While indexes and key sectors have been falling, there hasn’t been true capitulation in the market. This is what we generally need to hit and maintain lows on a downward move like this. However, in this case, it has been a somewhat volatile but steadier decline than anything. Today, that is changing, as the Nasdaq broke its lows set last August and is down another -1.93% as of this writing. Capitulation usually comes relatively soon after major lows are broken, … Read more

Nasdaq & S&P Remain Below Their 200-Day SMAs The Nasdaq and S&P 500 both closed below their daily 200 SMAs again. While it’s not the first time they’ve dipped below these levels, they are now remaining below them on the daily charts. This is the part institutions respect: the failure to reclaim the 200-day moving average. The 200 SMA isn’t just a line on a chart — it’s the trend filter most institutions and algos use. When price stays below … Read more

AI Infrastructure Buildout Hey traders, If you’ve been following the AI boom, you may know that the big hyperscalers (AWS, Azure, Google Cloud) can’t keep up. Demand for raw GPU compute and the infrastructure required to run high-level AI models is expanding exponentially as more companies and individuals adopt AI. Multiple large companies, including Meta, Amazon, Dell, and Block, have already come out this year and stated that they are using advanced generative AI rather than hiring more workers, and … Read more

Market Overview: Breakdown Mode with Major Red Flags The Nasdaq & S&P futures broke through the 200 SMA on the daily charts, the most critical line in the sand on this time frame. This is a key technical level because it’s so widely used and watched, and ultimately breaks in this zone lead to more selling. Selling begets more selling! That means the next downside target is the lows on the year. If and when those lows break, I will … Read more

My short squeeze watchlist is on the move today, with many tickers showing large percentage moves at the open. There are many key names in AI infrastructure, crypto miners, and tech plays, with high short float (over 10%) that are on the move. Any time a ticker has this combination, and then on top of that, has a squeeze (consolidation ready to breakout), they become my top tickers to watch.  Add in high volume and catalysts like earnings or news, … Read more

Hey Traders, I’m wrapping up another wild week in the markets with your Five Star Trader update. We’ve seen quite a bit of increasing volatility as geopolitical tensions flare up and AI hype meets reality checks – but that’s what makes trading different every day, and fun! Let’s break it down and gear up for next week.  Market Overview: Choppy Week with Value Rotation and AI Jitters The S&P 500 (SPX) ended down 2% on the week, closing at 6,740 … Read more