Well, that certainly escalated quickly, as the Nasdaq, and most of its highflying mega-tech components, are absolutely puking, as SoftBank’s Masayoshi Son’s massive “gamma squeeze” appears to be over and options dealers are likely dumping hundreds of billions of dollars in delta hedge tech stocks they don’t need, resulting in a market swoon where unseasoned Robinhood traders are experiencing their first taste of red days in six months. 

No other than Barstool Sports’ Dave Portnoy, the market’s crazy genius, able to whip 1.8 billion Twitter followers into a day trading army that jumps from stock to stock, told his followers Tuesday morning some very troubling news that suggests his first daytrading rule of “stocks only go up” might not be entirely correct as the Nasdaq nears correction territory. 

“I’m down $700k, I’ve lost like $4 million in a fucking blink – I’m lovin’ it – it was too easy as I was stomping the ‘suits’…” 

Much has been written about Portnoy’s trading style, as he has laid out a set of rules for his trading army on Twitter:

Rule one is that “stocks only go up”, as he frequently reminds his 1.8m Twitter followers.

Rule two: “When in doubt whether to buy or sell see Rule One.”

During the pre-market Tuesday, Portnoy told his followers he was down like “3 million in the last three days.” He went onto say this is “zero panics” on his part – indicating this is a “nuts on the table type of moment.”

And perhaps Portnoy should update his trading rules for an environment where stocks don’t always go up. 

As Morgan Stanley’s Michael Wilson recently outlined, the first tradeable correction could be here…

Via Zerohedge

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