📰 In This Issue…

The market is weak, and the sectors that were holding up the indices are finally starting to crack.

When the market is in a confirmed downtrend, trying to find long setups is like trying to catch a falling knife. Instead, we adapt. We look for the stocks that tried to break out, trapped a bunch of eager buyers, and are now failing violently at their moving averages.

Remember the "Aha" Moment we talked about: If you ever feel confused looking at a downward trend, invert your chart's Y-axis. A terrible, crashing stock looks like a beautiful, picture-perfect breakout when flipped upside down.

Today, we are targeting two drastically weakening sectors—Semiconductors and Crypto Miners—and looking at the exact technical triggers that signal a massive leg down.

Here are the top short candidates on my watch list right now.

Remember: When stocks fall, they don’t crash for long so these are faster moves, its okay to sit out if not interested

Tech Short Candidates Right Now

$CORZ ( ▼ 7.39% ) (Core Scientific) – Shorting Candidate

• The Macro Picture: A weak stock in a weak market, dragged down by a completely failing sector.

• The Pattern: The chart has formed a textbook Head and Shoulders topping pattern, signaling major distribution.

• The Trigger: It is currently failing right at the 50-Day Moving Average. This is the exact spot where institutions are unloading shares.

$CIFR ( ▼ 9.64% ) (Cipher Mining) – Shorting Candidate

• The Pattern: The price action looks like an Inverse Ascending Triangle (a descending triangle breakdown). The floor is getting heavy.

• The Trigger: The stock is trapped under a falling 50-Day Moving Average and is completely failing to cross above it. Every bounce gets sold.

⚙️ Semiconductors (Weakening Sector)

Context: Semis have been the undisputed market leaders, but the armor is cracking. When market leaders fail, they fail hard.

$AMD ( ▼ 7.49% ) (Advanced Micro Devices) – Shorting Candidate

• The Macro Picture: Officially trading under a falling 10-Month Moving Average. The long-term trend has shifted.

• The Setup: This looked like a "cheat" entry after a breakout, but it was a massive bull trap.

• The Daily Trigger: The daily chart just failed hard at the falling 50-Day Moving Average. Furthermore, it completely filled its previous gap up, wiping out all that bullish momentum.

$ALAB ( ▼ 5.59% )  (Astera Labs) – Shorting Candidate

• The Macro Picture: Mirroring the broader semiconductor weakness. It is also trapped under a falling 10-Month Moving Average.

• The Setup: Like AMD, this attempted a cheat after a breakout but failed entirely. In a bad market, these failed continuation patterns are prime shorting territory.

📉 General Market / Technical Breakdowns

$EAT ( ▼ 6.49% ) (Brinker International) – Shorting Candidate

• The Setup: A brutal failed breakout on the monthly chart. When a long-term breakout fails, the reversal is usually vicious.

• The Pattern: We are seeing an Inverted VCP (Volatility Contraction Pattern). The bounces are getting tighter, but to the downside.

• The Trigger: Failing right at the falling 50-Day Moving Average.

$CRWV ( ▼ 8.14% )  – Shorting Candidate

• The Setup: A completely failed upside swing! It lured buyers in and then reversed hard.

• The Pattern: After a 3-month consolidation, it formed a Head and Shoulders Top (an inverted head and shoulders on the upside).

• The Trigger: It suffered a massive breakdown through a major long-term trendline. It is now executing a textbook "check back" pullback to a falling 20-Day Moving Average. Look for the rejection here.

📊 Trading Framework Reminder

Remember: Every long-term investment alert can also be played as a swing trade. When shorting, risk management is even more critical.

🦅 Long-Term Investors (3-12 Month Holds)

• Entry: Full position on breakdown.

• Profit Taking: Cover 1/4 to 1/5 at Goal 1.

• Exit Signal: Close above 20-day EMA (your trend guide) or 50-day EMA.

• Why? Strong moves are hard to time at the bottom, but the 20EMA acts as a reliable trend filter.

⚡ Swing Traders (2-6 Week Holds)

• Entry: Full position on breakdown.

• Profit Taking: Cover 1/3 at Goal 1.

• Final Exit: Cover the remainder at Goal 2.

💬 How Did We Do?

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