The David Lin Report 'Much Like The ‘90s': Trader Warns Of 40-60% Market Crash | Todd Horwitz
May 7, 2026
Todd Horwitz, founder of BubbaTrading.com and options trader known as 'Bubba', gives a wide-ranging market check-in. He warns of a potential 40–60% sell-off and explains retail-led rallies. He breaks down how bots and AI changed trading, discusses oil, gold, Bitcoin, and outlines option hedges and practical trade rules.
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Retail Rally Hides Big Money Waiting To Sell
- Todd Horwitz warns the current rally is a retail-driven bounce while big banks sit on the sidelines potentially preparing to sell.
- He compares it to past parabolic rallies where limited participation preceded 40–60% crashes, arguing large players wait to re-enter on their terms.
AI Changes Flow But Human Panic Still Drives Crashes
- Technology (AI and bots) changed market microstructure but hasn't removed human-driven panics that cause big selloffs.
- Horwitz notes bots read fundamentals and tech, yet true sell pressure arrives when real traders panic and hit the sell button.
Stick With Index Funds Or Profitable Tech Leaders
- For most investors, buy index funds or profitable companies and hold for long-term compounding.
- Horwitz recommends firms like Apple and NVIDIA that historically grow ~8.5% annually and cautions against trying to out-tech giant institutions.