MARKETS ARE CRASHING & I BOUGHT THE DIP...
In a Nutshell
Markets crashed with $1.6T erased as the NASDAQ hit lower lows, driven by stronger-than-expected jobs data shifting Fed expectations toward rate hikes instead of cuts. Oil dropping alongside stocks points to domestic factors, not Middle East tensions, while Mag 7 names like Tesla fell 5-15% amid broader fear. The host sees markets as oversold enough for a potential dip-buying bounce but warns this could mark the start of a real reversal after weeks of irrational bullishness.
These notes were generated by AI and may contain inaccuracies.
Happy Tuesday. It's Ricky with Tech Solutions. Over 1.6 trillion has been erased from the US stock market in the last 90 minutes. The NASDAQ is showing consistent lower lows and lower highs, very similar to the pattern seen on Friday.
Markets haven't been this bearish or seen this much fear in some time. This is not just because of what's happening in the Middle East. US oil funds show oil itself was down, though it began to uptick a few minutes ago. Oil is bearish because the Iran deal was imminent and likely to happen, as Trump promised yesterday. Trump has been sharing this for the past 8 to 9 weeks, which has been propping up the markets higher. If oil is dropping, it's not about the Middle East and more about what's happening domestically.
The big focus right now is the labor market. More jobs were created than expected, causing a shift of sentiment. The Federal Reserve is now expected to raise interest rates instead of cutting them. This is instilling fear in the market. When they raise interest rates, it makes it more expensive for people and businesses to borrow money. No one wants to borrow money when trying to grow a company, so this acts as a negative catalyst for growth.
This is now two days in a row. The NASDAQ market is down 3.67%. It's 6:50 a.m. in Hawaii, and markets open at 3:30 a.m. there. Markets are oversold enough that they could begin to recover. On Friday, markets sold off significantly. Markets were only one tweet away from Trump to prop them back up.
Markets are testing a very similar support range as on Friday. The question is whether the same setup happens where the day after, markets have a dead cat bounce and begin to recover, or if this is the beginning of an actual reversal. Markets are incredibly overbought and have been for quite some time. We're finally getting some correction, pullback, and sell-offs, but now testing a major support range.
Marvel is down 14 to almost 15% on the day. Micron is down 10%. SanDisk is down 5%. Dell is down 10%. Tesla is down 5%. The Mag 7 companies are slightly in the red. This is a reminder that investing in speculative assets provides exposure to huge growth in a short period but also huge risk. More solid companies like the Mag 7 sell off when markets are red, but not as dramatically.
Tesla is the least qualified Mag 7 company. The only reason it's a Mag 7 company is because of Elon Musk, who is one of the greatest minds of our generation, creating a lot of hype around it.
A live stream for the SpaceX IPO this Friday is offered. If viewers want a live stream, they need to get the video to over 1,000 likes and drop a thumbs up. The host will wake up at 3:30 a.m. in Hawaii to go live and watch the market react together.
Viewers are asked whether they're going with the bears because things will get worse and markets will continue to sell off, or if they think this is a short-lived negative catalyst. The question is whether they're buying the dip in preparation for a recovery, which has happened for the past 8 to 9 weeks. It feels a little different today and on Friday, like there is fear in the market. It's not just about the Middle East because in that case oil would be up if markets were selling off based on negative news, but oil is also down.
Markets are oversold enough that intraday it could make sense to buy the dip and go long because of how irrational and bullish markets have been. The seed planted is whether markets are overbought enough and whether there's enough fear that they can finally begin to drop again.
Live trading happens every morning with the LPP team. The second link in the description allows watching live trading starting tomorrow. The risk calculator on the homepage is free to use. Click the custom tab to enter the ticker, entry, stop-loss, target, and number of shares to calculate risk-to-reward, potential loss, and potential gain. Too many beginners focus on how much they're going to make and not enough on the risk. Every trade comes with risk. End the year on a green note.
Keep Ricky Gutierrez in your library
Save the videos and channels worth coming back to, and find them again in one place.
