Iran Closing Strait of Hormuz — Stock Market Emergency Update

[00:00:00] Speaker 1: hey what's going on guys happy wednesday today is july 8th and here is a market update nasdaq market is down about 0.88 and this is about almost two and a half hours since the market has opened surprisingly right when markets opened they began to gap up in today's live trading session with the lpp team we focused on two very specific things understanding the news second is letting the market rip up knowing that it was a short-lived rally and i feel like that's what really allowed us to capitalize on this overbought reversal since then from the highs of 709 nasdaq came back to retest lows of 700 and for those that tuned on into our live session today mu micron ripped up to highs of nearly 960 and then sold off to lows of 915. so again a very beautiful overbought reversal and this was not the only move this was about a four percent drop dell was called out by one of our members as this thing ripped up and then fully corrected right back to pre-market lows a 7.6 drop and again all we had to do was let the markets rip let them stay irrational for short periods of time and then once we had confirmation of this overbought reversal that we took the position appropriately and then added more to it when the short was favorable and direction was in our favor and that's ultimately what ended up paying off because even with micron i did a plane it's pretty safe as it reached oversold levels there was no reason to over complicate it and now we're watching these oversold levels to see if it actually makes sense to go long again i'm all for going long on either the nasdaq and or some of these semiconductor stocks as we know that they're itching to get back up to a thousand twelve hundred as micron was trading at those previous levels but as of right now there is some uncertainty it says breaking iran says that it fully that it will fully close the strait of her moves to all mediterranean traffic as soon as the us attacks again and now adopted a new military strategic doctrine over the past 48 hours trump has already said that the us will strike iran again tonight meaning the strait will be closed in the coming hours so again more fear more uncertainty if the strait of her moves is fully closed and that's the biggest thing right this is something that we need to pay attention to because if it is confirmed that there is a closure then again oil prices are likely to rise and markets are likely to drop due to the uncertainty even for short periods of time if they want to try to gap up based off of being irrational and hopeful again if there is still tension in the middle east and things are actually getting worse then markets have earned every right to sell off right with that being said again most of big tech is in the red oil is surging as of right now and it's also the south korean market that is seeing a significant drop again leading after samsung reporting earnings and this shows that south korean stock market kospi is now down 10 percent in just two days and one of the updates that we received from trump today is that the mou is over i don't want to deal with them anymore they're scums they're liars it's a waste of time to continue talking to them that is the current tone and that is the current temperament that we have towards iran as of right now now of course we've seen it many times before trump can shift on a dime right so this doesn't mean that we have to be super aggressive with anything that you're choosing to short you have to understand markets are more bullish than bearish and although there might be an intraday opportunity to short the market at least for myself and i always like to remind our lpp traders as again they're beginners that again when in doubt never be afraid to cash out and remember markets are more bullish than bearish so again it's you need to proceed with caution especially as we reach these oversold levels if we pay attention to stocks like micron that from highs of nearly 1300 based off current lows are down about 29 if we look at sandisk again another significant downturn it's not that they can't continue to drop because obviously if more uncertainty presents itself they've earned the right to drop even more right but they have already experienced a 30 some even 32 35 retracement this is just where i would begin to be cautious again there's nothing wrong with having a short intraday it's just about carrying those shorts overnight that might come at a greater form of risk because you know firsthand trump loves to manipulate the market and he will send out a tweet even if it's not true just to pump up the market and causing the short to go against you again i'm reminding you of this not because i don't want you to short i'm shorting here all the time but shorting does come at a greater form of risk and it's just riskier when markets have been more bullish and markets continue to trade in a super irrational way and i think that what we saw at market open is a great example of that they gapped up for no reason remember they don't need a reason to be bullish they just can't that's how irrational markets are so please be careful please watch your exposure meaning your position size and when you are in doubt of your position if you see that there's lack of progress either long or short when in doubt cash out it might suck to lose one or two percent but guess what it's a lot better than losing one or two percent than losing five or ten percent don't be a bag holder i cannot stress this enough we talk about this every day with our learn plan profit group during our live sessions again if you ever want to tune on in it's the second link down below but it's a reminder that they need to have every day why would you ever hold a position beyond a point where it now outweighs what you were expected to make if you're expected to make three or four percent gain why would you ever hold it for a five to ten percent loss at that point the opportunity no longer outweighs the risk the risk now outweighs the opportunity again simple risk to reward ratios are so important so again i hope that you take this harsh love as an encouragement to be intentional be calculated not be afraid to take advantage of opportunities but understand that during uncertain times you just need to be self-aware okay so very excited to follow up there's a lot of movement that's happening right now not all of it makes sense but again this is why you have to be very careful especially looking out for any trump tweets i'll make sure that i do my part in keeping you guys up to date and like i said whenever you're ready to tune on into our live sessions i do it live every morning right at market open and it's the second link in the description down below if you're looking for a discount code before you sign up just send me a message via instagram which is also linked in the description and i'll send it on over i do want to remind you that lpp is the only service that i offer i offer nothing else there's a bunch of fake accounts of me everywhere on discord over email over instagram on youtube on twitter on every social platform there's people that will impersonate me very simple i only offer lpp nothing else i don't trade for others i will never message you first i will never ask you how you are doing randomly i will never send you a friend request and i mean that in a respectful way okay i appreciate you guys this time like always let's make sure that we end the year on a green note take care team