Volatility Returns: GLD & SLV Collapse, While META, MSFT, AMZN Beat a Flat Market

Friday’s session featured dramatic volatility in commodities and divergent reactions to corporate earnings. Precious metals suffered a sharp correction following their record run, with $SPDR Gold ETF(GLD)$ plunging -10% and $iShares Silver Trust(SLV)$ collapsing -29%. This historic selloff hammered the materials sector ( $Materials Select Sector SPDR Fund(XLB)$ ), which fell -1.5% to finish as the day’s worst performer sector following the -2.04% selloff in technology ( $Technology Select Sector SPDR Fund(XLK)$ ).

Corporate earnings delivered mixed results. $Verizon(VZ)$ surged nearly 12% and $Deckers Outdoor(DECK)$ jumped over 19% on strong quarterly reports, while chipmaker $KLA-Tencor(KLAC)$ slumped 15% despite beating estimates. The heavyweights $Microsoft(MSFT)$ and $Apple(AAPL)$ failed to sustain momentum. $Tesla Motors(TSLA)$ bucked the trend, rallying over 3% on reports of a potential merger with SpaceX or xAI.

Macroeconomic developments added another layer to market dynamics. President Trump’s nomination of former Fed Governor Kevin Warsh as the next Federal Reserve Chair captured headlines, though the move did not immediately shift monetary policy expectations. The announcement arrives as markets navigate the heart of earnings season and ongoing valuation debates. Bitcoin extended its decline during the week, retreating -5% so far to two-month lows near $83,000 as leveraged positions unwound amid the broader risk-off tone.

Our High-Probability Setups performed exceptionally well this week. The bullish expectation for $Meta Platforms, Inc.(META)$ , posted one week ago, was proven correct. The stock not only reached the first target of $683.5 (+3.8%) but surged past the extended target of $708.2 (+7.5%). Meta rallied +8.7% for the week, validating the thesis that strong fundamentals and extreme oversold conditions would spark a significant reversal. Of course, we will study the gap.

$Microsoft(MSFT)$ also exceeded its bullish target of 478 (+2.7%) comfortably before earnings. As noted, surpassing a target before a binary event like earnings is a signal to lock profits or adjust stop losses. $Amazon.com(AMZN)$ followed suit, validating our target of 244 for a 2.1% gain.

These results are significant because the broader market was flat during the week. The $S&P 500(.SPX)$ closed up just 0.34% and the $NASDAQ 100(NDX)$ up 0.21%. Generating alpha with Meta (+7.6%), MSFT (+2.7%), and AMZN (+2.1%) in a choppy environment proves the power of stock selection paired with precise technical analysis and Support and Resistance Levels.

We also capitalized on bearish setups, I anticipated since December 2025 that the times ahead will demand to monetize in both ways, since 2026 is likely to bring turbulence in price action:

$Eli Lilly(LLY)$ : Reached our downside target of $1,021.5 (-4%) on Wednesday. And as anticipated in the Midweek Update (Wednesday after market closed), the stock was likely to bounce, and the price action confirmed my technical interpretation on Thursday and Friday.
$Wal-Mart(WMT)$ : Hit our $116 target (-1.4%) on Tuesday. We are now seeing a rotation from Technology into Retail/Staples, changing Walmart’s momentum.
$iShares Russell 2000 ETF(IWM)$ : Successfully reached the bearish target of 260 (-1.8%) on Wednesday, confirming the downtrend.

Regarding risk management, $Palantir Technologies Inc.(PLTR)$ was a prime example of the protection our levels provide. While the stock plummeted 13.5%, our bullish invalidation level at $167.6 limited the loss to just 1.2% from the entry point. Conversely, $JPMorgan Chase(JPM)$ invalidated its bearish setup by breaching the Central Weekly Level of $301.7, signaling an immediate exit after a 1.4% move against shorts.

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