Hey, Ross here:
Markets sold off on Friday after President Trump threatened an additional 100% tariff on China in response to its new rare earths’ export controls.
Over the weekend, China appeared to try to walk back those trade tensions…
Clarifying that it’s not a full export ban, that applications that “meet regulations” will be approved, and that the impact of these new controls is “very limited”.
And Trump himself took to social media to try to calm tensions down, saying that the US is trying to “help” China.
We’ll see how all this plays out over the next few days.
I’ll share my thoughts on stock strategy a little later.
In the meantime, let’s talk about the biggest liquidation in history…
One that happened outside the stock market.
Chart of the Day
The stock market dipped 3% on Friday after Trump’s new tariff threats.
For an intra-day drop, that’s significant. But considering how strong the market has been over the past few months, it’s really nothing.
It was a different story in the crypto markets – which saw the largest liquidation of all time.
$19.5 billion was wiped out in 24 hours, more than 9 times the previous record.
Bitcoin itself recorded its first-ever -$20,000 daily candle, and ended up over 10% down after all was said and done.
But many altcoins – which are far more volatile than Bitcoin – saw their values crash by 50% or more.
Combine that with the insane levels of leverage among crypto trades (10X leverage is normal, and 100X leverage is not uncommon)…
And many of these leveraged traders were completely wiped out.
There are many stories floating around right now of crypto traders literally going from having millions in their accounts to negative balances in an instant.
Total devastation.
But here’s the most interesting part of the whole saga.
Crypto actually began selling off an hour before Trump’s first tariff post in the morning.
And just 20 minutes before Trump’s post on the additional 100% tariffs, a large “whale” opened a multiple-million dollar short.
And so, even as most over-leveraged traders lost their shirts…
This “whale” made out with a cool $192 million in profits.
The stock market is rigged – but crypto is 100X worse.
That’s personally why I stick to trading stocks. I know where my edge is (and where it isn’t).
And speaking of trading edges…
This entire saga gives us a very instructive lesson that we can use to help navigate this stock market turbulence.
I explain in today’s Insight of the Day below.
P.S. My next edition of 2 Trades in 2 Minutes – tuned for the current market volatility – drops tomorrow. They’re completely free, but you’ll want to act on them FAST. So text the word “trade” to 87858 and get those trades sent to your mobile the second they’re released.
Insight of the Day
NBig leveraged moves – especially contrarian ones – are some of the most valuable information on the market.
We will probably never know how this “whale” managed to time the market so perfectly.
And sure, there was probably something highly unethical involved.
But what about traders who saw that “whale’s” trade – and just traded based on that?
Sure, they probably wouldn’t have made $192 million…
But they could have made out very well and timed the market almost as perfectly…
Without having to compromise any of their morals.
That “whale’s” trade was some of the most valuable information on the market.
I don’t know if any crypto traders took advantage of it. But if they did, they’d probably have been popping champagne all weekend.
As I’ve said before, this kind of huge leveraged moves are incredibly valuable information – whether in stocks or crypto.
And it’s even more the case when it comes to periods of high uncertainty like the one we’re in right now.
That’s why tomorrow, Tuesday October 14, at 11 a.m. Eastern…
I’m going LIVE to reveal a powerful method for sniffing out these big leveraged trades…
So we can use them to position ourselves in the most explosive trades that almost no one knows about.
This method has helped us spot gains of 118% in 2 days, 207% in 5 days, and even 519% in just 60 days…
Even in the middle of the trade war bloodbath back in March and April this year.
And with renewed tariff and trade war volatility rearing its head once more…
You need to have this method in your arsenal.
So click here to secure your seat for my live reveal tomorrow…
And I’ll see you Tuesday morning at 11 a.m. ET sharp.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: https://apps.apple.com/us/app/goto/id1465614785
Android: https://play.google.com/store/search?q=goto&c=apps
Customer Story of the Day
“Ross and the Traders Agency team are trustworthy.
I watched from the sidelines for several months, before joining. My wife was still skeptical after I signed up.
But now, after a month in, she sees the gains I am getting and she’s becoming much more optimistic. This is important to me, because I have signed up for other services that didn’t work.
Ross’ strategy is the best (and most consistent) I have ever used. I appreciate his straightforward approach to teaching.
He’s clear and easy to understand.
I currently have The Insider Effect and Alpha Stocks. I am looking forward to the future, when I can also sign up for The Black Edge and Fire Traders.
Thank you Traders Agency for helping me and all the other “little guys” out there.”
Ross Givens
Editor, Stock Surge Daily
