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.
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