Wait, is the AI boom actually over because of DeepSeek? Feeling totally lost right now

[Yield Seeker]

Hey everyone, I'm still pretty new to trading and honestly feeling a bit overwhelmed today. I logged into my broker account and saw my portfolio bleeding red, especially my tech holdings. Apparently, some new Chinese AI thing called DeepSeek dropped and caused this massive rout, with Nvidia tanking like 16 percent in a single session! Ngl, I am lowkey panicking and wondering if I should just sell everything before it drops more, or if this is just a massive shakeout. For the experienced traders out there, how does a competitor actually crash hardware stocks this hard? Does this mean the whole AI infrastructure play is dead, or is this just a good dip to buy? Would really appreciate some advice on how to handle my positions right now.

 

[Zakami Ng]

Man, don't panic. If you look at the daily RSI, we're seeing some pretty clear bearish divergence forming on the big AI tickers while the price is still trying to fight for new highs. That’s usually a red flag that the momentum is dying out, regardless of what DeepSeek is doing. I’d wait for a clean MACD crossover to the downside before you start calling it a total market top, but yeah, the enthusiasm is definitely getting a bit tired. Just watch your support levels and don't catch a falling knife if that signal triggers.

 

[LucasBennet]

I’d wait for a clean MACD crossover to the downside before you start calling it a total market top

Honestly man, waiting for lagging indicators while macro data is about to drop is just asking to get chopped up. NFP is right around the corner and if that print comes in hot, nobody is even gonna remember DeepSeek for at least ten minutes while rates reprice. Don't overcomplicate it with oscillators right now.

 

[Owen Carter 27]

I’d wait for a clean MACD crossover to the downside before you start calling it a total market top

@Zakami Ng I never understood how you guys can trade with all those lagging lines at the bottom of your screen. By the time that MACD actually crosses, the move is usually half over and you're just chasing the tail.

If you just look at the actual price action, we’ve been slamming into a massive multi-month supply zone. DeepSeek is just the headline the media uses to explain away a technical rejection that's been building for weeks. I don't care about RSI or macro prints—if the candles start closing below the previous swing high on the daily, the trend is broken. Period. Keep it simple and just watch the levels.

 

[Mason Brooks]

[QUOTE="Owen Carter 27, post: 4002]I don't care about RSI or macro prints—if the candles start closing below the previous swing high on the daily, the trend is broken. Period. Keep it simple and just watch the levels.[/QUOTE]

Spot on, Owen. Everyone's arguing over macro and lagging indicators while ignoring the actual tape.

Honestly, I couldn't care less if it's DeepSeek or a random Tuesday headline causing the flush. Price is hitting a wall, and that's all that matters.

Whatever you're holding right now, make sure your stops are actually set and you aren't risking more than 1% to 2% of your account on a bounce. I've got my hard stops locked in just under that daily swing low. If it breaks, I'm out, no emotion. Don't let a bad trade turn into an expensive education.

 

[JulianCraft]

[QUOTE="Mason Brooks, post: 4036]Honestly, I couldn't care less if it's DeepSeek or a random Tuesday headline causing the flush. Price is hitting a wall, and that's all that matters.[/QUOTE]

Man, everyone here is staring at squiggly lines and daily swing lows while completely ignoring the bigger picture. It blows my mind how blind people are to what the Fed is about to do. You guys can trade your little technical boundaries all you want, but when sticky inflation prints force Powell's hand and real yields spike again, your little daily swing lows are going to get blown straight to zero.

It's not just a "random Tuesday headline." Liquidity is draining out of the system, debt servicing costs are quietly crushing earnings, and the whole AI cap-ex cycle is built on pure cheap-money fantasy that is about to hit a massive wall. Keep trusting your tape while the macro rug gets pulled right out from under you.