Nio Launch Surprises

Good morning.

Friday is here, and the bears are having a field day.

The Nasdaq just had its worst week since 2022.

The AI darlings - Nvidia, Intel, Arm got absolutely hammered, erasing over $1 trillion in market cap in just four sessions.

Short sellers feasted on the carnage, pocketing a cool $5 billion-plus as the hype train hit a brick wall.

Is this it? Is the long-awaited AI bubble finally bursting?

But it wasn't all doom and gloom.

As the tech giants bled, one retail behemoth quietly marched on.

Walmart is set to extend its value streak, proving that in a market of extremes, there’s still a place for old-school strength.

Meanwhile, Bitcoin is doing its classic pre-Fed jitters dance, dipping below $113K as traders brace for Powell's big speech at Jackson Hole. Gold, too, is in a holding pattern, waiting for a signal from the Fed.

In this today's newsletter, we’re unpacking it all.

🐻 Short Sellers Feast on AI Fallout
The Nasdaq slid, AI darlings crumbled, and bears scored $5B-plus on the downside. Is the bubble talk finally catching up with Silicon Valley’s biggest bet?

🔼 Walmart Expected to Extend Value Streak
Wall Street expects 4%+ US comp growth as shoppers trade up on groceries, e-commerce, and rollbacks. Tariff pressures remain, but scale keeps Walmart ahead.

💸 US tech stocks lose $1 trillion on AI bubble fears
$1T erased in four sessions as valuations look stretched. Nvidia slips 3%+, Intel plunges 7%, Arm slides—investors test how much hype remains.

5️⃣ These Five Stocks Drawing Investor Attention
AT&T momentum draws bulls, PLTR sentiment flips, Nvidia flows rise into results, Apple bleeds on weak tape, Intel spikes on U.S. backing talk.

📈 This Auto Stock Gained 32% In One Year
Price hike signals 28% upside despite trimmed 2025 volume outlook. Strong Onvo L90 orders fuel hopes of a 2026 rebound.

📉 Bitcoin Dips Below $113K Ahead of Powell’s Jackson Hole Speech
Leverage washouts and dollar strength pressure BTC as markets brace for the Fed. Traders eye $110K–$120K levels with Powell set to move risk sentiment.

⏸️ Markets Freeze Gold Ahead of Fed Clues
Investors hold fire as Jackson Hole begins. With 85% odds on a September cut, the next move depends on Powell’s tone on jobs vs inflation.

No new recommendations today

The current positions we’re holding are moving in the right direction.

Showing good momentum. 

I’ll continue to monitor closely and provide updates as the setups develop further. 

Stay tuned!

Why More Expensive Software or Equipment Don’t Equal More Profits

A lot of new traders picture success as a wall of glowing monitors, premium charting platforms, and an endless list of indicators running in real-time.

It looks impressive, sure - but here’s the truth: expensive setups don’t make you profitable.

Trading is a skill game, not a gadget game.

A disciplined trader with a single laptop and free charting software will beat a reckless trader with a $10,000 setup every time.

Why?

Because profits don’t come from tools - they come from strategy, patience, and risk management.

In fact, loading up on fancy gear can backfire.

More screens often mean more distractions. More indicators create more confusion.

And more “premium” tools can drain your account before you’ve even placed a trade.

Start simple.

Master the basics.

Use free or low-cost platforms until your consistency proves you’re ready to scale.

Remember - Wall Street doesn’t care how many screens you own. It only cares how well you manage your trades.

Subscribe to newsletters that show you the systems that work with expensive tech here.

Balance of Power (BOP)

The Balance of Power (BOP) is a technical oscillator that measures the market's underlying strength by assessing the ability of bulls or bears to push the price to an extreme.

It's calculated by comparing the closing price to the high and low of the period and oscillates around a zero line.

What to Look For

• Zero Line: The BOP's relationship to the zero line is crucial.
  • Positive BOP (above zero): Indicates that buyers are in control as the closing price is consistently closer to the high of the period. This suggests bullish strength.
  • Negative BOP (below zero): Indicates that sellers are in control as the closing price is consistently closer to the low of the period. This suggests bearish strength.
    
    
• Zero Line Crossover: A crossover of the zero line often signals a shift in market momentum.
  • A move from below to above zero can signal a bullish reversal or a buy signal.
  • A move from above to below zero can signal a bearish reversal or a sell signal.
    
    
• Divergence (Key Signal):
  • Bullish Divergence: If the price makes a new lower low, but the BOP makes a higher low, it suggests that the selling pressure is weakening. This is a strong hint of a potential bullish reversal.
  • Bearish Divergence: If the price makes a new higher high, but the BOP makes a lower high, it suggests that the buying pressure is weakening. This is a strong hint of a potential bearish reversal.
    
    
• Trend Confirmation: The BOP can be used to confirm a trend's strength. A rising BOP in an uptrend or a falling BOP in a downtrend confirms that the trend is healthy.

Think of the BOP like a tug-of-war. The zero line is the center. When the line is on the bulls' side (positive), they're pulling hard.

When it's on the bears' side (negative), they're winning.

Divergence is like seeing the bears making a lot of noise but not actually pulling the rope further, hinting that they're getting tired.

Friday Reset

Every trader knows the spiral.

One loss leads to another, then desperation takes the wheel. 

By Friday, your charts look less like opportunity and more like punishment. 

That’s when you need to hit pause.

Step away from the screen for a day or two.

Reset your head before you reset your account.

When you come back, strip things down. 

Trade only the setup you trust the most, and do it with half your usual size.

Consistency isn’t built from swinging big; it’s built from controlling damage while sharpening focus.

Keep a journal and write the truth about what’s really hurting you - it’s often bad habits, not your strategy.

Think of this weekend as a reset button. 

Survival comes before profit, and discipline comes before growth.