After three decades in this business, I can tell you most signals are noise.
This one isn't.
My guest tonight has helped students get in before moves that delivered +156%, +611%, and more.
I've watched him call setups in real time. I've used his system to trade my own account. Now he's walking you through the entire framework.
👉 LOCK IN YOUR SEAT FOR TONIGHT @ 7PM ET →
Don here...
For seven straight months, the same thing happened every single time markets dipped.
Algorithms bought. Systematically. Relentlessly. Every pullback got defended within hours.
That pattern just broke.
Jeff Bierman's tracking system shows the weekly algorithm crossed below both the signal line and zero this week.
That's the configuration signaling machines stop buying dips and start selling rallies instead.
It's never been wrong. Not once in decades.
And funny enough, he might have convinced Gianni, our permabull.
The algo that walked markets up slowly and steadily for seven months just flipped into reverse. And when these things reverse, Jeff says the ride down is fast.
In today's free session replay with Jeff & Gianni, you'll discover:
- Why algorithms don't gradually change their mind. They flip like a light switch. Jeff showed the exact moment on his weekly chart where the crossover happened. The same systematic buying that defended every dip since April just became systematic selling until momentum completely exhausts itself. The machines walk price up the hill slowly. They let it fall fast.
- The one number that determines whether this becomes a crash or just a correction. 6,500 on ES futures. That's the October 10th low both Jeff and Gianni identified as the critical line. Markets are sitting just above it right now. Hold there and you get a bounce attempt into year-end. Break below and algorithmic selling accelerates toward 6,300 with nothing but air underneath.
- What Home Depot's chart reveals about the real economy underneath market levitation. The stock peaked at 426 in January. Never made a new high all year despite markets ripping. Dropped to 360 before earnings because algorithms front-ran the weakness. Now sitting at the lowest weekly close since summer 2023. When Home Depot can't rally in a bull market, the consumer is done. No amount of Fed rate cuts fixes that.
- The credit market bomb ticking underneath stock prices. Amazon just issued $15 billion in bonds. First major debt offering in a decade. Oracle's credit default swaps spiking as traders bet on bankruptcy risk. Credit spreads widening since October 20th. Jeffrey Gundlach calling private credit a "powder keg of garbage lending." This is the plumbing breaking before CNBC tells you about it.
- Why the Fed cutting rates in December accelerates the problem instead of fixing it. Fed Governor Waller backed another cut yesterday citing job market at "stall speed." But Rio Tinto just announced raising aluminum prices across the board starting January 1st because of tariffs. When the world's largest aluminum producer does it, everyone follows. The Fed is pouring gasoline on inflation while trying to prop up markets. That's never worked.
- The Wall Street analyst call that marks the top. Jefferies upgraded Oracle with an 85% upside target. The stock already dropped 50%. Trading in a descending channel. Credit markets pricing bankruptcy. Yet the analyst claims the market "has it all wrong" on AI potential. This is the garbage analysis that appears at market tops when professionals refuse to accept momentum shifted.
Here's what most people don't understand about algorithmic markets.
The machines don't think. They don't predict. They respond to momentum indicators crossing specific thresholds. When those thresholds get crossed, behavior changes instantly and completely.
Jeff's weekly system just crossed the threshold that flips algos from systematic buyers to systematic sellers. That doesn't mean markets crash tomorrow. It means the behavior that defended every dip for seven months just reversed.
We're up 45% in seven months. That's not normal market behavior. That's algorithmic levitation walking price up in a straight line while ignoring fundamentals.
Now the levitation stopped. What remains is price discovery without the artificial support that held everything up.
Jeff won't predict exact timing. But his system shows markets need to cycle all the way down to negative 28 on the weekly oscillator before buying pressure returns. We just crossed below zero. That means weeks or months of algorithmic selling pressure before momentum resets.
Bounces will happen. Fund managers desperate for year-end performance will try window dressing rallies. But the machines that create sustained moves just flipped into reverse.
The October 10th low at 6,500 is the line that matters. We're sitting right on it. This is where markets either hold and attempt a bounce, or break and accelerate toward 6,300 with violence.
Average corrections run 10-16% historically. We're barely down 5% from highs. The math says more pain is coming before this completes.
The difference between traders who survive this versus those who blow up comes down to recognizing when market structure shifts. When algorithms stop defending dips and start selling rallies instead.
That shift just happened. The indicator Jeff's followed for decades crossed the line. The machines reversed direction.
→ Watch today's session to see the exact crossover that's never failed, why 6,500 determines everything, and what happens when the algo that walked us up starts walking us down
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
0 Response to "Friday's Algo Bought Every Dip. Monday's Algo Won't."
Post a Comment