Don Kaufman here.
I had a great time on Schwab TV this morning breaking down what’s really happening in this market.
Everyone’s asking: Is AI a bubble? Here’s what I told them – we’re in the latter innings, and it’s all about rotation now. Google versus Nvidia. That’s it. That’s all that’s really left driving this thing.
But here’s what got interesting. I walked through three specific setups that caught my attention:
eBay – This one’s flirting with a key technical level at 80, and I’m seeing very little bid underneath.
Sometimes the obvious play is the right play.
Walmart – This is what I call “gamma time.” Retail traders are rushing in buying calls like crazy, and that’s going to force market makers to squeeze this thing higher.
The call buying activity is blatant if you know where to look.
Meta – Classic case of what I term “bid back and ready for another smack.” Massive short covering the last two sessions got it from 580 back to 640.
But this feels like everyone’s just reloading for round two.
In this volatility environment, duration matters more than ever. I’m adjusting my approach on each of these based on what the tape is actually telling me.
Want to see the exact strikes, spreads, and timing on all three? The full Schwab TV segment breaks down every detail of how I’m playing this rotation.
To your success,
Don Kaufman
P.S. Before you blow your money on something stupid this Black Friday that you’ll regret later as it piles dust. Make an investment in your education, and in something that potentially earn you some real money.
