🚀 BITCOIN ERUPTS PAST $91K AS TRUMP IGNITES FED SHOWDOWN & AI WARS HEAT UP

⚡ MARKET SNAPSHOT: WHAT YOU NEED TO KNOW

The Playing Field Has Changed Overnight

After a volatile Tuesday that saw Bitcoin crash below $84K before rocketing back above $91K, markets enter Wednesday with renewed momentum and multiple catalysts converging. Trump's public criticism of Fed Chair Powell, Amazon's surprise AI chip announcement, and high-stakes Russia-US diplomatic talks are creating tradeable volatility across every asset class.

Key Overnight Developments:

• 📈 Bitcoin: Explosive $91K+ reclaim (+6.8% daily move) - biggest single-day gain since May

• 🎯 Trump vs Powell: President demands rate cuts, calls Powell "incompetent," announces new Fed Chair pick "early next year"

• 💻 Amazon AI Bombshell: New custom chips claim cost advantage over Nvidia, stock at $234

• 🤝 Geopolitical Shift: Putin meeting with US envoy Witkoff and Kushner on Ukraine peace talks

• 📊 S&P 500: Holding $680 support, Santa rally hopes vs Fed uncertainty

• 🔥 Ethereum: Reclaimed $3,000 milestone overnight

🎯 TOP CATALYSTS DRIVING WEDNESDAY'S MARKET

1. TRUMP'S FED ASSAULT & RATE CUT DEMANDS 🔴

The Setup: President Trump escalated his attacks on Jerome Powell during a Cabinet meeting Tuesday, calling him "a real dope" and stating "even Dimon said Powell should reduce rates."

Market Impact:

• Treasury Secretary Bessent doesn't want Fed job (confirmed by Trump)

• New Fed Chair announcement "early next year"

• Trump: "I believe in the near future you won't have income tax to pay"

• Substantial tax refunds coming Q1 2026 (Bessent)

Trading Edge: Rate cut expectations are building despite Fed's hawkish stance. This creates volatility in rate-sensitive sectors and crypto.

2. AMAZON'S AI CHIP WARS ESCALATE ⚡

The Catalyst: Amazon rushed out its latest AI chip to take on Nvidia and Google, claiming "more cost effective than Nvidia's" chips.

Key Developments:

• Amazon (AMZN): $233.88 (+0.28%) - New AI chips challenge Nvidia dominance

• Nvidia (NVDA): $181.77 - CFO states "Absolutely not" losing AI lead

• $500B+ bookings for Blackwell & Rubin chips through 2026 (doesn't include OpenAI work)

• AWS expanding full-stack partnership with Nvidia despite chip competition

Trading Opportunity: This creates a both can win scenario - cloud infrastructure spending remains robust.

3. BITCOIN'S VIOLENT COMEBACK 🚀

The Move: BTC crashed to $84K before exploding back to $91K+ in hours - classic stop-loss hunt followed by squeeze.

Why It Matters:

• BlackRock's IBIT: $1.8B volume in first 2 hours of trading Tuesday

• Extreme Fear reading (23/100) often marks bottoms

• Larry Fink: "Tokenization today is roughly where the internet was in 1996"

• MicroStrategy: Would consider lending Bitcoin in future

Key Levels for Wednesday:

• Resistance: $91,000-$93,000 (must reclaim)

• Support: $86,000 (critical hold), $83,000-$85,000 (backup)

4. PUTIN-TRUMP ENVOY TALKS 🌍

The Headline: Putin meeting with US envoy Witkoff and Trump's son-in-law Kushner in Moscow.

Market Angle:

• Trump: "Ukraine not an easy situation; our people are over in Russia right now trying to settle"

• "I think, hope we're going to end Russia and Ukraine war"

• Energy sector implications if peace deal emerges

• Defense sector may see rotation

💰 SECTOR ANALYSIS & MONEY ROTATION

🟢 BULLISH SECTORS (Wednesday Focus)

1. Technology - AI Infrastructure ⭐⭐⭐⭐⭐

• Leader: NVDA $181.77, AMZN $234.88, GOOGL

• Why: Competing AI chip announcements signal acceleration, not saturation

• Play: Nvidia CFO dismisses competition threat, $500B+ bookings intact

2. Cryptocurrency & Digital Assets ⭐⭐⭐⭐⭐

• Leader: BTC $91K, ETH $3,000+, crypto-adjacent stocks

• Why: Extreme fear readings, institutional buying, Trump crypto-friendly policies

• Play: Bank of America suggests 4% portfolio allocation to crypto

3. Cloud Computing ⭐⭐⭐⭐

• Leader: AMZN $234.88, MSFT, GOOGL

• Why: AWS partnerships expanding, AI infrastructure demand insatiable

• Play: Amazon Web Services partnerships with Red Hat, Adobe deepening

4. Semiconductors ⭐⭐⭐⭐

• Leader: NVDA $181.77, AMD, INTC (+8% Tuesday)

• Why: Despite competition, AI chip demand far exceeds supply

• Play: Most new Nvidia chips adding infrastructure, not replacing

🔴 BEARISH/CAUTION SECTORS

1. Consumer Discretionary (Tariff Exposure)

• Walmart CFO: "Peak tariff impact likely Q1"

• Concern: Trump tariff refunds may not offset consumer pain

2. Traditional Retail (E-commerce Pressure)

• Amazon cutting European seller fees to fight Shein/Temu

• 30-minute delivery pilot threatens brick-and-mortar

3. Healthcare (Policy Uncertainty)

• Trump: "Something going to happen on healthcare, won't be easy"

• ACA subsidy extension uncertainty

🎲 HIGH-CONVICTION TRADES FOR WEDNESDAY

TRADE #1: NVDA - THE AI KING HOLDS COURT ⭐⭐⭐⭐⭐

Ticker: NVDA
Entry Zone: $180.00-$183.00
Current Price: $181.77
Targets: $190 (+4.5%), $200 (+10%)
Stop Loss: $176 (-3%)

Thesis:

• CFO confirms "absolutely not losing AI lead"

• $500B bookings through 2026 excludes new OpenAI work

• Most chips adding infrastructure, not replacing

• Amazon competition validates massive market size

• Partnerships with AWS, Mistral AI announced Tuesday

Catalyst: Any Amazon AI chip delays or Nvidia partnership news
Risk: Amazon chip adoption faster than expected
Conviction: 🔥🔥🔥🔥🔥 9/10

TRADE #2: BITCOIN - THE $93K BREAKOUT ⭐⭐⭐⭐⭐

Asset: BTC/USD
Entry Zone: $89,000-$91,000
Current Price: ~$91,000
Targets: $93,000 (+2%), $97,000 (+6.5%)
Stop Loss: $85,500 (-6%)

Thesis:

• Reclaimed $90K after violent shakeout = strength

• BlackRock IBIT: $1.8B volume shows institutional conviction

• Extreme Fear (23/100) - contrarian buy signal

• Trump pro-crypto stance removes regulatory overhang

• Larry Fink's "internet 1996" comment signals long-term conviction

Catalyst: Fed rate cut hints, Trump crypto policy announcements
Risk: December historically weak for BTC
Conviction: 🔥🔥🔥🔥 8.5/10

TRADE #3: AMAZON - THE SILENT AI GIANT ⭐⭐⭐⭐

Ticker: AMZN
Entry Zone: $232-$236
Current Price: $234.88
Targets: $245 (+4.3%), $255 (+8.5%)
Stop Loss: $228 (-3%)

Thesis:

• New AI chips expand moat, don't cannibalize Nvidia orders

• AWS partnerships accelerating (Red Hat, Adobe, Visa, BlackRock)

• 30-minute delivery pilot = margin expansion opportunity

• Wall Street targets cluster $295-$305 (+26-30% upside)

• European fee cuts strategic move vs Shein/Temu

Catalyst: AWS re:Invent updates, holiday sales data
Risk: AI chip production delays
Conviction: 🔥🔥🔥🔥 8/10

TRADE #4: ETHEREUM - THE $3,200 RECLAIM ⭐⭐⭐⭐

Asset: ETH/USD
Entry Zone: $2,950-$3,050
Current Price: ~$3,000
Targets: $3,200 (+7%), $3,500 (+17%)
Stop Loss: $2,850 (-5%)

Thesis:

• Just reclaimed psychologically important $3,000

• Fusaka upgrade December 3 (TODAY) - reduces L2 fees ~95%

• 450K+ ETH accumulated by institutions since October

• Cardano added to Franklin Crypto Index ETF = altcoin tailwinds

• Spot ETF decision for Grayscale coming January 10, 2026

Catalyst: Successful Fusaka upgrade, spot ETF approval hopes
Risk: Failed upgrade, macro headwinds
Conviction: 🔥🔥🔥🔥 8/10

TRADE #5: INTEL - THE TURNAROUND PLAY ⭐⭐⭐

Ticker: INTC
Entry Zone: Current levels (+8% move Tuesday)
Tuesday Close: Up 8% (specific price needs verification)
Targets: +15% from Tuesday close
Stop Loss: -5% from entry

Thesis:

• Massive Tuesday surge (+8%) on no specific news = insider buying?

• Potential M&A speculation building

• Contrarian play vs Nvidia dominance

• Government AI infrastructure contracts likely

Catalyst: M&A rumors, government contract wins
Risk: High volatility, no concrete catalyst yet
Conviction: 🔥🔥🔥 6.5/10 (speculative)

🌐 GEOPOLITICAL & TRUMP TRADING EDGE

TRUMP MOMENTUM TRADES 🇺🇸

Based on Tuesday's White House announcements and market-moving statements:

1. Defense Contractors (Ukraine Peace Angle)

• Setup: Putin-Trump envoy talks could signal conflict wind-down

• Plays: Monitor LMT, RTX, NOC for rotation OUT if peace seems likely

• Contrarian: Energy infrastructure plays if sanctions lifted

2. Auto Sector (Fuel Economy Rollback) 🚗

• Headline: "Trump to announce proposed rollback in auto fuel economy rules Wednesday"

• Direct Beneficiaries: Ford (F), GM (GM) executives meeting at White House

• Trade: F, GM calls for Thursday expiry on rollback announcement

3. Agriculture (Soybean China Deal) 🌾

• Trump: "Thanks Xi for soybean purchases"

• Announcement: "Bridge payment for farmers next week"

• Plays: MOO (agriculture ETF), ADM, BG

4. Crypto-Friendly Policy 💎

• Trump: Generally pro-crypto administration

• Plays: MSTR (proxy for Bitcoin), COIN, RIOT, MARA

• MicroStrategy: CEO would "consider lending Bitcoin in future"

📊 SPY/MARKET TECHNICAL SETUP

Current Level: $680.27 (December 1 close)
Overnight: $680.14 after-hours

Key Levels Wednesday:

• Resistance: $685 (DeMark breakout level), $690 (year highs)

• Support: $680 (must hold), $675 (backup), $670 (critical)

Technical View:

• All moving averages point to "Strong Buy"

• December historically 3rd best month for S&P 500

• Santa Rally vs Fed uncertainty creates volatility

• Ed Yardeni: S&P could hit 7,000 "this week" if gains 2%+

Sector Performance (Tuesday):

• ✅ Technology: +1.02%

• ✅ Industrials: +0.75%

• ✅ Communication: +0.21%

• ✅ Financials: +0.02%

• ❌ Consumer Discretionary: -0.32%

• ❌ Real Estate: -0.41%

💬 DISCORD & SOCIAL SENTIMENT ANALYSIS

Hot Takes from the Trading Community:

Bullish Signals:

• JustByAI calls on $NVDA and $ORCL

• Multiple $BTC breakout celebrations at $90K+

• Watcher.Guru highlighting institutional flows

Market Positioning:

• Fear & Greed Index: 28/100 (Fear) - stocks oversold?

• Crypto Fear & Greed: 23/100 (Extreme Fear) - buy signal?

• Money-market assets: $8T+ for first time (dry powder)

Consensus View: Market overcorrected in early December. Extreme fear readings historically mark turning points. Institutional money sitting in cash waiting for entry.

📅 ECONOMIC CALENDAR WATCH (This Week)

Wednesday, December 3:

• No major economic releases

• Ethereum Fusaka Upgrade (major crypto catalyst)

• Trump auto fuel economy rollback announcement

• Watch for Fed Chair pick hints

Thursday, December 4:

• Initial Jobless Claims

• ISM Services PMI

• Monitor trade policy announcements

Friday, December 5:

• November Jobs Report 📊 (MAJOR)

• Unemployment Rate

• Average Hourly Earnings

🎯 ACTIONABLE GAME PLAN FOR DECEMBER 3

OPENING BELL STRATEGY (9:30 AM ET)

IF SPY OPENS ABOVE $682:

• ✅ Bias: Bullish continuation

• ✅ Watch: Tech sector leadership (NVDA, AMZN, GOOGL)

• ✅ Play: Long tech calls, Bitcoin continuation to $93K

IF SPY OPENS BELOW $678:

• ⚠️ Bias: Defensive rotation

• ⚠️ Watch: Put/call ratio spike, VIX above 17

• ⚠️ Play: Hedge positions, wait for bounce confirmation

MID-DAY PIVOT (11:00 AM - 2:00 PM ET)

• Monitor Trump announcements (auto sector)

• Watch Bitcoin hold $90K vs breakdown

• Amazon AWS news flow from ongoing re:Invent

• Nvidia partnership announcements possible

POWER HOUR (3:00-4:00 PM ET)

• Institutional positioning for Thursday

• Watch for late-day crypto pump/dump

• End-of-day options settlement impacts

🔥 OPTIONS FLOW & UNUSUAL ACTIVITY

Tuesday's Notable Flows:

• Heavy call buying in NVDA Dec 6 $185 strikes

• AMZN call spreads targeting $240-$250

• SPY put buying at $675 (protection)

• Bitcoin futures open interest surging

Wednesday Watch List:

• NVDA: $185-$190 call walls

• AMZN: $240 gamma wall

• F, GM: Call interest building on Trump news

• COIN, MSTR: Crypto proxy volatility

📰 EARNINGS & CONFERENCE SPOTLIGHT

After-Hours Tuesday:

• Applied Materials CFO: No incremental China restrictions expected 2026

• Walmart CFO: Peak tariff impact Q1

• Coca-Cola: FY26 guidance 4-6% growth

This Week's Watchlist:

• Monitor ongoing AWS re:Invent conference

• Trump Cabinet meetings = policy announcements

💎 CRYPTO DEEP DIVE

Bitcoin Analysis 🟠

Current: ~$91,000
24H Range: $84,000 - $91,000
Trend: Explosive recovery from Monday lows

Key Developments:

• BlackRock IBIT: $1.8B volume in 2 hours (Tuesday)

• Larry Fink: Tokenization = "internet 1996"

• Bank of America: Clients should allocate 4% to crypto

• Trump pro-crypto administration = regulatory tailwinds

Levels to Watch:

• $93,000: Major resistance, breakout level

• $97,000: Key level to flip bullish structure

• $86,000: Support, must hold

• $80,000: Critical "last floor" per analysts

Ethereum Update 💜

Current: ~$3,000
Catalyst: FUSAKA UPGRADE TODAY (Dec 3)

Why It Matters:

• Expands blob capacity 6→14-21 per block

• Reduces Layer-2 fees by ~95%

• Could process 1M+ TPS via L2s by 2026

• 450K+ ETH accumulated by institutions since October

Price Path:

• $3,200: First resistance, confirmation level

• $3,500-$4,000: December targets if upgrade succeeds

• $2,850: Stop-loss level

Altcoin Momentum 🌈

• Cardano (ADA): Added to Franklin Crypto Index ETF

• Solana (SOL): Holding strength

• XRP: Regulatory clarity hopes building

• Flow Foundation developing Stablecoin Protocol

🏛️ WHITE HOUSE & POLICY IMPACT

Tuesday's Market-Moving Statements:

1. Federal Reserve & Monetary Policy:

• Trump: "Will announce new Fed Chair early next year"

• "Fed Chair should reduce rates"

• "Even Dimon said Powell should reduce rates"

• Bessent: "Inflation going to roll next year"

• Bessent: "US will have low-inflationary growth"

2. Fiscal Policy Bombshells:

• Trump: "I believe in near future you won't have income tax to pay"

• "We're going to give refunds out of tariffs"

• Bessent: "Substantial tax refunds coming Q1 2026"

3. Trade & Agriculture:

• "Thanks Xi for soybean purchases"

• Agriculture Secretary announces bridge payment for farmers next week

4. Auto Sector:

• Wednesday announcement: Fuel economy rollback

• GM, Ford executives meeting at White House

5. Geopolitics:

• Ukraine peace talks with Putin's team

• "Hope we're going to end Russia-Ukraine war"

• Defense Secretary: "Only begun striking narco-traffickers"

🎲 RISK FACTORS TO MONITOR

⚠️ Immediate Threats:

1. Fed Hawks Pushback: Powell may resist Trump pressure publicly

2. Bitcoin December Curse: Historically weak month, November-December weakness pattern

3. Amazon Chip Execution Risk: If costs not actually lower than Nvidia

4. Ukraine Talks Fail: Geopolitical premium returns

5. Jobs Report Friday: Could reset rate cut timeline

🔒 Portfolio Protection:

• Keep stops tight (3-5% max on individual names)

• Reduce position sizes in extreme volatility

• Hedge SPY longs with $675 puts if concerned

• Don't chase Bitcoin above $93K without confirmation

🎯 FINAL THOUGHTS & TRADING DISCIPLINE

The Market Thesis:

We're entering a critical juncture where multiple high-impact catalysts are converging:

1. Crypto bottoming process after violent shakeout

2. AI infrastructure spending acceleration (not saturation)

3. Trump political intervention in Fed policy

4. Geopolitical shifts with Russia-Ukraine talks

5. Year-end positioning ahead of Santa Rally season

The trade here is controlled aggression:

• Scale into high-conviction setups (NVDA, BTC, AMZN)

• Use extreme fear readings as buy signals

• Respect technical levels and stop-losses

• Stay flexible - Trump policy can change instantly

What Sets DCG Traders Apart:

✅ We trade the news, not our opinions
✅ We scale positions based on conviction
✅ We protect capital with disciplined stops
✅ We recognize when the market structure changes

Tomorrow's focus: Bitcoin holding $90K, Nvidia defending AI dominance, Amazon chip execution, Trump auto rollback reaction.

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📌 TOMORROW'S WATCHLIST SUMMARY

Must-Watch Tickers:

• NVDA ($181.77) - AI king defending throne

• AMZN ($234.88) - Cloud + AI chip combo

• BTC ($91,000) - Critical $93K breakout test

• ETH ($3,000) - Fusaka upgrade execution

• SPY ($680.27) - Market direction setter

• F, GM - Trump auto policy beneficiaries

• COIN, MSTR - Crypto proxies for stock traders

Key Events:

• ⏰ 9:30 AM: Market open (watch gap direction)

• 🔧 Today: Ethereum Fusaka upgrade

• 🏛️ TBD: Trump auto policy announcement

• 📊 All Day: Monitor Trump Fed comments impact

⚡ FINAL CALL TO ACTION

Wednesday's Trade:

The setup is clear - extreme fear in crypto markets, Trump pressuring the Fed, AI wars heating up, and geopolitical shifts underway. This is where disciplined traders make their year.

Focus on:

1. Bitcoin's $93K breakout attempt

2. Nvidia's response to Amazon competition

3. SPY holding $680 support

4. Ethereum's upgrade execution

Remember: The best trades often feel uncomfortable. Buying fear and selling greed is how wealth is built.

Stay sharp. Trade smart. Protect your capital.

This newsletter is for informational and educational purposes only. All trades carry risk. Never risk more than you can afford to lose. Past performance does not guarantee future results. Always do your own research and consider consulting with a financial advisor.

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"In trading, it's not about being right - it's about making money. The market doesn't care about your opinion, only your execution." - DCG Trading Philosophy

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