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Oh is this a crazy market we are in right now we got a lot to get into in this video guys i’m gonna show you a bunch of stuff and uh oh my gosh okay back to back to back days back to back to back days that the futures were massively red and i mean massively red and somehow some of the indexes eek out gains and people are like losing their mind in this market like
What how how are we so bad in the futures market how do we open so bad and then the market comes back so strong everybody every day and everybody’s like how is everybody bearish in this market doing this essentially and it’s just it this is this is wild okay so if you didn’t see once again yesterday futures were massively negative and uh market opens very very bad
And yet here we are with uh you know the nasdaq green it’s gonna it’s gonna finish green okay i’m taking this like a minute or two before the market closes nasdaq’s gonna be green russell’s gonna likely be green s p 500 gonna be close to green and uh dow’s gonna hardly be down compared to what it what it opened at and um back to back to back trading days where it
Was like this is going to be a disaster and then it wasn’t a disaster and the market actually goes up okay this is why it’s impossible to predict uh short-term things going on in the market because it’s just like like literally everybody’s like it has to go down it has to go down and it doesn’t go down again oh man it’s flipping everybody’s flapjacks we pull up my
Watch list which my watch list has a bunch of stocks on some of these stocks i own so many stocks i’m tracking for different reasons some of these stocks i’m tracking because i might end up buying them in the next um let’s call it a year or so okay uh you know on my watch list this is the first one thirteen percent upward move for net max our technologies maxar has
A really good long-term story and i’ve looked in that company you know i really started looking into it probably in november i actually really like it for the long-term story there what i will say about maxar right now people are playing it as a trading play because of uh the whole russia situation and their uh satellite technology is amazing for capturing pictures
Of what’s going on so a lot of people are actually using that as kind of a trading vehicle right now rather than like a long-term investment vehicle but i actually like the long-term investment story of max rs why i had my watch list a few months ago a foot locker had a huge bounce back day here today 8.5 that one just likely got way oversold on friday when it was
Down like i mean it was down over 30 at one point sometimes these stocks was way overshoot to the downside that looks like it was probably a situation foot locker lemonade came back strong today seven percent move there tesla mias a massive day for tesla seven percent plus upward move for tesla here today so far seven percent as well avon brands a seven percent
Move for avant brands my favorite uh stock under one dollar in the stock market tdoc go teledocs uh up up big today up about seven percent so i didn’t look at arc today but i’m assuming arc had a very good day considering tdoc was up big and uh tesla was up big that’s usually their number one number two biggest positions in the main arc fund square stock up six
Percent it’s you know that’s important okay the reason that’s important is that stock moved huge the day they’re about to report earnings it moved massive the day after they reported earnings and another huge upward move for square stock here today at 127. guys this is a stock that was 82 a share on thursday morning 82 83 a share you could pick this stock up
For on thursday morning i mean that was what uh you know 96 hours ago or so or 72 hours ago like that’s incredible incredible that is nothing short of you saying okay fubo tv this one up five percent plus there today and uh this is an important one beyond meat a nice bounce back day and beyond meat about a five percent move there for bynd i love beyond meat for
The long term good rx four percent move they’re the chef lou the chef four percent look at all those short sellers making up all that stuff they like to make up all those lies and just you know fabricating whatever and yet they still can’t get the stock down a four percent plus upward move on a day when once again the dow is down today s p 500 is down today uh
You know russell will will likely finish out it a little bit green but not much green and um there’s a chef just four percent up we’ll take that dropbox 3.5 percent upward move there palantir nice nice bounce back day for palantir 3 there uber uber stock up three percent today shopify 2.5 percent the hood two percent honest one percent oh man that stock’s gonna
Be a beast over the next three years but it’s not today today is not its day but it will be coming for that one uh corsair man they’ve got all their tough comps already in the past uh well no no i take that back they have one quarter left one quarter left of tom tough comps this first q after that then it’s all in the past and for corsair shareholders we can’t
Get that quarter behind us fast enough let’s just put it that way uh paypal uh decent move upward here today now as far as kind of some of the laggers here voyager digital which no one wants to own crypto brokerages apparently that stock is poised for a ridiculous run uh sam’s gonna have a nice bounce back there year this year as far as their numbers go throughout
The year uh last year was a disaster for them 2021 2022 is going to shape up much better for them oli’s just an expansion beast it’s ridiculous uh stitch fix is in no man’s land right now a meta is kind of in no man’s land right now celsius holdings kind of no man’s land right now sdc everybody’s waiting on those earnings for stc we’ll see what happens there
Walgreens kind of no man’s land amazon’s been in no man’s land for like almost two years now it’s insane well maybe not two years but for over a year and a half amazon’s been in no man’s land it was incredible uh funko no no no real opinion there as far as other red ones nordstrom was slightly red that one is uh looking like a snack they are reporting earnings
This upcoming week so probably a lot of people are scared because those earnings and i don’t know what’s going to happen there i’m expecting really strong guide from nordstrom skywork solutions down slightly there today wind down slightly uh pfizer down slightly purple down about 1.8 percent this one looks like a snack right now uh ali baba 105. uh you know that’s
Just it continues to be caught up in the chinese drama planet always a deal always a deal steal anything under five is a steal deal for this company for a long term shareholder base and then revolve big downward day for rvlv today about 5.4 percent that was the one that was really uh outstanding that’s just you know took a big downward fall there today now let’s
Talk about the marks in general so you know if you’re a trader in this market right which uh a lot of the market is filled up with traders swing traders day traders or just uh you know people that are trying to move money around all these different sectors all these different industries all these different companies all the time right they’re getting in they’re
Getting out of these positions or you know oh i’m cutting down my position here building there they’re doing that stuff right well you know it’s a tough market to be a seller and the reason being is you got the vix over 30 right now it’s a tough sell to sell into a market um if you’re selling into a market where vix is over 30 that’s a very very high vix number
Which basically shows you volatility in the market and what you what you should usually know is if you are in a extremely volatile market they usually you should be a buyer like that just like common sense you look at every time throughout the last i don’t know 20 30 years okay look at every single time where vixx spiked high every single time that was a buying
Opportunity it didn’t mean like that was the bottom of the market at that particular time or anything like that but every single time it was a buy and so with the vix being so high i mean today was in the 33 range it’s hard not to be a buyer in that sort of market or if you’re not going to be a buyer some it’s tough to sell like you’re really going to sell when
The vix is over 30. that that’s a tough decision there i could tell you that much this is usually not a usually not a good move you’re usually selling into a very panicked and fearful market and what you should always know is you don’t want to sell into a very panicked and fearful market this next chart is extremely telling all right so this is a i uh excuse me
Aai which essentially looks at market sentiment for investors out there funds things like that and we are trading historically this has been around since 1987 before i was even alive okay 1987. and what i can tell you is we’re trading about the most bearish we’ve ever traded at in the history are pretty darn close to the the worst we’ve ever traded at in terms of
How bearish folks are on this market this is a weak ending uh 223 so the most recent one 50 almost 54 percent of people bearish on the market of the uh the people that are tracked here almost 54 percent 23 are roughly neutral and 23 are bullish that’s insane i mean absolutely insane so if you look at historical average this is where we should usually be at okay
You should usually have about 30 percent of folks over the next six months should be bearish right right now we’re at 50 of 53 almost 54 percent i think that’s incredibly high you should usually have about 31 percent that is that are neutral and about 38 percent that are bullish versus right now it’s 23 percent that are bullish right so we’re in this and by the
Way look at the one-year high when your high was in uh april april uh 7th of 2021 one year bearish high is literally right now and this is pretty darn close to a multi-year high now keep this in mind if you have this many people bearish on the market right that means people are offsides in a massive massive way and if you can continue to get this market to run
What do these folks that are all bearish going to have to do they’re going to have to slowly start flipping over to the bullish side and i can tell you it makes me more comfortable when i see massive amounts of bearish sentiment in the market because that’s just kind of shows me that people aren’t believers in any rallies that this market goes on and the more
The market goes up the more these folks got to scratch their head and say gosh could i be wrong in this do i have to come in and invest some money now and um you know that’s just the sort of market we’re in right now where you just got ultra fear in this market you know this doesn’t usually happen this is i mean we’re already trading high we are already trading
High when it comes to the bare sentiment now we’ve just gone literally off the charts that’s way more people bearish that are bullish or neutral for that matter that’s incredible i mean you’re talking about over a two to one ratio so i mean look at this the previous week was crazy as well because this basically showed that there were you know uh less than 20
Percent of people bullish like that like my mind literally can’t even comprehend that number like my brains like having a malfunction like less than twenty percent of the investors were bullish uh for the week ending february 16th like like literally my brain can’t even process this information like what like that’s just crazy to me like it should never be that
Low like they’re flat out like even if you’re in a massive recession at a depression i don’t care what you’re in it should never be that low like that’s ridiculous under a 20 amount of people that are bullish on the market it’s just that’s crazy i mean absolutely insanity like pure insanity the equivalent of that would be like like this basically when we had one
Year bullish high of 57 yeah i don’t even think that’s that insane the equivalent of that would be like if we had you know 70 or 80 bullish that would make me very very fearful in the market like wow we have that many people that are bullish on this market 19 percent we’re bullish so the only good news is we’ve got some more people going bullish on this market i
Guess now that things have actually transpired and happened and maybe the fed won’t raise this rapidly but that’s just crazy man just ridiculous numbers there now if you look at this uh jp morgan now sees fed hiking interest rates nine times to combat red-hot inflation federal reserve could raise interest rates at every meeting until march 2023 so a little over a
Year from now right so here we are with every big wall street bank out there expecting between five to seven to nine rate hikes now in the low end i’m seeing five in the mids i’m seeing seven and now we got people saying basically like nine rate hikes over the next year essentially right so now we’re we’re into this market where we’re pricing in ultra fear in this
Market we’re pricing in a ridiculous amount of rate hikes that might never happen at least at that that pace right obviously oil prices hurt the case for seeing a less of an increase of inflation because oil prices are going up gasoline is going up so that’s not good but you know that that could easily start flipping the other way if some of the russia stuff calms
Down which probably isn’t coming down for a bit that’s probably going to be an ongoing situation for a little while here so you’re looking at this market ultra bearish uh pricing in a ridiculous amount of rate hikes expecting the absolute worst when it comes to inflation and when you start having all this what happens okay what happens when you start getting the
Market to turn a little bit well people start saying oh man maybe i’m a little too bearish and they start slowly but surely flipping over the bullish side when these fund managers individual investors start flipping over the bull side what ends up happening they buy in they put money in the market and you’d be surprised at how much money is out there in the market
How many people have 10 20 30 million dollars maybe sitting on the sideline that then they start turning a little bullish and they start deploying that money slowly but surely into the market maybe they had pulled out of the market right fund managers imagine the you know outflows of money out of certain stocks out of certain sectors and that money slowly starts
To rotate over we know mids and small caps have been trading at ridiculously low historical numbers i mean we’re talking about four ps that we haven’t seen in a decade in a decade okay and so we know smalls and mids are are you know whenever this baby really turns we know smalls and mids are ready to go on an epic run like one of the most epic runs we’ve ever seen
When it comes to small mid caps we know that we know there’s a lot of deals now in this market when it comes to a lot of the large caps and even a lot of the mega caps now which is uh different than a market we were in two or three months ago two or three months ago the mids and the smalls were were already heavily damaged but the mega caps and a lot of large caps
Weren’t really trading at very attractive valuations that’s a different situation now you even have a lot of those stocks trading at you know pretty attractive valuations so you have so much bad news priced into this market that what happens if you just start to get little glimpses of good news okay what if it’s not ww3 going on okay what if the fed only raises
Times over the next year oh my gosh okay what if the rate of inflation in terms of the rate of increase we’ve been seeing starts to slow in let’s say two months from now as i believe it will what happens when a lot of these things start to play out and the market’s already priced in worst case scenario the market’s pricing in crazy amounts of rate hikes the market’s
Pricing in the inflation rate just continue to go through the roof for all of eternity and uh the world you know the pricing is so much bad news in this market and when a lot of that starts to not come true all of a sudden people start to realize oh man i’m off sides in this market i’m making a mistake i’m on the sideline here and uh ultimately if you’re an inflation
Environment regardless if there’s two percent inflation four percent inflation six percent inflation eight percent inflation regardless your money is being eaten alive and you can’t keep your money in cash because that cash is just melting day by day by day like it’s an iceberg right i heard that expression once your cash is like an iceberg that’s just getting
Melted away day by day by day and so that money you can keep it on the sideline or you know these fund managers can start funneling back in the market where there’s actual opportunities right and it’s just about who wants to be first we’re clearly seeing some people that are want to be first in this market right that’s why you get three straight days where the
Futures look awful looks like the market’s gonna crash in all three days bounce hard okay it’s a crazy market guys we got a lot transpired i’m gonna try to keep you guys up to date make sure to subscribe the channel if you’re not already get your free stocks from boom down there in the comments section including a free tdcf share with 100 deposit much love as always and have a great day
Transcribed from video
MARKET JUST DID THE UNTHINKABLE By Financial Education