THE MARKET HITS MAX FEAR | SELLING IT ALL

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Wow host focus folks this has to be the most fear driven market i’ve ever seen what i want to show you guys here today is i want to show you uh some of this fear in the market okay and then i’m going to take you through some charts a little later in this video we’re actually going to look at something i was looking at late last night which i was trying to look

At some of these stock prices versus where they were at in january of 2020 so prior to roni rhona and um we’re going to look at that so i think that’s going to be really interesting for you guys to see that but nonetheless hope you guys enjoy this as always make sure to subscribe to the channel yeah markets down big today i think we all expected that off those

Facebook earnings um there was just no way the nasdaq wasn’t going to be down huge today and sure enough it’s uh you know going to be probably a two and a half to three percent move roughly for the nasdaq here today but what is shocking okay this is nothing short of shocking is look at amazon stock here today okay so if you didn’t know amazon’s reporting earnings

After the bell so here in a few hours from now amazon is down seven percent roughly seven percent down for amazon you know it i don’t think i’ve ever seen a market this fear driven in my life okay you know we’ve got mega cap stocks trading like their penny stocks facebook down 25 percent today it was a 900 billion dollar company yesterday right we saw the move

In paypal we saw the move in netflix we got the you know mega cap stocks trading like their penny stocks and you’ve got amazon prior and this stock is down seven percent that’s basically hedge funds that’s not retail by the way if you think that’s uh retail investors making this move no no no okay that’s hedge funds what they’re basically saying is we are so

Scared that amazon stocks gonna tank 10 20 or whatever on these earnings that we would rather sell now even if this stock is down five six seven percent we would rather sell now than a whole death stock through these earnings and even if amazon is to go up on these earnings we don’t really care because we’re that scared right now that we want out of this thing

Because think about it this way right who’s to say amazon can’t go up on earnings who says they can’t go you know be up 5 10 15 on their earnings what if they come out and have some great numbers but this is essentially hedge funds in in money managers in general high net worth individuals saying no i don’t care i don’t care if i’m i’d rather get out of this stock

And um basically not have to risk my money going down 20 tomorrow then essentially the stock goes up 20 tomorrow i’d rather be on the sideline in that situation and that’s such a different mentality than we had at this time last year when it was if anything a stock was up seven percent going into earnings right because it was like oh it’s up seven you know seven

Percent but we’re going to get another twenty percent or a ten percent move after earnings as well now people are just like no i want no piece of it and you know i can kind of understand it a little bit because you’ve seen the move in netflix was a 20-plus percent move down you saw the move in paypal 20 plus percent down you see the move in in meta today down 25

Percent plus right and uh people are just like yeah i’m good i’m good in amazon trades at a much higher pe right we know google apple those ones held pretty strong but those ones are also not very high p e companies amazon’s a higher pe and forward p company than those sorts of companies right and so people just said i’m out of this stock that is uh fear on fear

On fear you want to see another fear-driven stock look at square stock they haven’t even reported earnings yet okay this company hasn’t even reported their earnings yet they showed in uh you know the next few weeks let’s put it that way in the next three or four weeks when it comes to square okay this stock is selling off another 10 here today because people are so

Scared about the square numbers after seeing paypal’s numbers and how that stock fell that people are just like i want out of square any way possible it hits a new 52 week low pretty much today and people are just like no i’m good i’m good this one might go to 80 90 a share i’d rather just sell out of 102 to the day even if it’s down 10 and even if it’s fallen 50

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Something percent in the past couple months i mean look at this stock guys i mean their stocks down 60 70 percent in the past three months three months it’s extraordinary fall the stock has been on and um the fear is driving this market and it is in full control of this market right now and there’s nothing anybody can do about it right now retail investors hedge

Funds there’s nothing anybody can do about it because if big funds want to sell sell sell they’re going to push every single one of these stocks down and that’s exactly what you see happening they want out of this market so fast it’s not even funny and this this stock made a huge move down yesterday on those paypal earnings and then here today another 10 roughly

You know where is this not going to be by the time it reports earnings that’s a big question right um eventually what’s going to happen to a lot of these large caps and we’re probably not quite to that level yet but we’re getting close to that what’s going to end up happening i want to explain this for a moment then we’ll get back into all this good stuff okay

What’s going to end up happening is you’re going to end up starting to run out of sellers in some of these stocks you’re not there yet you’re not there yet with paypal and square in amazon and facebook and some of these others uh meta i should start calling meta but you’re gonna get to that stage kind of like we’ve seen the small caps where we had that capitulation

Last week and a lot of these small caps hit new all-time lows 52 week lows and what we’ve seen since then is even though the markets kind of floundered and been down trending or not doing much is uh a lot of the small caps have been holding up decent and the reason being is you just start running out of dang sellers in a lot of those stocks you’re always going to

Have traders coming in coming out those sorts of things but in terms of those massive move downs it gets hard when you just get almost every single uh let’s call a weak hand or person that’s a little fearful out of those stocks you start having like you know no selling pressure and then volume starts drying up and you start to get in this place where you either got

You know traders trading around the stock or you got buyers coming in but in terms of folks that are uh you know swings or even longs a lot of them just kind of exit so that will end up happening to square paypal meta and all those other companies right amazon um we’re just probably not quite there but i can tell you you know eventually you get to that point where

There’s just there’s no selling pressure left on these babies okay no if we look at the there’s only three stocks on my entire watch list right that are green today three three or excu yeah three literally and two of those stocks have already reported earnings okay good old tesla in the hood and so i think some folks are looking at those two stocks and like okay

They already reported earnings so the bad news is already behind them so they’re going ahead and uh you know those stocks are having an out performance day when you have the nasdaq down almost three percent and you have tesla up just barely today and you have the hood having a great day uh you know that’s just people saying hey these these companies have already

Reported uh you know i feel like we can we can buy them now and uh you know that’s a totally different scene than what you’re seeing in the stocks that haven’t reported earnings like square like amazon and some of the others right where people are just scared out of their minds in those stocks right now right as far as me personally as far as the way i’m looking at

It yeah i mean you know i bought paypal here today i bought another 100 and i don’t know 25 shares of paypal or something like that but even myself it’s hard for me to buy heavy right now just for the mere fact i’m looking at it i’m like well tattoo chef still has to report honest us reporting corsair gaming still has to report which are three big positions for me

What if those stocks fall off all i have to have some capital around for those those drops right if they’re gonna drop and i don’t know if they’re gonna or not so even for me it’s hard to go out there you know with both hands and just buy buy buy right now because i’m looking at i’m like well you know i got to have some capital around just in case a chef falls to

Ten dollars or honest falls to five dollars or a corsair falls to 15 or whatever right so that’s kind of the way i’m even looking at it right now and that puts um you know that puts the market in a tough position right now the fear and greed index is a lie okay the fear and greed index says it’s only fear right now in the market but a lot of what that’s basing

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Off of is volatility in the overall market i can tell you we’re in extreme fear right now you know i in my 14 years of doing this i don’t know if i’ve ever seen uh you know mega cap stocks like an amazon sell off seven percent prior to earnings just for the fear just for the fear down to a 52-week low just for the fear that it could go down a bunch more earnings

That’s a whole other level of extreme fear when you have people just selling stocks and making these short-term decisions to sell out of great companies just because they might miss their earnings they might have bad guidance and the stock might go down 10 15 20 those you know those decisions are very short-term in nature decisions right and that’s what people

Are making and when we’re in that sort of market i call it an extreme fear market okay no i wanna i told you guys i was gonna show you some charts i was looking at last night and trying to see where some of these stocks were at prior to rona and versus where those stocks are at now so if we go back to january 2020 which was before uh all the fear started and things

Like that and then you know obviously we fell off a cliff starting in february you know if we look at fb meta you know there was a stock that was 222 a share here today you know after hours yesterday it was trading at 249 late last night when i took these charts right but here today is like 241 a share or something like that we’re getting close to where meadow

Was prior prior to rona now think about how much progress that company has made in the last two years think about how many new people have used their platforms the last two years think about uh how much better their balance sheet might be and how much better their business is positioned for long term think about all the progress that companies made in the past

Two years and um here we are with a with a share price essentially right and that’s trading pretty darn close to where we were trading that prior to um you know rona that that’s that’s pretty darn extraordinary when you think about something like that right look at paypal paypal you know by the way this was 128. i hear today it’s 125. okay we’re getting pretty

Darn close at paypal remember paypal also owns venmo’s the stock i just started buying here and um this is a stock that was 116 116 january 12 2020 prior to rona right and here today it’s 125 dollars a share that to me says uh this stock is a steel deal and a half right think about how many new customers paypal and venmo have acquired over the past two years think

About how much progress this company’s made over the past two years uh think about how much uh better the balance sheets in than it was two years ago and everything across the board for this company they’re much more relevant than they were two years ago uh the the p is much lower than it was two years ago forward p is much lower than it was two years ago and here

We are with this stock now getting close to where it was prior to rona man that’s nothing short of extraordinary and this is just kind of the sorts of moves you’re seeing in this market and these are those type of things that are starting to signal to me um that you know i don’t wanna i don’t wanna say we’re at a bottom but you know you’re getting pretty darn close

When you see stuff like this okay the arc etf today is trading in the 60s uh prior to roanoke arc etf was run by kathy wood obviously right uh 53 so not quite there on arc but think about the you know arc’s biggest position which is tesla and think about what tesla stock has done since january 12 of 2020. that stock’s gone insane so the question is if arc didn’t

Own tesla where would the arc fund be at today right i think that’s a really really fair question and so i’m looking at that one and i’m like geez that one’s getting i mean if we continue on with this this rough nasdaq if amazon misses right if amazon misses and that stock goes down 10 15 20 i think arc will end up probably likely because that would pull down the

Whole nasdaq and give a super sour taste in the whole market’s mouth right if that was to happen i think ark’s probably going back down to where it was prior to rona which is you know nothing short of extraordinary and we know a lot of those stocks that obviously kathy wood holds which by the way if you want to see kathy woods holdings on an updated daily day you

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Know like a daily basis uh put on your desktop kathywoodstocks.com that’s my website that tracks kathy wood’s top 25 stocks on a daily basis essentially and that’s going to show you like what she’s in what she’s not and if we think about a lot of those stocks they’ve been destroyed in the past year you know teledoc zoom which we’ll look at teledoc in just a moment

Teledoc zoom all those sorts of stocks oh my gosh okay uh palantir is one i mean just about everything she pretty much holds outside of tesla has been destroyed and tesla’s is significantly off its 52 week high as well look at teledoc guys look at this this is amazing okay teledoc is below where this stock was in january of 2020 january 12 2020 before the the real

Rona fear started this stock was 95 a share 95 dollars a share and here today it’s in the the mid to low 70s the mid to low 70s that’s that’s uh crazy think about you know how much more relevant this company is than what it was uh two years ago think about you know this company’s revenue profile now versus where it was two years ago but none of that matters in a

Sort of market fundamentals start kind of getting thrown out right and people just start looking at it from the perspective of everything negative well what’s going wrong for this talk and i mean this was a stock that had a you know a blow off top of 308 dollars a share 308 dollars a share a little over a year ago right a year and about a month ago or so or a week

Ago uh that’s extraordinary and and now the stocks trading in the low to mid 70s i mean guys that that’s uh wow wow is all i got to say the russell now the russell’s been right around 2k 1900 level prior to rona january 12th of 2020 the russell was at 1700 or right around 1700 roughly okay and so you know and by the way the russell had been kind of going through a

Tough time for you know since kind of right around mid 2018 and dropped off a cliff essentially going into basically 2019 then started to come back and then obviously fell off cliff again and uh here we are with the russell you know getting to some some incredible levels and you think about how many uh those russell stocks are in a much better position today than

They were actually at that time and how much progress has happened for a lot of those companies business models underlying right and um you know here we are yeah if all of a sudden you get a nasdaq to pull down 10 that could easily pull down the russell 10 you know 15 and the next thing you know you’re in a russell range that’s basically where we were prior to

Rona you know it’s just nothing short of extraordinary and keep in mind most these companies are in a much better capital position than they were essentially uh prior to roanoke which is quite interesting how that ended up working out right you know when i look at this market now we’ll look at what fund managers are doing in decision making that’s going on in this

Market and you know so much of this you know selling out of stocks that have great long-term futures don’t make your decisions based on fear that’s all i can tell you that’s always a bad decision to make your decisions based upon fear rather than make your decisions based upon you know if you think that’s a good decision for you over the next three five years

And if you think you know just trying to get out of amazon let’s say let me sell out of amazon because i might be able to buy it back cheaper in three months from now or six months from now or nine months from now i can tell you that’s a losing strategy over the long term and maybe you could be right or maybe you could be wrong but all i know is that’s a that’s a

Losing strategy over the long term because you know most of the time you’re not going to get it right then you’re going to sell out of great companies that you love for the long term based upon a fear decision and that should be something that never never ever happens okay so don’t make your decisions based upon fear it’s a great time to take stock market investing

Very very serious we have a massive deal coming up for the private stock group financial fortress program it’s the valentine’s stocks and lovers sale if you want to check that out check out pin comment down there to get on the wait list much love as always and have a great day

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THE MARKET HITS MAX FEAR | SELLING IT ALL By Financial Education

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