers-- chose your metaphor:

Eventually, in zero-earnings micro or small-cap emerging transformational tech companies, the short covering ends, and we get more market SELL orders than buy orders and the Frothy Mania Stocks eventually fall back to earth via financial gravity.

As we wait for Nvidia earnings and guidance this Wednesday….it was the sizable move lower in Palantir stock that showed how far ahead valuations in the AI Tech Stack had gotten…and that no earnings or revenue beat would have been sufficient to justify its premium valuation…and that is RATIONAL and healthy for the AI Tech Stack trade!

Why? Because of the closing bell on Nov. 3 (i.e., in the minutes leading up to Palantir's earnings release), shares of the company were valued at a price-to-sales (P/S) ratio of 152! To put this figure into perspective, the internet companies leading the charge prior to the dot-com bubble bursting in early 2000, peaked at P/S ratios ranging from 31 to 43. Consistently, this range has served as a ceiling for hyped megacap stocks on the cutting edge of a next-big-thing trend. Palantir entered its earnings report at four to five times this historical ceiling.

In short, there was simply no beat that would have justified Palantir's P/S ratio.

But don’t get me wrong-it was a very lucrative BLAST trading the 2x Leveraged ETFs in the Fab 4 FOMO YOLO transformational tech sectors:

Small Nuclear Reactors aka SMRs

Quantum Computing systems (and Quantum as-a-Service)

Small and Mid Cap Quantum Computing as-a-Service

Small/Mid/Large Cap Neocloud AI Data Centers-as-a-Service

in the TR Discord Trading Room--they delivered 1000%-1500%-2000%+ trades from the retail investor FOMO/YOLO traders.

IF you want to join us trading the NEXT LEG UP in FOMO YOLO sectors with the 2X ETFs, here is your link

Where Does The Market Go Next?

As we have discussed and shared with you since the summer, the US stock market has been divided into four “camps,” if you will, that we shared in September NL and the market in general “was overbought, and the “Rule of 40” AI Mania would most certainly have a meltdown and wipe out the last in speculators/traders

PS if you have not heard of the “Rule of 40” in tech land…especially no earnings SaaS software companies, here ya go: The "Rule of 40" is a financial metric often used to evaluate high-growth, no-earnings tech companies, particularly in the SaaS (Software as a Service) sector. It helps investors assess whether a company is balancing growth and profitability effectively.

Formula:

Rule of 40=Revenue Growth Rate (%)+Profit Margin (%)

Revenue Growth Rate: The percentage increase in a company's revenue over a specific period.
Profit Margin: Usually measured as EBITDA margin (Earnings Before Interest, Taxes, Depreciation, and Amortization).

Interpretation:

If the sum of these two metrics is 40% or higher, the company is considered to be in a healthy state.
This rule provides flexibility: a company with higher growth can have lower profitability, and vice versa.

For public tech companies that are not yet profitable (virtually all tech startups), the profit margin is often negative. In such cases, the focus is on achieving high revenue growth to compensate for the lack of profitability. For example:

A company with a 50% revenue growth rate and a -10% profit margin would still meet the Rule of 40 (50−10=40)

So here is the market in secular (not cyclical) high-growth technology stocks

A) The TR Mag 15+ AI Tech Stack --waiting patiently for 10-20% pullbacks to add to full weighting

B) The AI Memory Stack--in addition to our Pure Storage--let’s add Micron MU, Sandisk SNDK, Seagate Storage STX, and Western Digital WDC on 10-20% pull-backs

C) The 40%+ secular growth AI Data Center GPU and Optical Tech Stack/ the Cooling stack/the Electrical Power Stack/Cloud AI as a service companies aka “Neocloud”, plays like $NBIS and CoreWeave CRWV

D) The no-earnings FOMO MOMO SPECULATION Retail stock traded next generation technologies —SMR nuclear power tech/quantum computing tech/EVTOLs/Military Drones/Space Travel/Robotics + Self Driving

E) Behind the Meter Power Players (like Bloom Energy/Plug Power/Camber Energy) + the Data Center Construction + BTC Miner Conversion to AI Data Center/HPC/GPU rental operations like Cipher $CIFR with its huge AWS data center deal and Hut 8 $HUT

But Let’s Step Back To Identify Reality in AI Data Center & Software Development

AI stocks are under pressure this week as investors rotate out of high-valuation names and headlines resurface about an “AI bubble.” Many leading AI stocks are cooling off, yet what we've seen from Q3 earnings tells a different story.

Big Tech’s capital spending, the core metric for the AI cycle, continues to impress. This quarter, CapEx rose 19% QoQ and 75% YoY - which is the strongest growth we've seen this year. Amazon’s Andy Jassy captured the sentiment on his latest earnings call: “The faster we grow, the more CapEx we end up spending… We don’t procure it unless we see significant signals of demand.”

Some analysts claim this CapEx boom is a one-time event. I disagree. AI infrastructure is continuously advancing, and this requires successive generations of hardware and networking upgrades every one to two years as model architectures, memory bandwidth, and power requirements scale exponentially.

The beneficiaries of this $2 TRILLION buildout remain at the core of our AI Portfolio as Big Tech shatters the Street's expectations for AI spend with the highest growth this year in Q3n.

In short, the AI Revolution bull market is NOT OVER—it just got what it needed—to “shake out the weak hands” and see where key support from strong hands, aka where institutional owners are not selling, and buy the dip

What To Do Now

In our managed growth portfolios, we have taken out 100% of our original capital and 100% profits in 2025 capital gains which has us 30% ish in money market funds.

But stocks like Lumentum LITE Coherent COHR reported beat beat RAISE guidance and went GREEN—hence the market is COHERENT —and sell-offs in positive EPS AI Data Center stocks will start to base at 10% ish down—aka THEN we buy the dip!

Action to Take: Add $LITE and $COHR to your Ultra Growth Portfolio on 10-20% Pullbacks!

Our Gold and Silver mining positions are correcting as to be expected….add at key 50-day support

And the Good News? There is still $7 TRILLION IN CASH on the sidelines of households that hold investment accounts and 401-k’s

Looking for a place to hide? Our old friends energy tankers are moving higher in value as day rates have bee moving higher on the scrapping of old vessels.

Our faves on this list : STNG FRO NAT TEN INSW DHT ECO

In short-- “nothing to see here” as the saying goes--bull markets NEED to shake out weak hands and the frothy speculators to keep the bull market alive...earnings season for Q3 kicks off with NVDA tomorrow Nov 19-- IF you want to hedge your $NVDA position, you can buy the 11/25 $85 NVDL (2X long ETF) Put Option

Thanksgiving next week... beating the SP 500 8X gives us a LOT to be thankful for!

Ultra Monthly Income Update out tomorrow!

P.S.: We are sharing this email with both current and former subscribers. IF you are NOT a subscriber who has crushed the SP 500 by 8X since May 2023 with our AI Data Center portfolio--you can subscribe for the next 12 months for less than $100--we are adding dozens of new Ultra Growth stocks and ETFs over the next year--subscribe here!!

November 2025 TR Ultra Growth Newsletter