American stock market failing once again

Gabriel @gabriel_true
commented on
American stock market failing once again
Gabriel @gabriel_true


Gabriel @gabriel_true
commented on
American stock market failing once again
Gabriel @gabriel_true
https://youtu.be/gqtrNXdlraM?si=rxblpVezfjyYKg3a

Arc @arc
commented on
American stock market failing once again
Arc @arc
Stock trading in the last 4 years is almost completely different than pre-covid. With the rise of AI trading platforms, hedge funds found that they can make far more money through option manipulation than investing the traditional way. They learned this from the huuge Gamestop bubble that forced many hedge funds to go under because they had puts on margin.
AI algorithms became attuned to making the most out of option trading, and sentiment now changed on the drop of a pin the moment news came out. A lot of these wealthy hedge fund managers also have their hands into social media news outlets and could freely manipulate the narrative to inject as much fear as they can so they can do the exact opposite to profit off of options.
Take for instance last week. The word "crash" appeared in many news headlines. JP Morgan cut TSLA price target IN HALF. Yet, what happened the next day? Up 5%. Whole market rallied. We saw last week the market dropped exactly 10% from the peak and then the AI kicked in to start buying everything, despite all the news.
I use relative strength index for stock trading, but if you take an aggregate of the word "crash" appearing in search results for news articles, that indicates a bottom is near. Hedge funds are pushing a narrative hard before they start buying. That happened last Tuesday. Let's see what happens now.
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