Stock Market Falling Fast | Here's What to Do
In a Nutshell
Nike recovered 15% intraday after a post-earnings selloff but remains in a long-term downtrend with lower highs and lows. The speaker took small, quick profits on shorts and avoided large positions amid volatile swings and political news-driven moves. Key levels to watch include QQQ breaking 725-724 for a potential drop to 700, with plans to buy semiconductor dips if the market holds or short MSTR on further weakness.
These notes were generated by AI and may contain inaccuracies.
Nike beat both earnings per share and revenue expectations but initially sold off 10% after market hours due to bearish sentiment. The stock later recovered fully and closed up 4.5% on the day. From the session lows to the current highs, the intraday move reached approximately 15%. Despite the single-day rebound, the daily chart shows consistent lower highs and lower lows, maintaining a bearish structure since the end of 2021. One positive session does not alter the longer-term downtrend or eliminate fundamental uncertainties around the company.
Nike should not be viewed as a guaranteed turnaround story simply because of today's price action. The same level of excitement that drove the rally can reverse quickly, and the stock remains capable of giving back gains just as rapidly as they appeared. A level-headed, longer-term perspective is required rather than reacting emotionally to a single green day.
The NASDAQ sold off aggressively at the open before oscillating throughout the session, ultimately closing down 0.7%. Semiconductor stocks underperformed significantly even as the broader index showed resilience. The speaker reduced position sizing and took profits quickly on a short position in Micron after it approached support, deliberately avoiding larger exposure due to the risk of a V-shaped recovery similar to the one observed two days prior.
Overconfidence from the previous day's successful scalping was acknowledged as a factor in today's more conservative approach. Fear of missing out remains present, but respect for prior support levels and the overall bullish market bias led to smaller position sizes and rapid profit-taking rather than holding shorts into potential reversals.
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