Is the Stock market about to Downtrend quite a bit?

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Well guys let’s go ahead and chat a little bit about this stock market that we have here today and what’s gonna happen with the stock market over the course of the next few weeks are we about to get into a rough market a downtrending stock market i mean i know you guys have seen it dow post worst day since october and turns negative for the year as coronavirus fears

Grow i mean look at the markets today the dow was down 1.5 7% the sp500 was down one point five seven percent the nasdaq approached a 2% downward move here today that was in the us market and actually all started in the european markets last night okay the dax was down 2.7 4% the footsie was down 2.3 percent the cac was down 2.7 percent so europe was actually even

Worse than the us we actually had it easy here in the states here today as far as our markets go compared to how bad europe at it keep in mind the markets have been on fire for months now so it’s all of a sudden get you know what kind of a shake-up in the market it kind of definitely rattles some investors out there because you get used to this market that’s just

Going up going up going up and then it’s like hey hey hey hey this isn’t how the stock market works we actually have some volatility here actually the stock market does have some big downward moves okay and you know plenty of stocks had pretty big just looking at some of the stocks that i track on a daily basis either these stocks i either own or i track them for

Different various reasons neo stock made a 14% downward move here today winning resorts one of my investments was down over 8 percent today trans and trix was down 8% matson technologies was down 5.8 percent amc the movie theater company was down 5.6 percent capri holdings which owned several luxury brands was down 5.6 2% plenty of names were down big today ok even

The almighty apple the hell mighty apple the stock that has been just about as hot as any stock out there especially when it comes to big tech growth who you know apples the biggest of the big stocks been hot you know just for the past year especially for the last several months made a 3% downward move here today you know it’s a rough day for the market when you see

Apple stock down what about that tesla my useless stock i mean does it get any hotter and tell us the song even tesla was down one point 2% you guys know the market has to be rough for apple and tesla go down okay obviously this is all in the back of the coronavirus you know this is kind of shaking up the market right now it’s definitely worrying a lot of investors

It was just gonna get a lot worse is this going to be something that hurts earnings very bad come q1 it actually goes from a situation where we thought maybe a lot of companies would beat when it came to 2 1 2 maybe it’s negative i mean obviously you guys have seen it’s even in the states now so it’s not just something that’s contained in china ok now if we look at

Something like the public account okay which by the way is available for every my private stock market group if you’re interested in joining that group link is down there in the description ok if we look at that particular count a couple stocks come to mind as far as some big downward moves here today ok one with ccl carnival cruise line which i definitely welcome

That cuz i’m buying this talk very heavily right now across all my accounts so i’m like ok go down more please see see how here in the short term but that stock made a 4.7 3% downward move here today ok see cls carnival cruise line ok and the other stock that really caught my attention was obviously winning resorts which wasn’t so winning today ok a negative 8%

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Move for win resource that’s a very very big downward move in a one day span for a stock like wynn resorts ok now what do both of those stocks have in common well they both are travel in leisure related companies right carnival cruise lines is a cruise company right they own different cruise lines all over the world now keep in mind their business has very little

To actually do with china they don’t really benefit much from that but if you think about the coronavirus and you think about just worries around like virus is spreading and things like that it’s gonna affect how travel is done and maybe people say maybe i don’t want to travel and so if you’re thinking about travel and leisure stocks short term over you know the

Course of a quarter so it can hurt numbers very negatively when it comes to us okay obviously winning resource you know they have you know obviously properties here in las vegas the city i live in right the win in on quarter they also have a property in boston macau is going through a very tough time with those whole coronavirus right now i mean you look at the

Wynn and encore properties that are an old coat i and then you look at their best property which is called wind palace which is an part of the coat i strip right those are properties that count on chinese customers coming there okay in this stock made a negative 8% moved today well wynn resorts las vegas sands mgm resorts chairs of major hotel and casino chains

Drop on fears of coronavirus would dent travel through the third day of the chinese new year holiday macau visits were down 60 percent year-over-year according to deutsche bank 60 percent guys we’re talking about a massive massive decrease this isn’t like oh you know has just a few less visitors no 60% less year-over-year okay wynn resorts was also downgraded by

Bank of america to neutral from by on monday the firm lowered its share price target to a hundred and fifty dollars per share from a hundred and sixty dollars per share shares of wynn resorts obviously fell huge loss of agus sands were down huge mgm is a little less reliant on china so that didn’t get hit quite as hard there are a lot more las vegas strip related

And so if you guys didn’t know chinese new year’s actually going on right now okay and this is kind of like a one to two week event and chinese new year a lot of people do a lot of gaming in macau they also come here to las vegas the city i live in to also game but macau’s the big one and when you’re talking about the chinese new year a big gaming holiday and all

Of a sudden you know the chinese citizens either can’t travel or they don’t want to travel because there’s a risk that what if they caught the corona virus that’s obviously something here in the short term that is a super big negative for any of these you know travel and leisure players and especially especially a name like wynn resorts that obviously gets the

Majority of their revenue and profits from the macau region so this is super super negative for names like that here in the short term okay now what did we see in the vix today so the vix feels you guys who do not know essentially tracks volatility okay so think about think about it in this terms if the market’s going through a really tough time if there’s a lot of

People selling shares a lot of fun selling shares and things like that the vix usually jumps if there’s a lot of volatility in the market it’s going crazy right and here today the vix was up 25% a huge moved here today for the vix up over 18 the vix had been super super calm recently i mean just look at the vix recently had been like around 14 maybe up to 15 but

You know a lot recently it’s been like the 12 range which is extremely extremely low for the vix even some periods in the levins recently okay now to give you some context on the vix that is not natural that is that low all the time okay a lot of times the vix jumps way over 20 and when the vix starts getting pretty high you start getting into the 30 range and if

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You’re just wondering like what would you consider like the vix insanely high well go back to like october 1st 2008 okay great great kind of when the the great recession was going on and it was just a ton of negativity in the market ton of volatility in the market the vix was around a 60 okay so you know to give you some reference you know an 18 here is nothing

Compared to a time period like that i mean a 64 the vix i you know who knows maybe we’ll see a number like that again someday but that type of number is just ridiculous okay another time the vix was very very high you go back to september 1st of 2011 the vix was around a 43 at that particular time so obviously very high for the vix there as well so although the

Vix jumped a lot today is still nothing compared to the past okay so when we’re kind of thinking about all this all those you know the kind of like the spike up here in volatility kind of what’s starting to go on in the stock market kind of a little shake up here and it’s like oh by the way this doesn’t just you know go up every day like this we do have some

Volatility this is a stock market let’s not forget there are kind of like two things that really come to my head in this scenario okay the first thing i think about when i kind of think about what is it’s kind of transpired today and what might go on over the next few weeks is we need this man we need this like we need this in the market for for kind of two reasons

Okay we need this in the market one because like too many people think like their accounts should just go up every day in that this is a way the stock market like works in like oh i didn’t gain 10 percent this month or should i make like 10 percent every month or something like that we need this from investor psychology standpoint that people you know don’t get

Into this habit of thinking the stock market goes up every day in this expectation that your stock market account grows every single day that is not the way the stock market works okay the name of the game in the stock market is to grow your account each year hopefully and especially if you look at a five or ten year chart of your stock account you should have

Seen a lot of growth but in terms of a day to day a week to week or even a month to month you should not expect your stock market accounts to grow every single day every single week or every single month time periods like that or super strange if you’re getting that type of performance okay i’m happy this is happening because we kind of need a shake-up also

I’m happy it’s happening because we need some big deals in the stock market i mean just over the past you know several weeks i’ve been looking at a lot of stocks and i haven’t been able to find very many good deals and all of a sudden if we start getting a shake up here a negative day like today maybe a few more negative days over the course of next you know a

Few days or the next few weeks now we’re starting to talk about some deals can start emerging in the stock market and if you’re coming from a buyer perspective it starts getting more interesting and recently it’s only been interesting from really a seller perspective with mostly stocks mostly stocks in the market recently have been a fair value or overvalued and

When you’re talking about you’re in that type of market it’s great if you’re selling stocks it’s great if you’re a seller stocks but if you’re if you’ve got cash in the sidelines and you’re a buyer and you want to buy it is not fun to be buying stocks that are already fairly valued and it’s especially a bad idea to buy stocks if they’re overvalued and so we need

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This in the end we need a shake up in the market we need some volatility man we need this in a bad bad way okay second thing that comes to mind is things are gonna calm down okay it’s gonna take one to four weeks and things will calm down just since i’ve been in the stock market for the past you know ten years plus right i’ve seen a few of these virus situations

And i remember the whole ebola situation a few others in the past and usually this is something that shakes up the market for you know anywhere from about one to five weeks roughly it causes some volatility it causes a lot of stocks to fall short term and sometimes it can actually hurt company earnings like we’re gonna see several companies be negatively impacted

Because there’s coronavirus so it’ll definitely cause some negativity in the market and it’ll likely continue to cause volatility for the next one two four weeks and that will create some buying opportunities into some great companies that you love for the long-term and that’s definitely good there but in terms of if you think this is just gonna end tomorrow from

What i found with a lot of these virus situations it usually doesn’t it usually has a peak period when there’s just like the the most like like scared attitude out there in the markets and from people and usually that comes anywheres from two to four weeks after everybody’s you know kind of found out about this so everybody found out about this coronavirus last

Week so if you’re thinking about a peak week for coronavirus it’s likely going to be either this week or within the next three weeks that we get that peak period of kind of hysteria and worry about this and then likely things will start calming down after that period but it will actually hit some earnings you know a company like wind resorts it will hit some of

The travel and leisure stocks and even things like i’ve seen i’ve heard news that tesla might have shut down their shanghai gigafactory i’ve not fully looked into that yet but obviously if the shanghai gigafactory shut down for tesla for one to let’s say three weeks that is something that will make the q1 numbers not look as good for tesla so this is absolutely

Something that will have an effect on different companies out there we’re just gonna have to see how big of a negative effect this can actually have for companies that basically do business in china which if you’re investing a lot of these you know multi global companies they have some reliance on china and that’s obviously the region that’s being hit the worst

As of right now guys so you know it’s is really interesting from a long-term buyer perspective what’s going on right now and what will likely go on for the next few weeks but obviously if you’re somebody that’s worried about volatility in the market then this is obviously not something you want to see it’s not like you want to wake up and see your accounts down

Things like that but from a perspective like mine that i love to buy stocks and i love to buy and great deals like you know we think we need is something there was gonna be something that happened to eventually to shake up this market it’s not natural for the market to just continue to go up every single day and it’s not natural for your accounts to go up every

Single day this is not the way the stock market works so anyways i hope you guys enjoyed this video say let me know your opinion on everything discussed in today’s video in that comment section i would love to hear from you guys as always don’t forget to smash the thumbs up button if you enjoyed today’s video thank you for watching and have a great day

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Is the Stock market about to Downtrend quite a bit? By Financial Education

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