BEFORE YOU SELL EVERYTHING WATCH THIS...
In a Nutshell
Over $1 trillion wiped from stocks amid NASDAQ's 1.8% drop, rising bond yields (30-year Treasury at 2007-2008 crisis levels), surging CPI/PPI inflation, weak labor data, and Middle East tensions—yet markets ignored red flags until today's pullback after a 30% rally in 44 days. US debt at $39 trillion drives higher borrowing costs as investors demand risk premiums. Stay positioned but unleveraged, monitor greed/fear index for deals, and watch fundamentals that will bite later.
These notes were generated by AI and may contain inaccuracies.
Over $1 trillion has been lost from the stock market today. Ricky with Techbud Solutions went long on RKLB while shorting, up $4,000 but gave back $500. Position still open and at risk. NASDAQ markets sold off, down 1.8% at lowest point, now trying to recover.
Bond yields are up with uncertainty. 30-year Treasury at one of the highest levels since 2006-2008 Great Financial Crisis. Markets ignore red flags like rising inflation. PPI report at one of the highest levels for core PPI since 2022; markets ended green. Overall and core CPI worse than expected; markets tried to end green. Labor markets incredibly weak; markets pushed higher. Tensions in the Middle East; markets up six weeks straight. Markets stay irrational longer than we can stay solvent.
Bond yields are the rate at which the US borrows, like mortgage or car payment rates. No one wants to borrow at higher rates. Investors demand higher yields due to greater risk of US repaying debts. US at $39 trillion in debt, pays trillions yearly in interest. Higher yields mean higher borrowing costs. Concerns from PPI and CPI. Oil prices up from Middle East affects overall CPI, but core CPI (all items less food and energy) also rising. Weak labor market, rising inflation, bond yields at nearly 20-year highs, same as 2007 Great Financial Crisis.
Markets had seasons of irrationality, ignoring bad reports until now. Slight shock today with 1.2% red day after NASDAQ rallied nearly 30% in 44 days. Pullback, not correction—no break of structure or support on 4-hour timeframe. No active sell-off yet. Optimism from AI revolution, but small basket of companies inflating markets to all-time highs while others lag—disconnect between excelling and struggling companies.
Use greed/fear index to gauge market: currently overbought with greed. Don't be scared of being invested, but avoid being overleveraged or overaggressive. Look for deals if markets sell off. Know when to step on the gas or let go. LPP team watches live trading; second link in description.
Aware of economic reports that may not impact now but will later. LPP shares tools for awareness. Encourages checking second link to learn about LPP team.
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