Why Stocks Will Be Insane Next 100 Hours

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Well good day subscribers and welcome into today’s video we got a good one for you here today talking about why the stock market and why stocks are going to be absolutely insane over the next few trading days essentially if you didn’t know we’re kicking off earnings season this week which is very very exciting and i hope you guys got your batteries recharged because

Yeah it’s about to get crazy okay i hope you enjoy this as always so first off here greenbrier used to be called greenbriar industries now called greenbrier companies is reporting first thing monday morning they are a real car company if you didn’t know there’s a couple companies that kind of dominate the rail car industry one is green briar companies another is

A company i used to own back in the day called trinity industries and these companies are obviously very important because you get to understand kind of what’s going on in the railcar sector um you know in terms of the the railroads in terms of folks that have to move product are they ordering new rail cars and it usually kind of gives you an understanding if the

Economy is bullish right now in terms of me back in the day with trinity industries that was a specific play not really on the economy but that was a specific play around rail cars that were used for oil and gas back then but specifically oil and transporting it from north dakota back in the day but yeah that’s going to give you a little bit of a good understanding

Of kind of where the economy is at uh right off the bat monday morning tuesday before the open we have pepsico reporting which is it very important because pepsico i think everybody understands like pepsico is one of those companies that is an established company it’s not big growth but if you want to talk about a company that maybe their inputs could be hurting

Them maybe they have to pass it along to the consumer you know i think pepsico is just an important company to kind of pay attention to and they could potentially move a bunch of other these kind of stocks that are kind of grouped together like the coca-colas the unilevers many other you know what folks would feel are safety stocks they kind of move as a group and

Pepsico is going to give you kind of a good understanding there if their profits are hurt in any major way not only will likely pepsico move down but also all the stocks that are kind of grouped in with pepsico will all move down as well then before the bell on wednesday this is very important the new cpi numbers come out okay now this is the most important thing

In the entire stock market right now okay basically inflation’s been out of control i think everybody watching this video understands that right in the last numbers came in 8.6 which was a disaster for the market that kind of shocked everybody i mean a lot of folks were obviously expecting these numbers to get uh not as bad right and maybe we would have been like

A 7.9 number or something like that and unfortunately went to a new record like in the past 50 plus years right so complete disaster now this is very important for everybody to understand this okay if we get a break in trend that would be a good sign however there’s a lot of folks in economists that aren’t actually expecting a break-in trend so if we actually saw

That number increase a little bit it might not shake up the market nearly as much as you might think now also don’t expect the market to get too excited if let’s say the number comes in at like an 8.2 and 8.1 and 8.3 and the reason being is the markets really wants to see two and three month confirmations now at this point because we had one month where the numbers

Went down and then they went right back up we need to see continuous months of inflation coming down now so that the market’s likely not going to get too uh sad about these numbers or too excited about these numbers unless there are some freakish numbers like if we came in at like a six percent number which is not happening but if that happened like obviously the

Market would shoot to the moon and and if we came in at like a ten percent number in cpi oh boy okay we’re going to be tanking on the market so outside of some crazy number there even those numbers extremely important don’t expect it to actually move the market as much as you might think unless it’s way high or way low okay that’s a big number though then delta

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Airlines is reporting also before the bell wednesday i think when it comes to delta guidance is going to be key and also like profitability of these airlines right airlines everybody’s looking at these and like yeah airlines are busy right now but with a pilot shortage with obviously what’s going on with fuel prices everything like that everybody’s kind of looking

At this and like are you guys going to actually make any money on the bottom line or what’s going on with this right then if you want to know more about the economy before the belt on wednesday i can never pronounce this company’s name right okay i call them fasting l okay fastenal uh huge a huge company obviously with the fastener business but they also sell

Other products as well this just kind of lets you know a little bit about how the construction industry is doing and um you know obviously they serve you know many various sectors but this is just kind of a good one to understand where the economy’s at at this given moment i’m expecting actually strong numbers out of this company and i’m expecting strong numbers out

Of this company all the way basically until about the end of this year 2023 2023 is where i’m going to start to worry about this one a bit okay thursday before the bell the ppi numbers come out and so the ppi serves as a leading indicator for the cpi so when producers face input inflation the increases in production costs are passed on to retailers and consumers

The ppi also serves as a true measure of output that is not affected by consumer demand okay and so everybody obviously looks at the cpi number more i feel like consumer price index but ppi is you know it’s a leading indicator it’s going to take you there because at the end of the day think about it imagine you’re a company that hey imagine you make um you know i

Don’t know trash barrels but everything’s gotten more expensive for you to make your trash barrels right well eventually you have to go up on price that’s just bottom line there and then that ends up eventually hitting cpi right and so your prices go up the ppi goes up and then eventually you have to raise your price and so ends up raising cpi so yeah that’s going

To be big before the bell on thursday also before the bell on thursday and this one is huge jp morgan are there they’re reporting earnings obviously the biggest big dog bank of them all i actually own the stock personally in my dividends only account and when it comes to jp morgan i mean you want to talk about you know folks want to know how the economy is doing

It gets no bigger than jp morgan so when they report earnings essentially you know this all eyes are on this okay in my opinion the the two biggest things for this week cpi and then after that the jp morgan earnings everybody’s eyes are going to be on that where’s guidance at for this company you know what do they have to say about the state of the economy are they

Seeing a slowing in spending or you know are they seeing consumers pull back or are they worried at all about you know loan losses and folks not paying bills or anything like that right so i i mean obviously always the banks are very important to look at but i just feel like jp morgan’s and like the next level of an important company to kind of pay attention to

Here okay friday before the bell wells fargo is reporting earnings now wells fargo is very key and the reason wells fargo is very key is not just because they’re a big bank but they’re huge in the mortgage industry and think about this for a moment right um i think pretty much i mean at least if you watch my channel you’re pretty confident that the real estate

Industry um is going to be in some tough sledding and we’re starting to get big confirmation of numbers right and so if you’re thinking about this wells fargo is the fourth biggest mortgage lender out there they’re a huge player in the mortgage market and i just don’t i don’t see the mortgage market being good for the next i mean at least few quarters you know

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At least in the 2023 if not into 2024 i don’t think the housing market’s going to magically fix itself anytime soon and i think it’s just going to get worse and worse over the coming months and over the coming couple next couple quarters and you know if that plays out like that a company like wells fargo’s earnings are going to be hit and in a negative way right

And we’ve already seen a little hints of this before we get to these earnings right wells fargo launches a new round of home lending layoffs hmm what’s going on here right the staff cuts are the natural results of the cyclical changes in the broader home lending environment wells fargo said in a statement citing figures from the mortgage bankers association that

Predicts a 40 year-over-year drop in mortgage originations to 2.4 trillion don’t be surprised if that number gets much worse before it gets better okay in 2022 further that trade group expects 70 downturn in mortgage refinancing i i mean i’m surprised it’s only 70 percent i thought it would be like 90 i’m like who who is refinancing now at this point in time i

Feel like everybody that could possibly of refi already like refi in either 2020 or 2021 when mortgage rates were like you know you could refi it like a 2 2.8 percent number 2.7 number 3.1 number at this point in time like literally i mean i guess you could always have a few people refinancing what i’m like i’m amazed it’s not the numbers aren’t going to be down

Like 90 that’s just insane to me okay now here’s the deal with this week guys okay this is one of those weeks that is going to not only move the market for this given week but it’ll move the market for the next couple weeks okay and this is such a huge week for the overall sentiment of the market we know we are in a a moment in the market where everybody is very

Very scared you see that in the aii numbers right that sentiment is awful right now like it’s it’s hard to find people that are bullish on this market right and so let’s imagine a couple scenarios here let’s imagine a scenario where cpi comes in let’s call it eight one eight two let’s say it’s a situation like that right ppi comes in a little under expectations

And let’s imagine a situation where jp morgan basically says it’s not the end of the it’s not the end of the world right in this scenario this week will be a good week in the market okay now let’s say we got a scenario where uh jp morgan has some troublesome let’s call it that uh guidance let’s say we got a situation where uh you know inflation comes at a nine

Point something percent number i’m talking about cpi that’s a situation where i expect the market to sell off um maybe not quite too uh lows that we were a couple weeks ago when the nasdaq was down about 30 percent from the peak or 34 from the peak right now nasdaq’s down about 28 roughly from the peak so i don’t think we’d see that type of selloff but we would

Sell off into the market maybe at least a couple percent for the nasdaq and s p now if we got a scenario where the let’s say cpi comes in at 10 plus which would be crazy disaster okay if cpi came in at 10 plus the market will be back down to new lows okay and i hate to say that but that’s the situation if and that’s a big f if cpi came in at 10 plus that would be

That would be the number to make everybody flip their flapjacks and absolutely lose it and as long as we don’t have that sort of situation we’re we’re not going to see those new lows at least right now now when apple earnings come out microsoft earnings come out google earnings come out and all those big guys right and if those were to be not quite to standard then

We could push back down to new lows in the s p and the nasdaq because obviously those weights are massive but in terms of this week being a disaster week we’d have to see pretty much cpi come in at like a 10 type number it and i tell you like if we came in a 10 number oh my gosh like the stock market’s gonna they’re going to lose their mind they would absolutely

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Lose their mind in that situation it would be it would be hell okay i’m just telling you like like the last number anybody wants to see is ever a 10 number because then you want to talk about then the fed what if we came in at a 10 type number i’m telling you the fed would immediately likely raise interest rates in that sort of environment if we came in that insane

Because that would just be like runaway inflation and you’re talking about the ram for the ramifications of 10 plus it’s just all you’re talking about whole different levels when you go to double digits then at that point in time it’s bad enough dealing with eight percent when you start talking about double digits you’re at a whole different stratosphere at that

Point in time so that that would be the only scenario i could see being absolute hell for the market and i mean you look at what’s going on in some of these uh other places in the world like i don’t know if you guys keep up with some of this stuff but like sri lanka for instance uh you know thousands of people like basically raided into the the president’s home

In that country and just crazy out of control inflation the economy’s tanked um in some of these markets and you know obviously i’m sure you guys have seen what happened with uh the boris johnson situation right and uh also he’s resigning so i mean you look at some of these things and i mean when you start talking about if you get into double digits that you’re

Getting into hyperinflation so that’s just that that’s a whole situation that would cause panic in the markets that if we came in a 10 plus number i mean you could be talking about bitcoin pushing down under 15 000 because it would cause that much panic in the financial markets which could uh basically set up another situation where you have a whole um unwinding

Of the crypto market to a much uglier extent so i’m not planning on that happening you know i i don’t think that’s gonna happen but i’m just telling you if that happened oh boy okay oh boy we’re talking about new lows across the board for basically all assets and that would just be an absolutely dramatic uh dramatically bad omen so let’s hope that doesn’t happen

And you know it’s hard to think about a market that could be more fearful than the market we’re currently in when less than 20 of investors are bullish on the market for the next uh six months i mean it’s hard to even imagine like could we be more fearful than that every time i log on youtube it’s you know videos about recessions and depression and you know the

Stock market crash it’s going to get 50 worse and it’s going to be even you know the worst ever and all these things right and i’m just like jeez could we could we level down to a next level of fear and um i think the one thing that could put a dagger into it and really cause that level of fear is if we came in with a double digit type percentage uh you know cpi

Number that that’s the thing that would just make everybody absolutely lose their flipping flapjack in mind so uh yeah let’s hope that doesn’t happen i mean unless you like good deals in the market i mean you know some people might actually be wishing on that because you can get uh you know better deals in the market but jeez i mean yeah if we came in double digits

The fed would the fed it would be seen as the fed has no control and there would be pressure that they would have to move up interest rates like two percent three percent overnight which would you want to talk about the sell-off in the market at that point in time oh my gosh okay because then they wouldn’t be talking about soft landing i don’t even think they’d

Be talking about hard landing at that point they’d be just talking about crash landing at that point in time man so uh yeah get ready guys crazy week in the market hope you enjoyed this as always uh obviously i’ll keep you guys updated on everything that’s going on much love as always don’t forget buy the dip and never trip and have a great day

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Why Stocks Will Be Insane Next 100 Hours By Financial Education

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