RJ Hamster
The Great Unwind Is Here
| Forwarded this email? Subscribe here for moreThe Great Unwind Is HereWhere the biggest opportunities are emerging right nowMARKET TRADERS DAILYFEB 6 READ IN APP The current market turmoil as of February 5, 2026, has left investors reeling: stocks are sliding, tech and AI names are in freefall, cryptocurrencies have erased trillions in value, and even precious metals, once seen as safe havens, are crumbling under pressure.This isn’t an isolated dip; it’s a broad, interconnected sell-off that feels forced, with massive liquidations amplifying the pain across asset classes.In this deep dive, we’ll unpack what’s really happening, explore the root causes (from AI hype fatigue to macro shifts and leverage unwinds), and provide practical direction on how to navigate, or even profit from this madness.Finally, we’ll look at what company insiders are signaling, as they often have the clearest view of their businesses amid the noise.The Great Unwind: A Snapshot of the ChaosMarkets are in risk-off mode, with volatility spiking and sentiment at “extreme fear” levels. Here’s the damage so far:Stocks: The S&P 500 turned negative for 2026, dropping about 1.2% on February 5 alone (Dow shed nearly 600 points). The Nasdaq slumped to November 2025 lows, down 1.6% that day, in a full-on tech wipeout. Sectors like tech (-1.7%), materials (-2.8%), and software (-4.6%) led losses. Names like Amazon (-10% after Q4 results projecting massive capex), Coinbase (-13%), and Super Micro Computer (-9%) got hammered. Globally, Asian stocks (e.g., Kospi -5%) followed suit. Tech and AI: Fears of massive AI spending without quick returns are biting hard. Alphabet’s capex forecast soared to $175-185 billion for 2026 (roughly double 2025 levels), sparking concerns over profitability. New AI tools (e.g., from Anthropic) threaten software incumbents, erasing roughly $1 trillion in software market value since late January. Investors are rotating out of overvalued “hype” plays into defensives. Cryptocurrencies: Bitcoin plunged below $64,000 (as low as ~$63,000-$64,000 intraday), down 10-20% weekly and erasing all post-election gains—its worst drop in years. The broader crypto market lost $2-2.2 trillion since October 2025 peaks, now hovering around $2.7 trillion. Liquidations topped $1.4-2.5 billion in recent days (mostly longs), with U.S. Bitcoin ETFs seeing $1.9 billion outflows last week. Precious Metals: Gold dropped 13% in sessions (from highs near $5,550+ to ~$4,700), its steepest three-day fall since 1980. Silver cratered 40% (to lows around $73-77), extending brutal routs. Tokenized metals (crypto-backed futures) saw up to $1 billion liquidated to cover losses.This cascade feels “forced” due to thin liquidity, algo selling, and deleveraging—turning modest sells into capitulation.The Catalysts: Interconnected PressuresNo single trigger, but a perfect storm:AI Overhang and Hype Fatigue: Massive capex bets (e.g., Alphabet, Amazon projecting $200 billion) raise doubts on ROI. Disruption fears from emerging AI tools hit software giants hard, with analysts noting AI could “eat” recurring SaaS revenues. Deleveraging Cascade: High leverage in crypto spilled into tokenized metals and futures. Margin calls, COMEX hikes, and weekend thin liquidity created death spirals. Hedge funds unwound crowded trades, with some seeing their worst days in nearly a year. Macro Headwinds: Weak U.S. jobs data (openings at five-year lows), hawkish Fed stance (rates at 3.50-3.75%), and Kevin Warsh’s nomination for Fed Chair signal “higher for longer” and potential balance sheet shrinkage—no quick QE. This tightens liquidity, steepens yield curves (10-year yields ~4.29%), and hurts risk assets. Bond and Dollar Dynamics: Treasury issuance absorbs liquidity amid deficits, but yields rose (not fell), suggesting selling pressure rather than inflows. Short-term dollar strength hurts commodities; long-term debt concerns could weaken it. Other Factors: Geopolitical noise (e.g., US-Iran talks) and emerging market spillovers add fuel.This is a “reset” of over-levered positions and valuations, not necessarily a recession signal—yet.Insider Signals: What the Smart Money Is Doing Right NowSince the focus here is on following insiders who have the deepest knowledge of their companies’ fundamentals let’s zoom in on their recent activity during this sell-off. Insiders (executives, directors, and major shareholders) file trades publicly via SEC Form 4s, and their moves often cut through market noise.Overall Market Insider Sentiment (Early February 2026): The broad insider buy/sell ratio is around 0.21 (more selling than buying), below the 5-year average of ~0.35 and near levels seen at past peaks.This reflects caution: heavy selling in tech/AI (e.g., Intel EVP sold 20,000 shares at $49.05 for $981,000, trimming stake 15%; Fortinet CEO offloaded 175,737 shares at $81.42 for $14.3M; Micron EVP sold 25,000 at $429.89 for $10.7M; Western Digital CEO sold 20,000 at $255.44 for $5.1M).Much is routine (10b5-1 plans for taxes, diversification, or option exercises), but it aligns with profit-taking after strong runs and hedging amid uncertainty.Notable Selling Activity:Tech heavy: Netflix Director Reed Hastings sold 390,970 shares at $83.63 for ~$32.7M; Caterpillar execs unloaded millions post-options (e.g., group president sold 16,070 at $704.97 for $11.3M); Accenture CEO sold 5,500 at $242.39 for $1.3M. Other: Robinhood Chief Legal Officer sold 10,000 at $87.07 for $870,700; East West Bancorp CEO trimmed stake with 50,000 sold at $117.82 for $5.9M.These aren’t panic dumps, many are pre-planned but they signal insiders aren’t aggressively defending positions in vulnerable sectors like software facing AI disruption. Insiders sell for a lot of reasons so I don’t focus heavily on this.Where Insiders Are Buying (The Bullish Clues): Despite net selling, targeted buys stand out as contrarian signals, insiders only put real cash in when they see value or resilience.Small-caps and value plays: Streamex (multiple buys, e.g., Director/10% owner bought 23,500 at $3.06 for $71,910 amid dip); WR Berkley (major stakeholder added millions via 315,221 shares at $68.05 for $21.5M); Empery Digital (10% owner bought 691,145 at $4.68 for $3.2M and others in beaten-down spots). Other clusters: ASA Gold & Precious Metals (Saba Capital added 35,121 shares at $66.20 for $2.3M); Northern Trust Director bought 1,000 at $148.91 for $148,910. Growth with insider ownership: Enphase Energy CEO purchased 5,000 at $51.98 for $259,900 (renewable energy sector, signaling confidence despite sector pressures).Insider buying often clusters in undervalued or resilient names outside AI hype, financials, small-caps, and select growth.This suggests overreaction in the broader rout, with insiders spotting company-specific strength. I am not recommending any of these stocks yet just providing you with some stocks to look at and consider.How to Use Insider Data in This Environment:Screen for recent clusters (multiple buys during dips) via tools like Quiver Quantitative, GuruFocus, or OpenInsider, stronger signals than isolated trades. Avoid heavy-sell zones (e.g., aggressive tech unloading) unless fundamentals shift. Prioritize insider-backed dips in value/small-caps or AI-adjacent plays with resilience (e.g., power/utilities powering AI if buys emerge). Watch ratios: If buy activity rises as prices fall, it could signal capitulation and reversal.Insiders remind us: Company-level fundamentals endure through macro noise. In this reset, follow where smart money puts skin in the game, not just cashing out. If you’re a premium member I will be watching this and updating with any opportunities.Become A Premium MemberVolatility isn’t the enemy, inaction (or panic) is.Build a plan, stay diversified, and track insider moves closely. This could be a painful chapter, but resets often precede stronger legs higher.A Note on Opportunity Amid the ChaosAs we’ve seen, this sell-off, while painful and chaotic, has created some truly compelling setups. Insiders are quietly accumulating in undervalued pockets, from small-cap financials and value plays to select growth names showing real resilience. These signals often precede the market’s next leg up, and with sentiment at extreme fear levels, the risk-reward skews in favor of the prepared.I’m watching closely and will likely be sending out some actual alerts soon as these clusters firm up and prices stabilize.If you’re ready to stay ahead of the crowd and get all my premium alerts—including real-time insider tracking, high-conviction setups, and detailed breakdowns of how I trade following the smart money click over to learn more about becoming a premium member.Learn More About PremiumDon’t miss out on the edge that insiders provide when the market resets.For deeper insights, exclusive real-time insider tracking, advanced breakdowns of clusters and filings, and premium alerts on high-conviction setups (including undervalued small-caps with recent buys), consider becoming a premium member, where we dive into the data insiders are quietly acting on before the crowd catches up.Unlock Premium AlertsYou’re currently a free subscriber to Market Traders Daily. For the full experience, upgrade your subscription.Upgrade to paidDISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Global Profit Systems International are for your informational purposes only. Neither Global Profit Systems International nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Global Profit Systems International is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit https://www.markettradersdaily.com/tos/ for our full Terms and Conditions. LIKECOMMENTRESTACK © 2026 Global Profit Systems International LLC 14422 Shoreside Way, Suite 110-160, Winter Garden, FL 34787 Unsubscribe |
