The machines found their next victim… ON Semiconductor sits at $55 after I called it a buy $48 at for Genesis Cog members. A lot of traders missed it because they were chasing Nvidia’s overpriced dreams.  The algorithms already moved billions while they debated chart patterns. This is how institutional money actually works.  They don’t buy what retail loves.  They accumulate what retail ignores. And I’m about to show you how… Why Algorithms Love Cheap Semiconductors After 38 years building these systems, I know how machines think. They process value differently than humans. Retail obsesses over Nvidia at 60x earnings. Algorithms target ON Semiconductor at 15x earnings.  The math is brutal but simple. When semiconductors correct, expensive names crater. Cheap names survive. This isn’t speculation. This is mathematical certainty based on decades of market cycles. I helped the worlds best traders and funds build the algorithmic systems before you were

Thousands of fund managers just told Bloomberg they’re ramping up long positions on stocks they know are overvalued. Read that sentence again. These Wall Street “geniuses” openly admitted they’re buying more of what they know is overpriced. They’re panic-chasing performance because they’re behind the S&P 500. This is reckless abandon at its finest. Today’s Fed decision will expose who’s been swimming naked. Here’s what the algorithms are actually doing while retail traders guess which direction Powell will take us… Why I Never Step in Front of Fed Days After 38 years of trading, I learned one critical lesson about Fed announcements. You can’t handicap them. Period. Run every scenario through your head. They cut 25 basis points? Already priced in. Market tanks on “buy the rumor, sell the fact.” They surprise with 50 basis points? Market could rally 500 points because it wasn’t expected. Or it could crash because traders

Storage Technology Corporation exploded 400% in six months.  Abercrombie & Fitch crashed from $164 to $65 in less than a year.  The Same market..the same algorithms…completely different outcomes. This wasn’t a difference between fundamentals or technicals.  The difference was something most traders never look at – share float.  Storage Technology has 212 million shares available for trading.  Abercrombie has just 47 million shares.  That gap in liquidity explains everything about why one stock became a rocket ship while the other turned into a death trap. Understanding share float dynamics will save you from liquidity disasters that destroy accounts overnight and help you identify which momentum plays have staying power versus which ones are ticking time bombs. I learned this lesson building algorithmic systems at ThinkorSwim.  The machines don’t just trade price patterns.  They calculate liquidity risk first, then execute.  You need the same edge. The Liquidity Trap Most Traders Miss

The trap is loaded.  Wednesday’s Fed cut will spring it.  Everyone expects a melt-up…Yet, the machines are positioning for something else entirely. See, we’re in statistically stupid overbought territory. And algorithms don’t care about Fed policy. They care about momentum breaks and slope changes. My father said: measure twice, cut once. Mess up and you get holes in the wall forever.  This market works the same way.  The higher we go, the higher the risk.  You get ONE shot to position correctly before the trap springs. When this corrects, liquidity disappears. There are no second chances.  Nearly 90% of trades are algorithmic now. These systems move faster than humans think.  I helped build them at ThinkorSwim. I was on the team that cracked the logic breakthrough that turned these machines into weapons. For years, only the architects could see these traps being set.  Now I’m revealing exactly how they hijack

We have important developments this week in equity markets.  The September futures contracts for the equity indices are rolling over to December contracts. Friday marks the triple-witching options expiration. Many analysts will point to these events as catalysts for increased market volatility.  However, based on the technical signals I’m observing beneath the surface, the bulls are asserting themselves with even greater conviction.  The Federal Reserve is also cutting rates this week, which provides additional tailwinds. If you’ve been riding the bull wave with me since April, you’ll find the latest sector performance updates particularly encouraging. Back to Step One Technology’s outperformance from the April lows prompted us to announce that a Great Tech Reset was underway.  We’re examining returns in the 50% range over a five-month span at the ETF level, which represents substantial gains. Recently, the communications sector has powered stocks to new all-time highs as technology’s sibling sector. 

My 12-year-old daughter just started martial arts.  I watch her struggle with the basics right now.  Her stance needs work. Her kicks lack power. She gets frustrated when the instructor corrects her form for the tenth time in one class. I see something else happening though…  She learns discipline with each correction. She discovers that respect becomes mandatory, not optional. She understands that mechanics and structure serve as requirements for advancement, not mere suggestions. This process mirrors exactly what the market has been trying to teach traders for decades. I earned my belts in Hapkido years ago. Koreans call it the art of coordinated power. You cannot simply throw punches and hope for the best. Every movement carries purpose. Every technique builds on the foundation of the one before it. You follow the rules, or you remain stuck at your current level. The market operates under identical principles. Rules exist.

If you bought gold 55 years ago and held it until today, do you know how much money you made? Zero. Zero real returns over more than half a century. That tells you everything about what money printing does to real wealth. We’re living through the biggest bubble in financial history. Stocks hit all-time highs. Home prices reached record levels. Bitcoin sits near all-time highs while gold crushed its previous records. Money supply exploded to levels never seen before. National debt ballooned beyond comprehension. Everything peaked simultaneously. Can’t see this bubble forming around you? I can’t help you. Everyone panicked about gold yesterday. Others chased Reddit like lemmings off a cliff. I made money on BJ’s Services. Understanding what AI algorithms actually do separates winners from losers. Most traders operate in complete darkness. Oracle lost $13 per share because the algos detected what humans missed Oracle flew higher all week.

The market ripped 105 points today but don’t be fooled by the headline number. While the S&P hits new highs, the machines are executing the biggest stock-picking rotation in years. They’re buying momentum and selling overpriced garbage at the same time. The Confirmation Bias Rally Meets Reality Two conflicting data points hit this morning and revealed everything about how this market operates. Initial jobless claims reached a four-year high. August CPI came in hot with rising inflation. Both should be bearish for everything. Instead, the market focused entirely on jobless claims because it validates rate cuts. They ignored inflation completely and bought the indices higher. But here’s what CNBC won’t tell you. The machines aren’t just buying everything blindly. They’re rotating money away from fundamentally broken companies into momentum plays that can justify higher prices. This creates a two-tier market where the averages rise while individual stocks get destroyed. Three

The market’s not random.  It’s rigged. Twenty-five years ago, you could flip a coin and predict market direction with 50-50 odds. Those days are over.  Today’s markets are engineered by algorithms that buy strength and sell weakness. They’re binary.  They don’t think like you and me. Yesterday proved it again.  The market was already up 22 points before CPI data hit.  Then the numbers came out and we jumped to 39.  This wasn’t about the data being good or bad. The market had already made up its mind to go higher. Confirmation bias runs everything now. Whether facts validate the outcome or completely contradict it doesn’t matter. The algorithms are programmed to buy momentum. When things go vertical, machines buy more. When things waterfall, machines sell. It’s that simple. You’re fighting machines that control 90% of daily volume. These algorithms are looking for slopes and momentum. They’re designed to kill

The S&P 500 hit another all-time high yesterday. CNBC is celebrating… Bloomberg is throwing confetti… Meanwhile, I’m watching the most dangerous setup I’ve seen in over three decades of trading. Money managers threw everything they had at big tech yesterday.  They sold healthcare, dumped REITs, abandoned industrials, and poured every available dollar into the magnificent seven. They could barely move the S&P up 17 points. Think about that. Maximum effort. Minimal result. This is what market exhaustion looks like. We’re Trading the S&P 10 Now Not that long ago, the S&P 500 offered investors diversification that spread out company or sector specific risk. Those days are gone. 10 stocks now drag 490 others along for the ride.  Apple, Microsoft, Nvidia, Amazon, Google, Meta, Tesla – these companies now control the entire market’s direction. Yesterday proved it. While Apple surged $6 and Nvidia bounced, everything else got crushed. Consumer staples plummeted.