Santa Runs Out of Gas

By Murray Dawes, Friday, 07 November 2025

Markets finally wobble after a relentless rally: breadth cracks, hot names see heavy profit-taking (Nvidia included), Aussie microcaps slump, and the ASX 200 flashes bearish divergence. We break down what’s driving the pullback, why Michael Burry’s short on Palantir is in focus, and why U.S. natural gas is ripping—mostly seasonal now, with possible AI-driven demand ahead—plus how far this correction could run and our gas bull case.

After a rally that felt like it could go on forever, it looks like we are in for some turbulence.

Last week, I pointed out that nearly 50% of stocks on the S&P 500 were below their 200-day moving average. A signal of possible danger, despite the S&P 500 nudging up against its all-time high.

Something didn’t add up.

Fast forward a week, and we have seen some serious profit-taking emerge in the hottest areas of the market.

Even Nvidia dropped over 10% on the week!

Australia hasn’t avoided the bloodletting, with microcaps blasted over 5% on the week. The S&P/ASX Emerging Companies Index [ASX:XEC] is down 13% in three weeks.

The wider market is also looking a bit wobbly, with weekly bearish divergence confirmed last week in the S&P/ASX 200 [ASX:XJO].

I explain what bearish divergence is in the video below.

Charlie and I also discuss a few of the key US stocks that are copping a beating, including Palantir Technologies [NASDAQ:PLTR]. Michael Burry of ‘The Big Short’ fame, announced this week that he had initiated a huge short position in the stock.

But it’s not all doom and gloom.

There is always something running, and this week it is gas in the US.

Most of the rally can be traced to seasonal effects as they head towards Winter. But the Henry Hub Natural Gas Futures [NYMEX:NG1!] chart is primed to surprise to the upside.

Could the market be responding to expected jumps in demand over the next few years as AI data centres scramble for more energy?

Dive into today’s Closing Bell video below to find out our thoughts on the coming bull market in gas and how low we think markets will go on this correction.

Regards,

Murray Dawes,
Retirement Trader and International Stock Trader

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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Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

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All advice is general in nature 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.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.