Tomorrow Will Be HISTORIC For The Stock Market

Trillions were just wiped out from global markets. After silver had its ninth straight monthly rise and longest win streak on record, it just caused one of the largest crashes in decades. Most people are attributing this to the nomination of Kevin Warsh, but JP Morgan and China might have played a bigger role than most people know. One bank already collapsed and 25% of the S&P 500 is about to report earnings and the government is shut down. Today, we cover why the market's falling, what to know, and where the action is at right now. Once you hear everything going on, you're going to realize that you won't be turning away from the market this week. Silver just had its biggest drop in 46 years. You heard that right. It was silver's worst day since 1980. Right now, SLV fell 34.5% at its worst point on Friday and closed down over 28.5%, but it's still in the green 20% year to date. Now, a lot of people are pointing fingers at JP Morgan for manipulation regarding silver. JP Morgan shorted 633 February silver contracts near the top of this crash and closed them near the very bottom at $78. Big banks, especially JP Morgan, have a history of manipulating silver. Several JP Morgan traders were criminally convicted in the past and JP Morgan was even fined $920 million by the U.S. Department of Justice and the CFTC for manipulating gold and silver prices between 2008 and 2016 back whenever they were highly volatile. And when we look at this silver situation now, one of the most relevant times in the past was what happened during 1980s because we really haven't seen a drop like this since that point. We can see in the 1980s, silver exploded up by 700%, but then it pulled back by 77% in the next few months. We're starting to see the silver trade unwind a little bit. Of course, the 1980s situation doesn't look the best, but there's also another relevant scenario back in 2011 where silver increased by 489% and then it had a much more gradual, slower unwind. Yeah, and in both of these runs, margin requirements were raised significantly and the CME just did it again. On Friday, they announced that they were going to be raising gold and silver margin requirements again after this historic price plunge, and this is going to be going into effect Monday after close. So be ready Monday and Tuesday for more possible volatility in the metals market. But whenever we look at silver now, what was like the real trigger? Because we can see that the overall price action was very negative on the final two days of last week, especially Friday, and we can see on Friday in the middle of the day is where the downside moves started to really catch fire. And the real trigger here is that Trump tapped Kevin Warsh to lead the Federal Reserve. Yes, there's going to be a new Fed chair in office, and the market had kind of feared that the Fed chair would be more of a yes man who would cut rates too much devaluing the dollar, but Warsh is actually somebody who's preferred higher rates, dislikes quantitative easing, and has been at the Fed for a long time. So he's seen more as preserving central bank independence, which works against the safe haven trades like gold and silver that have been playing out recently. Exactly. And like you said, this was like the trigger that really snapped the crazy rally that we've been seeing. And what's worth keeping in mind is that this gold silver explosion is something that is a, it's a global phenomenon. You can say outside of the U S there is a silver frenzy going on worldwide, but especially in China. And there's a large disparity in the price of silver around the world. We could see, for example, in China, there's a large premium for physical silver compared to prices that we see in the U S what's worth noting is that there is technically a 16 to 19% daily limit on price moves for various silver contracts on Chinese exchanges, which makes up some of this discrepancy, but it's worth keeping in mind that, you know, we're seeing different prices for silver, depending on where you look. So Tom, when we look at SLV right now, what are you seeing on the charts and what is the game plan heading into this week? So SLV had a massive collapse on the last two trading days, specifically Friday ended up falling down to around 69 to $70. I love that support zone. If we go to an hourly chart of SLV, we can see that in the past at the very end of 2025 heading into 2026, we saw a major chop zone on SLV before it ultimately ended up running up to these hundred dollar plus levels that it's been at recently. Well, that of course is the zone where silver slowed up here on Friday as it dropped down. So I'm really watching that low of day Friday and that WIC right around $69. Everybody's favorite number for a possible bounce back to the upside. I do think that this will be the more significant support going into early this week. If we see a gap down below there, that's where I'll start to get a lot more bearish. At the same time, I do see significant resistance as well, sitting around $85. So if we're able to run through 85, maybe watch for more upside movement. And again, there's a big gap to fill on this silver chart up to around that 105 point. And to get there, we'll have to break the key psychological level of 100. Once again, silver is in a crazy place right now. It is highly volatile, and it's important to keep in mind that that volatility will create larger moves right now. Absolutely. And let's say we go back to the silver charts from the 1980s and even 2011. We can see in both of these instances, silver actually had some pretty big like dip by style setups along the way. You know, we see this point in 1980, but I would say the one from 2011 is even a better example where we could see it had that initial drop, but it also had like a really nice pop back higher. So I think considering how volatile silver is right now, it's worth, of course, keeping this type of setup on the radar while still being extremely adaptable. Because like you said, Tom, if the selloff just continues to break through some of these lower support levels, like let's say at $69 for SLV, that can cause just more liquidations. This was the low of day on Friday. It's the area in which JP Morgan closed their short position, and there's a lot of historical support at this level as well. Yeah, this is a very large area of support around the $69 to $70 range. I'll be watching it like a hawk. But Mike, that's not all that's hitting the market this week. We actually saw the first U.S. bank failure of 2026 happen just last week. Yes, amid the precious metals crash, regulators closed the $261 million Chicago-based Metropolitan Capital Bank due to unsafe and unsound conditions and an impaired capital position. Customers can still access their insured funds via ATMs or cards right away. But we did see Jamie Dimon actually come out in 2025 and say that when you see cockroaches, there are probably more than one. So everyone should be forewarned of this one. He was looking at the bankruptcies of first brands and even subprime auto lender tricolor holdings as well in reference to this statement. But again, like he says, Mike, cockroaches are out there. When you see one, there could be a lot more. And we're starting to see at least one of the banks start to fail in 2026. I think if we start to see larger banks start to pick up the pace, that's where traders need to freak out more. Yeah, I think the main thing to take away is this crash is something that's serious, and it does have real consequences. And that's not only going to affect the market this week. We also have really big earnings coming up. It's actually the biggest earnings week of the entire season. 127 of the S&P 500 companies are about to report earnings. It's around 25%. And we have some big hitters on the lineup as well. Google and Amazon are like some of the key names. We even have like AMD, Palantir and others. Yeah, two huge tech stocks are reporting. Whenever I think of Palantir, it's had a lot of hype going into this week. So watch out Monday in after hours. Options pricing is showing that by the end of this week, Palantir is expected to move by at least 9%. So watch out for some potential fireworks there. But earnings had a big influence in moving the market last week. And if we look at companies that ended up moving the market last week, Microsoft was one of them as they reported high capital expenditures. Right now, there's a lot of fear about overspending with AI. And of course, with Microsoft falling that much, a lot of these bigger tech stocks this week, like Google and Amazon, will be on the radar very closely. So pay attention. The market is watching this very closely right now. Love to see it. And when we look at SPY, we're only 1.1% away from all-time highs. SPY is at $690.50 right now. It fell 0.3% on Friday. It's still in its broader uptrend. And the all-time high is at $698.30. We have a lot of big events coming up this week, like a lot of jobs data. This is going to move the markets quite a bit as investors are going to pay close attention to it to get a better read on the state of the U.S. economy and any potential rate cuts coming for us throughout the rest of the year. And the government is also technically shut down right now. The Senate passed a funding deal, but the House has to actually vote on it and approve it for it to go into effect. The House isn't scheduled to return to Washington until Monday. Right now, thankfully, prediction markets are expecting this shutdown to be brief. Cal, she's only expecting it to last a total of 4.3 days. But the margins here are razor thin. Republicans are able to lose no more than one seat in any party-line vote, assuming all members are present and voting. So basically, Speaker Mike Johnson has said that he expects the government to fully open by Tuesday, but we shall see. Yeah, you never know with these political situations like this how they'll end up playing out. It seems like Speaker Johnson, though, is pretty confident, at least in his own words. So I guess we can take that how it is, Mike. But going back to the SPY here, like you said, it is in a broader uptrend. But something that we've been noticing and hitting on a lot lately is whenever you look at the SPY and the way that it's been running up, each time a news high is made, we end up seeing the SPY pull back in a pretty significant way. Right now, we're pretty much on like day two to day three of this pullback from the recent high being made. Throughout a lot of these uptrends where we did see the pullback, a lot of these have lasted three to five trading days, if not even longer in some cases. So I'm definitely going to still keep my eyes on all these developments that we're talking about and big events this week, as I still think the market is in a critical spot where we could see some short-term sell-off. And one of the big levels I'm watching for Monday in regards to that sell-off is 687. In pre-market on Friday and even after the market opened, the SPY held the 687 support two different times, forming a solid double bottom. At the same time though, SPY really failed to break that high of day around 694, which was again a pretty critical resistance from Thursday as well. So I'm watching those two levels in the ultra short-term, but I really want to see this uptrend continue, Mike. Like if we start to see this broader uptrend give out and we start to see SPY fall back towards 676, things will be getting pretty negative at that point. Sounds good. We'll keep a close eye on those levels. But as we head into February, it's also worth noting that it's actually a pretty bad month, historically speaking at least. It's one of two months, September being the other one, that is negative on average since 1950, the past 10 years and the past 20 years. Technically it is positive in midterm years like we're in now, but February normally isn't that great. But one thing that is really good is that January was pretty positive for 2026. And whenever this has happened in the past, it normally brings above average market returns. We can see that when January returns between zero and 2%, the next 11 months tend to increase on average by 12% and they close up 92.3% of the time. That is a very bullish statistic. And with the average and median returns being so high as well, how could you not love this data if you're a bull, right? Of course, now if you're a bear for the rest of this year, this might be a bit negative, but hey, we'll take the good data. It should help the broader market, at least on the longer term side of things. And to see that the rest of the year could go green here. But Mike, speaking of markets and stocks going green right now, that actually leads me into my first setup for the plays and predictions for tomorrow. And with my first play, I'm looking at Sandisk or ticker symbol SNDK. This stock popped off with earnings, but ended up rejecting back down following the market open Friday. What I'm watching for is a break back above $600. This was a very critical level throughout the day on Thursday and Friday. And if we're able to break back through 600, I'm going to be watching Sandisk for a possible earnings continuation to the upside. I thought that was a very strange drop-off that Sandisk had it open. But then again, we have seen a lot of strange earnings moves lately. But something that I really like about the bullish side of things for Sandisk is that it essentially filled that gap and held that support beautifully, almost double bottoming. So I'll be watching that support zone like a hawk, looking for that uptrend and $600 breakout. Sandisk has been one of the craziest stocks of 2025 and 2026. And what's great about it is that, let's say in the worst case scenario where the support breaks, there will probably be downside opportunities as well. But like you said, the stock has been extremely strong lately. And let's keep it close on watch. Another stock that's on the radar is AR. And it's to the upside. This was a recent $4 million big money trade where the trader's risking $4 million to make up $23.9 million. This company is a U.S. natural gas and liquids company. And it has been benefiting quite a bit in the short term. I really like the way this trade is setting up. The expiration is pretty soon as well as the options expire on March 20th. And I really like the asymmetric risk reward and the way the price action is developing. AR is on my bullish radar. That was a huge hold on support with AR recently. And it's been still exploding, continuing to push higher. So I'll be watching it as well, Mike. With my next setup, I'm looking at Coinbase. And I actually looked at this one to the downside on Thursday night's video as well. So I'm calling it out again because it's really solidifying this recent move that it's had under $200 per share. And if we actually go to Bitcoin right now, we can see Bitcoin has been downtrending quite a bit, especially on the daily chart. Bitcoin just recently broke through the 80K support. And we can also see that on the broader side of things, the broader uptrend for Bitcoin recently ended. And we even rejected right around $100,000, which is a huge resistance for Bitcoin. So Bitcoin's turning over. We're seeing a lot of Bitcoin-related stocks move down with it. And whenever I look at Coinbase, I'm really watching $200 and $190. $200 is a big resistance. If we see Coinbase rip right through $200, I'm not going to be super bearish that day, and I might even shift to the upside. But what I'm watching for now is for it to solidify and hold under $200 and maybe even break the buy wall down here around $190. Shout out to Bookmap for the X-ray vision. It was awesome watching this one drop through $200 over the past few days. Let's keep a close eye on these levels. Another stock that's on the radar is CLS and it's to the downside. This is another big money trade setup where it's a $1.1 million trade for the 275 strike put options that expire on February 20th. The stock had a weekday on Friday as it fell by over 6% and it's approaching that support range between $260 and $270. So let's keep this one close on the radar. I think it offers some good risk reward. Let's jump right into today's momentum plays. With the first one, we have PepsiCo, ticker symbol PEP, to the upside. Pepsi is generally a slow mover, but we can see in the short term, Pepsi has been popping off. If it can break out above $154, then watch for an upside continuation. With the next one, we have Pfizer, ticker symbol PFE, also to the upside. Pfizer had a decent move Friday. If it can break out above $2,650, also watch them for a continuation setup. And then we have MP Materials, ticker symbol MP, to the downside. These materials companies slash rare earth stocks have been insane lately. If MP Materials falls under $57.50 where it forms support Friday, then watch it to the downside. All right, so we have these three stocks on the radar for potential continuations tomorrow, if and only if they break through the levels listed. These stocks are vulnerable, so you need to protect yourself. As always, have stop losses. Only risk an amount of money that you're comfortable losing and focus on making smart, disciplined trading decisions. If you need help with that, check out the StockedUp Discord and the KeyLessons channel in there for a bunch of great free information. And besides that, let's jump right into today's $1 million big money trade. And today we're looking at ticker symbol SHAK, Shake Shack. And the trader here bought the 75 strike call options that expire on January 21st of 2028. Looking at this trade here, it definitely has a lot of time to it. Shake Shack has been doing well in a broader sense, but over the past few months, it has weakened towards the lower end of its range, around $80 to $90. I think this trade offers asymmetric risk reward, but it should only be considered if you're happy to give this trade the time it needs. Again, this is more of like a longer term setup. It really is. Like whenever we look at Shake Shack, this has all the way out to 2028. It does have a lot of money to being $1 million, but I really like the broader term uptrend here with Shake Shack. Like as we zoom out on Shake Shack's chart, we can see it's been following an uptrend since pretty much the very beginning of 2023, and it's been holding this line very consistently. Now it did fall through there recently, but the one thing that I like in the ultra short term is that it's actually coming for another test of this zone again. It's a big area of support as well from like $85 to $87 recently. As we can see, I know Mike kind of touched on that as well, but whenever I look at this one, Mike, I love the support zone. As long as it keeps uptrending and holding this zone, I think things are great. If it starts to fall out of the zone, I feel like you could cut it pretty quickly as well. So the RR opportunity is pretty decent. There we go. But before we move any further into today's video, we have to give a giant shout out to today's member of the day, Champ in the StockDuck discord, who had a hell of a run lately. Huge shout out to you, Champ. Congratulations on the huge day on Friday and for passing seven figures. Huge shout out to you. Keep up the great work going forward. It is awesome to see posts like this one. If you guys are new to the channel, welcome and consider destroying that subscribe button. For every single trading day, we post brand new videos just like this one, showcasing big money trades, spy levels and analysis, hot stocks keep on your radar, upcoming events, earnings, historical stats, and so much more. If you subscribe, you'll get our videos recommended to you more often. And also check out Bookmap. You can save quite a bit with the link in the description and comments down below. Basically, it gives you key support and resistance levels and just key information for any stock you're looking at because it shows you exactly where large buy and sell orders are queued up. And you can see it very quickly and easily for any stock out there. There's so much you could do with Bookmap. Check out the link down below. You can save quite a bit. But thank you guys so much for watching. And let's crush it in the market tomorrow.