DON'T GET TRAPPED: HOW TO TRADE THIS MARKET CRASH
In a Nutshell
Markets are reacting to AI development pauses, Trump's tweets, and an 89.5% chance of a Fed rate hike on September 16th, with the 10-year yield back at 5% pushing mortgage rates to 7-8%. Traders made solid gains on Dell and other positions but closed all shorts before overnight, while stocks like Crowdstrike trade at extreme valuations with 5,300 P/E ratios. The key advice is to work with market moves rather than fight them, as Trump will likely intervene to prevent major selloffs ahead of the rate decision.
These notes were generated by AI and may contain inaccuracies.
Markets reacted strongly during the pre-market session due to AI news. Three of the biggest CEOs and founders of AI companies have all agreed to slow down in the development. People are speculating it's because they need to clean up their act before their IPO.
Trump was on a tweet rampage in Trump fashion, unapologetically himself. The speaker calls this market manipulation and states "I think it's market manipulation, right? I've called it out for what it is. I don't care who does it."
Markets get influenced by these tweets regardless of agreement, and it's better to work with the market than against it. The NASDAQ market began to recover and recovered all day until the final hour when markets pulled back, ending 0.88% in the red.
According to the Federal rate monitor tool, there is an 89.5% probability that the Federal Reserve is going to raise interest rates. The rate decision is scheduled for September 16th at 2 p.m. Eastern time.
President Trump claims that Iran wants to make a deal. The speaker notes this pattern occurs when the market is down or bond yields are up. Bond yields represent the interest the US pays on money that it borrows. The speaker states "Trump only claims that Iran wants to make a deal when the market is down or bond yields are up."
The 10-year yield is back at 5%, meaning 7 to 8% mortgages are back on the table. The speaker references the TACO pattern where Trump backs out at the end and makes such claims.
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