WHY ARE MARKETS CRASHING TODAY?!?
These notes were generated by AI and may contain inaccuracies.
NASDAQ market is in the red, but not by much. NASDAQ hit highs of around $620 per share leading up to Nvidia reporting earnings. After earnings, market retraced. Nvidia reported amazing earnings, but not surprised by retracement. MAG7 companies—Microsoft, Google, Meta—beat earnings and exceeded expectations yet dropped after. Common theme: buy the rumors, sell the news.
Should not freak out. Markets performing as usual. On 4-hour timeframe, NASDAQ has resistance at 630-640 for QQQ (NASDAQ ETF) and support around 600. Still trading within range. Markets hyped up before earnings and corrected after. Unfortunate for those buying highs, but Nvidia remains one of the most valuable publicly traded companies. At $195, not the best deal technically, but big picture, most innovative in AI revolution, selling shovels to Amazon, Microsoft, Google.
NASDAQ intraday consolidating, testing strong resistance. If rejected, likely retest 600 or low 600s. Be aware of overbought/oversold levels on intraday and larger timeframes—different perspectives.
Pre-market sell-off due to PPI report released one hour before open. Expectation 3%, actual 3.6%. PPI (Producer Price Index) measures inflation on producing side, often passed to consumers. Markets care more about consumers. Investors want Fed to cut rates for markets to push up, but Fed needs lower inflation—cutting rates is inflationary. Higher PPI supports less rate cuts, explaining drop. Not end of world.
PCE report (Fed's favorite inflation measure) also higher than expected. Core PPI up, GDP down. Not good.
AI replacing jobs: layoffs—Dell 13,000, Intel 27,000, Meta 11,000, UPS 48,000, FedEx 12,000, Boeing 17,000, Verizon 15,000, Walmart 12,000, Amazon 30,000, Microsoft 15,000, Croup 20,000. Layoffs happening.
Housing market worse: interest rates down but still sellers' market—more sellers than buyers. Buyers' market opportunity: lowball sellers, ask for concessions. Flip 1-2 properties monthly, buy good deals to sell for profit. Best deals in buyers' markets. If okay with current rates and want good deal, take advantage—can't predict if markets crash. Could make whole video on this for first-time buyers.
Credit market feeling heat: less money, fewer jobs, GDP down, cost of living up with inflation upticking—stagflation here.
BTC performance: shorting MSTR via long MSTZ (double leverage inverse ETF)—not for beginners. MSTZ up when MSTR down; MSTR down when Bitcoin down. Don't trade crypto/Bitcoin directly, trade MSTR. MSTR (Bitcoin treasury, software AI company) lost 10-15 billion in recent quarter on unrealized gains. Terrible business. Michael Saylor not doing anything special—any public company could do it, but focused on growing business. Saylor's hail mary hoping Bitcoin saves him.
MSTR from highs of $543 now at $129—down 75-80%. Investors down 70% from highs while Saylor dilutes them. Down $9.5 billion on Bitcoin holdings—will get worse.
Crypto traders blame Jane Street, no accountability—always scapegoats, not their fault for leveraged positions, no risk management, speculative assets. Bitcoin not used for anything, supposed to replace dollar 15 years ago—no adoption. Never seen store accept Bitcoin (accept PayPal, EBT, credit cards). Speculative asset. Can make money trading anything, e.g., Open Door from 50 cents to $10 then dump 50%.
Jeffrey Epstein early investor in Bitcoin. Shorting via MSTR exciting. Warned Bitcoin risky at $120k highs—meme stock qualities, red flags. Long-term fundamentals matter; speculative assets drop hardest in uncertain times. Struggling in bullish markets near all-time highs—if slowdown/recession, drop another 50-80%. Focus on buying quality companies like Apple, Nvidia, Meta at good deals.
Look out for beginners encouraged into speculative assets. Trade example: $4,000+ on MSTZ, trade live for LPP team (second link in description, members from 2018 still access, discount available).
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