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Oh i don’t think so oh boy guys do we have some good stuff to talk about here today in regards to the market what’s going on out there oh i just have so much i want to share here today nasdaq going down big here today down about 2.74 when i took this screenshot here today i think it closed the market just closed uh just a bit ago i think it closed down about two
And a half percent so big move down for the nasdaq after yesterday fed speaks right everybody’s like oh finally we’re going up baby and we went up and then we went down okay and and went down big right about you know it’s not like that’s a small move right nasdaq down 400 points or so definitely not small by the way make sure to subscribe this channel if you’re
Not already hit that subscribe button hit the notification bell if you want to be notified every time i drop a video on this channel okay uh russell down big today down about two percent now this is important there were some stocks in the russell here today and i want to they’re going to get to a really big story in this video and some really in-depth thoughts i
Want to share with you guys i just want to cover this real quick here at the beginning but uh the the russell here today down big but there are certain stocks uh you know that are smaller cap stocks that actually might even have been up today right or not really down so there could be a big bottoming effect in some of these stocks that have already been heavily
Damaged and despite the nasdaq having an awful day the russell having an awful day there’s certain stocks out there that hmm they weren’t even down today right that that’s an interesting movement there right when you start to see a day like that and some stocks not even being down or down far less in the market it’s something interesting that’s going on out there
Right but look at the russell here right if we go back to january 21st 2021 we are now lower we’re now lower than we were january 21st right so down since then we’re still up on the year so it is something important to keep in mind but gosh we’re still down since january 21st like isn’t that amazing to even think about that in a year when the s p 500 has been you
Know phenomenal the nasdaq has been phenomenal santa claus rally a lot of people obviously talking about a santa claus rally especially after yesterday and what happened okay the santa’s claws rally refers to the tendency that the stock market to rally over the last weeks of december into the new year theories for the existence include increased holiday shopping
Optimism fueled by the holiday spirit and institutional investors settling their books before going on vacation regardless of the reason more than two-thirds of decembers dating back to the 1960s have resulted in positive gains for shareholders still with as many market anomalies anomalies is that how you pronounce that i can never pre that’s one of those words i
Can never pronounce it right anomalies oh gosh oh just ah just a frustrating word it may just be random there’s no guarantee obviously will continue in the future but everybody’s talking about santa claus rally right and here we go we got the santa claus rally coming in baby and and what did we get here today uh nasdaq down two and a half percent uh russell down
Almost two percent like obviously yeah no no santa claus rally uh seen as of yet even though everybody was obviously talking about it especially after yesterday with the fed and whatnot right we do have to remember there’s still two weeks left in the year and yeah you can definitely get a santa claus rally here but you got to remember there still can be more tax
Loss harvesting right i think most folks have already done it by this this this stage in the game however you can’t deny the fact that there still could be a last few stragglers here right before the end of the year trying to tax loss harvest and write off losses against gains but like i said i think most people have already done this because most people that do
Tax loss harvesting are educated on this and most folks like to be able to get back into their positions in either january or february if you start pushing out toward the end of december like you have to wait just a longer period of time stocks could have jumped already by then the next earnings periods might have already come out and if you were really bullish on
That company you know all of a sudden you’re in a situation where you might have to pay a much higher price and the higher price you have to pay it basically uh offsets or or maybe even more than offsets the the the loss you took on that stock to write off against stock gain so something very very important to keep in mind there but you can’t deny the fact that
It is possible we still could have some tax loss harvesting right and you’re never safe until you get out of january in my personal opinion okay now s p 500 i want to go through a little history lesson because it’s really really important here if we go back to december 24th of 2018 december just got into a really rough market and through part of december of 2018
It was the worst stock market uh situation we had in december like literally since the great depression at one point okay and as of december 24th 2018 which was a wednesday that’s when the market bottomed so this is very very important okay so obviously christmas that year was on thursday the 26 was on friday and so then you only had a few days of the the new year
There right and sure enough we bounced back after christmas but the key word is after christmas so that particular year there was no santa claus rally before christmas time okay it came after christmas okay so it wasn’t really a santa claus rally was maybe an into the new year uh rally also if we look at the s p 500 there’s another big dip on january 3rd that
Happened and what you’re going to see is a lot of stocks bottomed on the 24th but there’s some stocks that either double bottom or actually even hit new lows new 52-week lows on the january third okay this is very very important that some of it even went into the very very beginning of january if you look at apple stock it’s a perfect example okay now this was a
Different market at that time in that that particular market period pretty much everything got hit hard like i don’t remember any stocks not getting hit the most recent situation the stock market has been small caps have been devastated and a lot of mid caps have even been hit right meanwhile you have companies like apple microsoft google basically holding the
Whole stock market on its back right basically doing that and you’ve even seen companies like nvidia get hit very recently even tesla stocks gotten hit pretty hard very recently but there’s still a few big dogs holding this whole thing up but at in that market there was nothing holding anything up everything was down okay including apple at that particular time
And if we look guess what apple hit a big low on the 24th but then hit an even bigger low on the 3rd of january all right so this is very important apple stock did not bottom despite the the market bottoming on december 24th apple stock didn’t bottom till january 3rd something very very important to keep in mind here if we check out nvidia stock back then right
Nvidia hit a bottom of about 31 right here and then again right around 31 32 right here as well and i know that sounds silly now it nvidia’s 285 dollars you know a few years later but basically it bought a double bottomed right it bottomed on december 24th and it bottomed again on january 3rd and so you know i think this is i i want everybody to be prepped here
That if you don’t get a bottom in december you could get a bottom in in early january like we saw with countless of these stocks in 2018. does it mean you know just because it’s december 31st like then you’re in the clear sometimes it can carry into that first week of january if we look at facebook at that particular time which was the stock i was buying extremely
Heavy during that period right facebook it bottomed at 124 on december 24th and this was a stock that started go up but remember also in regards to fb that was one that had been hit uh tremendously hard during that that time period okay and so it started to give signs of like you know it just couldn’t go down anymore there was just weren’t any sellers left in fb at
That particular time and so even though a lot of these other stocks like an apple nvidia either double bottomed or hit a new 52-week low on january 3rd facebook just started going up because there was nobody left to sell that stock anymore the stock had just been devastated so bad people like myself were buying that stock obviously really really heavy back when
It was 124 it was just a very very cheap stock at that given moment okay if we look at amazon amazon also was another one of those stocks that had been hit really really hard and there’s just you couldn’t find any sellers left in amazon stock even even with you know things getting rough again on january 3rd december 24th was a bottom for for amazon stock it hit
About 1300-ish dollars at that particular time for amazon stock it just when you run out of sellers in a stock you know like like all you can have is buying pressure come in right that that’s what ends up happening in some of these stocks that get hit tremendously hard like an amazon was at that particular time facebook was apple you still had some more selling
Pressure had come in because you had some folks they selling so that’s a kind of a warning i want to give to people out there if you’re looking at apple google microsoft and the stock set have done really really well over the past year keep in mind those are the sorts of stocks that you could still get a lot more selling pressure because there’s a plenty of people
That will be willing to sell those stocks right versus if you look at a lot of these small caps right it’s it’s hard to find sellers now and that’s why you get a big huge down day today and then also you see certain stocks out there that are some of these small caps in their op what there’s nobody left to sell those dang stocks anymore okay that’s just the way it
Goes uh in the market right i remember very vividly i was staying at this uh five-star resort it was probably one of the first times i’ve ever stayed at like a five-star place in uh scottsdale near camelback mountain and uh man i was it was an interesting uh kind of little uh vacation i took there and uh i was just with my wife we stayed at this resort and um you
Know meanwhile the market was just getting absolutely devastated during this this particular time period and um man it was a crazy time period we you know during that month of december we lost we lost uh from basically let me see it was probably the beginning of december or maybe a star i think it started actually in november from november to the first couple
Weeks of january we lost we lost half the members of the private stock group during that time period in 2018 into the very beginning part of 2019 half the members of the stock uh the private stock group left okay a lot of folks just like you know looked at that market and it was just it was a rough one everybody was getting devastated and a lot of folks dropped
Out of the stock market unfortunately because i mean oh gosh if they just if they just made it through man if they just made it through oh my gosh you know uh you know it’s just it’s just painful to think about like how many people dropped out at that time instead of buying the dip right buying the dip and so many great companies and so many growth companies that
Were falling during that time think about you know if they had been buying tesla stock or or facebook or apple or amazon like you didn’t even have to buy crazy companies and video was 31 on a split adjusted basis like shoot we could have pulled up amd during that time but we lost half the members of prep stock group within a two month span it was incredible and um i
Remember you know staying at this baller resort feeling like a boss because like i said it was one of my first times ever stayed at a five-star place and it was just like wow man i’m getting devastated on stocks half of my members of my private stock group just left wow this is this is this is quite a market and um it was what it was at that particular time and it
Was um it was vicious it was absolutely vicious and there was nowhere to hide there was nowhere to hide during that market it just flat out there was no like i can’t remember tesla stock held up actually pretty decent but outside of tesla i can’t remember any stock doing well during that time of december it was just like 99.9 percent of stocks were down down down
Everybody obviously and the media was talking about how the markets were getting hit it was the worst december at one point since the the literally the great depression then like i said the market bottomed on december 24th and started to come back and then you know a lot of these stocks didn’t bottom until january 3rd something very very important to keep in mind
There i posted this photo from that resort i think it was on december 22nd or the 23rd of uh stock market december 2018. i said uh this is a live photo for the stock market in december i still have the same sense of humor back there than just a lot less followers uh for those that you don’t know we’re having the worst december since the great depression and it was
True we were literally um you know i don’t know if it was through the 21st or the 22nd or what it was but we were on pace for the worst december since the great depression was extraordinary and uh yeah it was it was quite a market to kind of deal with at that time i think right now and it was interesting because i looked at that post on instagram my instagram and i
Was just trying to see like what the vibes were of like what people were posting at that particular time and i gotta say it was it was um you know a lot of people were understanding the game yeah i was kind of proud of that a lot of people were like hey i understand like buy the dip buy the dip um obviously not everybody did that like i said we lost half the the
Members of private stock group during that time so not everybody quite understood that but nonetheless you know let’s speak about this in kind of the market and where things kind of go from here and kind of my perspective on this first off i think this has been a more vicious market for a lot of investors to go through here right because you got to understand
Like first off a lot of people had came in with big expectations if you got in the market in the past 12 to 18 months you came in with big expectations right and obviously this year has just been an extreme disappointment for most stocks that retail investors hold right also the devastation to be honest this year has been worse than it was in december 2018. 20
The december of 2018 and just kind of that that you know uh that that crash scenario we had there that was vicious from the perspective of you couldn’t miss it because every almost every single stock in the stock market was being affected by it and it was all over cnbc it was all over everybody and so everybody was kind of felt together in this and it was just
Devastation and in the market going on right like i said it was we were down literally the most throughout december like since the great depression right we got saved but with the last few trading days of december that made us come up to make us not be the worst december since a great depression during that year but this this one’s been more vicious for folks let’s
Be quite honest because a lot of these stocks that folks have been in you know they’ve gone down 60 70 80 percent right 50 40 since a lot of folks were getting in if you were buying in the springtime the summer time anything like that right and so the time period to go through has been more vicious for a lot of investors out there and they’re like oh my gosh when
Is this paying going to end right they’ve seen some of these stocks go down like like look at a stock like sdc that’s a that’s a good example right that stock was 16 at some point this year so i’m sure people were paying 14 15 16 for that stock right let’s say it falls to seven bucks you’re down 50 or so right or maybe even more than 50 and you average down and
Then it falls to 350 right you know seven to 350 is a 50 fall right so now also you’re down 70 percent maybe over 70 percent on that stock right and then also it falls to 250 and you’re just like oh my gosh i guess it’s going to zero right and that sort of that sort of pain is is absolutely relentless right absolutely relentless and so i feel like the pain has
Been worse for for investors and i think it even compounds worse because folks have looked at the s p this year and like look at the s p it’s doing so well look at apple stock is doing so well look at google stock it’s doing so well look at microsoft i could have just put my money in the biggest companies and made a bunch of money right and they look at it from
That perspective and it hurts even worse if every single stock in the market’s falling we all feel you know we’re all part of that right but if you’re all in small caps right and you’re buying into small caps and they just keep going down and down and down you’re like oh my gosh and meanwhile you see apple go up it’s even a worse feeling to you psychologically
Right because you’re like dude why don’t i just put all my money in dang apple stock it’s at three trillion dollars and so that’s something that that i think hurts people even worse in this sort of market and the pain you know is even more vicious okay now at the end of the day you got to understand a few things right uh apple google microsoft those sorts of stocks
Could easily pull back some more so just keep that in mind those ones have been the ones to hold the whole the whole ship up those ones could fall back more now a lot of people are worried well what if those ones fall back more does that affect small caps or some of these other stocks probably not too much and the reason being it will affect usually if those stocks
Haven’t already fallen but because so many of these stocks have already fallen and they’ve gotten basically all the sellers out remember who’s really in a lot of those big companies the funds right the funds are really in a lot of those the hedge funds and just big funds in general and so a lot of those same funds they’re not in the small caps so it is literally
Possible that you could see apple google microsoft pull back five percent seven percent and actually not see your your small cap stock you’ve been buying that has already been devastated and not fall much at all if even go up during that time period which is even a crazy concept to think about okay because the funds they’re not in a lot of these stocks you know
That are a billion dollar mark cap that everybody’s already sold out of and the buying pressure coming into those can be much more immense and remember a lot of those stocks are max shorted so the short squeezes you can get on the other side can be absolutely you know absolutely ripper rallies as they call him okay and so yeah i think that’s something to kind of
Keep in mind here guys the santa claus rally you know if it doesn’t come hey you know it doesn’t come as far as uh you know what what happens in the market i think to a lot of us it doesn’t really matter i’m not i don’t have any money invested in apple right now i don’t have money any money invest in google i don’t have any money invest in microsoft i care about
What happens with tattooed chef stock i care about what happens with corsair gaming i care about what happens with wba i care about what happens with honest honest over the coming months hnst and obviously over the coming years for all these stocks right those are stocks that are kind of moving the game for me obviously tesla’s still a major position for me so
These are the sorts of stocks that at the end of the day are going to move my accounts whatever happens with apple and google and microsoft over the coming weeks or the next month that doesn’t make a difference to me okay and so i think it’s even possible all right i think it’s even possible that in january some of these stocks like apple google microsoft some of
The big dogs i think it’s a possibility not a for sure but i think it’s a possibility some of those stocks could pull back in january and uh maybe some folks that have been wanting to sell those stocks but didn’t want to pay the taxes in this calendar year okay because think about it imagine you got big gains on this past year on apple stock do you really want to
Go ahead and cash out right now and uh have to pay taxes on that right away why not sell in january all right guys hope you enjoyed this as always much love hope you got some value out of this and have a great day
Transcribed from video
STOCKS ARE CRASHING AGAIN – DO THIS ASAP By Financial Education
