- Pip Munch
- Posts
- 📉 BREAKING: Everything Crashes
📉 BREAKING: Everything Crashes
Pip Munch
February 06, 2026
Want to make more money from trading? Stop trading your small $500 account. It’s a waste of time. Want to make some real money? You need prop firms.
☕️ GM Munchers! Is it though? I spent all night tossing and turning like a rotisserie chicken, except instead of getting golden and delicious, I just got anxiety and acid reflux about my portfolio.
On today’s menu:
📉 Yesterday Was An Absolute Massacre
😬 January Layoffs Hit 17-Year High (Yikes)
📦 Amazon's Earnings Bomb
₿ Bitcoin's Historic Meltdown Continues
Yesterday’s numbers:
S&P 500 | 6,798 | -1.23% |
Nasdaq | 22,540 | -1.59% |
Dow Jones | 48,908 | -1.20% |
Bitcoin | $64,070 | -12.26% |
BREAKING NEWS
📉 Yesterday Was An Absolute Massacre
Where do we even start?
Yesterday wasn't just a bad day—it was a financial horror movie where every portfolio was the unfortunate protagonist. Deep red everywhere you looked. The Dow bled, the S&P 500 tanked, the Nasdaq face-planted. It was the kind of day that makes you understand why Warren Buffett has been sitting on hundreds of billions in cash like a financial doomsday prepper.
This wasn't one headline causing chaos. This was everything happening at once:
Layoff fears
A hawkish Fed chair incoming
Amazon's earnings disaster
Recession whispers getting louder
The market looked around, didn't like what it saw, and decided to sell everything not nailed down.
The Munch Take: Peak fear is here. When "recession" starts trending and everyone's panicking, that's usually when smart money starts positioning for the recovery. Not saying we've bottomed—nobody knows that—but if you've been waiting for discounts, they're here. Just maybe don't use your rent money.
😬 January Layoffs Hit 17-Year High (Yikes)
Here's a stat that'll wake you up faster than coffee: U.S. employers announced 108,435 layoffs in January—up 205% from December and the highest January total since 2009.
The damage report:
UPS: Planning up to 30,000 job cuts (leading the pack)
Amazon: 16,000 planned layoffs
Healthcare: Also seeing notable reductions
AI impact: Accounted for 7% of cuts
The kicker? Hiring plans are weak. Only 5,306 new jobs were announced in January—the lowest level on record.
Why markets care: This is peak fear territory. Layoffs at this scale signal companies are bracing for a slowdown. It's this data combined with Kevin Warsh (the new Fed chair who's likely to keep rates higher for longer) that's been the match lighting this market on fire.
The Munch Take: If you've got a job right now, hold on to it. The employment picture is getting uglier, and that feeds directly into consumer spending fears. When people lose jobs, they stop buying stuff. When they stop buying stuff, companies make less money. When companies make less money, stocks go down. It's all connected, and none of it is good short-term.
BROUGHT TO YOU BY
Want to make money trading? Use prop firms.
Here's the brutal truth: What are you really making with your $500 account? Maybe $50 if you're lucky? That won't even cover groceries unless you live off ramen.
Prop firms solve this.
How it works:
Sign up for a challenge
Hit their trading objectives
Get a simulated funded account (up to $200K+)
Keep up to 90% of your profits
The math: 5% on a $100K account = $4,500 in your pocket.
Way better than grinding pennies on your tiny account, right?
Stop trading with lunch money. Start making some real money.
MARKET OVERVIEW
🍿 Tasty Movers & Shakers
👍️ $RDDT Reddit reported earnings after-hours and decided to completely ignore the memo that everything's supposed to crash. They announced a $1 billion share buyback program and beat on both top and bottom lines.
🎮️ $RBLX Roblox crushed earnings like a kid crushing Doritos at 2 AM. Bookings climbed 63% year-over-year, probably thanks to every iPad kid in America spending their parents' money on virtual hats. The stock rocketed 20%. Gen Alpha's screen addiction is single-handedly propping up this company.
⛽️ $SHEL Shell posted its weakest quarterly profit in almost five years and the stock got obliterated, crashing over 5%.
🚲️ $PTON Remember when Peloton was the golden child of the pandemic? Those days are over. They missed on both revenue and earnings, and the stock nosedived 25.72%.
💄 $EL We've been watching Estée Lauder for a while, and thank goodness we haven't pulled the trigger (yet). The stock crashed 19.19% after their restructuring efforts and tariff headwinds crushed the bottom line. Sometimes the best trade is the one you don't make. This was one of those times.
🍫 $HSY Hershey climbed 9.03% thanks to great Q4 earnings. My chocolate addiction is paying dividends. Not to me, but to shareholders of course.
STOCKS
📦 Amazon's Earnings Bomb
Everyone hoped Amazon would ride in after the market closed with their earnings release and save the market like Google did on Wednesday. Instead, they showed up, set the building on fire, and left. The stock crashed 10% in after-hours trading.
What happened:
EPS: $1.95 vs $1.97 expected (missed)
Revenue: $213.39 billion vs $211.33 billion expected (beat)
AWS: $35.58 billion vs $34.93 billion expected (beat)
So why the crash?
Amazon said it expects to spend $200 billion on capex in 2026—way more than the $146.6 billion analysts were expecting. That's nearly double the $131 billion they spent in 2025. The money's going toward AI infrastructure, data centers, and AWS expansion.
Why markets care: When tech giants announce massive spending, it crushes near-term profit margins. Sure, it's bullish long-term for companies building the infrastructure (hello, Nvidia), but it's terrible for Amazon shareholders right now.
The Munch Take: This sets up an ugly Friday open. Amazon is massive, and a 10% drop in after-hours doesn't just hurt Amazon holders—it drags down the entire tech sector and indexes. If you're long big tech, brace for pain.
CRYPTO
₿ Bitcoin's Historic Meltdown Continues
Daily Bitcoin pain update, because apparently we enjoy suffering. Yesterday was historic—and not in a good way.
Bitcoin crashed over 10%, breaking below $66,000 for the first time since October 2024. It's now down $11,000 this week alone. Let that sink in. Eleven. Thousand. Dollars. In one week.
Why the selloff?
Same story: risk-off sentiment across the board. When tech stocks are bleeding, layoffs are surging, and recession fears are climbing, nobody wants to hold speculative assets.
The Munch Take: If you're a long-term Bitcoin believer, this is either your worst nightmare or your buying opportunity—depends on your perspective and pain tolerance. The thesis hasn't changed (governments still printing money, only 21 million BTC ever), but the price action is absolutely brutal. Don't use leverage. Seriously. Michael Saylor's $6 billion paper loss should be all the reminder you need.
TRADING SUCCESS
🤑 Friday Motivation
🚀 Pre-Market Fuel
What do you think of today's edition? |
Share Pip Munch
Chances are you have some trading friends. Why don’t you be a pal, share Pip Munch and earn some goodies for it?
You currently have 0 referrals, only 1 away from receiving The Trading Plan That Helped Me Pass 4 $100,000 FTMO Challenges.
Or copy and paste this link to others: https://pipmunch.com/subscribe?ref=PLACEHOLDER