How to win buying the dip amid the sell-off: Strategist explains

Crypto is selling off, with bitcoin (BTC-USD) down roughly 20% from recent highs. Meanwhile, Palantir (PLTR) stock is tumbling on valuation concerns and Uber (UBER) stock is falling after the company reported earnings — all weighing on the broader market (^DJI, ^GSPC, ^IXIC).

Yahoo Finance Senior Reporter Brooke DiPalma and Slatestone Wealth chief market strategist Kenny Polcari take a look at the market action.

To watch more expert insights and analysis on the latest market action, check out more Opening Bid.

Video Transcript

00:00 Speaker A

This crypto sell off continues and I heat map was very interesting and it's not just Bitcoin. I think Bitcoin now is down 20% from the highs. and we're seeing selling really across the board.

00:10 Penny

Yeah, taking a look at the heat map, the entire entire cryptocurrency uh heat map is in the red this morning. We have Bitcoin falling this morning down nearly 4%. Ethereum also down nearly 6% and also Solana down nearly 9%. And this comes after what we've seen this tremendous run-up especially of Bitcoin year to date. This uh the cryptocurrency is up about 9 and a half%. Investors really flocking to it during that those key summer months when the a market was hovering around record highs as they were willing to take on a bit of risk here. and Ethereum had some of the best months that we saw in June through September. But now as there's a bit of a fear, not just about this valuation. We also have the background of the government shutdown, the potential of the Fed not to cut interest rates yet again in December. And you could tell that now we're sort of moving away just ever so slightly from that risk-on environment that we were really seeing over the summer with Bitcoin now moving closer to that 100,000 threshold when we were just above record highs of 120 just a few, just, you know, last month or September rather. And so it's been interesting to watch this sort of decline, especially over the last month, down about 15%.

01:25 Speaker A

Kenny, maybe we are going to get that healthy 10% pullback. I mean, look, uh Palantier is getting sold, Uber's getting sold on its stronger quarter, crypto is getting sold. I mean, these have been some of the hottest assets in this market this year.

01:36 Kenny

Right. And it makes sense. Honestly, you got a lot of trader types that are taking profits. I don't necessarily think the long-term investors. Penny and remember, to your point, you're not losing money unless you, you know, unless you make the sale, right? That's when you're either going to lock in a gain or or a loss, right? When you say, oh, it's down 10%, I'm losing money. You're not really losing money unless you make the sale and then you give up the upside. So, uh I wouldn't necessarily worry about that, but I think it's definitely much more algo and trader driven than it is long-term investor driven. Like I said, for me, I'm going to look at it from the buy side as an opportunity.

02:04 Speaker A

So Kenny, you're buying these dips?

02:05 Kenny

I would be buying the dip right. But like I said, on a day like today in Palantier, when they're focusing on, the market's focusing on everything negative, it's going to drag the whole place down. So I'm going to give it a day or two, see how it settles down, and then I'm going to go shopping in some of these names that got dislocated in price for no other reason than there was profit taking. Not because the fundamental story changed, because so far, it has not.

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