AI CRASH: Stop Trading Until You See This!
In a Nutshell
Markets erased $500B with NASDAQ testing critical 700 support, prompting the trader to profit $14.6K shorting Dell and Coreweave while warning that overleveraged longs will get crushed if support breaks. Fed rate decision on Wednesday is the key catalyst, and the speaker stresses staying light with position sizing to weather volatility rather than panic selling. Trump’s spending and Middle East tensions are driving yields to 5%, which threatens to push mortgage rates to 8% and reignite inflation.
These notes were generated by AI and may contain inaccuracies.
Markets experienced significant movement with over $500 billion erased. Friday saw a big gap up while today brought a decent gap down. The NASDAQ hit lows of 701, which represents a critical support range. Aside from the leg down to lows of 656, the NASDAQ has remained above 700 for the past three to four months without making new highs beyond 740 for QQQ.
Markets are incredibly irrational and are always looking for a reason to recover. There is an 89.5% probability that the Federal Reserve will raise rates according to the Federal Monitor probability tool, though this cannot predict what the Federal Reserve will actually do.
A nice gap down occurred overnight. Dell was the big trade, hitting lows of 53529 during the pre-market session with a $10,000 profit achieved. The position was 200 shares short with an average price of $5371, representing approximately $100,000 shorting Dell.
Coreweave was another major position with a $4,600 profit on an overbought reversal. The short position was 900 shares representing about $162,000 actively shorting Coreweave. The focus remains on whether NASDAQ breaks support, which would cause everything to sell off.
Those complaining about red days or markets pulling back are the ones who are overleveraged at overbought levels and did not prepare. Markets selling off presents more deals, and the only people who get upset are those who did not prepare and overleveraged themselves at overbought levels.
Sign in to read the full notes
Get access to AI-generated notes, topic timestamps, and more.