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. 

The market hit new highs today.  Your portfolio probably looks great.  Your money manager is patting himself on the back. Now fire him. Look, we’re not trading the S&P 500 anymore. We’re trading the S&P 10. Money managers have thrown out the entire playbook.  No research…No fundamentals…No rotations…Nothing.  They’re just buying mega-cap trillion-dollar companies and praying. That’s the game plan. I’ve been doing this for 40 years. I’ve seen this movie before. When you’re top-heavy like this, the ending isn’t pretty. The Weekly Chart Destroys the Daily Chart Let’s start with the obvious. Most of you are staring at daily charts all day. That’s your first mistake.  The weekly chart is what matters. It gets those long-duration trend trades that actually make money. The weekly S&P 500 chart tells me we’re banging our heads against the ceiling.  Why? The rate of change is getting heavier and heavier. The histogram bars

When a 24-year-old gets offered $250 million to write code, you know we’re living in a bubble. Meta just offered some kid a quarter billion dollars to help run their AI division. This is your “shoeshine boy giving stock tips” moment for 2025.  Every bubble has its iconic warning sign. This is ours. Here’s what most traders don’t understand about risk…  You think the VIX protects you…You think your charts protect you…You think the Fed protects you.  None of that matters when tail risk hits. And here’s why… The Three Killers You’ve Never Heard Of I spent 38 years learning this the hard way. Lost millions in the dot-com crash because I thought I was smarter than the market.  But … If you want to see how institutional money is actually moving right now, Brandon Chapman is showing exactly that at 2 PM ET Today.  Real flow data, not market

Goldman Sachs has just declared that we’re in a “postmodern era” where fundamentals no longer matter.  They’re telling you to trade with algorithms and ignore value.  That’s garbage! I’ve been trading for 38 years. I’ve seen this movie before.  When Wall Street starts saying “it’s different this time” and fundamentals don’t matter, something bad is about to happen.  The market has priced in zero geopolitical risk, zero interest rate risk, and zero chance of anything going wrong. The Economic Reality Check Yesterday’s Fed Beige Book showed completely sluggish economy growth.  Most new jobs are government jobs. That’s not growth.  Meanwhile, Japan’s 30-year yield just spiked to the highest level in decades. They’re freaking out because they’ve never had rates above 3% for hundreds of years. Here’s what most traders don’t understand about the current setup: Interest rates run the stock market, not stocks When someone offers you a 10% yield