RJ Hamster
Panic Faded — But Is the Selling Really Done?
Friday, February 6, 2026
Don here…
The S&P 500 just closed the week unchanged to the penny. Meanwhile the Nasdaq barely caught the lower edge of its expected move.
That disconnect matters more than today’s 120-point rally suggests.
The market moved 200 S&P points this week. That range doubled what we’ve seen over the last few months. Most recent weeks traded inside 100 to 150 point ranges. This week blew through 6750 to 6950 and nobody seems to care.
The sectors driving today’s move tell you everything you need to know:
- The Dow ripped higher all week while the Nasdaq got destroyed. This is a rotation out of anything tech related.
- Airlines jumped over 6% today. When money flows into jets and financials while semiconductors lag, the market is telling you something.
- The SPX expected move for the entire week was $118. We moved $140 in a single session today. Next week’s expected move sits at $115.
I’m also hitting something new in zero DTE that’s working extraordinarily well. I call it Superfly zero DTE butterflies.
I bought a Tesla butterfly on Friday for 43 cents and closed it for two bucks. Bought another on Thursday and closed it this morning for a dollar ten.
The volatility hasn’t passed us by. The market went from panic to manic without stopping to breathe.
Tech might catch a bid early next week, but watch the other sectors.
This marketplace could spin right back down. We’ve seen this cycle before.
Click here to watch me break down the sector rotation and what happens next
Don Kaufman
Chief Market Strategist, TheoTRADE
P.S. Selloffs like this separate traders who react from traders who see it coming.
Tonight at 7PM ET, Blake is revealing Deep Sonar, the method he uses to detect pressure building beneath the surface before moves become obvious. It’s how he captured $3,300+ on TSM and $3,900+ on PLTR.
One night only.
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Don Kaufman
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