WHY IS THE MARKET SO WEAK TODAY?!
In a Nutshell
Trader closed MU long at $2K loss after dip-buying failed, took $1K profit shorting MSTR on overbought reversal, and ended the day near break-even. Market weakness showed 134 S&P 500 stocks down 40% from highs despite index near records, with Apple dropping 2.5% on weak iPhone 18 parts orders. Risk management focused on small position sizing, cutting losers quickly, and avoiding over-leverage during the Columbus Day holiday-shortened week.
These notes were generated by AI and may contain inaccuracies.
The market opened with a green signal but the Nasdaq immediately declined and struggled to recover throughout the session. The QQQ was incredibly bullish overnight, but after declining the previous day, pre-market trading showed sideways movement with lower highs and lower lows from 4 am until the 9:30 am market open.
Micron and all memory chip stocks are performing worse than the broader Nasdaq. During yesterday's live trading session, a $11,500 profit was made by going both long and short on MU stock. Today, after being patient and waiting for the market to fall, an attempt was made to buy the dip, but the market continued declining. The position was closed with a 1% loss totaling $2,000 rather than continuing to chase a losing trade.
The decision to close the losing position at $1,030 support was validated when the stock continued falling to $1,017. The approach emphasizes managing risk rather than avoiding it entirely. There's flexibility to re-enter at a lower price if the stock reverses. At one point during the session, there was a $2,500 profit on a different position.
An overbought reversal trade was taken on MSTR based on Bitcoin news that pushed BTC and crypto-related companies higher. MSTR had a gap up with a significant pullback. The short position is currently showing a $1,000 profit. Short selling is explicitly noted as very risky, and this trade is shared for informational purposes only rather than as a recommendation to copy.
Columbus Day falls on Monday, creating awareness of the three-day weekend impact on trading. Focus remained on MSTR rather than attempting to trade multiple stocks simultaneously, including avoiding circle-related trades that are less familiar.
Humana and Moderna were significant movers in extended hours and pre-market trading. Moderna is now the best-performing stock in the S&P 500, up 9% today while retesting previous highs. This appears to be a momentum-based move rather than a long-term investment opportunity.
134 stocks in the S&P 500 are now down 40% from their recent all-time highs. This statistic indicates that many companies are underperforming despite the market trading near all-time highs. Notable companies experiencing major declines include PayPal and Lululemon, with some stocks down 50-70% from peaks.
Apple shares fell 2.5% following reports that October parts orders for iPhone 18 Pro and Pro Max declined by at least 15%. This aligns with broader negative consumer sentiment and reduced disposable income and spending rates.
Moderna's current movement is characterized as momentum-driven with significant hype similar to earnings reports or IPO situations. The stock is not recommended for shorting in its current state, but also not considered suitable for long-term investment due to expected correction once momentum subsides.
Current daily performance shows approximately $1,300 profit on MSTR offset by the $2,000 loss on MU, resulting in near break-even for the session. Friday performance has historically been weaker. A short position was communicated to the LPP team with emphasis on taking smaller, comfortable positions rather than aggressive bets.
The short position size was kept modest to remain patient and comfortable with the trade. The approach avoids excessive leverage or aggressive position sizing that would require constant monitoring or create emotional pressure. Risk-reward ratio appears favorable if the stock sells off, but there's no requirement for the trade to work out perfectly.
The Webull giveaway continues every Sunday with a $1,000 prize awarded to one participant. Requirements include using the provided link in the description, making a qualified deposit (minimum $5), and joining the free Webull group chat where winners are selected. One free LPP membership may also be considered as an additional prize.
The LPP program offers one-time payment for lifetime access with current October pricing at $1.30 per day. Live trading sessions are available for viewing each morning for 30 minutes to 1 hour after market open, with archives available for later viewing. The program includes access to the LPP lesson library.
End-of-day performance shows approximately $1,800-$1,900 range after accounting for the MU loss and MSTR recovery, resulting in near break-even. Instagram account verification is confirmed with warnings about fake accounts, and the policy against friend requests, fund management requests, or copy trading is reiterated.
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