WHAT IS CAUSING MARKETS TO CRASH TODAY?!?
In a Nutshell
Markets crashed today due to US deployment of 2,500 Marines to the Middle East amid Iran tensions, rising 10-year Treasury yields to 4.39% (up 45 bps in 3 weeks), surging oil at $100/barrel, and shifting rate hike expectations, erasing over $1T in value. Play safe by avoiding overnight or weekend positions in oversold markets prone to sharp recoveries (often via Trump tweets); focus intraday shorting or staying in cash. Buy quality companies like Microsoft, Meta, Nvidia, Google, and Amazon during dips for long-term gains, investing incrementally without overleveraging—join LPP for live trading support.
These notes were generated by AI and may contain inaccuracies.
Power hour is here. Ricky with Tech Solutions. LPP team prepared for this. Currently right around $3,900 on the day. Not a very significant day. Playing it very safe. Announced to LPP team: one really big focus for intraday plays—don't hold any positions over the weekend.
Markets can sell off more, but no way to manage or mitigate risk over the weekend. Common trend for past 3 to 4 weeks: even during Iran situation, markets sell off then sharply recover, often triggered by Trump tweet. Sell off, recover pattern repeatedly. Markets technically oversold.
Would love to see markets go lower to buy Microsoft, Meta, Nvidia, Google—very valuable companies at better deal. Don't use this time to take advantage of companies that don't turn a profit. Most money made investing during downturn into good quality companies. Don't confuse with buying the dip on companies that were down before markets sold off.
Risk-to-reward doesn't make sense to carry shorts over weekend or overnight given oversold conditions. If worth the risk, go ahead. Choosing to play safe and take profits. Markets always find excuse to recover. Markets incredibly bullish long-term, now beginning to curl over, but wait for confirmation rather than enter early and regret if V-shaped recovery.
All US needs to say is Iran war is over—markets recover. Trump tweeting it's over despite not being true. Today, over $1 trillion erased from stock market since open. Fell because US announced 2,500 additional Marines deployed to Middle East—contradicts war over narrative.
10-year note yield up 45 basis points in 3 weeks. 10-year Treasury benchmark for mortgages—makes home ownership more expensive if continues up. April 2025 showed President Trump does not want 10-year yield above 4.5%. Currently at 4.39%. Market sees 50% chance of rate hike by end of 2026 (vs. four possible cuts a month ago). Oil prices surge to $100/barrel, inflation expectations rising, gas prices up nearly 50% in four months—expensive for consumers and businesses to borrow. Killing airlines. European Central Bank now expected to hike rates twice this year. Shift from rate cut expectations (bullish) to hikes to slow economy due to inflation.
Eye on performance in 2026. Good quality companies: Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, Meta. Don't care for Tesla as investment—overvalued based on current valuation, though part of Mag 7. These companies down significantly, especially Microsoft—very valuable.
Would you like full detailed video breaking down how to invest as markets sell off? Favorite time to invest: in increments, without overleveraging. Drop thumbs up and subscribe if interested.
Unfortunate Trump resorts to insults during uncertain times. When it rains, it pours, but sentiment changes quickly with Trump tweet claiming war figured out—markets go irrational. Pay attention to intraday opportunities: shorting or staying cash makes sense today. Larger timeframe: markets oversold, direction favors bears intraday.
Love shorting, but understand when to short aggressively vs. be cautious. Markets oversold—can continue sell off, but risk too great to carry positions overnight. Can short intraday and manage risk. Can't manage if markets recover overnight. On larger timeframe, doesn't make sense to short overnight due to recovery risk. For beginners: know when to step on gas vs. lighter position size, not carry overnight.
Covered both bull and bear cases, opportunities in big quality valuable companies down now. Could sell off more, but if recover as they often do, that's light at end of tunnel.
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Appreciate time. Earned thumbs up? Subscribe. Comment questions. End year on green note.
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