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Tim Knight: The S&P Just Broke Its Trendline and the Selloff Is Here

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ticker lesson

Breakdown

0:00lesson

Market volatility and swing trading

  • Lucy in the football metaphor for market motion
  • No net trend over multi-month period
  • Swing traders add to positions as weakness grows
  • Maximal exposure leads to sudden market reversal
1:55ES· ticker

ES trend line failure and head and shoulders pattern

  • Trend line anchored to Iran war low in late March
  • Trend line failed and broke for real
  • Head and shoulders pattern complete
  • Market at lowest since September 17
3:46ENQ· ticker

ENQ bounce back and AI trade warts

  • Bouncing back after multiple plunges
  • AI trade showing its warts
  • Anthropic IPO delayed due to market conditions
  • Potential five alarm fire if IPO is delayed
5:25Anthropic· ticker

Anthropic IPO potential and market impact

  • Anthropic could delay IPO due to market conditions
  • Potential five alarm fire if IPO is delayed
  • Anthropic is SpaceX's largest customer
  • Circular financing between SpaceX and Anthropic
7:15Reddit· ticker

Reddit reversal pattern and AI data sale

  • Reddit shows reversal pattern
  • Reddit sold all AI training data
  • Reddit down 26% similar to Intel
  • AI connection makes sense for Reddit drop
9:16Pinterest· ticker

Pinterest drop and value loss

  • Pinterest down over 7%
  • Similar to Snap as a has been stock
  • Don't fear stocks with 50-70% value loss
  • Bottom is always zero
11:20Gold· ticker

Gold and precious metals decline

  • Gold at new yearly low below $4,000
  • Base of right triangle failed
  • Psychological $4,000 level broken
  • Silver down into 40s, broke right triangle
11:21Amazon· ticker

Amazon fall and bond market reaction

  • Amazon fall triggered bond market rally
  • AI trade losing appeal, funds redirected to bonds
  • Tech and AI rally following yield rise
  • Yields higher, tech more expensive
11:22IWM· ticker

IWM short position and interest rate impact

  • Short IWM due to interest rate climb
  • Small caps strong due to interest rates
  • ENQ weakness exacerbated by rate climb
  • Short positions due to market weakness

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