Happy Monday, Lark Traders! This is Lark Digest, where we turn market chaos into your daily trading strategy. Today, we’re breaking down some wild events that have traders and investors more scared than a trader’s phone freezing after going all in on NFP.

On today’s menu:

• Brace For Impact: Why The Market Is Collapsing 🚨

Brace For Impact: Why The Market Is Collapsing

If you haven’t yet checked TradingView or your stock portfolio, you might want to get on that.

Here’s a breakdown of what’s happened overnight:

• Bitcoin is down over 12% to ~$50,800. 📉 

• Gold is down over 2%. 📉

• S&P500 futures are down 3.5%. 📉

• DXY is down 0.8%. 📉

• Nikkei (Japan’s stock market) is down 10%. 📉

In summary, things haven’t looked this bad in a very, very, very long time.

Here’s why everyone is freaking out.

The Big Picture: What’s Happening? 🌍

1. Rising Conflicts & Underground Bunker

Iran has promised “severe” retaliation against Israel for the death of Hamas leader Ismail Haniyeh in Tehran last Wednesday. This has got everyone in a major panic and has even led to the Shin Bet security service reportedly preparing a 20-year-old underground bunker in Jerusalem for senior leaders to stay during a war.

2. Japan's Stock Market Plunge

The Nikkei 225 is set to post its largest two-day drop in history, even larger than the Black Monday crash of 1987. This could signal major shifts in the global market sentiment, especially considering Japan’s influential role in the global economy.

USDJPY is down almost 13% in just 3 weeks. 📉 

3. Crypto Crash

Our beloved Bitcoin is down 22% this past week, with a 13% drop just today. Ethereum isn’t faring any better, down 31% for the week and 21% for the day. The crypto market is in turmoil, and so is my portfolio. 😭 

4. Emergency Rate Cut?

Rumours are swirling that the Federal Reserve is considering a half-point rate cut next month to stabilize the market and mitigate potential losses in August. This could be a major move to calm the markets, but it also signals that the Fed is worried about the economic outlook.

And if they do that, what will happen to inflation?

6. Warren Buffett's Big Move

Warren Buffett’s Berkshire Hathaway has dumped $75.5 billion worth of stock and halved its stake in Apple. They’re now sitting on a record cash pile of $276.9 billion. When Buffett makes a move like this, it’s worth paying attention.

What Does All This Mean? 🤔

Okay, things are looking really ugly right now. But bad days always happen, so what does this actually mean, and what’d the best game plan?

Option #1 = Nothing

This could all be noise. Look at what happened in March 2020. We all thought the world was ending, but the stock market quickly went on to make historic highs.

Option #2 = Sh*t's About to Hit the Fan

Let’s be real—these events could be the precursor to something major. Whether it’s geopolitical tensions escalating or financial markets reacting to sudden shocks, volatility is on the horizon and this could just be the start.

Option #3 = The Overdue Recession

After years of printing money, asset prices, including real estate, have absolutely ballooned. Maybe this is the catalyst for a massive correction and this is the start of more pain to come.

The Game Plan 🚀 

Warren Buffett’s famous quote can summarize today’s game plan: “Be greedy when others are fearful and fearful when others are greedy.”

Can we predict the bottom? No.

Do we know if things will get worse? No.

But that’s why everybody is freaking out byt we’ll be looking at all the red numbers as discounts.

Stay safe out there,
Mr.Lark

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☕️ Pre-Market Fuel

1. Warren Buffett sells 50% of his Apple holdings. What does he think is about to happen?

2. The odds of Kamala Harris winning the 2024 are the highest they have ever been. Oh boy…

🍪 Digestible Memes

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