Tech Bloodbath

Market Rundown

September 06, 2024

""Success in trading—and life—comes from preparing for the unexpected. The greatest opportunities often arise when you're ready for what others fail to see.""

Hello, my friends!

Today’s market action was nothing short of a classic "sling shot" move—but to the downside!

The only major assets that managed to close green were the VIX and DXY, signaling a flight to safety.

It was a textbook example of waiting for the New York open, then following the trend and managing your risk as the day unfolded. With volatility spiking, it was all about staying sharp, adjusting quickly, and capitalizing on the momentum.

Let’s dive in below!

⚡Dollar Edges Higher After Mixed Signal

  • The U.S. dollar edged higher following a mixed August payrolls report that showed weaker-than-expected job growth but suggested a steady labor market slowdown.

  • Nonfarm payrolls (NFP) increased by 142,000, missing expectations, while revisions to previous months also showed declines. Despite initial declines, the dollar rebounded as markets weighed the potential for gradual Federal Reserve rate cuts.

  • Retail trader sentiment sees a 39% chance that the Fed will cut its policy rate, in its upcoming meeting later in September.

Investors remain cautious as they await more data on the economy’s direction.

📉Tech Bloodbath - (2.75%) Impulse

We started the session with a sharp volatility spike in pre-market, signaling that it was time to step back and observe. This kind of action often calls for patience, so I held off until the New York open, playing the role of spectator. Watching the market unfold from the sidelines allowed me to better gauge the real momentum before making any moves.

Nasdaq was looking strong right off the print, and started hovering around the critical 18,900 level. Location and timing was matching up perfectly - and it’s fascinating how often this setup unfolds right after the New York open.

Then, just minutes in, heavy bearish candles flooded in with aggressive sell orders. The market couldn't reclaim higher highs, and we saw an intense "inverse slingshot" move down to 18,500.

Classic volatility at its finest where no bullish momentum was ever present…

  • NQ 18,900 (0DTE Trigger)

  • NQ 19,200 (0DTE Supply)

These market levels are recalculated and updated daily, taking into account factors like gamma expiration, trading volume, and market volatility. For the most up-to-date levels and analysis, all information is available on MenthorQ.

₿ Bitcoin entering “Extreme Fear” - (5.64%) Impulse

The crypto market has entered a state of "extreme fear," as measured by the Crypto Fear & Greed Index, which recently dropped to its lowest in over a month.

Analysts are warning that Bitcoin may face a significant correction, potentially falling below $50,000. Historical trends show that September often brings bearish conditions for Bitcoin, aligning with current market sentiment.

During events surrounding the U.S market, Bitcoin tends to follow the overall trend, questioning how controlled the asset really is

Hayes cautioned that Bitcoin could decline to increasing deposits in the Fed's Reverse Repo Program (RRP), which he claims is pulling liquidity from the broader market.

  • BTC 56,000 (0DTE Demand)

  • BTC 57,000 (0DTE Supply)

Weekly Summary

  • S&P 500 broke its three-week winning streak, dropping 4.2% as investors adopted a risk-off stance amid economic concerns.

  • Tech sector tumbled, with Nvidia suffering a 14% weekly drop, leading a broader semiconductor selloff.

  • Energy stocks slid as demand concerns pushed crude prices lower, while financials fell due to ongoing uncertainty around interest rates.

  • Consumer staples managed slight gains, but Dollar Tree plummeted 21% after cutting forecasts.

🧠Mindset Wrap-Up

Today was a tough one, no doubt—a real bloodbath for many investors and traders. But remember, tough days like these are part of the game.

Staying resilient is key.

Use this time to reassess, learn, and refocus.

Every setback is an opportunity for growth.

Keep your emotions in check, trust your strategy, and remember that the markets always offer new opportunities.

Stay positive, stay disciplined, and be ready for a fresh new week!

Until next time,
Steve B.
Founder, The Daily Impulse

Important Disclaimer:

This newsletter is for educational purposes only and does not offer financial or investment advice. It should not be taken as a recommendation to trade assets or make any financial decisions. Please be cautious and ensure you conduct thorough research or consult with a financial professional before making any investment choices.