🔥 🚨 MASSIVE SECTOR ROTATION: AI Selloff Triggers Historic Cannabis Rally + Fed Rate Cut Aftershocks 🔥

⚡ KEY THINGS TO KNOW BEFORE THE BELL

1. TECH BLOODBATH FRIDAY → Oracle ($ORCL) down 15%, Broadcom ($AVGO) tanked 11%, dragging entire AI sector lower
2. CANNABIS MOONSHOT → Trump's Monday executive order expected to reclassify marijuana, $TLRY +39%, $MSOS +42%
3. ROTATION IN PLAY → Money flowing OUT of tech INTO industrials, financials, healthcare - DOW hitting records
4. FED HAWKISH → Only 2 cuts projected for 2026 (vs 4 expected), creating volatility across all sectors
5. YEAR-END POSITIONING → Institutional tax-loss selling + December OPEX creating extreme whipsaw action

📊 FRIDAY'S CLOSE - VERIFIED PRICES

Major Indices:

• SPY: $683.66 (-0.80%) | After Hours: $683.50

• QQQ: $616.55 (-1.44%) | After Hours: $616.45

• DIA: $486.32 (-0.32%) | Record highs mid-session

• IWM: $255.54 (-0.88%) | Russell holding strong

AI/Tech Carnage:

• NVDA: $177.48 (-2.5%) | Sympathy selloff from $ORCL/$AVGO

• ORCL: $188.07 (-15%) | Data center delays to 2028, later denied

• AVGO: $363.42 (-11%) | AI backlog disappointed bulls

• AMD: $211.61 (-4.43%) | Sector-wide pressure

• MU: $241.30 (-6.64%) | Memory chip weakness

• PLTR: Down 2% | Still outperforming on dips

Cannabis Explosion:

• TLRY: ~$10.50 (+39%) | Reverse split-adjusted

• MSOS ETF: $5.20 (+42%) | Biggest single-day gain ever

• CGC: $5.85 (+30%) | Canopy Growth soaring

• ACB: $5.10 (+21%) | Aurora breaking out

• IIPR: $127.80 (+12%) | Cannabis REIT benefiting

Crypto Markets:

• BTC: $92,276 (+1.41% Friday) | Range: $88K-$94K

• ETH: $3,235 (-3.37%) | Underperforming BTC

• Fear & Greed Index: 29 (FEAR) | Institutional caution

🎯 MONDAY'S TOP CATALYST TRADES

🌿 CANNABIS SECTOR - HIGHEST CONVICTION

PRIMARY CATALYST: Trump expected to sign executive order MONDAY reclassifying marijuana from Schedule I to Schedule III

Why This Matters:

• Allows banks to service cannabis companies (HUGE)

• Lower tax burden (280E relief)

• Easier access to institutional capital

• Potential uplisting to major exchanges

• DEA final rule by summer 2026

TOP PLAYS FOR MONDAY:

1. TLRY (Tilray Brands) ⭐⭐⭐⭐⭐

• Friday Close: $10.50 (post reverse-split)

• Entry Zone: $10.00-$10.80 on any morning dip

• Target 1: $12.50 (+19%) - Previous resistance

• Target 2: $15.00 (+43%) - Gap fill from split

• Stop Loss: $9.20 (-12%)

• Catalyst Timing: Executive order expected Monday AM

• Trade Type: Swing 3-5 days, could extend to Jan if EO signed

2. MSOS (AdvisorShares Pure US Cannabis ETF) ⭐⭐⭐⭐⭐

• Friday Close: $5.20

• Entry Zone: $5.00-$5.40

• Target 1: $6.50 (+25%) - August 2025 highs

• Target 2: $7.80 (+50%) - Year-end moonshot

• Stop Loss: $4.60 (-12%)

• Why: Pure-play US exposure, benefits most from rescheduling

3. CGC (Canopy Growth) ⭐⭐⭐⭐

• Friday Close: $5.85

• Entry Zone: $5.50-$6.10

• Target 1: $7.20 (+23%)

• Target 2: $8.50 (+45%)

• Stop Loss: $5.10 (-13%)

4. IIPR (Innovative Industrial Properties) ⭐⭐⭐⭐

• Friday Close: $127.80

• Entry Zone: $125-$132

• Target 1: $145 (+13%) - Cannabis REIT, dividends + growth

• Target 2: $160 (+25%)

• Stop Loss: $118 (-8%)

• Why: Real estate play, less volatile, income component

OPTIONS PLAY:

• MSOS Jan 17 $6 Calls - High risk/reward on Monday confirmation

• TLRY Jan 31 $12 Calls - Longer dated for executive order follow-through

🔧 TECH SECTOR - BOUNCE PLAYS (CONTRARIAN)

The Setup: Massive oversold conditions after Friday's -2% Nasdaq dump. VIX spiked then faded. Many calling "AI bubble burst" - likely premature.

KEY BOUNCE CANDIDATES:

1. AAPL (Apple) ⭐⭐⭐⭐⭐

• Friday Close: ~$243 (held green while everything tanked)

• Why: Relative strength = institutional buying

• Entry: $240-$245 on any Monday weakness

• Target: $252 (+3.7%) then $260 (+7%)

• Stop: $236 (-3%)

• Trade Rating: 9/10 - Safest tech play

2. NVDA (Nvidia) ⭐⭐⭐⭐

• Friday Close: $177.48

• Why: Sympathy selloff, NOT company-specific issue

• Entry: $175-$180

• Target 1: $185 (+4.2%)

• Target 2: $195 (+9.9%)

• Stop: $170 (-4.2%)

• Catalyst: China H200 chip sales approved (bullish)

• Trade Rating: 8/10 - High beta bounce play

3. ORCL (Oracle) - RISKY REVERSAL ⭐⭐⭐

• Friday Close: $188.07 (after -15% plunge)

• The Twist: Oracle DENIED delays, said "all milestones on track"

• Entry: $185-$195 (only if Monday confirms stabilization)

• Target: $210 (+11.7%) - Quick mean reversion

• Stop: $178 (-5.3%)

• Trade Rating: 6/10 - High risk, headline-driven

AVOID ON MONDAY:

• AVGO - Needs more time to digest -11% drop

• MU - Memory sector weakness, wait for $225 support test

• AMD - Below key moving averages, needs $210 reclaim

💎 CRYPTO MOMENTUM TRADES

BTC Setup: Consolidation at $92K after Fed cut volatility. Range-bound $88K-$94K.

BULLISH SCENARIO (60% probability):

• Break above $94K → Target $97K then $100K retest

• Fed hawkishness already priced in

• Year-end FOMO could ignite rally

BEARISH SCENARIO (40% probability):

• Break below $90K → Test $85K support

• Institutional ETF outflows continue (-$77M Friday)

TRADE:

• Long BTC at $90,500-$91,500 with tight $89,800 stop

• Target: $95,500 (+4.5%)

• Alt play: $MSTR $420-$440 entry for leveraged BTC exposure

CRYPTO BANKING CATALYST:

• OCC approved Ripple, BitGo, Fidelity, Paxos as national trust banks

• Bullish for XRP ($2.03) - watch for breakout above $2.15

📈 SECTOR ROTATION BREAKDOWN

🔴 BEARISH SECTORS (Avoid/Short)

Technology (-2.11%)

• Overweight positioning being unwound

• "AI fatigue" narrative gaining traction

• Wait for stabilization before re-entry

Communication Services

• Following tech lower

• Exception: Strong stocks like $META holding better

🟢 BULLISH SECTORS (Follow the Money)

Industrials (Record Highs)

• Dow leadership continuing

• Infrastructure spending themes

• Plays: $CAT, $DE, $BA

Financials (+0.21%)

• Rate cut cycle = margin expansion concerns fading

• Regional banks outperforming

• Plays: $JPM, $BAC, $GS

Healthcare (+0.08%)

• Defensive rotation

• Cannabis sub-sector exploding higher

• Plays: $LLY, $UNH, + cannabis stocks

Consumer Discretionary (+0.37%)

• Holiday spending resilient

• $LULU +9% on earnings - CEO transition catalyst

🎲 HIGH-PROBABILITY SWING TRADES

Earnings-Based Plays:

LULU (Lululemon) ⭐⭐⭐⭐

• Beat earnings, CEO McDonald departing

• Friday Close: ~$390 (+9%)

• Monday Setup: Look for $385-$395 consolidation

• Target: $415 (+6.4%) over 2-3 weeks

• Why: Retail strength + management change = upside

COST (Costco) ⭐⭐⭐⭐

• Beat earnings, $4.50 EPS vs $4.28 est

• Entry: Any dip to $675-$685

• Target: $710 (+5%)

• Safe harbor play in volatile market

Contrarian Value:

TSLA (Tesla) ⭐⭐⭐

• Held green Friday despite tech selloff

• Large call buying: $12M+ in weekly calls

• Entry: $440-$450

• Target: $475 (+7%) short-term

• Catalyst: SpaceX IPO rumors ($1.5T valuation 2026)

📰 KEY NEWS CATALYSTS FOR MONDAY

White House & Political:

1. Cannabis Executive Order - Expected Monday, could come pre-market

2. H-1B Visa Lawsuit - California suing over $100K fee (tech negative)

3. China Chip Sales - Trump approved NVDA H200 sales (bullish for semis)

Geopolitical:

1. Ukraine/Russia Tensions - Oil infrastructure attacks escalating

2. EU Freezes Russian Assets indefinitely - $300B+ frozen

3. Turkey Black Sea Concerns - 3 vessels damaged, oil shipping risk

Economic Reports Monday:

• Fed's Goolsbee spoke Friday: "Not saying we can't consider cuts for long time" but emphasized independence

• Next FOMC: No cuts expected until March 2026 at earliest

• Watch: Any Trump policy announcements

🎯 S&P FUTURES KEY LEVELS

ES (S&P 500 Futures):

• Resistance: 6,870 → 6,900

• Support: 6,805 (tested Friday) → 6,785 → 6,750

• Current: ~6,850 (testing major gamma node)

Gamma Exposure:

• SPY $690-$700: $1.3 BILLION in gamma - dealers will defend

• Expect: Choppy but range-bound unless catalyst

Strategy: Markets likely consolidate Monday AM, then react to:

1. Cannabis EO (if signed)

2. Weekend news flow

3. Institutional positioning into OPEX week

💰 OPTIONS FLOW HIGHLIGHTS

Bullish Flow:

• TSLA: $12M+ in 1-week calls, $460-$480 strikes

• SPY: $690/$700 strikes loaded with call gamma

• CAT: Large $500 Feb put sales ($6.65) = bullish positioning

• SLV: Bull risk reversal - May $45 puts sold, Jan $65 calls bought

Bearish Flow:

• NVDA: Most bearish flow Friday

• QQQ: 18K Jan 30 $560 puts bought at $4.10

• Tech broadly: Put protection being added across sector

Volatility:

• VIX: Spiked to 18.5 then faded to 16.8 by close

• Pattern: Every "elevator down" followed by squeeze = BUY THE DIP

🔮 TECHNICAL ANALYSIS

SPY ($683.66)

• Status: Testing 200-day MA support

• Key Level: $680 MUST hold for bulls

• Target: $695 recovery to trend

QQQ ($616.55)

• Status: Oversold, testing lower bound of expected move

• Support: $613 (Friday low) critical

• Resistance: $625 → $635

• Setup: Dead cat bounce likely Monday

BTC ($92,276)

• Range: $88K-$94K consolidation

• Breakout: Above $94,250 → $100K pathway

• Breakdown: Below $90K → $85K test

• Trend: Neutral with bearish undertones

🎪 MONEY ROTATION SIGNALS

FROM (Selling):

• Mega-cap tech (NVDA, ORCL, AVGO)

• High-multiple AI plays

• Overextended names

TO (Buying):

• Cannabis (policy catalyst)

• Industrials/Dow components

• Financials (higher-for-longer rates)

• Healthcare defensives

• Small/Mid caps ($MDY seeing rare call spreads)

The Pattern: Classic late-year sector rotation accelerated by AI concerns. NOT a bear market signal - just repositioning.

🏆 MASTERMIND INSIGHTS

From the Pros:

Jason (@3PeaksTrading):

• "$QQQ tested lower bound expected move at $613 - dealers defend these levels"

• "VIX fading from highs = bounce setup"

• "If you only own tech, you're too exposed to rotations"

The Long Investor:

• "We're not at the top - market can run hot into final 2026 earnings"

• "If you didn't sell during weakness, don't lose discipline now"

• "Want market correction in 2026 for buying opportunity"

Adam Mancini:

• "$ES 6805 hit exact, recoveries to 6838 key for bulls"

• "Every elevator down getting bought = bullish"

Shay Boloor:

• "Market transfers wealth from impatient to informed"

• "AI pullbacks are features, not bugs"

The Kobeissi Letter:

• "Global yield crisis brewing - 10yr yields at 2009 highs"

• "Era of cheap money for governments is over"

🚀 DCG COMMAND CENTER TOP 5 MONDAY PLAYS

1. MSOS ETF - Cannabis Sector Leader ⭐⭐⭐⭐⭐

Entry: $5.00-$5.40 | Target: $6.50 | Stop: $4.60
Conviction: 10/10 - Policy catalyst, pure-play exposure

2. TLRY - Tilray Brands ⭐⭐⭐⭐⭐

Entry: $10.00-$10.80 | Target: $12.50 | Stop: $9.20
Conviction: 9/10 - Executive order Monday, CEO optimistic

3. AAPL - Apple (Tech Bounce) ⭐⭐⭐⭐⭐

Entry: $240-$245 | Target: $252 | Stop: $236
Conviction: 9/10 - Relative strength, defensive tech

4. NVDA - Nvidia (Oversold) ⭐⭐⭐⭐

Entry: $175-$180 | Target: $185 | Stop: $170
Conviction: 8/10 - Sympathy selloff, not company-specific

5. BTC - Bitcoin ⭐⭐⭐⭐

Entry: $90,500-$91,500 | Target: $95,500 | Stop: $89,800
Conviction: 7/10 - Range trade, year-end positioning

⚠️ RISK MANAGEMENT

Position Sizing:

• Cannabis: Max 30% portfolio (high volatility)

• Tech bounce: 25% portfolio

• Crypto: 15% portfolio

• Cash: Keep 30% dry powder for opportunities

Stop Losses:

• MANDATORY on all positions

• Trail stops on runners (cannabis if EO confirmed)

• Don't chase - wait for entries

Watch For:

• White House "no final decision" on cannabis (like Friday's flip-flop)

• Any negative tech headlines over weekend

• Geopolitical escalation (oil risk)

📅 WEEK AHEAD

Monday 12/15:

• Cannabis EO watch (highest probability)

• Tech sector stabilization attempt

• Volume likely light (year-end positioning)

Tuesday-Thursday:

• Economic data: Retail sales, housing starts

• More earnings: FedEx, Accenture

• Fed blackout period continues

Friday 12/20:

• December OPEX (major)

• Quarterly rebalancing flows

• Typical year-end rally setup

💡 FINAL STRATEGY

For Monday:

1. Primary Focus: Cannabis sector on EO confirmation

2. Secondary: Tech bounce plays on quality names

3. Defensive: If market weak, stay cash/defensive sectors

4. Avoid: Chasing Friday's losers without confirmation

This Week:

• Position for year-end Santa Rally (typically last 5 days Dec + first 2 Jan)

• Current pullback creating entry points

• Sector rotation = opportunity, not crisis

Bull Case (70% probability):

• Cannabis EO confirmed → sector explodes higher

• Tech oversold → Mean reversion bounce

• Year-end flows → Market grinds higher

• Target: SPY $695-$700 by Dec 20

Bear Case (30% probability):

• Cannabis EO delayed → False breakout reversal

• Tech breakdown continues → SPY to $670

• Geopolitical shock → Risk-off spike

• Response: Raise cash, add hedges

🎓 LEVEL UP YOUR TRADING

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⚡ BOTTOM LINE

Friday's tech selloff created a MASSIVE opportunity in cannabis stocks heading into Monday's expected Trump executive order. This is a once-per-year catalyst - don't miss it.

Key Takeaway: Market is ROTATING, not collapsing. Follow the money from tech into cannabis, industrials, and financials. The traders who adapt win. The traders who complain lose.

Trade smart. Trade disciplined. Trade with conviction.

Disclaimer: This newsletter is for educational and informational purposes only. Not financial advice. Trade at your own risk. Past performance doesn't guarantee future results. Always do your own research and use proper risk management.

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