Deepseek Hype and AI Market FUD - Next Trade Moves

#deepseek #ai #crypto #market #nvidia #nvda

Trading Fam,

DeepSeek has made remarkable strides in the AI industry, reportedly developing its technology for approximately $10 million—a fraction of what many competitors have spent. This Chinese AI company's ability to create technology that potentially rivals established players like OpenAI has caught the market's attention.

The announcement appeared to impact investor sentiment around AI-related stocks, particularly affecting Nvidia's share price, which had broader implications for U.S. market indices. This ripple effect extended beyond traditional markets into the cryptocurrency sector.

This development highlights how advances in AI technology can have far-reaching effects on global financial markets, demonstrating the increasingly interconnected nature of technological innovation and market dynamics.

While it is truly remarkable how quickly Deepseek has captured global attention, sending Deepseek to the #1 spot in many app stores, the hype may be too fast and too early and it does have an inverse impact on our market leaders of that same space which use GPU cycles to create this artificial intelligence. Deepseek claims alarming efficiency, the technical details of which are not meant for this post.

In short, we have already seen an impact on both the U.S. stock market and crypto. NVDA which often leads the U.S. stock market, will have a huge drop at market open. The FUD has spilled over into our crypto market as crypto, led in part by AI-related blockchains, tokens, and technology, continues to dump.

Many investors woke up to see that their stop limits were triggered and their positions were dumped. Unfortunately, this is all part of the game.

For our trade portfolio, we will continue to look for long entries, but only the best. One such entry was posted yesterday for $POLYX. My indicator had given us a green buy dot within our pivot low liquidity block as seen here:

POLYX

I gave this signal out to everyone following me and also took that trade myself this morning after having been cleared of a few previous positions. I will now only enter any trade long if my indicator provides both variables positive. It must flash a green buy dot and this dot must exist inside of our liquidity block. I will not be taking any long entries unless these two variables are true.

In this case, our entry meets these objectives but I am still placing a fairly tight stop on the trade. I will be targeting a price of .435 for nearly 90% profit.

Thus far, our stock portfolio is safe and doing well. However, our crypto portfolio has been hit a little with SL’s triggered. That’s okay. Again, it frees up cash for us to take only the best trade entries now.

You may view the rest of the details in both our trading portfolios below: