hebel. today · 9 November 20265 / 74
Money · Market Analysis
Liquidity pools set the price as AI names break support
Institutional liquidity determines stock direction, as algorithms react mechanically to predefined price levels rather than fundamental business quality. When AI-related stocks dropped below their 50-day moving averages, their drawdowns accelerated simultaneously, confirming that major…
From 7 newsletters · 1 min read · one thing to try
Institutional liquidity determines stock direction, as algorithms react mechanically to predefined price levels rather than fundamental business quality (The Few Bets That Matter). When AI-related stocks dropped below their 50-day moving averages, their drawdowns accelerated simultaneously, confirming that major market participants place buy and stop orders at these technical thresholds (The Few Bets That Matter). Thierry from arvy observed this dynamic in the semiconductor sector, where a 28% decline from the June peak tested the rising long-term moving average, a support level where the firm added to its positions (Thierry from arvy).
“If you do not know why your stock moves up or down, at least respect the information liquidity is giving you for free.”
The Few Bets That Matter
Current market data suggests further downside risks before a potential year-end rally. QQQ printed a high-volume breakdown candle beneath its weekly exponential moving average, a pattern that historically led to lower lows in all ten occurrences since 1999 (Prospero.Ai Investing Newsletter). Namzes reports that dealers continue holding large short positions in Nasdaq 100 futures, while total Put-Call ratios reached panic levels above 1.0 on Thursday (Big Cycle Investing). While the market remains oversold, the lack of a confirmed 3.5-year cycle low indicates that a broader correction could still develop, keeping capital preservation as the primary objective until sentiment indicators turn bullish (Big Cycle Investing).
- Weekly volume increased as Bitcoin dropped toward the 74.5k region, a bearish signal that deviates from the volume-price patterns of previous successful rallies (SuperSaiyan Weekly Report 每周报告).
- Rick Rule identifies value in quality resource companies, noting that gold mining stocks have reached historically low valuations despite recent sector volatility (Steve Barton from In it to Win it).
Try today · 20 min
Identify the spike levels for your most volatile leveraged ETF holding.
Use a charting tool to mark the all-time low and the five subsequent frequency levels.
You need
- Access to a charting platform with spike level functionality
- Ticker symbol for your leveraged ETF
Steps
- Open the chart for your chosen leveraged ETF.
- Enable the 'Spike Levels' feature to display the all-time low and five resistance points.
- Record the price of the 180-day and 1-year spike levels.
- Compare the current price to these levels to determine your position in the cycle.