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Oh man the stock market you know i don’t care how much money you have i don’t care how many years you’ve been in the stock market um i don’t care what your credentials are no one can figure out the stock market in the short term that’s just facts man and uh i got some stuff to show you guys here today i gotta i got a few stocks in particular i want to talk about in
This video and some moves that are happening we’re gonna talk about the markets in general i’m gonna show you some some news that came out today that’s actually really really bad news now the market does not give a flip in flapjack and care about that news right now i can tell you that much but but we do have some some bad stuff to go over and um i want to kind of
Leave you guys with a little little uh frame of thought here for the stock market okay so where i wanted to start this video here today is good old metastock fb okay this is a stock i personally own and um you know when it comes to meta basically what happened is their ceo sheryl sandberg is um leaving the company all right this came out after the bell yesterday
Now if i went on wall street and i asked every single hedge fund manager every single mutual fund manager if i went to metas annual meeting and i told everybody hey sheryl sandberg’s going to um you know leave the coo position at facebook and she’s going to be leaving meta and i said what will the stock price reaction be the next day i will guarantee you every
Single person would have said lower and i’m talking every single person no one would have predicted that stock price would be up six percent the next day no one not a flippin flapjack in seoul and then what do we have here today metastock is up six percent today you can’t make this stuff up you can’t make this stuff up man you know in hollywood they couldn’t
Write scripts this good man to keep you on your toes like literally you would have thought today you know would have just been at least a down six percent day if not a down ten percent type day for meta and this dog goes down initially and then shoots to the moon for the rest of the trading day right like i think you can’t make this stuff up you can’t make this
Stuff it’s up is absolutely amazing right tesla my oh boy okay this stock has now gone up about 20 percent 21 in a matter of this is like six or six trading days i mean just what a move for for good old tests on my ass saw the good news is the elon drama is calming down a little bit and we’re getting a little bit of a risk on market i mean if you get a risk on
Market it’s it’s great for the stock price we all know that right risk off market not good for tesla stock price it’s as simple as that but we’ve been a little more risk on for the past you know five to eight trading days roughly basically since about may 23rd may 23rd may 24th we’ve been risk on since then essentially and tassel just continues to absolutely rip
Right look at tark now tarq what you’re looking at there that’s a 2x leverage of kathy woods etf but what i find is it actually performs a little better than 2x in terms of the upside now when it comes to tarc this is up 14 today 14 today okay just in the past few trading days this baby’s up since what the 24th or so this baby’s up 34.6 percent i mean that’s just
Insane right and here’s what i think is going to transpire here with tarc i think tarc is going to become the vehicle in the stock market for when people want to go risk on and i’m talking traders mainly when they want to when a trader is going to look at the market and say i’m bullish tomorrow or next week or over the next month or over the next three months
Or whatever right i think traders are going to look at tark and say let’s just get in tarc because you already know arc’s going to usually weigh underperform or overperform the market now if you add a 2x leverage on top of that you know it’s like on steroids right and so i think tarc is going to be insanely popular in the stock market moving forward i think you
Know within the next 6-12 months everybody’s going to talk about tarc because that’s going to be the play if you if you’re thinking risk on in the market it just is like you know because when you see a day like today percent and you see a thirty four percent of that past few trading days as a trader you’re looking at then you’re like dude this is like better than
Options like what in the world like i need to be playing this if i’m thinking risk on right and you know i’m sure there’s going to be a 2x leverage on a short etf shortly when it comes to kathy woodstocks and then that will become very popular yeah i i you know it’s just wall street they love these sorts of tools traders love these sorts of tools and you can see
Why right you can you can see why why no big tech everything’s on fire shopify nine percent plus today amd’s having a great day up almost seven percent paypal six percent nvidia six percent netflix almost six percent meta we just spoke about tesla myself almost everything’s doing good apple’s lacking today clearly man look at look at uh amazon 54 dollars here
Today um and that one just as amazon’s had a tremendous past five or six days i mean you know pull up a chart of that one it’s beautiful part of the reason is for the stock split that’s coming okay but then you see the lagers down here apple and microsoft it’s like what’s going on there we’ll get to some really bad news in regards to microsoft in just a moment
But um yeah i mean clearly the riskiers of the big techs are the ones that are are just going to move like insane when the market goes risk on right and then i pull up my safety stocks list and it’s it you on a great day lately you think everything would be massively green no it’s not campbell’s soup down three percent today uh craft heinz down 2.9 percent by the
Way craft heinz i think on a five year is down like 50 plus percent by the way so you know be careful when they say safety stocks just be careful about that guys um you got uh smuckers down 1.9 uh you got general mills down 1.3 percent but lego like why why are these sorts of stocks being weak on a day like today right why are these stocks weak today i’ll tell you
Exactly why the reason those stocks are weak today is because what goes on is rotation of money essentially and so there’s been a lot of fund managers and folks that have been plowing money into some of those safety stocks as like the hideout area right even though a lot of those stocks have started to get hit recently so i don’t know how good of a hideout it’s been
Right but then the day late today happens and folks rotate money from those safety stocks over to the growth stocks and that’s how you get the upward momentum that’s how you get a shopify up nine percent today that’s how you get a meta up six percent today it’s somebody selling off some some shares over there and some of those safety stocks right and going ahead and
Moving some of that money into some of the growth place right and this happens on wall street all the time they rotate money around in like one minutes the oil and gas stocks and then the next minutes safety stocks and then also it’s big tech and then it’s like small caps and then it’s mid caps and then oh back to large caps and it’s like they always like doing this
Game of rotation and this game of rotation can happen on a daily basis a weekly basis a monthly basis or quarterly basis but they’re always just kind of rotating money around it’s and sometimes they have to do it because maybe that’s the way their their fund is structured if it’s something like that or an etf uh but sometimes it’s just they’re making that decision
They’re like i’m doing this you know look at banking today it’s a very mixed bag you got deutsche bank you know hardly up today jp morgan’s up less than one percent so it’s you know obviously underperforming the market your bank of america and wells fargo down right and goldman sachs severely underperformed the amount market allies also underperformed the market
So everything banking is underperforming the market which makes you think like does wall street know something like why why is wall street not buying themselves today right that’s a good question like why is wall street not buying themselves it’s interesting right banking not not doing well oil and gas stocks also not doing well despite oil doing well again this
Is once again goes back to kind of a strange phenomenon that happens where where oil stocks will delay yesterday oil stocks were having a good day oil price was down the day before oil stocks were down and oil price was having a good day okay today oil price having a good day oil stocks down you know you can’t make this stuff up man it’s just um that’s the way of
The market right you know if i look at my current stocks it’s it’s a lot of green on a day like today right and i definitely own a good amount of stocks that are more risk on let’s just be you know be honest and let’s be honest including honest right and a lot of these stocks are more risk on plays and so you know if the markets have any sort of positive momentum
You know it’s going to be a lot of two percent three percent four five six seven eight nine percent tight moves um and that’s clearly obviously what we see playing out there right now the heat map always is you know as i say men like women lie the the numbers don’t lie the heat map shows us something very specific today remember i just talked to you guys just a
Moment ago about rotation of money and you really can see it playing out when you look at a heat map okay and what we see when we look at this heat map i hope everybody identifies exactly what’s going on here and i know everybody that watches my videos religiously you see what’s going on here right clearly today money’s moving out of health care utilities energy
Those sorts of stocks and going into basically everything else and if i was to pull you up a year-to-date heat map which i didn’t hear but if i pulled you up a year-to-date heat map what you would see is these all are massively green for the gear and basically everything else is red massively for the year and so it’s just very very interesting and it’s like so clear
And when you pull up i think this is the best part about heat maps like this because when you pull that up you know it’s you don’t have to debate it anymore it’s just clear like the rotation of money’s going on selling utilities putting it over here selling oil and gas stocks putting it over here selling health care stocks all these ones that people have been hiding
Out in and moving money over to these other stocks right and so you know that’s just um that’s that’s the way of the market man that’s the way the market right now this this news should have been devastating to the market i’ll be honest out of nowhere the second biggest company in the world microsoft mr softy comes out and lowered their fourth quarter guidance
You know blaming on foreign exchange but they basically cut their earnings and revenue guidance for the for for their next quarter you know that’s that’s horrible news okay now if microsoft just cut i would bet you there’s gonna be a lot more companies that are gonna cut their numbers over the next one to two months and maybe come out and say hey you know maybe
Not as bad as a snapchat did last week or maybe there’s a week before when snapchat came out and said yeah we’re way low we’re like we’re like we didn’t even hit the low end of our range for numbers right you know this is bad news that’s all i got to say like bad bad bad for earnings this is bad news for the stock market but on a day like today the stock market
Doesn’t even care they say the second biggest of the company in the world just said they’re going to miss revenue earnings we don’t care we’re still buying this market up today and you know that’s just it’s it’s almost frustrating for peop people to kind of see some of this stuff go on because sometimes you’ll see good news and the markets go down and you’re like
Or your stock goes down right and people see something like this and it’s like how how when microsoft comes out of nowhere they just cut their earnings on revenue guidance how does that stop how how is the market um you know having such a great day today right and uh yeah that’s part of the hahaha of the market right look at this here today you want to talk about
More bad news fed vice chair brainard says it’s quote very hard to see the case for the fed to pause rate hikes so it’s basically means if you’re wondering what what this this means and why it’s such a big deal and why it’s actually really really bad news for the stock market here’s why it’s bad news for the stock market this basically means that the fed is not
Even putting it on the table right now about a pause for rate hikes now things could easily change three months out six months out but as of right now that’s not even a consideration for them she’s talking about they want to get inflation down two percent you know it’s going to take a while i’m you guys know me i’m in the full camp of i believe inflation in terms
Of the rate’s going to continue to decrease month after month after month but damn we got a long way to fall to get to two percent like we’re in the eights right and so we just still gotta hit the sevens and then the sixes and then the fives and then the fours and then the threes and then the twos and then they’ll finally be happy right um i think they’ll start to
Be happy under four really my personal opinion and under three specifically but that’s not good news for the market you know the market is is kind of hoping that the fed chills out or at least will chill out as as inflation comes down more and more and it just seems like they’re they’re fully committed to just continue to to raise rates and not slow down anytime
Soon and that’s not good news for the stock market at the end of day but the stock market looks at that and says uh whatever yeah we’re still buying it you know the the the fed usually when they threaten like this it scares off the market big time not today you know microsoft the second biggest company in the world when they come out and say we’re not hitting the
Numbers we thought we were going to hit um yeah that usually scares off the market but not today not today baby okay and you know i bring people back to 2008 2009 time right and you know stock market kind of double bottomed round i think was march of 09 february 09 but uh it really hit a bottom in december of 08 actually okay and the low was uh in the 600s for
The s p that’s crazy to think right s p in the 600s and you know what’s very important to understand about that time period is you still had so much bad news coming right around unemployment around earnings were disaster for at least a year or two into the future you know amount of people on food stamps the housing collapse was still uh three years from the bottom
Three years from the bottom and there we were in a moment where the stock market just started to move up and so this is what fries people’s brains in the stock market because you see bad news and it’s like this has to mean the market goes down right and then the market doesn’t go down you’re like what i thought bad news means market goes down and sometimes you’ll
See good news and the market’s moving moving down right and you’re like how’s the market moving down we got all this good news and this is what frustrates some people in the market and this is what it does two things to a lot of investors okay both these are bad one is it makes some investors turn into traders because they get so frustrated with everything they
Think they’re going to try to trade out and that’s the worst thing dude if you you can’t predict these things and how these things are going to go anyway so there’s no point in being a trader right the second thing is even worse much worse the second thing and what a market like this does and what the stock market does to folks it chews them up spits them out and
Basically how this works out is people get so frustrated with the market that they leave the stock market all together or if their stock picker they just you know stop stock picking and maybe they go to index funds or something like that they just give up right um and some people just leave the market all together because like this thing’s a scam man makes no sense
Good news is bad news bad news is good news i don’t get it none of this makes sense look at the the reactions of the market right and all along the stock market sometimes forecasting things that are six or 12 months out that you’re not seeing in front of your face right now so it’s almost like an optical illusion right and so you get bad news on a day like today
Multiple really bad piece of news and the market just like shrugs it off and it’s like i don’t care i i literally don’t care about that today we’re going up baby uh it doesn’t matter what happens today right you know and this comes after yesterday right if we go to the hungrybolt.com which by the way download hungry bowl on your ios and android store and uh also
If you want to you know sign up for the the newsletter the email newsletter part you can do that as well keep you up to date with everything going on in the market and with stock market earnings yesterday we had obviously the the scary news of by biden of diamond saying essentially we got a hurricane of bad economic news and all this stuff coming right and that
Just freaked out the market and today the market just shrugs that off it doesn’t care anymore it doesn’t care you know the hurricane and we don’t care about that anymore right you know i saw something like this today and i saw this i said uh you know this is a stock i personally own i’ve been buying this talk for the last couple months now paypal price target cut
To 129 at morgan stanley so you know this is a situation that um usually makes the stock price go down right analysts are cutting price oh crap man that’s got to be bad for paypal let me see is it bad for paypal no it’s up six percent today you know that’s the market it just doesn’t care right and this is this is the sort of stock market we’re in right now and you
Know i released this video kind of late last night so i think a lot of you guys didn’t get to see it yet but i was kind of giving my advice to all stock market investors right now in the market okay and one of the core piece of advice i was giving in that video essentially is to not make any of your long-term investment decisions around short-term stuff that’s
Going on the market and what i was trying to explain to people is there’s gonna be a lot that happens and transpires over the next six months or so next six to nine months that’s going to make no sense to you you’re going to see socks make moves that almost don’t make sense you’re going to see market news come out and the stock market out act very differently
Than what you would have thought the market acted and so don’t get caught up into all this like trying to play things short term and trying to you know predict all this week’s gonna be bad i gotta sell out i gotta buy back i know that next month gonna be bad so i gotta sell out and i gotta buy back and don’t even play that game man that’s that’s the trap that is
The mouse trap um that a lot of people get caught up in doing this sort of market because i promise you no one no one can figure this stuff out short term i promise you that um you know everybody can throw darts at a dartboard and you know say this and say that but you know i think in meta today that’s a perfect example of no one saw that coming no one no one saw
The six percent upward move today happening after you know sam berg decides she’s gonna step down from co and that’s just a market for you and um you know it is what it is so stay focused on long term buy companies you love for the long term and throw them in the filing cabinet and just um you know increase position sizing and the amount of shares you own over
Time right and so um yeah anyways hope you guys enjoyed this as always let me know what you’re up to in the market what moves you’re making what stocks you’re buying love to hear from you guys in the comment section as always and once again if you want to sign up for hungry bowl check that out we got the app we got the email newsletter also got hungrybull the
Hungrybull.com now which is pretty darn cool much love and thanks for all everybody that supports hungrybull and have a great day in the channel appreciate you
Transcribed from video
The Stock Market Just Tricked Everyone By Financial Education
