bloodbath

Author

Pete Tan
February 04, 2026

Hi everyone.

The markets definitely kept us on our toes last night. If you saw the sea of red across your screen, you weren't alone. The Nasdaq took a significant hit, dropping 1.4%, while the S&P 500 slipped 0.8%.

Half red and half green

I have spent the morning digging through the filings and the macro noise to separate the "panic" from the "play." Here is exactly what went down and why your War Chest is your best friend right now.

Why the Sudden Nuke? ⚙️

There was not just one smoking gun last night, but a perfect storm of three major factors:

  • The Fed Chair Drama: The nomination of Kevin Warsh initially spooked investors. Because of his hawkish history, the market is pricing in a tighter balance sheet and less liquidity. While the news is noisy, I do not believe Trump would crash the very markets he loves to brag about. This looks like a classic overreaction.

  • The Yield Spike: The 10Y US Treasury yield hit a multi month high. When yields go up, they act like gravity for tech stocks, making those high growth valuations harder for Wall Street to justify.

  • Geopolitical Jitters: Reports of the US Navy shooting down an Iranian drone caused oil prices to spike. This added a layer of "risk off" sentiment that sent traders reaching for the sell button.

The Earnings Flash: The Hits and the Misses ⚡️

We are in the thick of earnings season, and the gap between the winners and losers is getting wider. I have updated the numbers below to reflect the final closing prices and the overnight volatility:

  • The Health Care Shock: Novo Nordisk (NVO) plummeted 14.6% during market hours. The company warned of a sharp sales slump heading into 2026, which sent shockwaves through the entire obesity drug sector.

  • Semiconductor Pressure: AMD fell 8.2% in after hours trading. Even though their results were solid, their revenue forecast missed some analysts' expectations, which is weighing on the broader chip space today.

  • Fintech Bloodbath: PayPal (PYPL) got decimated, closing down 20.1% after issuing disappointing guidance.

  • The Winners: It was not all bad. Palantir (PLTR) jumped nearly 6.8% on a massive AI revenue beat, and Walmart (WMT) hit the historic $1 trillion milestone.

Where is the Floor? 🛡️

We are watching the technical levels closely to see where the "Smart Money" steps back in:

  • S&P 500: Immediate support sits at 6,850. If that fails, the next major floor is the January low near 6,789.

  • Nasdaq: All eyes are on the 23,000 psychological level. A strong defense here could trigger a massive short-covering rally.

The SMG Strategy & Emergency Video

I have just uploaded an Emergency Update Video for all SMG members to help you navigate this chaos and reveal my latest trade ideas. I have also updated the SMG Tracker to the February version with new targets.

👉 Watch the Emergency Update & Tracker here: https://investwithpete.teachable.com/courses/614054/lectures/64688660

One final reminder: watch your margin. The market is volatile, so please do not over leverage. Stay calm, stay rational, and let the weak hands do the panicking while we do the shopping.

I have received many messages asking for an extension on the promo because of this sudden market volatility. I want as many of you as possible to be prepared for these moves.

For example, our Gold trade has been doing very well and providing strong returns last month. ($21k of realised profits, not just paper gains)

I am extending the USD$150 OFF promo for one week only until this Sunday!

Do not miss this chance to join the community and get our real time trade ideas for a fraction of the cost.

  • Promo Code: 2026

  • Final Price: USD$609 (Yearly)

  • Deadline: This Sunday: Feb 8.

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.