📺 LOOKING AT THE HIDDEN MARKET COLLAPSE + THE IMPORTANCE OF THE 8/21-DAY RULE + SEMIS / NEOCLOUD CAPITULATION + $TSLA LOOKS CONSTRUCTIVE
The biggest risk in this market isn't just how much individual stocks have already fallen. It's the massive divergence between what's happening beneath the surface and what the major indices are showing.
Some of the most popular growth, AI, and momentum stocks are already down 40%, 50%, even 80% from their highs:
– $IREN: -67%
– $NBIS: -45%
– $CRWV: -61%
– $AAOI: -70%
– $ASTS: -70%
– $OKLO: -82%
and the list goes on...
Yet, $SPY remains ONLY ABOUT 3% below its peak!
This is why the 8/21-day moving average rule is so important.
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Many of these stocks were fantastic trades when they were trending above their 8-day and 21-day moving averages.
They generated enormous profits for disciplined momentum traders. But once they broke below those averages and failed to reclaim them, the character of those trades changed.
Don't turn great trades into terrible investments simply because you refuse to recognize a broken trend. Step aside, protect capital, and wait for the stocks to rebuild.
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Today, watch $SPY $768 and especially $758.
Friday's low near $768 is the immediate reference point. A sustained break below $758 could signal a more significant correction, particularly as the weekly chart suggests the risk of a breakdown from its rising channel.
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Meanwhile, the Mags are no longer providing the same support. $MAGS is showing a potential head-and-shoulders breakdown, while $AAPL suffered a failed breakout, and $META, $AMZN, and $GOOGL have weakened.
If the mega-cap stocks holding up the indices begin breaking down, something may finally give.
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Important question this week: is capitulation approaching in semis and neoclouds:?
$MU, $SNDK, and even $INTC were tremendous momentum trades before the sector lost its 8/21-day structure around July 2. Since then, the selling has been relentless.
Neocloud stocks $NBIS $IREN have also been annihilated.
Following Elon Musk's weekend comments, I'm watching whether these names gap lower and reverse green, potentially signaling a washout, or continue selling as capitulation accelerates.
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Amid all this weakness, $TSLA looks like one of the more constructive setups.
#Tesla is showing some commitment to its current trading area.
Earnings are behind us, and the stock is benefiting from an upgrade today. I'm not long yet because it hasn't provided a convincing entry.
But if #TSLA can consolidate, hold its gains, and eventually break above $388 and stay there, it could open the door to a test of more significant resistance.
I'll be watching Tesla closely today.
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With the Fed on Wednesday and major Big Tech earnings ahead, this is not the time to deploy all your buying power or blindly short the indices.
Stay selective, respect your rules, and preserve capital.
Difficult markets eventually create better opportunities, but you need to protect yourself long enough to take advantage of them.
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$meta is all over the map this morning.
Instead of Debt, they will do equity!!
Mixed markets around the world heading into a very busy week with peak earnings and the FOMC/ECB/BOJ ahead. Oil is lower, but AI/Semi/Tech damage continues to add up. $SPX futures are +16 — watching to see if this range holds, with 7612 as key active support.
The 8 & 21 day moving averages are key to my #technicalanalysis roadmap.
Here's how to use them to avoid messes:
xitter.cf/RedDogT3/status/191650…
3 Moving Average Rules for Active Traders
#1) Let the 8 and 21 day moving averages guide your short-term approach.
When the SPX/SPY is above the 8 and 21 day moving averages, I want to stay long with a Portfolio Approach.
Depending on the particular trend, I’ll be long 10-35+ stocks, ETFs, and cryptos that show relative strength.
#2) Don’t fight stocks trending above the 8 & 21 day moving averages. Ride them!
Want to go broke really fast? Bet against a stock trending above the 8 & 21 day moving averages.
#3) When the SPX breaks the 8 & 21 day, Get Tactical.
That means I start selling longs, starting with names showing relative weakness, and anything I’m not completely bullish on.
Learn the system here: t3live.com/ma-ebook-tw-scott
Are u ready to go for the week? I’m ready to go.
The 20@520 leading into the #630club can help u get the mind right to execute on the market that’s in front of u!!
I’ll be here all week
The good book says if that level isn’t reclaimed in two to three sessions to trap those sellers. They have control and take a lot of care if u haven’t already. Most of my community has been tactical for weeks/months as it’s hard to find special names above the 8/21day for active swing longs. We’ll see if $spy and $spx play catch up. Next few days are key






















