Walmart hit a 98 RSI this morning.
Not on the daily chart. On the hourly.
I watched the stock run from 115 to 126 in two days. The biggest retailer in the world moving like a penny stock on no news whatsoever.
Meanwhile, Equifax dropped another eight dollars. Auto Data Processing fell again. Microsoft kept sliding toward 300.
I have traded for 39 years. I have never seen bifurcation like this.
The zero DTE crowd has figured out how to break the market. They wake up every morning, identify what is vertical, and load up on calls. They find what is falling and pile into puts.
The result is a two-sided squeeze that has completely detached price from value. Overbought stocks cannot come down a penny. Oversold stocks cannot catch a bid at any price.
The Strategy Nobody Will Admit
Here is what retail traders figured out.
They buy 52-week high calls on stocks already going vertical. They buy 52-week low puts on stocks already in freefall. Then they let gamma do the rest.
This forces price action in one direction regardless of fundamentals.
Look at Walmart trading at 44 times earnings. That multiple made no sense at 35 times. It makes less sense now.
But the zero DTE buyers do not care about valuation. They care about slope. If it is going up at 90 degrees, they buy calls and jam it higher. If it is falling at 45 degrees, they buy puts and force it lower.
The algorithms see this order flow and pile on. What you get is statistically impossible moves that persist for weeks.
I showed my team what happens when you are on the wrong side of this. Equifax has been blown out for months. The monthly MACD rolled over and the zero DTE crowd smelled blood. They buy puts every single day and force it lower.
- RSI sits near 10 and keeps falling
- The PE multiple is reasonable and nobody cares
- There are no bids to buy anything
- Fundamentals have become completely irrelevant
Auto Data Processing tells the same story. Down another eight dollars today ahead of a dividend. What is the news? There is no news. It is momentum trading.
The zero DTE kids identified the downtrend and they will not stop buying puts until the stock hits zero or the trend reverses. You could take Equifax to a dollar and nobody would buy it because algorithms are suffocating any attempt at price discovery.
Why Your Analysis Stopped Working
You look at Walmart and think it has to correct. It does not.
You look at Microsoft breaking down and think it has to bounce. It will not.
The pricing mechanism you learned no longer functions. Overbought is not a sell signal when gamma squeezes override every other factor. Oversold is not a buy signal when put buying forces stocks through every support level.
I pulled up Walmart's intraday indicator this morning. It was near 85 on the hourly chart and 90 on the 15-minute chart.
That is a gamma squeeze in real time. Forced call buying jamming the price higher with no seller able to step in front of it. The stock cannot come down one penny.
This is what happens when options order flow becomes the only thing that matters. Technicals fail. Fundamentals fail. Everything you studied for decades becomes noise.
Here is the part that should terrify you. The same mechanism jamming Walmart higher will jam the S&P lower when sentiment shifts. The same kids buying calls every morning will start buying puts instead. Then you get 41 down days in a row with no bounce.
I watched this happen to Microsoft. The monthly MACD rolled over and the zero DTE crowd flipped bearish. Now they buy puts every day and force it lower regardless of valuation.
Think about what happens at 6,000. At 5,000. At 4,000. You are not getting out because there will not be enough liquidity in the system to absorb the selling. The algorithms and put buying will just force it downward until the trend exhausts itself.
You cannot short what is parabolic. You cannot buy what is in freefall.
The Genesis COG System identifies when monthly indicators signal the true direction before zero DTE noise takes over. When the glacial timeframe rolls over, no amount of daily gamma squeezing will save a position.
Watch the slopes. When Walmart's weekly MACD finally breaks, they will blow it out faster than you can reach your sell button. The bifurcation will not last forever. When it snaps, you need to be on the right side.
Professor Jeffrey Bierman
Creator of the Genesis COG System