📉 The moment we've all been waiting for...

We remain short AI and big tech.

Today’s jump and reversal on NVDA was a major sell signal.

At the end of a big bull run… Price jump on some big news (NVDA earnings). And enthusiasm runs high. But, the market quickly sells off, creating an “Exhaustion Gap”. That happened today.

Not only that, but price also gapped up, higher than yesterday’s high. AND - price closed lower than yesterday’s low. That is called a “Bearish Engulfing”. It’s when price today fully engulfs yesterday’s price range.

So, today we had an EXHAUSTION GAP in the morning, and

Finished with a BEARISH ENGULFING.

At the end of a bull run.

The ultimate sell signal (potentially)

Not to mention…

The weekly set-up is bearish as well, setting the stage for another leg down. Today’s price action confirms last week’s signals. All signs point to lower prices. Across most equities, esp tech/AI. How low? And how long? Who is to say.

But since June, we’ve remained short.

Waiting…

Buying a lot more PUTS today, while remaining long in my retirement accounts.

That is called “tail risk hedging” - look it up. The idea is you buy long-dated PUTS for very cheap, against your portfolio of stocks. If the market caters, instead of selling and missing compounding returns over decades, you just cash in on your puts instead. Then, you use those new returns to invest further into the asset class in your portfolio, averaging down your cost with new fresh powder.