Let’s use a recent example that perfectly illustrates how market narratives and sentiment tend to follow price. The AI Memory Trade. When memory stocks were ripping and going vertical, we were talking about absolutely insane moves, even surpassing $CSCO ’s legendary run during the dot-com bubble. $SNDK: +1,000% ++ in 1 year $MU: +672% ++ in 1 year At the highs, nobody seemed to care about the cyclical nature of memory stocks. In fact, the low P/E multiples only reinforced the bullish thesis. These were no-brainer longs. You couldn't own enough $MU or $SNDK because we were in the early innings of an AI memory supercycle. $DRAM was an ETF people said was free money to buy in a retirement account and HODL (45% off highs now) Fast-forward to today: $SNDK rallied 8,340% from its 2025 lows to its highs and has now corrected 44%. $MU rallied 1,830% from its 2025 lows to its highs and has now corrected 30%. Suddenly, the narrative has completely flipped. "Cyclical stocks always look cheapest at the top." "Analysts are extrapolating peak-cycle pricing and earnings into the future." "These stocks have already gone up thousands of percent. How much higher could they possibly go?" Here's what I find fascinating: >> Every single one of these arguments could have been made at the highs, but nobody cared because PRICE was going up. Now that prices have corrected significantly, those same arguments are suddenly front and center, reinforcing the bearish narrative. Could the bears be right? Absolutely. That's not the point. The point is how quickly market psychology, sentiment, and the prevailing narrative shift depending on what price is doing. When stocks are going vertical, everyone finds reasons to justify why they should keep going higher. When they start breaking down, everyone suddenly finds reasons why they should go lower. The price action changes, and the narrative follows. Again, at the end of the day, the only thing that PAYS is price. You can have the greatest thesis in the world, but if the chart doesn't agree, it doesn't matter. However, I think understanding market psychology, positioning, and sentiment provides an additional edge in recognizing when narratives become extreme and how those extremes can influence future price action. Follow price, but understand the psychology driving the participants behind it.