The Compound and Friends The "Titanic" indicator flashes, Elon's $1 trillion pay package, Draftkings vs Robinhood
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Nov 11, 2025 Delve into the fragile tech-led rally as experts analyze its sustainability. Discover the intriguing Titanic signal, which warns about market breadth based on 52-week highs and lows. Explore the tension between investing and betting, spotlighting Robinhood's growth in prediction markets and Charles Schwab's resistance to gambling features. Elon Musk's eye-popping $1 trillion pay package sparks debate over shareholder expectations. Plus, hear insights on the challenges of quantum computing stocks—too early for most.
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Titanic Signal Means Breadth Mismatch
- The "Titanic" signal flags many stocks hitting 52-week lows even as indices hit multi-year highs, indicating breadth weakness.
- Historically it predicts mixed short-term returns, so treat it as a cautionary yellow light rather than a crash alarm.
Top-Heavy Indexes Inflate Breadth Noise
- The spread between the median stock drawdown and the S&P's overall drawdown has widened since 2023 due to index top-heaviness.
- Top-heavy leadership makes breadth measures noisy and reduces the signal of broad-market warning flags.
Monitor S&P 100 Lows For Real Signals
- Track 52-week lows within the S&P 100 rather than the S&P 1500 to get more meaningful signals tied to market leadership.
- Focus on meaningful large-cap deterioration before changing market exposure.