Is The Market Crash About To Get Worse?!
In a Nutshell
The speaker made $7,300 shorting SanDisk after earnings volatility, while positioning to buy more Amazon long-term despite heavy AI spending. Intel's 22% drop is viewed as predictable given its fundamentals and speculative Trump-driven pump. The market is testing critical QQQ support at $700, with the speaker advising no leverage and only buying quality companies you can hold through further declines.
These notes were generated by AI and may contain inaccuracies.
The speaker addresses recent market volatility, noting that QQQ is currently down 1.6%. The speaker mentions that crypto users were also hacked today, highlighting broader market difficulties. The speaker has previously provided updates on Bitcoin's decline and now shifts focus to traditional markets and real assets.
Amazon released their earnings report, which the speaker considers not actually that bad. However, similar to the previous day, the company's capital expenditures and spending plans for 2026 and 2027 show significant investment pouring into their investments, with free cash flow going negative. This development is scaring many investors. The speaker respects both conservative viewpoints that view this as too risky and prefer selling or moving to safe positions, as well as those who see opportunity.
Amazon fell 12% at one point during the trading session. INTC lost a quarter of its value, which the speaker found unsurprising. The speaker never bothered with INTC, viewing it as a "pump" on Donald Trump's part with a huge fundamental discrepancy. SanDisk also went down at some point during the session.
SanDisk was the speaker's biggest source of profit during the trading day. The speaker mentions that members of the LPP team get the opportunity to watch live trading daily. The speaker did not trade any part of the initial SanDisk sell-off, but when it gapped up and started moving back toward the high of the day, the speaker was waiting for resistance. The LPP team was kept aware of the overbought reversal and testing of the same resistance. When the stock started to go down again, the speaker entered a short position.
The speaker made $757 from the short position on SanDisk. The speaker mentions making $2000 here and $2000 there on previous days but wasn't feeling well with the way the market was falling. The speaker closed short positions and is now only looking for investment opportunities in good quality companies. The speaker wants to position for handling market volatility, acknowledging the situation could get worse before it gets better.
The speaker opened a short position with a 4:1 risk-reward ratio, which represents the ideal setup. When the situation became favorable, the speaker increased position size, completely accelerating the position. The speaker took profits up to 1280 after dropping below 1300 and breaking lower, ultimately making a profit of $7,300 for the day.
SanDisk posted good earnings with uncertainty about memory chip stocks and cyclical thesis, but they performed well in both EPS and revenue. Amazon failed to meet targets in both EPS and revenue, lagging behind expectations, but the speaker didn't think it was that bad and still considers Amazon underrated.
The speaker plans to buy more Amazon shares and hold them for the long term, acknowledging the company's heavy spending on AI investments. The speaker is willing to take this risk despite potential lack of complete success, positioning for favorable returns with tolerable risks. The speaker compares this to buying Google shares when it was selling well.
The speaker considers Intel a bad company, losing billions of dollars with a negative P/E ratio. Even though earnings are slightly higher, Intel used the decline in PC demand as an excuse. The speaker hates companies that never admit they were overvalued from the start. INTC is down 22%, and the speaker has no pity for investors who invest in speculative assets solely because of the US president's campaign. Trump advertised Intel at around $20, and it started going up from there. The speaker finds it unsurprising that a stock collapsing after a 450% rise where fundamentals don't match current valuation would be difficult for some investors to accept.
The speaker does not think this is the end of Intel and acknowledges it's still a speculative asset with a chance of turning around. The market may remain irrational longer than investors can survive. However, among all investment options, Intel would not be the speaker's choice. The speaker would rather buy companies that are actually used, valued, and trusted, even if they may not be as attractive or have as high profits - preferring slow but steady returns.
The speaker sometimes shorts aggressive positions but chooses to cut short, noting that shorting involves significant risk and beginners should not short. The speaker is excited about current market opportunities and mentions that speculative investments can now be obtained for 22% less. The speaker considers taking some positions for children but hasn't decided yet.
The Nasdaq market is down 1.7% after losing 1.4% during normal trading. The speaker identifies that the market is testing important support at 700 for QQQ. Breaking this support would indicate preparation for things getting worse before they get better. This represents an important support range where breaking it would lead to a major price drop. If overall Nasdaq and S&P 500 sell-offs begin, individual stocks, especially speculative stocks, will be hardest hit.
The speaker emphasizes not using margins or leverage, and buying with amounts that can not only be afforded to lose but also withstand the time required for stocks to turn around. In uncertain times, investments should be made in good companies with long-term faith, but at positions that can be tolerated.
Simple steps for future self include starting with as little as $100 if not yet investing or trading. The first link in the description provides 12 free shares by signing up for the trading app used. Additionally, $1,000 in prizes are given away every Sunday, automatically entering participants into the giveaway sponsored by WeBull.
For those wanting to see live trading, sessions occur every morning when the market opens, designed for complete beginners. The cost is less than a cup of coffee per day at $1.30. The second link in the description has the October sale about to end, offering big discounts on a one-time payment for lifetime benefit. Members who signed up in 2018 paid only once and still watch live trading without additional charges.
The speaker encourages keeping learning simple in the market and starting each day together every morning.
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