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Sunday, June 7, 2026

Friday's Bloodbath Reads Like a Crime Scene

Friday's bloodbath in tech stocks was a textbook setup, but the tape reads a bit like a Hitchcock novel. 

This was the biggest one day rout that we've seen since April, but what made Friday's move truly historic was the highest ever options volume in history. I always say,"it's all about the options", and the proof is in the pudding. Friday rug pull on a 10 week win streak, was actually triggered by a correction in the options market. . 

  • 1st clue was the Broadcom setup I alerted to just ahead of earnings, and confirmed in Friday's blog, ahead of the opening bell. [link] 
  • The second clue was the breakout on the $VIX. One of the most obvious setups ever. 

I not only alerted to the $VIX breakout. I confirmed it (on Wed.) 

Who else spotted the $VIX breaking out? None other than my old friend Dale Pinkert, over at Forex Analytix

You can tell by the number of likes on that tweet that there's a decent amount of short interest, and that sets the bear trap ahead of another 4th of July pump job (typical). That's right, they aren't finished juicing the market, just yet. Not by a long shot! The show ain't over until the fat lady sings. 

The final breakout on the $VIX was above the 18 level, and that becomes the level to watch - not 20. Another critical level is the 50 day - where we saw the $VIX briefly pause on Friday, before the bears spiked the ball - going into the close. 

$VIX alert triggered

Now Here's Where Things Get Really Strange 

Some of the hardest hit sectors were some of the worst sectors and stocks in the index- what I call junk/trash (crypto, miners, speculative AI tech, Strategy $MSTR?).  

Crypto (not even considered a sector. Gold miners, a part of the materials space (not a true sector). Solar. The Semis (another micro-sector) got whacked, of course. That was no surprise, because tech is the only game in town, and semis lead tech. Tech sold off hard, and the Dow didn't offer safe harbor this time. Small caps? (risk off, sure). 

I always say if you want to make the sell-off convincing you gotta sell Apple, and Google/ Alphabet (still trading above the 50 day SMA), and Berkshire, not pick and choose - selling Tesla because you don't like Elon's attitude. The other one they hate, $META was lower. Meta management took advantage of the situation by dropping some bad news on the tape, thinking nobody would notice their stock down another 5%, with all the blood in the streets? 

Watching CNBC try to do damage control after the closing bell was peak comedy. Tim Seymour (producer), and eternal pumper of everything from pot stocks, to gold miners, to China - have you seen Tencent lately? 😂🤣 

Tim Seymour pick $TME Tencent

Spin included assurances that the economy is still broadening (blatant lie), and consumer staples (toilet paper, toothpaste), was up... and "that must be good, right"? I'm not making any of this up. 

What wasn't covered on Fast Money?  

1. $VIX +20 (the elephant in the room). 

2. Tim Seymour pot stocks popped +7%.  2X weed ETF $MSOX (MSOS) ended the session up +14.49%. Conspicuous as hell dead silence. 

3. $OIH Oil service stocks - (recommended by Seymour several times in May) down another (-5.5%).   

4. Fast money favorite, gold (& copper) miners have given back all the gains of the year. Crickets   



Makes you think the show is all smoke and mirrors right? Case solved!  

I think we could see a little more fallout on Monday. Buying a 1 day pullback used to be a rookie mistake, but today it's the new normal. EVERYBODY PILE IN!   

Seriously: I was lucky enough to see Friday's bond rout coming, as well as the $VIX breakout, and the rest of it, but trading it is never easy. In fact today's market environment is harder than it's ever been.

Same sector - only sector - that can lead is the same sector that's led the entire bull market. Big Tech - disguised as something new AI. #BuyTheDip   

$BOTZ Global X Robotics & Artificial Intelligence Thematic ETF  - Bullish af 



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Friday, June 5, 2026

Hairline Cracks Continue to Form in the Hyperscaler Facade

Add Broadcom to the list of hyperscalers, that highlight the hairline cracks forming in the AI facade. $AMZN, $NVDA, $GOOGL, and now Broadcom $AVGO - down -14% dragging S. Korea down with it. Is this a bearish reversal? Not likely - not in June. Investors don't, "sell May, and go away", and they sure as hell don't sell in June either - especially when IPO fever is being hyped. 

The bubble continues to grow. All we're seeing is the same rotation we've seen over the past few years. This is in part what I coined as the New Market - not long after Covid was used as an excuse to juice the global economy - GDP = Valuations. Crisis driven economics. War economy 2.0. 

Tech sells off? No problem, because today we're going to drive big energy ($EOM), or the big banks ($GS) higher, for no particular reason (just go back and look at Thursday's action, and then watch Fast Money hosts try to cover it with a straight face) 😂.  

Last time I covered Broadcom it was back in Sept. '25, around the time where it peaked out.

A quick refresher directly from that blog [linked]: Comparing $AVGO to NVIDIA: Reads like today's headlines.   

"The stakes are arguably just as high for fellow chip giant, Broadcom (AVGO +9.18%). Broadcom has become such a massive company that it has surpassed Tesla in market cap -- paving the way for a new group of market-leading growth stocks known as the "Ten Titans."

CNBC Fast Money's, fast talkin', Tim Seymour was seen calling this development "Fantastic, and exciting!" Why? Because Wall Street has been looking for new leadership in the AI space, and they believe they've found (engineered) it. That's right, Wall Street insiders have been planning this for some time." [link] : 

As Far as the Broadcom Chart Technicals

I alerted to several likely/ possible outcomes on this earnings report on Wed., saying "the chart is sketchy" - while at the same time, offering some FREE options strategy, and if you sold calls don't forget to pay the lady at the door.

What else is still seen trading near the top of a range? The broader market. That's right, when the social media trolls all chime in with the cable news talking heads, trying to tell you that the market just came off a 9 day win streak? NEWSFLASH: There was no bearish capitulation either in Bonds, or Equities. What they're actually reporting is fluff - designed to soothe investors as trillion dollar IPOs come into focus.

$NYA New York Stock Exchange - Still trading in a range. Not winning any trophies.

$NYSE DCS Chart

The Truth is the $SPX rallied over the Memorial Day holiday, but as soon as the adults returned to their trading desk, the low volume, retail FOMO party, came to an abrupt end. In fact if you look at the $SPY there was no win streak.

$SPY DCS Chart not winning any performance trophies 

Giving the talking heads the benefit of the doubt, perhaps they got bored (over Memorial Day/week) reporting on stalled Iran talks, and Trump's ballroom renovations. 🤣

Trading The Bubble Living The Dream 

I've always secretly wished that I could trade into a bubble similar to what we saw in 2000 and this one surpassed anything I could have imagined. But this market environment is growing more treacherous with every day, and now perpetual futures helping to drive trillion dollar valuations... 

Pro Tips: Trade the bubble you have. Chase the rotations. Buy the dips, sell the rips, rinse and repeat. And when the music stops — try not to be one of those helpful souls rearranging deck chairs on the Titanic.      
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