Transportation Stocks Flash Crash, Semiconductor Chip Stocks Flash Surge

Markets are taking a breather after yesterday's massive breakout — and the machines are still buying. Last I checked, the algos were piling into signals on a 15-minute timeline. You could call it leftover momentum. I call it the tell.

Turns out the algos bought NASDAQ futures @ the 200 sma on the 15 min. chart view 👇 pic.twitter.com/AwgEC0Etpk

— Veteran Market Timer (@3Xtraders) April 23, 2026

$TRAN Transportation stocks crashed right on schedule — I nailed this one 2 days ago: [link]

First I absolutely destroyed the bullish AI-generated narrative. Then I suggested traders should "short the hell out of it." It doesn't get any better than this!

$TRAN DCS Chart 

The crash in Transportation stocks probably added fuel to the $SOX fire, as the algos switch jockeys mid-race. This is really what all the FOMO buying is about. Momentum, and 0DTE options.

CNBC Fast Money traders blamed the crash on Avis (down 37%) — duh. I blame it on FOMO buying anything that moves to the upside on momentum, regardless of valuation.

April 22, 2026: Final Warning Came From Forbes: "A Car Rental Stock Soared 700% In A Month. Is It A Meme Stock?" (Forbes)

If you're having a sense of déjà vu, like you've seen this story before, you're right. Last time Avis led the $TRAN into a blow-off top was 2022. I even labeled it a meme trade back in '22. The chart proves the '26 market is only a repeat of 2022. Rallies to new highs that only lead to more flash crashes. Enjoy the fireworks.

 

The Historic Run in Semiconductor Stocks

Longest winning streak. Fastest momentum since the dot-com bubble top in 2000. Don't just take my word for it — check the $SOX chart.

Historic $SOX momentum is being fueled by the same market mechanics we just saw blow up in $TRAN. $TXN is the one to watch — could be the next Avis.😂 $SOX TARGET 10,000 

Think that's impressive? Pull up the 3X leveraged bull $SOXL. Go ahead. I dare you. 🤣

Pro leveraged ETF traders — playing off the script I wrote about this exact dynamic over a decade ago - 2012 [link]— the perpetrators have clearly gotten better organized. Once you understand that compound gains in leveraged ETFs add up fast, and you mix that with a "greed is good" motivator, you don't have a rally. You have a rocket ship.  

$SOX acceleration and momentum far exceeds anything we saw in 2000 — because AI is now capitalizing on the compound gains in the index, not to mention the accentuated moves in the leveraged ETFs. I wrote about this over a decade ago. To see it play out in real time is a bit surreal. [link to 2012 post]

 

Sector Rotation: From $TRAN to Pot Stocks

The latest rotation out of $TRAN also sent AI stocks soaring — along with pot stocks, of all things. This is the new industrial revolution? I don't think so. Of course Tim Seymour is excited. I have to respect a man who owns a Deere, but dude, "what are you smokin'?"

Another trade on my radar: the Aerospace sector. The hedge funds are pretending not to love the space because they want your shares. A strong hand with an exit plan may be required. $DFEN may also be in play — do your own due diligence. [link]  [link to riches]  

P.S. The same Mag7 tech stocks are re-inflating the bubble, just as I predicted back in January. There is no other market — only the AI bubble market. Meanwhile, the $SPX Equal-weight trades into a double-top. Take away big tech and stocks are barely even up on the year. CNBC is crediting Strait of Hormuz hopes for the rally to new highs. You can't make this stuff up. [link]

P.S.S. I have a killer 3-part series in the works — the market is giving me plenty of material — and you're not going to want to miss it.

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