January 27, 2025

Skipping the market overview and jumping right into what's occurring this morning. Before this DeepSeek non-sense our plan this week would have been simple; We would have pointed to heightened volatility this week with key earnings releases and the FOMC meeting this week. We would have looked for opportunity to generate from these key events. However, Deepseek and this narrative have completely flipped the script on approach and game plan for the week.

First, let's be clear the DeepSeek stuff is complete garbage and does absolutely nothing to change the AI investment story for chips or any of the Mag 7. Understand this. With that said, an impressive amount of blood in the AI complex this morning that one must respect and show some patience. We will look early on for flow in the space. Will we see Put sellers step in. Can we see large call lots go off?

This isn't actually a bad setup if you believe 2 of the 4 big ones reporting this week MSFT, TSLA, AAPL and META can beat. QQQ's are definitely on the watch list for a position to enter early this week. We will watch this closely as well.

Last thing we will state so we can begin to dig deeper into this and evaluate the Queue. Last year all the fear came one Monday from the Carry Trade. Today it's DeepSeek – a 6-million-dollar company with an app that is being powered by Nivida chips -that somehow will take down all of AI. Hear this; you get few opportunities throughout a calendar year. Here's one! We all know what happened after the fear of the carry trade passed in a session or so. Would anyone be surprised to see a hard gap up tomorrow? Don't think anyone can rule it out.

Fear brings opportunity.

For todays open we will adjust stops on the following:

RR stop moved to 2.80
SMR stop to 23.00
KODK stop to 6.75

Allow this materialize and then we proceed. Be ready today.