Is the Market Crashing? Don't Panic, Do This!
In a Nutshell
Markets sold off today as Oracle dropped 5% on delays to its AI data center project while OpenAI's $50B 2026 revenue guidance fell short of the $70-100B expectations needed to justify its $1-2T valuation. The speaker closed shorts on MU for a $9K gain, trimmed Oracle holdings, and warns that if Bitcoin breaks below the $80K support level, it could gap down toward $75K. Markets are overbought and overleveraged, with AI hype outpacing actual revenue delivery.
These notes were generated by AI and may contain inaccuracies.
The White House now considers anyone who uses the phrase "artificial intelligence" as the enemy. Trump posted on Truth Social that the White House considers anyone using the term artificial intelligence as opposed to the highly accepted and new and more accurate term "super intelligence" the enemy.
Markets sold off during normal trading hours. The speaker closed out a short position on Micron Technologies and is considering or has a small position going long. The speaker is up approximately $8,900 to $9,000 on the day and does not carry trades overnight. The speaker also traded WDC, making $1,800 on the initial selloff, with the main focus on Micron Technologies during the secondary selloff.
Trump stated that while Iran is in a very bad condition both economically and militarily, the United States will not be attacking Iran anytime prior to midterm elections. They will wait until after midterms.
OpenAI recently told investors that its revenues were approaching $50 billion for 2026 on an annual basis at the end of September. This is far short of the $70 billion that some people even assumed it could reach, with some estimates as high as $100 billion. OpenAI is targeting a possibly $2 trillion market cap.
This does not mean that AI is not valuable. AI is incredibly valuable and we see billions of dollars pouring into it.
The market is getting ahead of itself, with the company's actual $50 billion revenue generation versus the market's expectation to justify a $1-2 trillion valuation.
Oracle immediately drops 5% after reports of delays of its New Mexico project, Jud Jupiter AI data centers, which is supposed to be the end solution for OpenAI. Oracle is one of the few hyperscalers that has seen significant downturns, moving from highs of $341 to current lows of $134. Oracle's market cap shows 33% upside valuation with a 22p ratio, which is historically pretty low.
The concern is that Oracle is overleveraged and could possibly default on some of its loans and promises, having taken on more than it can actually fulfill. If Oracle is one of the first hyperscalers to actually fail, then a lot of the others will most likely begin to fall apart due to circular financing.
Starbucks sold off after exploring a Chipotle takeover, which caused the initial selloff.
The speaker trimmed another 50 shares of Oracle, leaving a smaller position with 49 shares remaining. The speaker is up $9,400 on the day and is long on MU with 50 shares.
Over $325 million worth of crypto leverage was liquidated in the past 30 minutes when BTC was at $82,000. Bitcoin hit lows of $80,000. The speaker notes that $80,000 is a strong support level, but if it breaks below that, there is a long way down to go.
If Bitcoin breaks below the $80,000 support, there is a gap down that was previously filled from $75,000 all the way up to $80,000. The speaker does not believe in BTC but respects anyone's right to invest in any speculative asset, provided they use money they actually have and don't use leverage.
MSTR is on its second day in the red after losing nearly 7% the previous day. Markets are overbought with decent pullback potential, having been pushing up for no reason. AI has been incredibly hyped up with a lot of expectations. When expectations are not met, as seen with Oracle's buildout delays and OpenAI's actual revenue versus expectations, markets correct and adjust accordingly.
The speaker goes live every morning right at market open for 30 minutes to an hour. The live session includes trades and is saved for rewatching. The LPP lesson library is designed for complete beginners with a one-time payment for lifetime access, breaking down to $1.30 a day during the October sale.
Watch position size when markets are incredibly volatile. Don't be overleveraged.
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