Momentum Monday – A Shitcoin Billionaire Is In Charge Asking Us To Take Our Medicine!!!

Howard Lindzon Howie Town

1 week ago

4 MIN READ

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Good morning…

I am up early and nervous. I have my lists.

I shared my plan in the video below.

As I mentioned this crash feels different, mainly because Trump made it happen and I have no idea what he does next. He is a shitcoin billionaire and probably does not own any stocks. He has dug in on the fact last night that China is to blame, that the FED should cut rates and that ‘sometimes you have to take your medicine’.

I don’t like medicine when a real doctor prescribes it. I especially do not like taking financial medicine from this serial bankrupter.

It feels as if he is playing chicken with global markets, and every stock I like is technically broken. I will mostly stick with nibbling at the indexes today into the open and further drops.

Be careful.

You can follow my ideas during the day on Stocktwits.

Welcome back to Momentum Monday!

In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:

April 2025 Market Panic and Tariff Impact
Market Trends and Investment Strategies in a Bear Market
Identifying Future Stock Trends and Opportunities
Analyzing Dutch Brothers and Robin Hood Stocks
Understanding the Risks of Leveraged ETFs
Long-term Investing Strategies

In This Episode, We Cover:

April 2025 Market Panic and Tariff Impact (0:00)
Market Trends and Investment Strategies in a Bear Market (2:25)
Identifying Future Stock Trends and Opportunities (4:35)
Analyzing Dutch Brothers and Robin Hood Stocks (6:40)
Understanding the Risks of Leveraged ETFs (8:48)
Long-term Investing Strategies (11:00)

Here are Ivanhoff’s thoughts:

The Nasdaq 100 (QQQ) is already down 22% from its 52-week highs. It tested its August low from last year. I wouldn’t be surprised if it overshoots to 400 and then rallies to its 20-day moving average. The S&P 500 is down 17% from its 52-week highs. The next area of potential support is around 500-480. The damage in individual stocks is even more pronounced. META is down 31%, AMZN and GOOGL are down about 28%, AAPL -27%, NVDA -38%, TSLA -51%, PLTR -41%, HOOD – 48%, RDDT -53%, APP -58%, CEG -51%, VRT -62%.

The market is sending a clear message. A tariff war with the rest of the world is likely to lead to a recession. The average drop in SPY during the last ten recession was 31%, though declines ranged from 14% to 57%. A 20% drop in SPY from its 52-week highs would mean testing 490. A 30% drop would mean a decline to 430.

Powell spoke on Friday and reiterated what he said previously. There is not enough evidence to panic and cut rates now. In other words, the Fed is not going to try to proactively avert a potential crisis because it might break something else. The Fed will show up when there’s clear evidence of unemployment spike. Unemployment is a lagging indicator; therefore the Fed is likely to get involved after most of the correction is over.

We finally saw clear signs of panic selling last week. Even the groups that had held well recently, came under distribution – energy, gold miners, utilities, China. Such high correlations are typical for forced liquidation when people sell not because they want to but because they must. The silver lining is that such selloffs often precede a strong bounce. Let’s not forget that some of the most powerful rallies happen during bear markets. Nothing goes down in a straight line. The bear markets are full of false breakdowns, so one has to remain nimble and willing to play both sides of the market.