MARKET CRASH ALERT: The "Friday Boogies" Are Here!

What's up, Studs? Holy macaroni, we had a nasty one on Friday. The "Friday Boogies" came out, and the market got smoked.

There were two main catalysts for this drop:

1. Broadcom ($AVGO): Took a "Cleveland Steamer" on earnings.
2. Oracle ($ORCL): News leaked about delaying OpenAI data centers (even though they denied it later).

But the real story isn't the news—it's the technical damage.

The Danger Zone: Under the 50-Day Moving Average

The SPY and QQQ have lost the 50-Day Moving Average.

Why this matters: In my life as a trader, I have noticed that when the market is under the 50-day line, volatility picks up massively. You get more gap downs, more fake-outs, and more traps.

The Strategy Shift: We are likely entering a Distribution Phase.

• In a Run-Up Phase: You buy breakouts and hold.
• In a Distribution Phase: Breakouts often fail. You must trade "Mean Reversion" (rubber band trades) or focus on shorts.

Warning: Do not try to jam your "easy market" breakout strategies into this market. If the market is dumping, buying a breakout is a liquidity trap.

Despite the drop, a few names showed incredible strength.

The "Relative Strength" Kings

$tsla

$rivn

$lulu

$lly

The Short List (If Volatility Continues)

$nvda

$amd

$arm

$mstr

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🖋️ About the Author

Kunal Desai is the founder of Bulls on Wall Street and a veteran trader with over 20 years of experience. He’s trained thousands of traders to master setups, develop discipline, and trade consistently in real time.

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