Near the Top 🚨 Dangers & Late Stage Rally Opportunity +Hottest Stock on Wall Street Today

What a day on Wall Street. Let's start off by going over some market events that are very concerning. I want you guys to be aware of them. I'm going to go into the spy as well and I'm going to cover a hot stock today that absolutely ripped and I'm going to tell you where resistance and support is for that stock. It moved over 200%. Does it still have room to move higher? I bet you can guess what stock I'm talking about. Let me start the show off by taking you into the spy chart. Okay, yesterday when we were sitting down here closer to around 766, I said that we would more likely go back up and test 771 as well as the back of this channel. Now, here's the number one point I want to make for you guys. If we open and close a candle above 771, then it opens up the door for us to go all the way back and make a brand new all-time high and hit that top fib level that we've yet to hit at around 782. If we cannot get back above 771 and we come back down and we lose 765, well then we are likely going to run all the way to the bottom of the channel and hit this support at 753. So watch this 771 level. It's the important level. We got to open up green above it. It opens up a lot of room to the upside. Watch this 765. If we lose it, it opens up a lot of room to the downside. I also want to highlight Netflix. I've been calling this one out over the last couple days. It's continuing to show strength. I'm going to take you into that chart. I'm going to show you the next target to the upside that it could potentially hit. Let's go look at the Netflix chart. All right, this was a very big move today. And the number one point I want to make to you guys is if we break up tomorrow with a lot of strength, it can make it all the way up to $84. And I want you to know that if it does break up and break higher and get above the high of day today, which was right around $81, I want you guys to know I will be on this rocket ship until it hits $84. Now, I'm not predicting that this will go higher. I'm letting you know that if it breaks out tomorrow above today's high, it's going to hit 84 and I'll be in it. We'll cover it tomorrow. If it pulls back, support is at $78. Let me know if you got a little profit on that Netflix trade I did in the live trade session that we did this morning. I have to highlight that it was a great session. We had many, many, many people in the community making hundreds of percentage points on the trades that we called out. And I highlighted Apple before the market even opened and I said, "This one's on watch for a big move. It gave a big move. People got 100, 200, and 300% profit on this play." In addition to that, Michael called out Palunteer, and people made a buttload of money on Palunteer. And when we thought it was all over, we checked the friendly screener and got the pick of the day. caught the tail end of it. I bought a,000 shares and I made a,000 bucks. I cashed out. It continued to run, but it was a very profitable day in the Discord. Hope you had a chance to make some money. If you are not in my community, it's a great community. You can come and be mentored by me. You can get goat alerts. You can get option trades. You can live trade with me or one of my crown traders every morning and every afternoon during the power hour. So, come check it out. It's the same name as the show. you go to my website stocksswithjosh.com and join today and you can trade with me on Friday. Hope to see you over there. Okay, let's talk about some of the dynamics that are going on in the market while we're still near all-time highs. I don't want to panic you, but I want to show you this chart that shows that hedge funds have put on the largest NASDAQ short position in history. There's something unusual happening beneath the surface of the market. In early August, leverage funds built the largest net short position in NASDAQ 100 futures. Now, these funds include hedge funds and other large investment firms. In the latest report, they held more than four short contracts for every long contract, about 127,000 shorts compared with only 30,000 longs. That leaves them with roughly 57 billion of net short exposure. Now, this doesn't necessarily mean that they're all predicting a market crash. There's going to be people that are in there going long just simply protecting their positions if the market does fail, but it does tell us that professional investors are extremely defensive right now. And perhaps so should you. And here's the most important dynamic. If the NASDAQ keeps rising, these funds could be forced to close their shorts, creating extra buying and potentially pushing the markets even higher, giving us a blowoff top. That from a fundamental perspective doesn't make any sense. But from a technical perspective is exactly the situation that we're in. So I'm not telling you be afraid all of the hedge funds have on big short positions and you should panic sell everything. What I'm telling you is that people are afraid and they're trying to profit from the market that they think will drop and this could lead to the blowoff top that we've been talking about really for the last couple years. So that is something that we need to weigh and consider. Now I've got another subject with you that's a little bit complex. It's called volatility convexity and the VIX and the crash protection that is unusually expensive relative to the normal protection. What am I talking about? Well, Wall Street is paying up for the worst case protection even though the market currently appears calm. The VIX at 14, the lowest level of the year. That means that the option market is expecting relatively small day-to-day moves in the S&P 500. But beneath that calm market, investors are still buying protection against a much larger drop. According to the CBOE, the relative price of deep crash protection recently reached the 92nd percentile of its one-year range. Think of it like insurance. Ordinary market protection is cheap, but protection against a complete disaster is unusually expensive by comparison. In other words, it's calm on the surface, but there's plenty of hedging underneath. Markets rarely sound an alarm before the damage begins. Right now, the VIX is telling everyone that conditions are safe while sophisticated investors are quietly paying for protection against disaster. Now, that doesn't prove a crash is coming. But if this calm finally breaks, the move could be faster, deeper, and far more violent than most people are expecting or are prepared for. What do you think? Are we getting ready to squeeze the bears and push to the top? A lot of smart money is positioning for a market that will roll over. But if they're too early and they put too much money into it and they got leveraged, remember bears make money, bulls make money, hogs get slaughtered. So, let me quickly touch on the stock I mentioned yesterday. I called out INTC and I said that it was forming an inverse head and shoulders pattern, which is bullish, but it's bullish in stages. First step of the move is for the price to come back to 90. Let me show you what it needs to do next in the charts. We talked about this yesterday. The neckline is at 108. I talked about the left shoulder, the head, and I wanted a right shoulder. And I said that we had to watch what the wicks do at 90. So, it's not as simple as if it comes back to 90, we all load the boat on INTC and go long. We're looking for it to react to this $90 level. We're looking for it to move back up. As soon as it gets back above 100, that would be a pretty good indicator that we'll likely get to 108. And then if we get above 108, then we take the neckline down to the head and we put it on the breakout spot and it tells us that we're going almost all the way back up to all-time highs, a move to 133. Now, this is a possibility, but like I said, we've got to take it in stages of confirmation. If we come back and close beneath $90, then this is not an inverse head and shoulders pattern. But what do you think? Do you think it's going to play out that way? Okay, let's talk about Madna. This is the stock that everyone has been talking about today. And here's why. This thing went up 200%, $130 move in 24 hours. Now, the company's working with Merc. They just reported a successful latestage result for personalized cancer treatment. It uses mRNA technology to teach a patients immune system how to recognize and attack their own melanoma cells. In the trial, patients went longer without the cancer returning or spreading, and that sent Madna's stock soaring more than 200%. But here's the catch. Now, this could be a major breakthrough. But I want you to remember, the treatment has not yet been approved, and the company's trial results still haven't been released. And so, even though this has run up 200% in a single day, it could fall just as quickly. Now, I'm not giving a prediction on Madna. I'm going to give you fresh technicals and a perspective of what to do if you're holding your position or the opportunities that might present themselves if it rolls over. So, let's go look at the Madna chart. Okay, I want to keep this simple. This is a weekly chart. After hours, it's pulling back a little bit. It's closer to 162 now. This is where it needs to act as support. A little consolidation and flagging would be good. But if it lost 162 level quickly, that's why I've got that downward-facing red arrow, it would come back and find support on $130. Now, if we can hold and stay above 162, the next area of resistance is all the way up here at 194. Now, I want to highlight something to you guys about the RSI that's quite significant. I want to show you how hot this RSI is. It came up today at 85. And if you know anything about the RSI, the relative strength index, stocks can get as hot as this. They can run up to 85, but that's often where the move reverses. Now, is this the hottest the MRNA has ever gotten? Actually, no, it's not. It's actually run up to 87 before all the way up here. So, it's very close to the place where it does reverse. So, you have the ranges, you have the targets, you have the support. I also put a Fibonacci on it and it confirmed the levels that I gave you. Uh if it continues to climb and run up to let's say that 195 level, then again support on that fib chart would start right around that 162. So watch that 162 level. If it can't hold on a single day, it's in huge jeopardy to pull all the way back to 130. This had an incredible move. And if your stock that you were holding went up 200% or $130 in a single day, what would you do? You'd probably lock in some of that cash. Folks will be selling this at this level. So just be mindful of it. But if you're in it and you're able to squeeze the move to its fullest, it's got room up to 195. So watch that 162 trigger for the move down on Madna. What do you guys think? Is it going higher or lower from here? I'd love to hear from you. That's the show for today. Come join me in the Stocks with Josh Discord. Peace and blessings, my friends. I'll see you soon.