$TSLA and $SPCX getting hammered again today.
When the momentum breaks on high-flyer stocks, the unwind can be brutal. These names attracted massive speculative positioning on the way up — leverage, call options, retail FOMO, the whole kit.
Now it's reversing. Forced selling begets more selling. Margin calls trigger more margin calls. The very mechanics that amplified gains on the way up amplify pain on the way down.
This is why position sizing matters. This is why you don't chase parabolic moves. This is why you don't use leverage on volatile single stocks.
The market doesn't care about your thesis when the tide goes out. It cares about who's overextended.
When the momentum breaks on high-flyer stocks, the unwind can be brutal. These names attracted massive speculative positioning on the way up — leverage, call options, retail FOMO, the whole kit.
Now it's reversing. Forced selling begets more selling. Margin calls trigger more margin calls. The very mechanics that amplified gains on the way up amplify pain on the way down.
This is why position sizing matters. This is why you don't chase parabolic moves. This is why you don't use leverage on volatile single stocks.
The market doesn't care about your thesis when the tide goes out. It cares about who's overextended.