Warning: You Might Want To Sell Soon...
In a Nutshell
Markets are being artificially propped up by Trump's unverified claims, making long positions risky at elevated levels with poor risk-to-reward. MU and MSTR shorts were opened on overbought conditions, with LPP traders targeting reversals as these stocks remain vulnerable despite oversold readings. Bitcoin at $58k and MSTR's sharp decline signal deeper downside ahead if broader markets weaken, and leverage should be avoided on speculative assets.
These notes were generated by AI and may contain inaccuracies.
Trump announced that the US and Iran have agreed to halt strikes and meet this week in Qatar as soon as tomorrow. This claim was made to prop up the markets. Iran stated there is no intention to meet with the US tomorrow. Qatar confirmed that US envoys are at Doha but will not meet with Iranian officials. The market does not care about these developments and continues acting irrational.
Trump has been continuously doing this for the past 11 to 12 weeks. Be very careful not going long because direction and momentum are in your favor. Be very careful using leverage at these elevated levels, especially when markets are being propped up by Trump's tweets and nothing fundamentally. Be very careful being too overaggressive with long positions at these elevated levels in case they do begin to attack as Trump normally likes to do throughout the weekend.
On the QQQ daytime timeframe, markets were testing support at the EMA. They bounced right at that support and are going back up to retest previous highs. Risk-to-reward becomes less favorable because current levels are closer to resistance. Direction, momentum, and market sentiment remain favorable, but risk-to-reward is less attractive. Leverage becomes a very important part of managing this situation.
The LPP team is waiting for an overbought reversal to form. A short position was opened on MU because it was overextended with no reason propping itself up at elevated levels within a very short period of time. Overbought reversals are the favorite setup to short. Shorting is not recommended for complete beginners as it comes with greater risk. When an individual stock props itself up this quickly, it normally ends up selling off.
Micron was discussed in today's live trading session. If MU breaks support and continues to sell off, the position will be closer to around a $3,000 gain. Risk management and mitigation are essential if it finds support and begins to recover. The LPP focus is on risk management.
A handful of LPP traders shorted MicroStrategy today. MSTR was down 50% to 60% in one month. One day does not define a market recovery. MSTR has given back all gains from yesterday and then some. Strong lower highs and strong lower lows indicate a strong descending pattern, but it is oversold.
Bitcoin is trading at 58,000 and about to break and make new lows. The idea being shared is that Michael Saylor is selling a billion dollars worth of Bitcoin. The same person who encouraged followers to sell their kidneys but not sell Bitcoin is now selling his Bitcoin. He is selling at a 50% loss for USD because he needs cash to pay dividend obligations. The individual who called fiat USD worthless is now selling BTC at a loss to pay dividends.
MSTR shows a strong descending pattern but is oversold. Markets are incredibly irrational, especially with BTC bros. When seeing signs of potential support, do not be a bag holder. When in doubt, get out. MSTR has been doing 5% moves consistently. The strategy is to let it rip up, become overbought, then short it as it rips back down. Bitcoin is doing a great job crashing and selling off, with MSTR following in its footsteps.
MSTR and Bitcoin are selling off while the NASDAQ market is incredibly strong. If the NASDAQ market begins to fall again, Bitcoin and MSTR will fall even further. Bitcoin and MSTR are technically oversold on smaller timeframes, but the cheap can always get cheaper, especially when selling off before overall markets. Speculative stocks and assets crash even harder when overall markets begin to fall.
You cannot talk about crypto winter when markets are still trading at all-time highs and extremely greedy levels. If overall markets begin to fall, it can get much worse for crypto before it gets better. Another reason not to be leveraged when buying speculative assets. Nothing wrong with buying Bitcoin if you believe in it, but do not use leverage.
If the NASDAQ market begins to sell off, there will be very good setups for most of the market with overbought reversals. Overbought and oversold reversals are favorite setups. The LPP program is an A2Z video lesson library designed for beginners with daily live sessions and private group chat. It is a one-time payment for lifetime access. Risk calculator and win rate calculator are available for free. Members who signed up in 2018 paid once and still have access to all updates and live trading sessions today.
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