Weekly Market Outlook 2/8/26
Crypto, Agentic AI, Energy, and more.
The last week was one of the craziest weeks of 2026.
The biggest story was crypto. Bitcoin melted down and fell by over 20%, its worst weekly loss in a long time. The fall in Bitcoin has already far eclipsed the loss it had in April 2025 during the tariff tantrum.
That action spilled over into equities as tech stocks, software, and other groups began falling just as fast and just as viciously as crypto did. Despite all this carnage, the NASDAQ only hit a low of about 7% from the all time high and other indices such as the Dow and S&P 500 were able to hang in and close around all time highs.
There has been a clear rotation going on underneath the hood as market participants look to rotate into more stable blue chip groups think names like McDonald’s, Coke, Pepsi, etc. These are much more defensive names and are typically viewed as a flight to safety.
One of the biggest takeaways from this past week is that position sizing is crucial.
I made a post on X recently where I mentioned that having a portfolio concentrated in just a few stocks is often very risky and I was met with heavy pushback. The same people pushing back are the same ones who took massive losses over the last week because they were heavily concentrated in the same high beta growth and tech stocks that everyone else owns.
Position sizing is one of the most important aspects of trading. If you don’t size appropriately you can be wiped out in a single week. We just saw that play out across crypto, software, and other speculative groups where some moderate selling quickly turned into forced selling.
This does not mean you need to own 20+ names. But it does mean that if you go all in on a small number of stocks you are taking on significant risk. When momentum reverses concentration works against you just as quickly as it worked in your favor and we saw exactly how that plays out over the past week.
I also want to highlight that this coming week I’ll be releasing my next thematic primer. This one will focus on a theme that is emerging as a potential market leading group with strong price action across many names, a compelling narrative, washed out sentiment, and meaningful tailwinds from AI, economic policy, and the midterm elections. It’s a good one and I think it’s coming at a good time as many names have very strong charts.
In the remainder of this article I’m going to discuss my thoughts on the overall market, crypto and whether or not I think a bottom is in, one of my favorite stocks and companies that sold off after earnings and is now moving into an area where I’m considering opening a long term investment position, the hidden winner from Amazon’s earnings call, the datacenter trade, the clear leader in Agentic AI, an American energy name that just had a potentially game changing catalyst, and more.