InvestAnswers
InvestAnswersMay 13
Crypto

🚨 Markets STILL Peaking?! AI & Crypto Trades I’m Watching RIGHT NOW šŸ‘€

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TL;DR

S&P 500 and QQQ hitting all-time highs despite geopolitical chaos and inflation — AI is the only driver keeping markets vertical, with Nvidia at $5.5 trillion market cap and Tesla poised to break $500.

Key Insights

1

Every AI chip stock — Nvidia, AMD, Broadcom, Micron — is hitting new all-time highs on the same day despite macro headwinds, signaling concentrated sector rotation rather than broad market strength.

2

PE of 13 on forward earnings — Micron's PE is 36 but forward earnings expectations are $60/share (implying PE of 13), with 60% gross margins and revenue growth accelerating — the valuation math still works despite the stock being up 1600-2000% from entry.

3

Saylor bought 5,000 BTC — Bitcoin is fighting the 200-day moving average as resistance (not support in a bull market), and Michael Saylor bought an estimated 5,000 BTC this week via MicroStrategy to capture the coming dividend.

4

$10 in 44 days — EOS hit the $10 target (actually $9.99) in 44 days instead of by year-end, with 154% earnings surprise and volume spike followed by immediate profit-taking at the psychological level.

5

54% of blockchain transactions — Solana processes 54% of all blockchain transactions, with new permissionless derivatives protocol Phoenix launching to compete against Hyperliquid — ecosystem consolidating around non-Ethereum chains.

6

Oil chopping sideways between $90-110 while equities hit all-time highs with multi-year inflation highs — 'most bizarre market conditions' in 36 years, explainable only by AI capex boom and copper demand.

Deep Dive

The Unstoppable AI Rally

Markets are in freefall upward. The S&P 500 is 744 on a daily chart, way above the 200-day moving average at 6,700, and there are zero sell signals. The QQQ is even more accelerated, breaking new all-time highs constantly with the ATR model confirming each spike. When you zoom out five years, it's going vertical. The geopolitical backdrop is ugly — Middle East war, spiking oil, multi-year inflation highs, a chaotic Fed — yet equities keep climbing. The only explanation is AI. Nvidia alone hit a $5.5 trillion market cap today, a level no company has ever touched. The stock broke out of its range, hit another new all-time high, and there's a sell signal on the bars but not on the line chart depending on how you slice the data. Jensen Huang is in China with the US president, and a big announcement is expected at 5 PM Pacific. The trend is perfectly up. Nvidia, AMD, Broadcom, Micron, Marvell, Google — all hitting new all-time highs on the same Wednesday, which is unusual since mid-week typically doesn't see this kind of strength.

Crypto & Solana Ecosystem Outperforming

Bitcoin is struggling but not collapsing. It's bouncing off the 200-day moving average, which acts as resistance in a bear market and support in a bull market. Traders are watching for a break above this line to confirm the bear is over. Michael Saylor is aggressively buying — the creator estimates he picked up at least 5,000 BTC this week via MicroStrategy to capture the upcoming dividend. The blue trend on daily is still up, but if it turns down, the 40,000 call becomes real. Ethereum is moving sideways and would be under $2,000 without Tom Lee's support. The real action is Solana and its ecosystem. Solana ETF flows are very strong, the chain processes 54% of all blockchain transactions, and it just hit $96 with Purr protocols returning to the ecosystem. A new perpetual DEX called Phoenix is launching to attack Hyperliquid's dominance. The creator calls Solana 'the easiest, safest 3x in crypto' and expects clarity act passage soon, which will benefit both Solana and Circle (USDC's issuer). EOS popped to $9.99 today, hitting the $10 year-end target in just 44 days. It had a 154% earnings surprise and the creator bought it in the 'kill zone' months ago as a double.

Stock-by-Stock Breakdown: The AI Capex Winners

Tesla bounced clean off a 330s support level (the old 'wedgie' from earlier calls) and the creator believes it will break $500 in the next three months. The trend is strong, it's 10% away from all-time highs, and it's above the 200-day moving average. Rotation is happening out of 'pick and shovel AI' (chip suppliers) into 'real baby AGI' (self-driving cars, Optimus robots). Micron is the standout. It broke another near all-time high at $815 today and is trading at $799.75. The mean reversion model shows it's four to five standard deviations overbought, yet it keeps ripping. Revenue growth is 'absolutely crazy,' profitability margins are 60%, and it's earning beats consistently. Forward earnings expectations are $60/share, implying a PE of just 13 despite current valuation. The creator's 2030 target of $1,200 looks sandbagged. Broadcom is running out of steam with a sell signal and mean reversion turning down — could pull back to $350. AMD hit $460 with a clear sell signal on the 4-hour confluence model, but the trend hasn't turned yet. Marvell is marvelous, up 1,600-2,000%, hitting $182 today with strong trend and financials that have flipped from sketchy to solid as the market realizes capex players need its components. Google hit nearly $5 trillion market cap, another new all-time high, with a big bag of Anthropic, SpaceX stakes, and TPU business driving demand. Alabaster is a range trader bouncing between $185-235 in options-friendly action, with stiff resistance at $232-235.

Copper, Palantir & Micro Strategy Setups

Copper hit a new all-time high again today — the only precious metal the creator owns. In 36 years of markets, he's never seen anything like this. Copper is the beneficiary of the AI capex boom because AI infrastructure needs massive amounts of copper for wiring and connections. The demand for copper over the next three to five years will exceed global mining capacity. He doesn't like buying at tops, so he got leaps two to three years out as a play. Palantir touched the 'kill box' at $128 today and bounced to $130. The creator showed 11 separate candle penetrations of this kill zone, proving its reliability as support. For new buyers, $128 is good risk-reward; the low $100s would be even better. The key is layering in — don't chase, buy dips. Micro Strategy has been choppy sideways despite clean buy signals off the 200-week. Saylor is ATMing (at-the-market offering) to raise capital and then STRCing (issuing shares to buy Bitcoin) to avoid ATM dilution. If he bought 5,000 BTC this week as estimated, that's sat accretion for shareholders. Late buyers at $450 are still upset, but the creator has been holding since $16 in 2020 and again buying in the bear at $12-16. Current price $178. Bitcoin's slight after-hours pop is helping MSTR in AH trading.

Technical Tooling & Viewer Q&A

The creator explained his go-to technical indicators: the ATR model (shows when markets changed), the confluence model (catches sell/buy tops and bottoms), trend models, and mean reversion overlays. He showed how to backtest the confluence model by starting from a major market bottom (November 2022 in this case) to avoid corruption from ATM activity that compresses price action. On Hims, a viewer asked for an update. The financials are deteriorating: flat revenue last three quarters, moving from profitable to losing money. That's why the stock gets punished — markets hate profitability reversals. The chart is ugly, struggling at ATR level two ($27-28), and falls to level four. He'd wait for $17 or $20 to nibble, but the deal with Novo Nordisk on weight-loss drugs (Ozempic, Wegovy) is the lynchpin. On Solana's lack of an on-chain indicator like Bitcoin's, he explained that Bitcoin's Tabby includes 21 on-chain metrics (PI cycle, pool dominance, NVTs, miner behavior, holder balances). Solana data is maturing but isn't mature enough yet; in five years when it has comparable depth, a Tabby equivalent could be built. On copper, he reiterated that $620 is old resistance to watch for nibbles; below $530 is a hard buy. On EOS's dump after hitting $10, he showed the Smart Volume Profile (SVP) — blue is buying, pink/red is selling. The point of control at $8.90 is where action clusters. Never buy above it; always wait for mean reversion below. At $10, sellers arrived in earnest (profit-taking at the psychological level), dumping hard especially at $8.88. He's experimenting with pair trading EOS against Tesla as a hedge strategy.

Takeaways

  • āœ“Buy Micron and Solana on any 5-10% dips — Micron's forward PE is 13 despite looking overbought, and Solana has clarity act tailwinds coming.
  • āœ“Layer into positions across three tiers: first 25% at initial level, second 50% on a dip, third 25% on a larger drop — never go all-in on the first buy.
  • āœ“Tesla targeting $500 in three months based on trend strength and rotation into AGI plays (Optimus, self-driving); watch the $330 support.
  • āœ“Wait for mean reversion below the point of control before buying volatile small-caps like EOS — $10 was profit-taking, not accumulation.

Key moments

0:07S&P 500 defying all logic

ā€œWe have a war in the Middle East, we have spike in oil prices, we have inflation at multi-year highs, the Fed is in shambles, and the S&P 500 keeps making new all-time highsā€

5:30Nvidia hits $5.5 trillion

ā€œNvidia hit another new all-time high today and the market cap hit 5.5 trillion. No company on earth ever hit $5.5 trillion mark capā€

11:00Micron's forward PE is 13

ā€œThe expectation for this next earnings call is 60 bucks a share. Multiply that by four, you get 240. It's trading at 800 means the PE is about fiveā€

16:56EOS hits $10 in 44 days

ā€œIt hit $9.99 today. I can't even... Basically I give myself that win except it happened way sooner than expected. I gave it till the year end and we hit $10 within 44 days or soā€

26:00Never buy above the point of control

ā€œNever ever ever ever ever ever ever buy anything above the point of control. Always wait because it will mean revert below the point of controlā€

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