On Friday you’re about to enter the AI Matrix – Fat Tail Daily

Up yesterday. Down today. Get used to it. It’s the Trump Show now. Orange Man is going hard on China. Markets will struggle as this wrestle goes on.

But is all this just a distraction for the masses?

Is an even bigger investment story about to hit that will soon wipe Trump tariffs from the front pages?

In the movie The Matrix there’s a pivotal scene where the character Morpheus is explaining to the hero, NEO, that something is wrong with the world.

To drive home the point, Morpheus makes a point that we all might relate to on some level.

“What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world. You don’t know what it is, but it’s there, like a splinter in your mind, driving you mad.”

For some of the world’s most successful entrepreneurs, this “splinter in the mind” is the reason they get out of bed every morning… and the thing they chase until the day they die.

Take Steve Jobs, for example.

His ‘mind splinter’ came from seeing the potential of computers to change the world.

In the mid-1970s, Jobs set out on his vision to put a computer on every desk.

If you’ve read the biography or seen the Steve Jobs movies, you already know what happens next.

While Jobs was successful at launching and growing Apple, eventually the company began to struggle, and Jobs was pushed out.

He set out to do other things until eventually he was brought back in 1997 to bring Apple back from the verge of bankruptcy.

Despite Jobs’ decade-long departure from Apple, the mission never changed.

His vision of putting an Apple computer on every desk – and eventually in every pocket – was the splinter in his mind that he just couldn’t ignore.

However, Jobs is not the only entrepreneur to experience this.

Thomas Edison spent his entire life pursuing electrification.

Walt Disney spent his life focused on creating family-friendly entertainment.

Richard Branson continues to spend his life on businesses related to travel and leisure.

Then of course there’s Elon Musk…

Do you hate Elon Musk?

If so, you’re certainly not alone. It’s in-fashion. Like the new Crocs.

Musk has become the poster boy for resentment among opponents of the Trump administration. And, certainly when it comes to the financial markets, this is not the Trump administration’s finest hour.

But I ask you this week to put aside what you personally think about Musk — the person, the troll, the Doge guy — for the next day or two at least.

And focus instead on the miracles he has performed in the last 25 years.

As the Hill puts it:

“Few people would deny that Musk is one of the most brilliant humans — let alone Americans — ever to walk the earth. His companies are preparing to send people to Mars, rescuing astronauts from space, building electric vehicles, solving neurological diseases with computer chips, developing robots and advanced technology, linking cities together and (admit it) providing a free speech forum with all the expected vitriol.”

But, as James Altucher is going to reveal here at Fat Tail Daily this Friday, there’s one final frontier Musk is aiming for that’s almost as ambitious as Mars itself.

And it could change the world as quickly as ChatGPT did a few years ago.

What is Musk’s ‘final move’?

And what is the method we’ve uncovered to help you stake a claim in it? At the very time everyone is focussed on tariffs and wildly volatile market moves?

We close out this week with a massive Fat Tail Daily reveal this Friday.

DO NOT MISS IT!!!

Best wishes,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

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By Murray Dawes, Wednesday, 09 April 2025

The chart above shows you the last two serious rallies that the S&P 500 has had since the COVID crash low in 2020.

I wanted to show you both so you could see the power of the point of control as an area of support in bull markets.

The point of control is the midpoint of a wave or range, that acts like a magnet for price action.

The correction in 2022 took the S&P 500 to the point of control of the rally from 2020-2022 exactly. Then prices bounced (the blue arrow above).

The next up wave in the bull market started from the point of control of the previous rally.

Once again we have seen a correction to the point of control of the rally from late 2022 to January 2025.

There are still no signs that this correction is over, so the prospect remains that we could see prices fall below the point of control at 4,835.

Panic levels could increase markedly below there and increase the odds that we see prices swing all the way down to the buy zone between 3,800 and 4,200.

A move like that would see prices fall another 15% from current levels.

So let’s hope we are seeing the final stages of this capitulation over the next few days and this area around the point of control holds.

It’s too early to start buying, but if we do see another capitulation that turns into a sharp rally again soon, I will be hunting for short-term trades.

As far as I am concerned the odds that this point of control ends up holding is high. but the low probability outcome that sees prices fall through the point of control could lead to more crash-like selling.

In a fast market like this you need to be aware of the risks because they are real.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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