The Tech AI Sell Off That Couldn't Even Fool Retail

Quick Rundown of yesterday's tape - in case you were absent on Thursday - lucky you!: 

• Volatility immediately spiked at the open 
• There were few hiding places to be found - even energy took another leg lower. 
• By the end of the day - what used to be the hottest sector - SOX Semiconductor index had crashed like we haven't seen - I think - since the covid crash. 
• Technology the most widely owned sector - by far - down (-8%).
• Nothing was spared - the baby was thrown out with the bathwater.  

 Honestly, if I had to choose only one word to describe Thursday's action: BRUTAL 

Yet the $VIX still remains below 30, and that means I'm still on track to buy the dip as planned. I don't want to leave anybody hanging, after a day like that.  

The Lack of Volume is a Tell 

As bad as things looked at yesterday’s close, selling volume DOES NOT confirm Capitulation.

We  didn’t see record selling volume in the NASDAQ Composite, or even the $SOX. In fact we saw heavier selling volume back in July, during the summer. Of course, selling volume was heavy, but it was NOT earth-shattering. Let's pull up a simple semi chart: 

$SMH (VanEck Semiconductor ETF) - $SOXX also works, and looks about the same. Check me out on that.... chart it for yourself.  1. Volume doesn't point to capitulation in the space. 2. There's a gap target in plain sight - if the powers that be want to break the chart, ahead of the holidays I'm sure they won't have any trouble... but as of today the chart isn't broken. 3. The bullish trend remains intact - represented by my lower blue line. 4. The chart pattern: resembles a downturned megaphone, or triangle if you prefer. 

My personal opinion is that this bear raid was rushed, because: 1. Thanksgiving is in less than 3 weeks, and 2. Hanukkah comes early this year, and even the dumb bear raiders know not to sell a dull tape.

Final point: The selling on the $KOSPI is also less than convincing. Sure, they were able to break the $KORU - the 3X Bull ETF, and there was record selling volume as it crashed 37.39% - yet the KOSPI itself was only down 5%? 😏  That points to just another narrowly focused, 1 day bear raid - not pure panic. 

 Seeing the $KORU up 11% this morning. No sign of follow-though, after yesterday's selling. 

 

 

 P.S. Shout out to S. Korean traders just as trading on the $KOSPI was halted: 

🚨 $KOSPI drops (- 8%) at the open - trading halted for 2O minutes. Time to buy the dip. ⌚ https://t.co/spL3i69QrF

— Veteran Market Timer (@3Xtraders) November 6, 2026

Cutting Through The CNBC Pro Paywall and Cashing In — With the Help of AI

This morning I was skimming my X timeline, and immediately found CNBC pumping gold miners on Nov. 3rd (on Tuesday). BTW they want you to pay for CNBC Pro to read it. Uh, no. 

This gold miner is a cash machine. Why I think the sell-off is an opportunity https://t.co/GcIIbs1h7S

— CNBC (@CNBC) November 3, 2026

Spoiler: I went directly to AI, and asked which gold miner was being called "a cash machine", and not only did it give me the answer — in like 2 seconds — but it identified the author as the CNBC producer and shameless pump-master himself, Tim Seymour 🤣

This guy has been crying about gold miners for several months — but it takes the cake when you feel like you have to write an article to pump the #2 top holding (AEM) in the $GDX, in order to drive the ETF up 12% in a single day. 

 Am I the only one who sees this charade for what it is, and questions the ethics? 

Nevertheless, I say, if you can't beat 'em, join 'em — for FREE

And here I thought I had to earn money the old fashioned way. Glad that's solved. 

#ProTips:

• Immediately follow CNBC.

• Use AI to peek behind the paywall.

• Load the boat, and wait for the cash machine to pay.

• Better yet, buy the 3X bull ETF and buckle up, buttercup.
  

$GDXU was up a whopping +27% — OOPH — looks like they sure squeezed the short sellers this time! 

Of course, this trade isn't only limited to gold miners. I'll spare you a second bullet on this, but use your imagination. 

And don't forget: What goes up must inevitably come down, and I'm more interested in swing trading gold miners - still trading in a bear market - than chasing a bunch of yahoos, off a cliff. Don't pay CNBC $300 a year for the privilege of reading their pumps — send me the money instead!

Speaking of CNBC: I absolutely roasted them in a tweet yesterday, and its already got 44 likes: 

@Osint613 CNBC actually asked that stupid question? Tariffs didn't come off during Biden, so they sure as hell aren't coming off now. China is the adversary, and anyone else who tries to take advantage. 👺

— Veteran Market Timer (@3Xtraders) November 4, 2026

China is running btw - the Democrats are mostly favorable to the Chinese and since they won, you can bet they are going to make some sweetheart deals - and you may want to brush up on your mandarin . just in case China wins the AI race. Look, they don't protest datacenters over there, unless they want to end up on the "voluntary" organ-donor transplant list.