AI Stocks Fall FAST After Breaking News - Do This Now (Micron, AMD, Nvidia, & More).

All right, what's up everybody and welcome back to another Tuesday here in the stock market. Well, if you watched yesterday's live stream, you know that I gave a very stern and clear warning for all stock investors that I told you would last for the next 24 to 48 hours. I said, listen, right now we are seeing the S&P 500 coming down towards the bottom side of this ascending structure that it has been in since August 4th of this year. And I said, as it's coming towards the bottom side, there's about a 65 to 70% chance that it breaks through the bottom side of this structure and comes back down into this key liquidity zone between $767 and $769. And I said because that is a very high probability, I am getting prepared for that move to happen because if SPY breaks down, it's very likely going to bring down a lot of your high beta plays as well. I think it's going to cause rejections on things like Micron. It's going to cause rejections on things like um SanDisk, Nvidia, AMD, SoFi. So, don't be surprised to see a red market if we start to see this thing break down. And I told you if that's going to happen, it's going to happen pretty soon within the next 24 to 48 hours. Well, fast forward just 17 hours from that live stream. What you can see is that that is exactly what happened. Ever since that live stream, we have now seen SPY come down to the exact zone of support in which we identified right there between 767 and 769. and the buyers are stepping in to try to slow it down. But as a result of this correction, as a result of this pullback out of the structure, we are seeing those rejections that I warned you about. As you can see here, Micron has now been rejected off the golden zone. AMD has been rejected off the 521 level. Nvidia has been rejected back into its golden zone. SanDisk has been rejected back to the bottom of its golden zone. SoFi has been rejected off the top of its golden zone. All of those high beta rejections that I warned you about are happening as a result of what is happening with SPY right now. And so, because we are now seeing the market do basically exactly what I warned you all about in this morning's video, what I want to do is just give you another update. Like, okay, since this has happened now, you want to be on the lookout for this so that you can stay ahead of these moves so that none of this stuff surprises you. If you watched that live stream yesterday, you were expecting this. You knew it could potentially be happening soon, so you're not freaking out like the rest of the market is. and we want to try to keep that momentum going. Okay, but before we do actually jump into the charts and I talk about what's happening from a technical perspective, I do want to take a second and talk about what's happening from a news perspective because the pullback that we're seeing right now is absolutely being influenced by geopolitics. And it's under it's important to understand that context in order to understand why these moves are happening. I'm not one of those investors who only does technical analysis and completely ignores fundamental analysis and news geopolitics because all of these things tie together. They're very important. Okay, so before we actually jump into the charts, let me take a second to explain to you why the market's nervous in the first place and why we're seeing a bit of red across the equities market um this morning from a news perspective. Okay, so the reason why we're seeing this is because of what's happening over in Iran. Now, I know a lot of you are probably so sick of hearing it and trust me, I'm sick of tire I'm sick and tired of talking about it, but the reality is that there have actually been some things that have happened over the last 24 hours that are worth noting. Okay. So, as many of you may or may not know, just yesterday we saw the deadline pass for that 60-day grace period essentially. So, do you remember about how, let's call it, yeah, two months ago, 60 days ago, we had the US and um Iran come out and say that there was going to be like a 60-day peace deal, ceasefire, whatever, where they would give themselves basically two months to try to work out an agreement. Well, that 60-day period ended yesterday. And the hope that the market had was that by the end of that 60-day period, they would have come up with some sort of deal. Well, there wasn't a deal. And it honestly didn't even seem like it was very close. And to add extra fuel to the fire, we actually had Trump coming out and saying that if Iran wants to end the war, they should just surrender. They should just put up the white flag of surrender. And he also went on to threaten Oman and said that if Oman gets in the way, we'll bomb the blank out of them. Okay. Now, first and foremost, Aman is an ally of the United States. So, the United States threatening to bomb an ally is like a very slippery slope that I personally hope people just forget happens. I don't really want to see us going down that route. But, this has caused a lot of uncertainty in the market. And as a result, you've seen all of the things start to spiral. You have UK oil pumping back towards the top side. You have Treasury yields climbing back towards the top side as people are getting more concerned about inflation. And naturally, when you see oil prices climbing and the 10-year Treasury yield climbing, you are going to have a market like this in which your most high beta plays get pressure. They're going to they're going to go under pressure. They're going to struggle. And you mix in the fact that you are getting those macro rejections on their price charts and then you you end up in a situation like this, right? So, although we were expecting this pullback from a technical perspective, it definitely was influenced by what's happening geopolitically. And so, you're going to want to take that into consideration. Okay. Now, personally speaking, I'm not too too concerned about this quite yet. I'm not really surprised. That's why like I wasn't expecting the US and Iran to just magically come up with a deal last week. I'm you know, I knew the deadline was on Monday and I was just like I don't really think they're it doesn't seem like they're even close. So, for the most part, it seems like the market knew a deal wasn't coming, but this is just like that further validation or, you know, confirmation that it wasn't happening, at least right now, and it didn't like it. And again, you're going to see these Treasury yields start to climb. And I'm telling you, man, you got to watch these Treasury yields because this is what's really going to put pressure on the market. Yeah, oil prices will put pressure on the market, but it's the Treasury yields that'll really do it to you. Because as stock investors and major institutions, as they see these Treasury yields going up, I mean, this is just direct competition with the stock market. This is direct competition with the equities market. Many people are going to say, "Dude, I can get a 4.7% locked in 10-year rate for basically no risk. Why would I not take that instead of going take a big risk and putting it in the S&P 500 at all-time highs, right? And so when you see these rates climbing, you got to understand that it is going to immediately cause sell pressure and negative constraint on the stock market as a whole, especially some of your more uh high beta plays again. And so it makes a lot of sense as to why the market is responding so negatively to it because you have these Treasury yields climbing, you have oil prices climbing. Okay, now that's the news side of things, right? That's the more geopolitical news side of things that's actually causing the pullback. Let's now dig into the pullback itself and take a quick look at what's going on because again this is something that we were in many ways prepared for. So what we can see is that yeah the spy has now officially broken down out of that ascending structure which does happen about two two out of three times. In yesterday's live stream I told you look this is how this usually goes. One out of three times you're going to get a break towards the upside but I told you it would take some hailmary news. Something really good would have to happen like the US magically striking a deal with Iran in order for that to occur. What happens most of the time, two out of three times, 66% of the uh 66% of the time, is that you'll get some sort of rejection to the downside. But I told you if you get a rejection to the downside, there's no need to freak out. This isn't something to like worry about. This isn't anything to go crazy about. It is very normal. And what typically will happen here is that you'll see the price start coming down and then it'll first go into this little bounce zone. It's a liquidity zone. And for this structure, it was between 769 and 767. And the way that we knew that this would be the liquidity zone was because these were the two establishments of support on the bottom side of that structure. You see how we bounced off the bottom right there and we bounced off the bottom right there. That's going to create a little liquidity pocket. And so I told you I said don't be surprised to see the price come down into this liquidity pocket. And what we're going to want to see are the buyers step in right here and try to start pushing the price upwards. It doesn't matter if they're successful in doing it. That's not the point. You just want to see the buyers willing and able to step in right here. I said if they're willing and able to step in right here, that's a good sign that this is only really a correction. And what's probably going to happen is that SPY is going to come down, maybe start coming back down as low as like 755 or some of these lower levels, and you're going to see it start trying to find some support. I think that there's a very, very decent chance that this is nothing more than an establishment of a higher low. We broke out and set the higher high. We come back down for a higher low and we can try to continue on for the higher high maybe sometime towards the end of this month or going into September. So, I said this isn't something you're going to want to worry about. You just need to be aware that it's possibly going to happen cuz it's going to look scary. It's not going to feel good. You're going to open up your chart one morning and you're going to see the spy just going straight down and you're going to freak out. There's no need to. And if we zoom into what's happening on the 1 hour, that is happening. As you can see, although we are in pre-market trading, so you are going to want to take that with consideration. We are seeing the buyer stepping in. The price rolled all the way down into that key liquidity zone. And then this is exactly where the buyer started to step in. We spent one, let's call it 20 minutes, 1 hour, 2 hours, 3 hours, 20 minutes. So about, call it three and a half, four hours trying to march upwards here. And look, they're not having a ton of success right now. And often times, this zone doesn't actually hold as support and it will end up going down through it, right? It's not the point. You just want to see that the buyers are there. You want to see that they're willing, that they're able, cuz that's a bit of foreshadowing that when you start coming down to bigger, more, you know, strong liquidity zones that you will be able to see those buyers step in. And so because I am currently seeing those buyers step in, I am actually feeling pretty confident that although this market may end up pulling back a bit more, that it will try to find some support and we will try to use that support to continue upwards. And so what I'm doing right now is actually getting some cash ready. I'm bringing some cash over to the public portfolio. I'm going to deposit another 5,250 bucks and I'm going to have $10,000 ready to deploy with a lot of that going into my S&P 500 position. It is currently up about $80,000. So, I'm not in a crazy rush to buy into this thing. But if I'm given the opportunity to buy SPY somewhere, let's say, you know, let's call it 755, 760, right? Some of these previous zones of resistance back up here, yeah, I'll happily go in and dollar cost average spy as it starts to break down. Okay? So, don't be scared of this pullback. Understand the buyers are there and you're very, very likely going to see those buyers step in to start trying to push that price back up towards the upside at some point. I don't think we're going straight down. I don't think we're just nuking through this. Unless we do go like bomb Oman, then that's obviously problematic. All right, so how low can it go? I mean, I could see it coming back down towards this golden zone. Maybe it comes all the way back down towards 750 to 744 for SPY. That would be a correction of roughly 2 to 3%. I could see that happening. I'm not expecting it to get substantially worse from there without the buyers putting up a fight first. I think the buyers would put up a huge fight, give you some sort of relief, and start slowing it down. Okay. So, I'll keep you updated as it happens on the spy, but that's what I'm looking at. Not so bad. Okay. Now, when it comes to some of our more high beta plays, let's talk about Micron for example. This is one that I've been talking to you all about a lot recently. We are now seeing the rejection. Listen, in that live stream yesterday as well, I'm not trying to constantly talk about, you know, I told you so, I told you so. I told you so. But I told you guys, listen, Micron is coming up to the golden zone. And when you hit the golden zone, the odds of rejection are there. There is a very real world in which you slow your roll down a little bit here and you do start trying to work yourself back down. But I told you if that happens, don't be scared. It's normal. Listen, in order for Micron to break out of this massive descending structure it was in and even get up to the golden zone. It took a lot of strength. Look at what happened with the HCI. Your HCI right here was at a look, you can kind of see it right there. Your HCI right here was at a minus 4.23 and you were getting bearish divergence flashing. So all of the bearish signals are flashing. you're overextended. You're at a key zone of resistance. Bearish divergence is flashing. It took a lot of strength to get up here. And so naturally, if you see a bit of a pullback, it's not a big deal because all you're doing is seeing the buyers coming back down to try to regain some support. They're going get fuel. Imagine, let's say, you know, the the buyers are right here and they're on a big road trip, right? And they're going through the woods. They're going up a mountain. They're going all the way around all this stuff. They're driving through Houston. They're driving through Austin. They're going through all these places, right? But as they get closer and closer to their destination, they start to run out of gas. But the problem is that they realize the gas station was way back there. So what they're going to have to do is maybe do a quick U-turn. They realize, hey, we don't have enough gas to continue forward. And that gas station was back here. So we're going to have to go back. Let's go get some gas. Let's get some fuel and let's try to continue on about our way. Right? That's what's happening right now. you're seeing something like Micron, sure getting rejected, but what's going to happen is that you're going to see its price maybe start trending back down, maybe towards like 930, maybe a bit lower back towards 850, 900, right? Somewhere in here, if I had to guess, and you're going to see those buyers start stepping in to try to force the price up. And that's going to be the real moment of truth. Right now, this is normal. Getting a bit of rejection, that's not a big deal. You want to watch it more once it starts coming back down into this little liquidity zone around 850 to 900 bucks because that's going to tell you whether or not this is actually a macro rejection. and it's going to send you towards a new low or if you're just getting some gas and you're going back up because look, I could see I could see it. I know I know a lot of people are calling for it. I could see the inverse head and shoulders pattern playing out here, right? I could see it using that to break it. I could see all of that happening, right? So, don't worry about a pullback like this. Don't freak out about it. And in many ways, this could be a decent buying opportunity. For those of you who are looking for a dollar cost average, I obviously can't guarantee that this is going to work out. But for those of you who are looking to DCA, you know, you could have some decent DCA opportunities between 900 and 950 if especially if it does try to go for another swing back up towards the top side. So, this isn't something that I would be concerned about. This is actually very very normal and common for something like Micron. And the same thing goes for many of our other plays, right? We're looking at SanDisk. SanDisk is getting currently a rejection back towards the downside. Same exact thing. Don't be surprised to see SanDisk maybe trending a little bit lower. Come and try to identify some key zones of support. The only thing about SanDisk is that its next zone of support is actually quite lower than it is now. The next clear zone of support is at 1435. And that's actually a pretty gnarly correction of 14% for SanDisk. So maybe be a little bit careful with this one. But all in all, it is still actually around the bottom side of a golden zone. So look, there's a world in which this thing just kind of hangs out around here and then just continues upwards, right? So I'm not in super worry mode whenever it comes to SanDisk. I'm not in super worry mode when it comes to Micron. Same thing that goes with AMD, right? AMD is still kind of sitting right around the midpoint of the structure in which it's been in. I'm not really concerned about it. But I did tell you guys if it does come back down towards the bottom side of the structure, I will be buying. We're not there quite yet. All that's happening right now is that AMD is getting rejected off of that topside golden zone and it's just coming back down to find support. It's totally normal. Same exact thing for Nvidia. Nvidia tried to break through this topside golden zone. it failed to do so and now it's coming back down towards some of this bottom side support to see if it can find a bit of help to try to go back up for another run. Be a little bit careful with Nvidia. You know, I could see the I could see that bearish structure maybe potentially forming around the bottom side here, but I'm not I'm not going to worry about that until the time comes. Um, but yeah, man. So, all to say, right, yes, we did get a bit of news and yes, 10-year treasuries are climbing and yes, oil prices are climbing and that is putting a bit of pressure on the market and that's super reasonable. But at the end of the day, this isn't something that's unexpected. It's actually rather normal. This breakdown is normally what just happens. And we're actually getting very good signs that while this breakdown is happening, the buyers are willing. They're able to step in. I mean, we actually end up seeing the hourly HCI at a minus 4.95 and the 4hour HCI currently at a minus 3.24 as we're making a pullback. So, look, I'm not really concerned about this pullback. I think it's going to create great um buying the dip opportunities. I think you're going to get some good chances to dollar cause average in this thing. And listen, I'm not a financial adviser. I'm just a random dude in a purple room. So don't listen to me whatsoever. But I do think that this is a decent opportunity to DCA and that's exactly what I'm going to be doing. So I'm loading up a bit of cash into the portfolio. If this pullback does get a bit worse, if it gets a little bit deeper, I'll be going in and I will be adding to my public portfolio positions, especially things like Robin Hood and SoFi, and also maybe even my hyperscalers, right? If I can get an opportunity to buy some of my hyperscalers, you know, my my Google position, my Amazon position, or my Microsoft position at lower levels, I'm going to take it because I get why the market's a little bit nervous about this, but I actually don't think it's anything new. And realistically, yes, although 10ear Treasury yields are pushing up towards new highs, we've been elevated like this since I mean for for weeks now. This is again nothing new. Okay, so that's where we kind of are and that's why the market's pulling back as it is. I'll keep you guys updated as it all does play out. Hey, I did want to remind you all today is toolkit Tuesday. So, for any of you guys who do own the toolkit, as you all know, every week me or one of our coaches does a live stream over in the toolkit Discord, um, at 11:00 a.m. Eastern, which is 10:00 a.m., and that is like just a few hours from when I release this video. So, make sure to go watch that. What we're going to do is a whole bunch of technical analysis on a bunch of different tickers using the toolkit so that you can see not only like my thoughts on each ticker that you recommend, but also how I use the toolkit in real time and how you can maybe use it as well. So, don't forget that's going to be at um 10:00 a.m. Central Standard, 11:00 a.m. Eastern Standard every single Tuesday. Make sure to um to be there. But, nonetheless, that's what I got for you all today. Of course, I hope today's video has been helpful. Um I've been trying to do my best to do the live streams and the videos and give you updates on things, you know, before they happen. And I feel like we've done a good job at keeping you guys prepared for the market. So, if you do agree, please do let me know by smashing that like button. It really does help the video and it really does help the channel. And I can't wait to see you all in the next one. Peace out everybody.