WARNING: SPACEX ENTERS BEAR MARKET TERRITORY AS IT CRASHES!
In a Nutshell
SpaceX has crashed 22-25% into bear market territory amid fading hype and insider selling pressure, with the speaker warning against shorting or using leverage on this highly speculative name. Traders are advised to take profits on leveraged inverse positions, cut losses quickly if down 3-5%, and avoid carrying positions over the upcoming 3-day weekend. Bitcoin and MicroStrategy are also selling off while semiconductors remain overbought, with the core message emphasizing strict risk management and position sizing in irrational, momentum-driven markets.
These notes were generated by AI and may contain inaccuracies.
SpaceX is entering bear market territory with one of its most aggressive sell-offs despite broader markets pushing up 2.5% on the day. The competitive companies to SpaceX are performing significantly better than SpaceX itself as the hype begins to fade. The stock has fallen from highs of $230 per share to lows of $172, representing a 25% sell-off. As of the time of the video, SpaceX is officially down 22%, placing it in bear market territory after losing more than 20% of its value from its previous all-time high.
People are beginning to take profits even before the first tier of insiders are allowed to sell. Around early August, the first batch of 20 to 25% of insiders will be allowed to exercise the right to sell SpaceX shares if they choose to do so. The speaker notes this is a $2 trillion company that loses $8 billion a year.
The speaker clarifies this is not a stock they would care to short. For those trading the inverse ETF that's double leveraged, caution is advised. The stock sold off 7% on the day discussed, and leveraged positions could be up 10 to 14%, but traders should know when to take profits. SpaceX is described as entirely speculative with no fundamentals. The speaker hopes it sells off more but warns that those choosing to short it should be mindful of position size and avoid using leverage or borrowing money to trade this super speculative stock.
Risk management advice includes controlling positions intraday so that if price action turns against a trader, they can manage and mitigate risk. If a position is down 3 to 5%, losses can be cut. Carrying positions overnight when markets are closed the following day is discouraged. On larger time frames, SpaceX has upside potential, and buying the dip is presented as a personal choice, but the stock remains speculative and momentum-based. Without price action confirmation favoring bulls, caution is recommended before entering positions.
The speaker has consistently advised caution with SpaceX during rallies, specifically warning against using leverage. When the stock loses 20% and traders are using 2x or 4x leverage, they may be forced to sell due to margin calls. This creates a situation where traders go long at overbought levels only to be forced to sell, then must buy back with less money after losses from margin, resulting in reduced buying power. The recommendation is to watch position size and exposure carefully.
Markets added over $1 trillion as US stock markets opened following the US and Iran signing an agreement to end the war. A meme circulating shows Elon Musk at $1.2 trillion net worth alongside the president of Iran now worth $400 billion based on the new agreement.
Intel is highlighted as a major mover after President Trump announced a partnership on Truth Social that had not been publicly disclosed with full details. The Trump administration is reported to have a 10% stake in Intel, and Trump disclosed he owns Intel privately. The speaker questions whether this represents a conflict of interest. Intel appears to be moving back up to retest previous highs.
The speaker references a live trading session where Intel was shorted after becoming overbought, resulting in a $5,000 profit. Viewers interested in watching the raw live session can message on Instagram via the third link in the description. Those who have previously received live session videos will not receive additional ones.
The NASDAQ is attempting to hold above its EMA and moving average with approximately 2.5 hours remaining in the trading session. If the NASDAQ begins to sell off, other assets are expected to drop with it.
MicroStrategy is noted as getting wrecked, with those shorting it up 6.47% or 13% if using the double leveraged ETF MSTZ. The stock is technically oversold. The speaker advises cashing out and taking profits ahead of the 3-day weekend when markets are closed the following day, noting uncertainty about weekend announcements. The $100 range is identified as a general support level based on previous patterns.
Bitcoin is described as crashing again, with Jeffrey Epstein's coin falling apart. The speaker finds this development positive but notes Bitcoin is technically oversold. Confirmation of further downside could come if Bitcoin breaks below $60,000 per coin. Michael Saylor is reported down approximately $8-9 billion on current holdings despite years of dollar cost averaging. The speaker presents this as evidence that dollar cost averaging does not work with speculative assets.
Bitcoin is described as producing nothing and having no value beyond people pumping it, in contrast to companies like Nvidia or Apple that generate billions in revenue and net profit. Owning 100% of Bitcoin means owning code that generates nothing, while owning 100% of Nvidia means owning a business generating billions in revenue. The speaker states Bitcoin calls itself an inflation hedge but moves inversely when the dollar strengthens.
Semiconductor stocks are performing strongly with Micron Technologies up 8%, Marvell up 12%, and SanDisk up 10 to 11% with higher highs and higher lows. These stocks are described as very overbought, requiring caution especially over the 3-day weekend if markets do not remain elevated. The speaker notes that the most overbought stocks tend to crash the hardest.
Viewers can access live trading sessions by messaging on Instagram or clicking the second link in the description for the LPP homepage to preview previous sessions. A free risk calculator is available for planning trades, calculating win rates, and accessing the economic calendar. The speaker advises being careful when markets are trading irrationally and encourages ending the year on a green note.
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