The stock market crash is accelerating. Lets talk about why.
Well do we have a lot to talk about here today folks the stock market was flipping flapjacks the wrong way we’re going to talk about why the stock market just accelerated people are seeing what happened in the market today and are disturbed nonetheless and a lot of people got hopes up today because it started out as a great day i mean the nasdaq was very green s
P 500 was very green the russell was very green it was looking good it was looking really good i saw a lot of commentary out there from folks on message boards forums discord chats everywhere hey we might actually finally hit the bottom we might hit the bottom and then what happened uh the stock market tanked the nasdaq tanked and we got again to why exactly this
Happened essentially and uh yeah nonetheless i mean we were at almost 14 you know 650 or so in the nasdaq and then we finish out at 14 1 that’s you know that’s harsh let’s just put it that way and for a lot of folks this is the first time you know some some retail folks have gone through a correction a crash whatever you want to call it right which it depends on
On where you’re looking in the market what we know is the most stocks in the history of the stock market are down right now in terms of nasdaq stocks are down over 50 percent plus have been cut in half right from 52 week highs we also know that around 70 percent roughly or so because what i saw is two this was about this is a couple weeks ago now um there was an
In-depth article that came out that two-thirds of nasdaq stocks were in a bear market meaning they were down at least 20 percent well nonetheless like the market’s gotten way worse over the last couple weeks so i would estimate that anywhere from 70 maybe 75 plus of nasdaq stocks are now in a bear market we’re not technically in a bear market because literally if
It wasn’t for apple and a few of the biggest big dogs out there my gosh would we be in a vicious bear market but the fact is most stocks in the stock market are in a vicious bear market there’s that’s there’s no debating that that’s a fact okay the fact is the high majority of stocks are in a bear market the fact is like uh half the markets crashed essentially okay
And you got a few of the biggest companies if it wasn’t for a few of the biggest companies holding up the nasdaq oh my gosh man i mean these the indexes will look awful right now if it wasn’t for such heavy weights okay look at the russell oh the russell wilson oh man just bad i mean russell was having a good day and it just fell to pieces okay uh we’re approaching
Now right around a new 52-week low for the russell the russell’s just been awful we know that now i know what you’re thinking where are we at year-to-date with the market well i’ll show you that here this is where we’re at year-to-date for the market the nasdaq is now down over nine and a half percent year-to-date we are on pace for the worst nasdaq in the history
Of the stock market for the month of january well i like literally if we just get a few more week days and we don’t get any strong bounce backs we’re going to be literally in the worst nasdaq in the history of the stock market for the month of january and that is extraordinary because we’re not even in like some type of massive recession right now or something like
That like if we’re in that you could understand it’s like well yeah or the world was getting shut down because of rony roano something like that he’d be like well i understand because you know essentially uh we’re in this this bad position we’re not even in that right now and we’re just going we’re going through it let’s just put it that way we are going through
It right now is a very much a realistic possibility that unless we bounce back we’re going to finish the worst ever in stock market history for the month of january we’re on that type of pace okay and on that type of trajectory amazon stock i’ve been talking about this one recently i think amazon’s very you know if you’re looking for a big tech i think amazon’s
Getting very very interesting this is extraordinary amazon stock has i’ve seen some some dips in amazon stock over the past 14 years since i’ve been in the market and some chill out time periods okay but this one is pretty extraordinary i mean this stock is down over 400 dollars a share in the past 18 months in july of 2020 this stock was 34.50 right and what we
Saw since uh july of 2020 is most big tech actually do great over that time in the s p 500 do very well and the nasdaq do very well but amazon not so much that that’s you know it’s just interesting that this stock is down that heavily during this past time now the fundamentals of amazon have never been better we do know that but at the end of the day uh this market
Doesn’t care about fundamentals right now this this market doesn’t care about revenue growth this market doesn’t even care about net income growth this market doesn’t care about anything right now except sell and flood to safety that’s the that’s what the name of the game is for big money out there right now what you got going on what your outlook is what your revenue
Growth is what your net income growth is it doesn’t matter in this sort of market even pe’s don’t matter anymore like let’s just be let’s just call it what it is nothing matters in this sort of market we’re just in uh a certain state of the market where none of that matters okay uh corsair gaming this was just an interesting one i just wanted to pull up here it was
Funny there’s like a joke a running joke if you follow the stock you own this stock there’s no one left to sell the stock and it is just it’s interesting because corsair has held up pretty decent recently uh despite like like corsair was at twenty dollars a few weeks ago and the market’s gotten massively worse we know the nasdaq has has crashed essentially right
Down nine and a half percent year to date on uh you know 20 days through the trading year that’s extraordinary and there you got crsr you know holding up pretty decent it it is you know it’s it’s kind of a funny joke but in all seriousness you do have to think okay here’s the thing i don’t think many people this even hits a lot of people’s minds what do we know
About corsair gaming what we know is this is a massively shorted stock a massively short stock like one of the most shorted stocks out there okay and what we know is a lot of times shorts like to cover in two types of markets one is a market where it is skyrocketing and believe it or not shorts like to cover a lot of times in a market that’s in a massive downdraft
Especially stocks that are that are in a position um where they’re going you know they’ve they’ve been devastating their max shorted and the reason being this is very important is if you’re short right you’re saying okay the market’s pulled back huge now all right and this corsair is not really moving down what happens if the market flips right not where it comes
Back to get all these gains back but what if it flips just a three or four percent what does that mean for a stock like crs r and as a short seller you kind of start looking at this and you start looking at the risk reward and you’re like ah man you know markets already moved down massively now yeah it can move down some more but why not go ahead and cover and so
I wouldn’t be surprised at all if when we see the next short report the short interest which probably won’t come out for another week and a half week or week and a half i wouldn’t be surprised at all if we actually see corsair short numbers going down and the next short report after that i wouldn’t be surprised if again we see short interest on corsair go down
Because remember when people have to cover shares they have to buy back the stock right now you say you sell it right back afterward maybe that’s fair but also remember some short sellers like to play both sides where they’ll they’ll cover their short then they’ll buy the stock back and looking at the market and saying okay maybe we’ll have a have a run up here
Uh you know maybe we can go ahead and make some money that way and obviously there’s no you know on a day like today if you can’t get this to sell off and it’s up three percent that’s shady you know there’s some there’s some funky going on there right um so do not be surprised at all if you see corsair in a lot of these stocks that have been max shorted don’t be
Surprised if you see a lot of shorts cover over the next several weeks which is counter-intuitive to what you think because once again you see a market going down you would think shorts would want to short even more the more the market goes down the more dangerous it becomes too short in that sort of situation because we know the market flips very very quickly
And as i always say when stocks are at all-time highs i get scared in the market as a long and the reason i get scared is along in the market if everything’s at all-time highs is i know like there’s there’s a high probability the market can flip on us right you’re not going to keep hitting all-time high an all-time high so i feel much more comfortable in a market
Like this where everything’s at i don’t say all time lows but 52-week lows and some of these stocks are at all-time lows it’s much more interesting to me and i feel actually much more safer in a market like this versus a market where everything’s hitting all-time high after all-time high okay now uh if we go ahead and pull up hungry bull here i mean it’s just you
Know if anything smaller cap has just got destroyed today look at fubo down five point seven percent the chef down five percent purple down five percent uh jwn down four percent revolved down three point seven percent that you know the smaller market cap seems like the harder it got hit stitch fixed another you know uh 52 week low down three percent plus on that
One uh celsius holdings that went down three percent today amazon down three percent today we already spoke about amazon that’s that’s a big move for amazon you know three percent down that’s that’s pretty large and 400 plus dollars down in the past 18 months that’s that’s pretty that’s pretty large there honest company down another 2.8 percent you know that’s
Just one of those stocks that’s just you know it’s ridiculous as trading down there but as i always state you know just because it’s at some silly price you know this is a 20 30 stock a few years from now but that doesn’t matter in this sort of market and it doesn’t mean it can’t go lower right it’s just new low after new low after new low beyond me and by the
Way that’s why you have to be careful with margin in the sort of market because even when you like think there’s no way this stock can go any lower it breaks a new a new 52-week low after new 52-week low beyond meat 2.7 down here today okay and so just a lot of vicious moves now i’m not sure if you guys saw the newsletter yesterday on the hungry bowl stocks could
Crash more as by the dip uh is dying and so i thought this was pretty interesting and basically what they there you know found is there’s about a 20 decline in buying volume out there from the retail side and so what i think is kind of going on with retail i think there’s several different factors i think one is folks are tapped they’ve already gone all in stocks
So they they can’t buy the dip even if they want to i think that’s a factor two is there’s no stimulus money out there right now so that’s the second part third part is think about it like this okay this is like really really important imagine this for a moment right you see you’re buying the dip right let’s say you’re buying 70 plus the stocks are in bear market
In the nasdaq and you know we have all-time records of stocks that have crashed right so let’s say you’re buying the dip and you love this stock and this stock in this stock and you’re buying you’re buying you’re buying it just keeps going down and going down well eventually even if you do have money you start to think well oh the trend is the stock just continues
To go down and down down why don’t i just wait a few weeks why don’t i just wait a few months why don’t i wait till things clear up why don’t i wait till the fed makes some decision or something like that right and so you start kind of just saying hey you know what i’ll just kind of oh wait there’s there’s zero percent fomo in this market right now and i mean zero
Percent fomo whereas last year there was maximum fomo in january right and it was like oh buy every dip every day oh my gosh it’s down one percent gotta buy it in this market right now there’s no i don’t see any fomo and i’m on discord i’m on youtube i’m i’m everywhere right and i see no fomo i don’t see anybody saying you gotta buy the stock because it’s about to
Skyrocket there’s no feeling of that in this market right now and so i think that’s another reason is folks that even have money and are are kind of like the trend is down and a lot of folks wait for the trend to reverse before they buy stocks now that’s a that’s a game some folks like to play that’s not a game i like to play because at the end of the day you’re
Going to get you can get false trends to go your way right what if the with the market also bounces back let’s say nasdaq’s up three percent tomorrow does that mean go all in do you have to wait till it’s up ten percent or do you have to wait tell us up twenty percent like like when is it okay to buy again i think that’s something very important and the other
Reason that’s a losing game is if the more if dude if the market goes up five ten percent you gotta understand what that means for a lot of these stock prices is you miss a 20 30 40 rise during the course of that time and that’s why i showed a great chart in a video uh this is probably a few days ago now um but it was basically showing you that over time if you
Had missed the best buying or the the best like most up days in the market by not being invested your gains overall were just ridiculously low now in terms of if we go back a year ago right january 2021 retail had full control over the stock market right there was full control from the retail side in the re the retail side got so powerful at this time last year
That retail started to push their weight around right in terms of stocks pushing stocks around and uh even kind of sticking it to the hedge funds right in in big wall street money and i remember that time period i was a little scared i was like man you guys don’t know what you’re kind of messing with here uh you know because there’s just a whole lot more firepower
On the other side okay this is like you know uh you the us army like going against north korea okay and the retail traders like we’re north korea just so you know in that situation okay big money is the u.s army it’s a little little different beast and so you can like poke at them but just realize they can destroy you at any moment and so if we go back a year
Ago for lack of a better word the the retail market had the stock market by the balls last year in this market right they really did they really did and um you just saw the activity in robin hood and everything that was going on and just retail had it man had full control over the stock market and boy did things change quickly because you know who doesn’t have
Control even one percent right now it’s retail okay as of right now in this sort of market big money is in full control in january 2022 it doesn’t matter what retail does it doesn’t matter if retail buys a dip if they don’t buy the dip it doesn’t matter big money is going to dictate wherever the stock market goes over right now they’re dictating it completely and
Wherever it goes over the next couple months and if they want to play games if they want to send stocks up and then send stocks down on the same exact day and oh look at guys it’s two percent up oh it’s down one percent by the close they can do whatever they want and they’re pushing their power around right now okay because there was uh you know the important thing
To remind yourself in a day like today there was no massive news that came out during the trading day that i was like oh yeah we should also go from up two percent to down one percent there was nothing like that big money is pushing this market around and they’re going to take this baby wherever they want to take it in the short term and there’s nothing you me or
Anybody else can do about it we are just stuck basically i don’t say victim to this market but we’re just stuck in this market right now okay and there’s nothing we can do about it i think the the perfect stock to look at it’s being pushed around is hood right and this was a market last year that that you know the hood was was was flying high and it was beautiful
In terms of how many customers were coming to the hood last year at this time and and uh the power of the robin hood investor and all those sorts of things and um his company went public this summer and hit 85 dollars a share and it’s 13 here a day 13 and it was 85 this summer okay and yeah like literally if look at this stock you know this is one of those that
It was looking it was looking like oh the hood’s bouncing back it hit 1484 today and then it finishes almost on i basically had a new all-time low it hit a new all-time low here today of 13 and some change right and so that just shows you that retail retail has no power in this market right now and i mean when i say no power i mean zero percent power in this market
Retail doesn’t have it right now it’s big money they’re gonna dictate wherever this baby goes right now and that’s the way it is and i watched this video uh the other night with my kids uh inside of tornado and uh you know these folks it was crazy people man they should win for cover but nonetheless they’re recording this tornado and you know this tornado just is
Destroying houses left and right in their neighborhood and uh lucky enough their house didn’t get destroyed it kind of broke some windows and things like that but if it made a direct hit with their houses you know those people would have likely not been here anymore let’s put it that way they got very very lucky and so the way i view this stock market right now is
We’re inside the tornado right now and there’s nothing we can do about it there’s really you know almost nowhere to hide in this sort of market right now right yeah you know if people want to hide out in apple stock or those sorts of things i just i caution even people on those because if you think those babies can’t fall too you know believe me they can fall too
You know it’s just been if we’ve watched this kind of this downtrend of the market right in stocks it’s just been group after group at first it was the super super speculative companies right they were the first step to fall next step to fall was a lot of the russell 2000 stocks that had good business models but at the end of the day like those ones just started
To fall right then after that it started becoming growth stocks in general with super high pes then it became gross stocks in general with mid peas then it became uh even stocks like tesla have fallen now 25 or so from all-time highs right 20 25 amazon’s down 400 plus dollars a share and so it’s just level after level after level after level the only thing you got
Left is apple google and microsoft and a few of the other oil and gas giants and maybe a few of the other big banks even though big banks we’ve seen weakness very recently okay and so the fact is right now in this market we’re holding on for dear life we’re in the middle of this tornado we don’t know when it’s going to end kind of like if you’re in the middle of
Tornado you don’t know when it’s going to end uh the time it’s probably taking really really slow when you’re in that moment right a second probably feels like an hour and right now we’re in the middle of this tornado and we hold no power in this situation all we can do is we can we can buy and we can hold and that’s it that’s all you have options for in this market
You you obviously have the option to sell to but do you really want to sell stocks at all-time lows and 52-week lows especially if you believe that stock’s got a 2x 3x 4x 5x over the coming years so the really only two options you can you can do right now is hold and buy and that’s it and that’s exactly what i’m doing right now i’m holding and buying and i’m holding
On for dear life and big money is going to continue to flush me around and whenever the sun comes out is whenever the sun comes out the sun will come out and the sun will shine again but for now it’s just um we’re just getting tore up in the storm that’s all it is guys so in this type of market keep your head keep focused on long term keep keep focused on what’s
Going on with actual businesses i spent actually uh most of my afternoon looking at in my morning actually going to channel checks actually seeing in the real world products how products are moving shelf spacing things like that actually like what’s going on with the fundamentals of companies not what’s going on with the short-term stock price and i employ you guys
To do that as well because at the end of the day that’s going to be what dictates where these stocks go over time is what actually happens to the business model the short term the tornado will be the tornado long term the the these companies will go to whatever value they deserve based upon their revenue their net income in future years and their growth prospects
That’s it guys much love as always don’t forget to be subscribed to this channel it’s absolutely free to do so download the hungry bowl in your ios and android store now and have a great day
Transcribed from video
WHY THE STOCK MARKET CRASH JUST ACCELERATED By Financial Education