Stock Market Crash: Trading the "Barcode" & 200 SMA Bounces

Brothers and Sisters, Kunal here. I’m going to keep this short and sweet because the markets are getting "shemangled."

It’s been fun. It’s been sexy. It’s like Cancun 1999 out there. But the party is ending for the high-beta names.

I have been since 2008 , and when charts start looking like Barcodes (choppy, overlapping, range-bound), the "Easy Money" phase is over.

The "Fake AI" Reality Check

Stocks like Iris Energy ($IREN) and Cipher Mining ($CIFR) are down massive.

• The Rant: Let’s be honest. $IREN is a failed Bitcoin miner from Paducah, Kansas. They couldn't mine Bitcoin, so they pivoted to "AI Data Centers."
• The Reality: They aren't signing secret deals with Amazon. They aren't going to $100. The chart is broken.

Trader Rule: When a stock is trading under its moving averages, you have "No Status." You are the middle backseat of your buddy's Volkswagen Beetle. You aren't the right nut, you aren't the left nut. You are just there. Do not hold these stocks for the long term.

The Pivot: Mean Reversion Bounce

We have been shorting everything ($PLTR, $TSLA, $AMD). But now, the rubber band is stretched too far. I am looking for a Relief Rally.

The Setup Criteria:

1. Extension: Price is 4 days of ATR (Average True Range) away from the 9 EMA. ("Two Thumbs" distance on the chart).
2. Support: Hitting a major level like the 200-Day Moving Average.
3. Bollinger Bands: Price is outside the Lower Band.

The Watchlist ($AMD, $TSLA)

• AMD ($AMD): Hitting the 200 SMA. I covered my shorts and am looking for a bounce.
• Tesla ($TSLA): 6 points away from the 200 SMA. I like the $400 Calls (1 Month Out).
• Bitcoin ETF ($IBIT): I took a stab at the $40 Calls. Bitcoin hit $60k and is due for a snap-back.
• AST SpaceMobile ($ASTS): Resting on the 50 SMA.

Disclaimer: This is for educational purposes only and not financial advice. Trade at your own risk.

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About the Author: Kunal Desai

Kunal Desai is the CEO and Head Trader at Bulls on Wall Street. He specializes in short-selling and identifying "Mean Reversion" opportunities during market corrections.

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