Netflix Wins The War

Good morning. Netflix shocked the markets by agreeing to buy Warner Bros for $72 billion…is this yet another topping signal? Let’s break it all down.

All of that, plus your…

• Chart of the Day is the Russell 2000 because small caps are breaking out
• Trade of the Day is a setup worth paying attention to, especially if the Santa rally delivers
• Degen Play of the Day is taking bets on Nvidia vs. Apple for the world’s biggest company by the end of 2025.

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Chart of the Day

The Russell 2000 has broken out of its large cup and handle pattern and is retesting its all-time high for the first time since October. It’s gained 10% over the past couple of weeks. It closed the week at 2,521.48, less than 1% away from the ATH it set on October 15th of 2,541.67.

This small-cap index tracks around 2,000 US companies with market caps under $2 billion and when this breaks out, it usually signals two things:

1. Sentiment is shifting from risk off to risk on
2. A broader market rally is coming

And that’s generally bullish for crypto, especially altcoins. If the breakout continues throughout December, altcoins could explode to the upside like they have done when this index has previously entered price discovery.

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Trade of the Day

An interesting short-term setup is emerging here for Cleanspark:

• MACD reset with a bull cross under the zero line after a short and sharp 60% drop
• The 60% drawdown brought the price to the multi-year bull market support trendline
• Price trading back above all key EMAs
• Downtrend line on the chart is extremely clean

Just to be clear, there is no trade here yet, but we see an early set up on the horizon. 

So what we are watching for is a daily close at $15. That’s the trigger here for this trade, with a target of $20 because that is a major area of previous resistance.

Lark hold’s spot but this could be a short-term trading opportunity once we get the confirmation.

Want better breakdowns? Go Premium for TA reports, weekly market insights, and access to Lark’s personal portfolio.

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Alpha Leaks

• Meta is considering cutting its metaverse department by as much as 30% and the share price responded well to the news, up 3%. Analysts are reporting these cutbacks could be redirected into AI to lift its share price by 20%. Meta is also acquiring AI wearable startup Limitless.
• Sui had its first US-based ETF approved. The 21Shares 2x Leveraged Long Sui ETF was approved for trading on Thursday. Its ticker is TXXS and is available on the Nasdaq.
• Apple [AAPL] announced that 4 senior executives are leaving all within 72 hours. These massive leadership changes are uncommon for Apple but going into the AI boom with a barely there strategy, it’s much needed. And Wall St. wants answers.
• Uniswap [UNI] has integrated with Revolut so you can now buy crypto with a debit card, bank transfer, or directly from your Revolut balance. It’s available to all countries in the European Economic Area, except Hungary.
• Moore Threads [688795] is China’s Nvidia and its shares jumped by more than 400% on Friday on its Shanghai stock market debut after raising $1.13 billion.
• Chainlink [LINK] has bridged together Solana and Base using its Cross-Chain Interoperability Protocol (CCIP).
• Ethereum [ETH] had its first ETH staked fund launch for trading on the stock market. WisdomTree is the first to market with its Physical Lido Staked Ether ETP in Europe [LIST]. 

Go Premium to read this week’s report on BOB, a Bitcoin-secured network that lets BTC flow into DeFi.

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News Roundup

Netflix Agrees To Buy Warner Bros

Streaming giant Netflix has agreed to buy Warner Bros for $72 billion. The deal includes the film studio and streaming services, meaning Netflix will own the IP to movie and television franchises like The Matrix, Harry Potter, Game of Thrones, Lord of The Rings and the DC Universe.

This certainly feels like one of those mega M&A deals that will go down in history for not only an industry-changing deal reshaping the entire entertainment industry but possibly for indicating a top in the financial markets too. Not necessarily THE top, but one of the more memorable topping signals once all of this is said and done.

But deals like this are hardly ever financed in pure cash. What they do instead is combine cash and stock. Warner Bros [WBD] shareholders will receive $23.25 in cash and $4.50 in Netflix stock per share. 

As for the share price action on the announcement:

Warner Bros: +6.28%

Netflix: -2.89%

Only the pricing and initial structure has been agreed, so it’s not a done deal yet. It still may be subject to massive scrutiny from US Congress and antitrust regulators who see it as a potential monopoly move. The Trump administration has already said it views the deal with “heavy skepticism.”

The deal is expected to close in 12-18 months so we’re talking mid-2026 to early 2027, and that’s pending WBD shareholder approval, regulatory clearances, and the spin-off completion. 

And of course, Netflix may raise its prices due to the increase in premium IP. But if Netflix can streamline the studio and remove some of the efficiencies contributing to the Warner Bros downfall, it could result in a more effective business model.

Ethereum Fusaka Upgrade Goes Live – What Next?

Ethereum’s Fusaka upgrade went live on Wednesday to enhance scalability, reduce Layer-2 rollup costs and improve network efficiency.

Here’s what comes next:

• Scheduled blob target increase to 10-15 max. per block on December 9th 
• Burn volume expected to increase up to 8-fold
• Glamsterdam upgrade expected by mid-2026

But the real indicator for what comes next is the price action. 

Since the Fusaka upgrade went live, Ethereum has broken its 4-month downtrend on the ETH/BTC chart. If this trend reversal is confirmed on the weekly timeframe, it would be bullish towards an upside continuation in the coming weeks.

Markets Are Bracing For Fed Rate Decision

The Fed’s next rate cut decision comes next week on Wednesday 10th. Polymarket is now at a 93% chance of a 25-basis-point rate cut as the markets are optimistic the Fed will deliver the good news. 

On Friday, Core PCE which is the Fed’s preferred measure of inflation came in at 2.8% for September. That’s still well above their target rate of 2% but met expectations. And that hopefully seals the deal on a rate cut.

Whether it becomes a sell the news event or not is something we will have to wait and see. Especially if the Fed mentions anything about less cuts or slowing pace of cuts going into 2026.

It’s a big week ahead, so you know the drill – more volatility is expected.

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Degen Play of the Day

Nvidia is just 25 days away from ending 2025 as the world’s most valuable company, and Polymarket is currently paying $0.88 for “Yes” shares making it a 13.6% return if it holds the crown. 

Odds dipped to 75% mid-week due to AI bubble fears and increased competition, before rebounding on strong data center demand forecasts. With a $300 billion lead over Apple and AI demand still red-hot, this is a clean high-probability bet.

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