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The S&P opened down 60 points last night. 

By mid-morning it was up 35.

No earnings surprise…No policy shift…No fundamental catalyst whatsoever…

Just 0DTE options traders slamming buy orders at the opening bell and gamma squeezing every short who positioned over the weekend.

This is a casino masquerading as a market, not price discovery.

Speculative froth looks identical to real demand on your screen. 

Reversals feel like strength. Rallies feel like conviction. 

It clogs the financial system with short-term liquidity that vanishes the moment pressure builds.

Just look at precious metals: silver and gold broke hard. 

Bitcoin just triggered limit down. 

Every asset class that got stuffed with speculative money eventually needed to drain. 

The stock market thinks it is immune. It is not.

Why?

Because when excess speculation creates the kind of vulnerability that leads to violent corrections.

The Roto-Rooter Problem

Every plumber knows what happens when you keep flushing garbage down a pipe. Eventually, the whole system backs up.

That is this market.

Zero DTE traders flood in every morning with short-term liquidity. They are not investing. They are gambling on minute-by-minute price action with complete detachment from risk management.
 

The buying looks real on your screen. It is not real capital allocation. It is speculative froth that disappears as fast as it arrives.

On days the market opens down, they buy calls and squeeze it higher. On days it opens up, they chase momentum until it stalls. The money just sloshes back and forth creating the illusion of a healthy market.

I call it the Seinfeld market. A market about nothing.

The Breakdown Sequence

I watched this same pattern destroy other asset classes.

Bitcoin triggered limit down overnight. Down 10% in the first five minutes of futures trading. 
 

I told MarketWatch a month ago it was going to $70,000 when it broke $100,000. 

Welcome to my call.

Silver broke. Gold broke. Oil broke years ago.

The stock market thinks it is immune. It is not.

Every one of these assets got clogged with speculative money. Every one eventually needed to drain. The drainage happens fast and violent when it finally comes.

Now, here is what concerns me most.

The zero DTE crowd provides short-term liquidity. But institutions provide the capital that actually moves markets over time. When institutions decide to sell, the zero DTE traders cannot absorb that flow.

They will try. They always try.

Then price gaps through their levels and the algorithms take over. The machines do not care about your calls expiring worthless. They execute sell programs until there are no bids left.

I saw the crash in Bitcoin. I saw the crash in silver. I saw the crash in gold. It is a logical sequence. Stocks are coming next.

You and I know it is coming. You just do not know the day.

How I Am Positioned

I am 62% cash across all accounts. I raised another 3% today.

Every time we rally, I keep raising more. My shorts are banking coin. If only my longs could play catch up.

I am not trying to be a hero. I am trying to survive what comes next.

The market has broken momentum. It has not broken trend yet. That distinction matters. But the warning signs are everywhere if you know where to look.

• Zero DTE volume exploding on both sides
• Intraday reversals with no fundamental driver
• Risk-on and risk-off rotating within the same session
• Defensive stocks getting liquidated at 52-week lows

The pipes are clogged. The pressure is building.

You do not need to short this market. The algorithms make that dangerous.

You need to keep taking risk off as we move higher. Every rally is an opportunity to lighten exposure. Every gap up is a chance to raise cash.

This market needs a good old-fashioned draining. When it happens, you will not get a warning. You will get a gap down that erases months of gains in a single session.

The zero DTE crowd thinks they can prop this up forever. They cannot.

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