Michael Burry just bet $1.1 billion against AI giants. Tech stocks tanked. The real contagion risk isn’t AI valuations—it’s that when the Magnificent Seven sneeze, the entire market catches pneumonia. Here’s what we discovered trading through the chaos.
...Textbook A+ setup day: price jumped below 2-day VWAP creating “VWAP Flop” in bear-biased market
6 for 6 trades by lunchtime: Premium Popper ORB20, VWAP rejection, 60min breakout on SPX & RUT
Phil’s results: SPX 58.3%+54.5%+54.5% ROC, RUT 58.3%+64.3%+64.3% ROC – systematic perfection
Students smashing scoreboard too: 11 traders executing same setups, Premium Poppers fast action, 50% ROC wins
Very little changed 24hr, anticipated pauses at prior NATHs without over-reaction (talking heads calling “bounce”)
3 of 4 indexes breaking back into range – potential pullback after break before further down moves
SPX broke down, nudged BO target 6763.80, now testing breakout range lows as support
Systematic patience required – need confirmation before next directional commitment, time will tell all
Bearish breakout active with knee-knocking whipsaws, system mechanical despite weird funky market top behaviour
Uncle Russell leads bear charge, ES close second, YM finding support 47200, NQ back inside containment
Mag7 tipping over: META bear 600% ROC, AMZN abandoned baby B- setup, NVDA tweezer top speculative punt
Premium/Lazy Poppers ticking over – not buggering around in weird environment similar to past tops
Bear quadrangle (ES/YM/NQ/RTY) finally moving in lockstep with >1% overnight drops
VIX elevated clue from yesterday justified at 19.66, huge gap potential at opening bell
Oil making run for $60 next leg, gold stalling sideways – “kinda right, never know when”
“If not Black Monday, perhaps an off white Tuesday” – right on view, wrong on time
Red Zombies for November (vs White Rabbits) – markets doing SFA whilst Uncle Russ leads lower
VIX nudging higher nervous tic, oil developing lower high targeting below $60, gold stalling sideways
SPX/RUT bearish breakouts waiting for targets or range continuation, Tag ‘n Turn setups queued
Economic calendar packed this week IF government shutdown doesn’t scrub data releases again
Amazon rose from dead +13%, Apple conjured guidance +3%, Meta’s ghost haunts tech -11% worst drop in 3 years
$16B crypto expiring at witching hour, Powell’s trick “maybe wait a cycle” spooks markets
Uncle Russ in shallow grave, Nasdaq howls at moon, SPX/RUT new bear breakouts activated
META Monster Mashed, Netflix buried bad subscriber news with 10:1 split announcement trick
Fed cut rates, ended QT – markets unfazed until Powell dropped 1 sentence at 2:35 PM
“December cut is not for sure” – rate-cut odds crashed 95% → 65% in minutes, trillions moved
Uncle Russ and Dow fell hard, SPX rebounded, Nasdaq fuelled NOS and closed green
Mag 7 chaos: Google moonshot, MSFT fell, META crashed post-earnings
Fed Day arrives whilst rest of week’s news cancelled for Big Brother Government Shutdown Edition
Four indexes diverging spectacularly – Russell stalled, Dow exhausted, SPX slowing, Nasdaq caffeinated and partying
Crude slipped past $60 level, Gold reacting off AVWAP – push to NATHs or sideways grind incoming?
Bull bulling, bear bearing, collecting theta whilst waiting for moments to pounce amidst chaos
NATHs holding for now, Uncle Russ’s expanding triangle pattern precursor for other indexes potentially
Patient RUT wait validated, SPX flip-and-rip missed – saved frustration of bear/bull/bear/bull flipping
Premium Popper divergence (SPX higher, RUT lower) affirming BTRSTN possibility beautifully
Gold flushed to July AVWAP, likely April-style rest period rather than automatic buy