The Truth About The Market Crash: What You Need To Know Now

[00:00:00] Speaker 1: Over $1 trillion has been wiped out of the market since the open. One of the nastiest bull traps, and I hate seeing moments like this, right? If you're part of my LPP team, we just wrapped up our live trading session. I've said this over and over again. I think that's why these live sessions are so valuable. It's not just because you get to watch me trade, right? Yeah, I have some good trades from time to time. It gets you exposure on how to take good trades, and you also get to see my bad ones as well. But I think what's most important is moments like this, where markets look incredibly bullish. Even the PPI data report came out. It actually came in lower than what was expected, but inflation did jump month over month, right? Complete bull trap. Complete, absolute bull trap. And we didn't want to overreact, right? So instead of blindly buying the debt, we're like, hey, this seems to be like a quick shift of direction from showing signs of higher highs and higher lows, even Nvidia, right? Nvidia was showing signs of higher highs and higher lows. And then all of a sudden, right at the open, boom. Just an absolute dump. Are people de-risking going into the weekend? Let's go ahead and quickly ask our little assistant. So at market open, markets saw an aggressive sell-off for QQQ, for Nvidia, and for the chip stocks. What are the main drivers causing markets to go lower? [00:01:29] Speaker 2: Digging into what's moving markets down. [00:01:32] Speaker 1: All righty, let me know. [00:01:34] Speaker 2: While that runs, is there anything else you'd like me to pick up? [00:01:38] Speaker 1: Nope. [00:01:42] Speaker 2: That round of profit-taking is the lead story. AMD's off about 9% after yesterday's BOFA-Fueled pop. Broadcom, 5.6. Nvidia, 3.3. Rates are the second leg. BOFA's three more hikes. 10-year above 5.16. Besson's chip pressure and a risk-off mood rounded out. With Bitcoin at a three-month low. QQQ's at 6.75.42, down 1.85, and the selling's easing a bit. [00:02:12] Speaker 1: Yes, but my biggest question right now is, what is driving markets lower when they were so bullish during the, you know, pre-market session? What is the biggest concern that is causing this gap down? [00:02:27] Speaker 2: Sending that narrowing question. [00:02:30] Speaker 1: Okay, let me know once you find it, because, again, we have Nvidia down now 3.6% on the day, but fortunately, because we stayed patient, now we have a nice oversold reversal that we could possibly buy the dip on, right? CoreWeave also looked quite strong during the pre-market session, and then absolutely just nosedived. It just looks like a bull trap. It's a 12% sell-off in a matter of one hour. Very unfortunate for, obviously, those that got trapped, but I want to understand the why. [00:03:04] Speaker 2: Here's the sharper read. It wasn't a gap down at all. The S&P, NASDAQ, and Dow all opened slightly positive, and the selling hit in the first 20 minutes with no headline at the bell. The rate hike fear is what flipped it. Goolsby's hawkish comments around 7, then Beaufort's three-hike call at 7.10, and that erased the cool PPI relief from 6.30. [00:03:24] Speaker 1: So who had a three-rate hike call? Who was that? [00:03:31] Speaker 2: Bank of America. They put out that call at 7.10 this morning. [00:03:35] Speaker 1: So 10 minutes after the market opened, they put out that they expect three rate hikes in what? In the next quarter, in the next year? [00:03:46] Speaker 2: Not after the open. It was about 20 minutes before. December, January, and March. So into early next year. Not one quarter. [00:03:54] Speaker 1: Okay. And then we had treasury yields, right? The 10-year treasury pushed above 5.1%. Is a lot of that uncertainty currently presenting itself because of what? [00:04:10] Speaker 2: The update I have ties it to Goolsby calling inflation broad-based and far more persistent. Plus, Beaufort pricing three more hikes on top of that. Oil's another layer. Brent near 97 on the Iran tension. [00:04:23] Speaker 1: Okay, so a Fed member commented that he is not happy with our current rate of inflation and that it is assumed more rate hikes might be needed. [00:04:35] Speaker 2: That's the gist. One nuance. He said the Fed isn't on track for the 2% target, which is what really spooked traders. [00:04:43] Speaker 1: Okay, but we knew that, right? So why is this such a shock? Is it just because it came out of his mouth? [00:04:50] Speaker 2: Partly the source. A Chicago Fed president saying it out loud, right after a cool print, overrides what the data alone was saying. [00:04:58] Speaker 1: Okay, and what about going into next week? Is there anything aside from NVIDIA reporting earnings on Tuesday that I should be aware of that can present some volatility into the markets? [00:05:09] Speaker 2: Checking next week's calendar. [00:05:11] Speaker 1: Sounds good. [00:05:15] Speaker 2: One correction from my side. NVIDIA is Tuesday the 17th, not Monday. [00:05:21] Speaker 1: Yeah, Tuesday. Anything else? [00:05:33] Speaker 2: Beyond NVIDIA, Tuesday morning brings October retail sales at 6.30. expected flat after last month's gain, plus Home Depot and Disney before the open. Wednesday's the other heavyweight. Fed minutes at noon, which could reveal how split officials are on more hikes, alongside a 20-year treasury auction that morning. Thursday has Walmart before 6 and jobless claims at 6.30. The wild cards are Besant's subpoena deadline for Huang hitting 6 p.m. today, and any weekend news on Iran. [00:06:03] Speaker 1: Okay, thank you for the update. [00:06:06] Speaker 2: Glad it helped. I'm here if anything breaks. [00:06:10] Speaker 1: All righty, and there we have it. So as of right now, it looks like some of the biggest, I would say, negative catalysts that's influencing or impacting the market is the concern about more rate hikes. We're getting a little bit closer to the December meeting. It's just, it's so silly because like we all knew that inflation was rising. We all knew that it's been a pressing concern, but now all of a sudden, because a Fed member comments on it, now it's, oh, now markets care. I just think that is so convenient. Nonetheless, we're not shorting at these, what I view to be oversold levels. We already told our LPP team what the plan is, let the markets sell off as much as they need to, once it finds its support and we get confirmation of a reversal, this is not a day where I want to be early to a reversal, right? I don't want to buy the dip just because it looks oversold. The cheap can get cheaper, especially when the markets are quickly shifting on a moment's notice on news that has already previously been factored in. So I have my alerts. I could buy the dip on NVIDIA. We were talking about Micron. Micron just looks really weak lately. You know, if you're a little bit more risk adverse, maybe you want to buy the dip on core weave or NBIS, they're heavier movers, but obviously more speculative and of greater risk and or just the NASDAQ market, keeping it super safe and simple, oversold setup, testing the current support range, still no confirmation. All we're waiting for is confirmation of reversal. So I'm very glad that we hosted today's live session as we do every morning at Market Open because I just know that for the beginners that tuned on in and that were reminded, let's stay patient. Let's wait for confirmation, especially as the selling pressure is presenting itself. Just think about it. How much money would you have saved by not taking an early trade if you would have just been patient, right? I think that's a great reminder of why so many of our beginners enjoy our live sessions. And it's not just because they get to watch me trade live, but because collectively every morning we try to make sense of how the markets are doing. So it's kind of like these videos, but we get to spend an hour together as soon as markets open every day. So again, whenever it is that you are ready, I do want to remind you, right? We have our November sale going on. It breaks down to less than $1.36 a day. So imagine that would it have been worth $1.36 today to have not entered early on a position that now you're losing on, right? Nothing wrong with, I do believe that markets eventually will recover, but it's just obviously putting yourself in more favorable positions to win, right? And even before you join LPP, if you want to see one of our recent live sessions, please, I encourage you to watch it. We go live, like I said, every morning at market open for about 30 minutes to an hour. And even if you don't watch live, you can always go back and rewatch it. And of course, you get access to the LPP lesson library that's included in this. I offer nothing else. It's a one-time payment, lifetime access. Again, it's the second link in the description down below if you want the $200 off. And do not forget, again, the trading application that I'm using is the Webull trading application. The first link down below, especially if you're tired of your old and outdated brokerage, we're going to be giving away $1,000 this Sunday to one of you that signs up for Webull using our link. It could be you, it could be your partner, your friends, your family, it doesn't matter. As long as they use our link, the first link in the description down below, and as long as you have a qualified deposit, it could be $5, it could be $100, doesn't matter. That being said, you will automatically get entered for our $1,000 giveaway, and we will be announcing the winner live during our Sunday stock talk. So again, the last time to open up your account and to set up your initial deposit for the $1,000 giveaway. So again, first and second link down below. I appreciate you guys' time. I hope they're under a thumbs up. Please consider subscribing. And like always, let's make sure that we end the year on a green note. Stay patient and stay calculated. Take care, team.