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- ๐จ BREAKING: Bitcoin Crashes Below $70K as Tech Rout Intensifies - Critical Trading Levels for Thursday's Session ๐
๐จ BREAKING: Bitcoin Crashes Below $70K as Tech Rout Intensifies - Critical Trading Levels for Thursday's Session ๐
DCG COMMAND CENTER | Market Intelligence Report |Thursday, February 5, 2026 | Pre-Market Analysis |URGENT MARKET UPDATE: Bitcoin plunges to 16-month lows โข Silver crashes 16% โข Alphabet disappoints on capex guidance โข Memory shortage hits chip stocks
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โก KEY THINGS TO KNOW BEFORE THE BELL
๐ด EXTREME RISK-OFF MODE ACTIVATED
Bitcoin breached $70K for first time since November 2024, now trading at $71,419
S&P 500 futures at 6,920 showing technical weakness after two-day selloff
Crypto Fear & Greed Index hits 15 (Extreme Fear)
Dollar strength crushing commodities: Silver down 16%, Gold falling
๐ STANDOUT OPPORTUNITIES
NIO announces FIRST EVER quarterly adjusted operating profit (RMB 700M-1,200M)
Consumer Staples seeing best start since 1997 - defensive rotation accelerating
Yield curve steepening to 4-year highs signals major cycle transition
Trump 7pm announcement Thursday could trigger volatility spike
โ ๏ธ MAJOR RISKS
Tech sector bleeding: Alphabet down 2.7% after-hours on $185B capex shock
Qualcomm plunges 10% on memory shortage guidance miss
Over $5.4B in crypto liquidations since Jan 29
VIX elevated at 18.00, up 10.16%
๐ OVERNIGHT MARKET SNAPSHOT
Futures Pre-Market (6:45 AM ET)
S&P 500 ($ES): 6,920.25 (+4.50, +0.06%)
Nasdaq 100 ($NQ): Underperforming, tech weakness persists
Dow Futures: 49,371 (+21, +0.04%)
Russell 2000: 2,656.40 (-0.40, -0.02%)
Key Levels - S&P 500 Futures
Resistance: 6,965 (overnight high), 7,020 (gap fill target)
Support: 6,862 (critical overnight low), 6,810 (200-day MA breach level)
Pivot: 6,915 - Break below = retest of February lows
Crypto Carnage Continues
Bitcoin: $71,419 (-7.07% / -$5,411)
Broke below $70K support - first time since Nov 2024
Next support: $68,898 (Nov 6, 2024 low)
Heavy resistance now at $74,000-$76,000
Ethereum: $2,107 (-7.44%)
Solana: $90.99 (-8.08%)
Total Crypto Market Cap: $2.39T (-7.18%)
Precious Metals Bloodbath
Gold: $5,061 (+2.55% recovering from panic selling)
Silver: Recovering after historic 16% single-day crash (worst since March 1980)
USD Index: 98.00 - Highest since January 22, 2026
๐ฏ HIGH-CONVICTION TRADING IDEAS
๐ฅ TRADE #1: NIO ($NIO) - BREAKOUT MOMENTUM
Rating: โญโญโญโญโญ (9.5/10 Conviction)
Price Action: $5.14 (After-hours: +9.0% spike on profit alert)
BULLISH CATALYST:
FIRST QUARTERLY ADJUSTED OPERATING PROFIT in company history
Q4 2025: RMB 700M-1,200M adjusted operating income ($100M-$172M)
Q4 2025 GAAP operating profit: RMB 200M-700M
Record deliveries: 124,807 vehicles (+71.7% YoY)
Strong vehicle margins + favorable product mix
Trade Setup:
Entry Zone: $5.00-$5.25 (current $5.14)
Target 1: $5.75 (+12%) - Gap fill to December resistance
Target 2: $6.50 (+26.5%) - Previous support turned resistance
Stop Loss: $4.65 (-9.5%) - Below pre-announcement levels
Risk/Reward: 1:2.7
Why This Works: This is a structural shift for NIO - first profitability milestone. Chinese EV consolidation benefits top-tier players. BofA downgrade cycle complete. Sympathy plays: XPEV, LI Auto could follow.
Options Play: $NIO Mar 21 $6 Calls (high risk, high reward on momentum continuation)
๐ฅ TRADE #2: Consumer Staples Rotation ($XLP)
Rating: โญโญโญโญ (8/10 Conviction)
DEFENSIVE ROTATION THESIS:
Consumer Staples having best start since 1997
4-week avg net flows as % of market cap at ALL-TIME HIGH (BofA data)
Tech-to-staples rotation accelerating amid AI uncertainty
Flight to quality as yield curve steepens (2s10s at +0.60%)
Top Holdings to Watch:
Procter & Gamble ($PG): Dividend aristocrat, defensive leader
Coca-Cola ($KO): Recession-resistant, international exposure
Walmart ($WMT): Consumer spending proxy, e-commerce growth
Costco ($COST): Premium consumer, membership strength
Trade Setup:
Entry: On any dip in XLP ETF or individual names
Target: 5-8% move over next 2 weeks
Thesis: Sustained rotation + earnings support
๐ฅ TRADE #3: Alphabet Dip Buy - Contrarian ($GOOGL)
Rating: โญโญโญโญ (7.5/10 Conviction - Higher Risk)
Price: $331.71 (After-hours, -2.7% from $333.04 close)
CONTRARIAN SETUP: Despite after-hours selloff, fundamental beat on Q4:
EPS: $2.82 vs $2.65 est (+6.5% beat)
Revenue: $113.8B vs $111.4B est (+18% YoY)
Google Cloud: Revenue up 48% YoY
Gemini 3 momentum: 750M monthly active users
Why the Selloff?:
2026 Capex guidance: $175-185B (vs $119.5B consensus) - MASSIVE beat
Market fears AI investment won't pay off
Microsoft's 23% drop post-earnings created sector fear
Contrarian Case:
Capex = Future moat in AI infrastructure
Cloud growth validates AI investment thesis
Search + YouTube still printing money
Multiple analyst upgrades: JPM to $395, Pivotal to $420
Trade Setup:
Entry Zone: $325-$335 (wait for dust to settle)
Target 1: $360 (+8-10%)
Target 2: $395 (JPM PT, +19%)
Stop: $310 (-6.5%)
Timeline: 2-4 weeks for market to digest capex narrative
๐ฅ TRADE #4: Short Qualcomm ($QCOM) Sympathy Play
Rating: โญโญโญ (6.5/10 Conviction - Swing Short)
Price: $148.89 (Down from $167.62, -11% after earnings)
BEARISH CATALYST:
Memory shortage killing guidance: Q2 EPS $2.45-2.65 vs $2.80 est
Q2 Revenue $10.2-11B vs $11.6B consensus (MAJOR MISS)
BofA downgrades to Neutral on "weak handset market"
Smartphone supply constrained through 2026
Short Setup (Advanced Traders Only):
Entry: $148-152 range
Target 1: $138 (-7%)
Target 2: $125 (-16%) - Major support level
Stop: $158 (+6%)
Alternative: Buy puts or avoid - memory shortage is real macro risk
๐ SECTOR ROTATION ANALYSIS
๐ข BULLISH SECTORS (Money Flowing IN)
1. Consumer Staples ($XLP) โญโญโญโญโญ
Performance: +1.30% (Best sector YTD)
Flow: All-time high 4-week flows
Catalyst: Defensive rotation, dividend safety
Top Names: PG, KO, WMT, COST, PEP
2. Energy ($XLE) โญโญโญโญ
Performance: +2.25%
Catalyst: Oil demand, geopolitical tensions
Watch: COP (new highs into earnings), XOM, CVX
3. Healthcare ($XLV) โญโญโญโญ
Performance: +1.25%
Catalyst: Bristol-Myers breakout ($BMY +25.67% over 6 months)
Earnings: EL (Estรฉe Lauder) reports today, BMY strong
4. Real Estate ($XLRE) โญโญโญ
Performance: +1.59%
Catalyst: Yield curve steepening, rate cut hopes
๐ด BEARISH SECTORS (Money Flowing OUT)
1. Technology ($XLK) โญ
Performance: -2.79% (WORST)
Catalyst: AI software fear, Alphabet capex shock, QCOM miss
Casualties: GOOGL -2.7%, QCOM -11%, software stocks -15%
Exception: NVDA +slight (AI infrastructure play)
2. Communication Services ($XLC) โญโญ
Performance: -3.31%
Catalyst: Meta/Google ad concerns, Netflix miss
Avoid: Advertising-dependent names
3. Consumer Discretionary ($XLY) โญโญ
Performance: -0.74%
Catalyst: Consumer spending concerns, Volvo -25% (worst day ever)
Mixed: AMZN stable, TSLA weak
๐ฐ CRYPTOCURRENCY MARKET INTELLIGENCE
๐ด EXTREME FEAR GRIPS CRYPTO MARKETS
Market Sentiment:
Fear & Greed Index: 15 (EXTREME FEAR)
$5.42B liquidated since January 29
Open interest at 9-month lows
Spot Bitcoin ETFs: $817M single-day outflow
Bitcoin Technical Breakdown:
Current: $71,419
Critical Support: $68,898 (Nov 6, 2024 low) - Must hold or $60K next
Resistance: $74,500 (failed bounce), $76,000 (major), $80,000 (key)
200-day EMA: Below it - bearish structure
Trading Range: Compressed $72K-$82K expected through Feb 9
Why Crypto is Crashing:
Macro pressure: Dollar strength, rising bond yields
Leverage flush: $2.56B single-day liquidation (Feb 1)
ETF outflows: Institutional selling accelerating
Risk-off: Correlation with tech stocks intensifying
Trump uncertainty: Policy shift concerns
Contrarian Opportunity?
WATCH $68,000-$70,000: Major accumulation zone historically
IF holds $68K: Potential 20-30% bounce to $85-90K
IF breaks $68K: $60K then $52K downside targets
Altcoin Cascade:
Ethereum breaking $2,000 would trigger alt-apocalypse
Solana support at $85, break = $70 target
Most alts down 25-35% from recent highs
Strategy: Wait for capitulation bottom or stay in stablecoins. Not the time for leverage.
๐ EARNINGS SPOTLIGHT - After Hours Winners/Losers
๐ข AFTER-HOURS WINNERS
1. NIO ($NIO) - Stock +9.0%
First quarterly profit ever
RMB 700M-1,200M adjusted operating income
Sympathy Plays: XPEV, LI Auto should gap up
Trade: Buy the open or wait for pullback to $5.00
2. Super Micro Computer ($SMCI) - Stock +13%
Q3 net sales forecast well above expectations
AI server demand strength
Follow-Through: Watch for continuation to $50+
3. Broadcom ($AVGO) - Slight gains
AI infrastructure beneficiary from GOOGL capex
Watch: Momentum play if tech stabilizes
๐ด AFTER-HOURS LOSERS
1. Qualcomm ($QCOM) - Stock -10%
Memory shortage crushing guidance
Q2 revenue/EPS significantly below consensus
Avoid: Further downside likely, memory issues persist
Short: Advanced traders only
2. Alphabet (GOOGL/GOOGL/ GOOGL/GOOG) - Stock -2.7%
Beat on earnings BUT capex shock ($185B vs $119.5B est)
Market fears AI spending bubble
Dip Buy: Contrarian opportunity for patient traders
3. AMD ($AMD) - Continues weakness from yesterday (-15%)
Q1 sales forecast seen as weak
Software AI fears spreading to hardware
Avoid: Catch falling knife risk
๐๏ธ TRUMP ADMINISTRATION & POLITICAL EDGE
๐จ BREAKING: Trump 7PM ET Announcement Thursday
What We Know:
Trump making "announcement" Thursday evening at 7PM ET
Speculation: Fed Chair nomination, economic policy, or market intervention
Market History: Trump announcements = volatility
Potential Scenarios:
๐ข BULLISH CATALYSTS:
Fed Chair Pick: Market-friendly nominee could rally stocks
Economic Stimulus: Infrastructure/tax policy announcements
Trade Deal Progress: Resolution on tariff tensions
Crypto Policy: Pro-crypto framework announcement
๐ด BEARISH CATALYSTS:
Tariff Escalation: New trade restrictions
Geopolitical Tensions: Military/foreign policy moves
Fed Criticism: Powell bashing could spook markets
Regulatory Crackdown: Unexpected sector-specific actions
Trading Strategy:
Before 7PM: Reduce position sizes, buy VIX hedges if long
After Announcement: Wait 15-30 min for initial reaction to digest
Volatility Play: Straddles on $SPY if you expect big move either direction
Trump Momentum Trades to Watch
Defense Sector (Golden Dome Focus):
$NLIGHT: Stifel raises PT to $60 (+36% upside) on Golden Dome contracts
Laser/Semiconductor Defense: Beneficiary of new military spending
Trump Media ($DJT):
Token distribution record date was Feb 2
Currently at $12.46 (-5.61% yesterday)
Avoid: Highly speculative, dilution concerns
๐ฐ BREAKING NEWS SYNTHESIS
Major Developments (Last 12 Hours)
๐ GEOPOLITICAL:
Iran Seizes Two Tankers in Gulf - Oil market impact minimal so far
Russia-Ukraine Prisoner Exchange: 314 prisoners, US-brokered deal
Erdogan: Saudi Arabia may invest in Turkey's KAAN fighter jet
UK PM Starmer: Epstein victim accountability pledges
๐ผ CORPORATE:
Apple ($AAPL): EU rules Ads & Maps exempt from DMA - Minor positive
Volvo: Crashes 25% (worst day ever) - European auto crisis
Netflix ($NFLX): Hit 52-week low on weak Q1 guidance
Tower Semi ($TSEM): NVIDIA partnership for AI infrastructure
๐ ECONOMIC:
Jobless Claims: 8:30 AM ET Thursday
JOLTS Report: 10:00 AM ET - Watch for labor market softening
Fed Bostic Speaks: 10:50 AM ET
๐ฒ MONEY ROTATION & HOT SECTORS
WHERE THE SMART MONEY IS MOVING
๐ CURRENT ROTATION PATTERN:
Tech โ Consumer Staples: Accelerating (all-time high flows)
Growth โ Value: Mid-caps outperforming (S&P 400 new highs-lows best since Nov)
Crypto โ Cash: Risk-off deleveraging
Software โ Infrastructure: DeepSeek fears crushing pure software
๐ฅ HOTTEST INTRADAY THEMES:
1. AI Infrastructure (NOT Software):
NVDA, AVGO benefiting from GOOGL capex
Tower Semi ($TSEM) + NVIDIA partnership
Buy: Pick-and-shovel AI plays, not AI software
2. Defensive Dividend Aristocrats:
Procter & Gamble, Coca-Cola, Johnson & Johnson
Buy: Quality dividends in uncertainty
3. Chinese EV Recovery:
NIO profit alert changing sentiment
Watch: XPEV, LI Auto for sympathy
Risk: Chinese market consolidation continues
4. Healthcare Breakouts:
Bristol-Myers ($BMY) breaking $57 resistance
Estรฉe Lauder ($EL) earnings today before open
Buy: Quality healthcare on earnings strength
๐ ECONOMIC CALENDAR - Thursday, February 5, 2026
Key Events Today
8:30 AM ET - ๐ด Jobless Claims
Consensus: 214K
Previous: 228K
Market Impact: HIGH - Labor market health critical for Fed
10:00 AM ET - ๐ด JOLTS Job Openings
Consensus: 7.60M
Previous: 7.74M
Market Impact: MEDIUM - Labor demand proxy
10:30 AM ET - EIA Natural Gas Report
Market Impact: LOW
10:50 AM ET - Fed Bostic Speaks
Market Impact: MEDIUM - Hawkish/dovish tone matters
11:00 AM ET - 3 & 6-Month Bill Announcement
Market Impact: LOW
7:00 PM ET - ๐จ TRUMP ANNOUNCEMENT
Market Impact: UNKNOWN - HIGH VOLATILITY RISK
Tomorrow (Friday, Feb 6) Preview
Non-Farm Payrolls: Most important data of the week
Setup for Friday: Labor market strength = higher rates = lower stocks?
๐ก TRADE STRATEGY & RISK MANAGEMENT
Today's Game Plan
PRE-MARKET (6:00-9:30 AM):
Monitor Trump announcement speculation - Could move pre-market
Watch Bitcoin $68-70K zone - Critical support test
Track futures reaction to jobless claims data
Gap analysis: GOOGL, QCOM, NIO opening price action
MARKET OPEN (9:30-10:00 AM):
First 15 minutes: Let volatility settle, NO FOMO
Watch sector rotation: Staples vs Tech relative strength
NIO entry: If gaps up big, wait for pullback to $5.00
GOOGL dip: Look for $325-330 entry if panic selling
MID-DAY (10:00 AM-2:00 PM):
JOLTS data reaction: Jobs market implications
Bostic speech analysis: Fed policy clues
Position sizing: Reduce ahead of Trump 7PM announcement
Consolidation trades: Range-bound setups in defensive sectors
CLOSE PREPARATION (2:00-4:00 PM):
Trump announcement hedging: VIX, puts, or cash raise
Swing positions: Evaluate overnight hold risk
Earnings after close: Review sympathy opportunities
AFTER HOURS (4:00 PM+):
7:00 PM Trump reaction: 15-30 minute delay before trading
Futures monitoring: Asia open reaction
Friday NFP positioning: Prepare for payrolls data
๐ฏ OVERALL MARKET STRATEGY
The Big Picture
MARKET REGIME: Transitional / High Uncertainty
Trend: Uptrend intact BUT showing cracks
Sentiment: Fear rising (VIX 18, crypto panic)
Positioning: Defensive rotation accelerating
BASE CASE SCENARIO (60% probability):
Chop between 6,850-6,980 on S&P futures
Tech continues to underperform
Defensive sectors outperform
Bitcoin finds bottom at $68-70K
Volatility remains elevated
BULL CASE (25% probability):
Trump announces major positive catalyst
Jobless claims show labor strength = consumer confidence
Tech stabilizes, GOOGL reverses
Bitcoin bounces hard off $68K
Target: S&P 7,020+
BEAR CASE (15% probability):
Trump announces negative surprise
Bitcoin breaks $68K decisively โ $60K target
Tech contagion spreads to broader market
Yield spike continues
Target: S&P 6,750-6,800 retest
๐ KEY TRADING RULES FOR TODAY
Position Management
SIZE DOWN: 50% normal size ahead of Trump announcement
WIDE STOPS: Volatility high, give trades room
TAKE PROFITS: Don't be greedy, 5-8% gains are wins
NO REVENGE TRADING: If stopped out, reassess don't reload
CASH IS A POSITION: 30-40% cash heading into uncertainty is smart
Risk Parameters
Max risk per trade: 1-2% of account
Max open positions: 3-4 (reduced from normal 5-7)
Stop loss discipline: NO EXCEPTIONS
Profit targets: Scale out (50% at Target 1, runner to Target 2)
๐ MASTERMIND INSIGHTS & COMMUNITY INTEL
Twitter/X Sentiment:
@WallStJesus: Bearish Bitcoin, watching $70K break
@MikeZaccardi: Highlighting consumer staples flows, historical comparisons
@JesseCohenInv: Trump announcement speculation dominating timeline
Consensus: Risk-off, defensive positioning
Discord/Community Buzz:
NIO profit alert = "holy grail" moment for Chinese EV longs
GOOGL dip-buying debate: Value trap or opportunity?
Crypto capitulation calls increasing
Trump 7PM = "Schrodinger's announcement" (could be anything)
Smart Money Moves:
BofA highlighting consumer staples ALL-TIME HIGH flows
Institutional rotating OUT of software/tech
Hedge funds buying VIX protection
Whales accumulating Bitcoin $68-70K range (on-chain data)
๐ EDUCATIONAL MOMENT
Understanding the Yield Curve Steepening
What's Happening:
2s10s spread hit +0.60% (steepest in 4+ years)
This is "un-inversion" - curve normalizing
Why It Matters:
Historic signal: Recessions typically follow un-inversion
Banking profits: Steeper curve = better bank margins
Economic cycle: Transition from late-cycle to recession watch
Market timing: Vol-mageddon anniversary (8 years ago) reminds us of rapid reversals
Trading Implications:
Financials: Could outperform if spread widens further
Volatility: Increased market instability likely
Defensives: Validated rotation thesis
Risk Assets: Under pressure until clarity emerges
๐ฎ WHAT TO WATCH TOMORROW (Friday, Feb 6)
Non-Farm Payrolls Setup
Market Focus: Jobs data most important of the week
Goldilocks Scenario: +150-200K (not too hot, not too cold)
Bull Case: <150K = soft landing, rate cuts coming
Bear Case: >250K = strong labor = higher rates longer
Weekend Risk
Trump Policy: Digest Thursday announcement
Geopolitical: Iran tanker seizures, Russia-Ukraine developments
Crypto: Critical $68K support test continues
Earnings: Extended-hours reactions to digest
๐ผ PORTFOLIO POSITIONING RECOMMENDATIONS
Suggested Allocation (Conservative)
Cash/Stablecoins: 35% (elevated for Trump announcement)
Long Equities: 40% (defensive-heavy: staples, healthcare)
Long Crypto: 10% (reduced from 20%, only if >$68K holds)
Hedges/VIX: 10% (protection for announcement)
Swing Trades: 5% (NIO, selective setups)
Aggressive Trader Allocation
Cash: 20%
Long Equities: 45% (include growth on dips)
Long Crypto: 15% (accumulation zone)
Short Positions: 10% (QCOM, selective tech)
Options: 10% (directional bets, event-driven)
๐ FINAL THOUGHTS & ACTION ITEMS
Today's Mission
PRIMARY OBJECTIVES:
โ Navigate Trump 7PM announcement safely
โ Capture NIO momentum if setup confirms
โ Build defensive staples positions
โ Monitor Bitcoin $68K support critically
โ Prepare for Friday NFP volatility
RISKS TO MANAGE:
Overtrading in volatile conditions
FOMO into gaps (NIO, others)
Ignoring stops due to "hope"
Oversizing before Trump announcement
Catching falling knives in tech
OPPORTUNITIES TO SEIZE:
NIO structural shift (first profit)
Consumer staples rotation continuation
GOOGL contrarian dip (patient capital)
Bitcoin capitulation zone ($68-70K)
Defensive sector strength
๐ฏ COMMUNITY CALL TO ACTION
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๐ DISCLAIMER
This newsletter is for educational and informational purposes only. Not financial advice. All trades carry risk. Past performance doesn't guarantee future results. Do your own research. Only trade with capital you can afford to lose. Price verification conducted through multiple sources as of 6:45 AM ET, February 5, 2026.
Sources:
Market prices: TradingView, Yahoo Finance, Bloomberg
Crypto data: CoinDesk, CoinMarketCap
News: CNBC, Reuters, Bloomberg, Financial Juice
Options flow: Unusual Whales, SpotGamma
Social sentiment: Twitter/X, Discord communities
DCG COMMAND CENTER | Market Intelligence & Trading Strategies Precision. Discipline. Profit.
Next Edition: Friday, February 6, 2026 (Post-NFP Analysis)
Questions? Feedback? Trade ideas? Connect with us on Twitter: @DCGCommand
Remember: The best trade is sometimes no trade. Patience pays. Risk management wins long-term.
๐ Set alerts for:
Bitcoin $68,000 and $74,000
S&P futures 6,850 and 6,980
VIX 20.00
Trump 7PM ET announcement
NIO $5.75 and $6.50 targets
May your stops be tight and your profits be large.
โก Trade smart. Trade safe. Trade DCG. โก


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