You Can Only Disrespect The Markets For So Long...

Good afternoon.

The crypto bear market is spreading over into the momentum stocks. Here is the awesome Stocktwits Daily Rip summary of today’s markets.

Few people think an extended selloff is possible because they think Mr. Trump and his genius insiders know how to juice the markets. I understand their confidence. I would argue that this group only knows how to enrich themselves and that the markets do not like being disrespected. The year 2025 has been one of major market disrespect.

The day started as most people expected…jubilation that the great numbers from $NVDA ( ▼ 3.15% ) would allow stocks to rally.

Nvidia definitely did their job last night and no offense to the talented tape watchers on Stocktwits which (including me) predicted a ‘beat’ - to the tune of 75 percent, but the obvious tuned out to be a trap …

Only 25 percent of the predictions picked a drop of 3 percent or more for the stock post the great earnings numbers and way too many people thinking the stocks would rise 3 percent

My gut is that a lot of people are trapped in momentum stocks including Nvidia.

A few weeks ago I wrote here that the ‘degenerate economy’ was getting too crowded.

Since that date, Robinhood is down 25 percent. 

Last week in New York I was sharing more reasons I thought things were too frothy…

Moomoo (a Chinese brokerage) pitching homeless subway riders (and me) free $NVDA ( ▼ 3.15% ) shares and 8.1 percent yield seemed like a bad sign.

So did this degenerate trading app called ‘Euphoria’…

Hopefully this is just a ‘pause’ that refreshes, but I would not discount Mr. Market trying to even the score with people that are not showing it enough respect.

Stay alert.