Why Jerome Powell is Now CRASHING the Market

dang it j pal you just gotta you gotta

give us the hope

you give us the hope that it's all just

transitory

and then you take it away from us

hey everyone me kevin here oh my gosh

this is the kind of day to bring out the

diamond hand cup and gold dang i'm glad

i've been raising some cash because

whoa

jay pal is really good at coming into a

hot market and giving you the finger

that's what he did in february of 2021.

now we know he came around to uh rescue

us in 2020 okay but that's different

that was 2020 okay february of 2021 the

market starts falling everybody's

expecting jake powell to come into the

rescue and he's like

yeah ass evaluations are high market

tanks

now

after like a year and a half of don't

worry

inflation's transitory

it's time to retire

transitory and potentially

end the taper

months earlier now jerome powell did not

specify exactly when that's because he

needs to discuss this with his fellow

comrades

over at the federal reserve in the

december meeting which which comes up in

the next few months i'm sorry in the

next few weeks here now what's really

interesting though is the market's

reaction because the market is actually

finally not happy about something and

the market has been very very good about

buying the dip on every little bit of

news i mean friday everybody freaked out

because i'm a

which turned out to be a nothing burger

on uh on the belief that essentially the

impact of the omicron would be

relatively mild on people that yeah even

if vaccines were slightly less

efficacious people with omicron appear

to have mild symptoms like extreme

tiredness or uh or other symptoms that

are just not as severe as something that

you might see with a delta variant and

this makes sense to some degree because

the more mutations you have the spike

protein of a virus

sometimes that could make a virus more

contagious sometimes it can make a virus

more

combative but it could also go in the

other direction where it becomes more

contagious but

less effective inside your body and

therefore less damaging which is

obviously a good thing now over the

weekend everybody's like don't worry

don't worry in addition to the symptoms

being fine the vaccines will work and

even if they need a little fine-tuning

we'll have a new vaccine by march 1st

well great that's wonderful but then mr

moderna himself the ceo of moderna this

morning says

yeah we're expecting a material drop in

the effectiveness of our vaccine and

scientists are basically in our office

saying yeah this is not good this is

really bad and it doesn't help that

regeneron this is the uh cocktail you

essentially go on in the event that you

get sick with covid you're not

vaccinated you're basically gonna die

and they give this to you to try to save

your life

uh has also seen a material drop in

effectiveness

which is bad

these these are both both very bad the

financial times broke both of these

stories this morning and as a result of

not just uh now fears that the

treatments we have working less well

but even those symptoms for certain

people might be more mild the fact that

treatments aren't working for those who

might potentially need those treatments

in addition to the fact that mr j powell

is now you know what

transitories no more we're going to have

to taper months earlier because well now

we're really having inflation extend and

honestly all it's going to take now is

china shutting down a few ports

over in china and the supply crisis is

going to continue on much much further

if we get more shutdowns or lockdowns

really the supply chain crisis just

continues to get worse and worse and

worse which all just feeds into the

inflation playbook now what this means

going forward is very important but

first a message from our sponsor so you

got the dow jones industrial average

down 1.7 percent that is an almost 600

point drop you've got the s p down 1.6

you've got the nasdaq down 1.74 you've

got the russell down 2.64

bond yields folks down that that's very

interesting why would bond yields be

down if jerome powell wants to bury the

transitory inflation term well because

they're going to be printing less money

which if they print less money then

that's a sign that they're finally

actually reacting

uh to inflation threats and they're not

going to continue to funnel as much

money into our economy remember folks

the federal reserve even though they've

begun the taper from

spending basically or printing 120

billion dollars per month of bonds even

though they began that and reduced that

to 105 in november and we expect to go

down to 90 in december and then continue

down the path of tapering 15 billion

dollars until we get to the summer of

next year at which point we would

basically have no more taper and then

the federal reserve can go all right now

that we're fully tapered maybe now we

can consider raising rates because we

fully taper this has now turned into

okay maybe we need to do what mr bostic

from the federal reserve actually

alluded to last week it's pretty

impressive he kind of he spilled the

beans last week he's like yeah you know

nobody believed him i didn't believe him

we might have to

taper not just sooner but like in the

first quarter

like end the taper in the first quarter

of 2022 and then consider raising rates

which uh is is a good way to combat

inflation which is why we're seeing

yields go down less money printing right

it's also why we're seeing

cryptocurrencies fall on this news

because okay fine the feds finally

dropping the inflation argument they're

finally going to combat inflation but

now what we're seeing

is basically bond yields go down crypto

go down now we have the expectation that

come february we could potentially start

seeing interest rates go up to combat

inflation and remember folks

a lot of folks at least in surveys that

i've conducted 40 to 60 depending on the

day 40 to 60 of individuals use

cryptocurrency as a hedge against

inflation well if the fed is actually

going to start doing their job

and fighting inflation then maybe that

becomes a little bit less of an issue

now that's not to say you know okay fire

sale on bitcoin time to drop everything

bitcoin's still doing better than where

i just bought it uh a few days ago as as

usual i always send out every single

alert uh that i make in stocks and

options in the stocks and psychology of

money group for probably at least the

next six months i'm including crypto

alerts in that uh so for example i sold

crypto at fifty eight thousand fifty

seven thousand five hundred to fifty

eight thousand i rebought uh the

allocation that i wanted right around

fifty three thousand seven hundred and

most of it around fifty four thousand

four hundred because i saw that as a

stronger

support line

but anyway

i send these alerts so you're welcome to

use that coupon code cyber monday it's

active through the week i'm taking a

vacation

this weekend i will be off on monday no

market open no market close uh live

stream for me i will be off on monday

but anyway the cyber monday code will be

available through friday so you're

welcome to check that out but anyway you

can see this drawdown here in bitcoin

because

not only does bitcoin generally not move

with the market so you don't really want

to call it a market base to sell off uh

bitcoin's got a beta of about 0.5 to 0.6

depending on which indices you compare

to or index you compare to rather but

you you are seeing a drawdown because we

were starting to rally on bitcoin look

at that we ran up to 59 000 we were

running on bitcoin we were running on

ethereum and we're seeing that u-turn

specifically because now okay the fed's

actually going to get out there behind

and do something but look at some of the

other pain that we're seeing in in the

market and this is really where we want

to start looking for potential pain

points so you're seeing crypto related

plays sell off a little bit more

extensively that's normal but you're

also seeing momentum style stocks like

amc and newegg's sell-off this is the

sign that you're starting to have some

of the retail community start paper

handing right again not a surprise that

you see something like hot 8 mining sell

off seven percent good thing i closed

that position yesterday afternoon uh but

you

you're also seeing software look at that

snowflake down 6.8 percent it's kind of

like everyone's insecurities start

coming out when they start freaking out

about j-pal insecurities are usually in

momentum plays and in higher valuation

plays like software uh i mean look at

fun wear fun wear is a momentum play or

spaxx 23andme is a

blink is a spec

a smile direct club speculative six

point nine percent of the downside

obviously retail is getting spanked

there's no surprise that moderna is

selling down a little bit now that their

products not as effective as as uh as

individuals were were suggesting it

would be i mean i'm pretty sure mr fauci

and biden as as recently as yesterday

are like hey uh don't worry about

amikorin go get your fouchy ouchie and

everything will be fine yeah well now it

looks like everything's not gonna be

fine

ah that's exhausting uh anyway so we're

seeing a little bit more of a sell-off

in some stocks that were already

rotating down like sunrun but look at

this folks some stocks that were

actually beginning to u-turn to the

upside like lemonade it was up one to

two percent today boom five percent gone

just straight up rug pull on it sofi

technology down to 1755 that's a support

level for it we've been in a channel for

so far over here oh look at that it

actually broke past it 1780s where the

support line we just broke past it it's

not good uh you know hippo down to 3.5

uh a firm down to 4.4

i actually sold puts at 131

uh thinking there's no way we're gonna

get a j-pal rug pull oops good move but

anyway uh good news is my break even on

that one is 126.4

which is basically where we are right

now uh that's the benefit of selling

puts right you don't know anything about

selling puts and you just want to learn

a little bit about options

stocks of psychology money it's like

literally everything is in there to take

you from total rock idiot which is

totally fine it's not embarrassing to to

actually having a pretty substantial

amount of knowledge uh in in the markets

and uh how uh the mechanics of the

markets work but anyway

uh yelp i mean not a surprise look at

this though the ev's you u-turning lucid

was actually up a couple of percent

today now down about four percent uh the

gambling plays have been getting whacked

here's finally a beginning of a sale

opportunity again on some of our faves

like end face and nvidia we have been

waiting for these and look at this

paypal suffering even more it broke

under 180 for a moment cloudflare

reversing the gains that it had today

rivien down three percent even peloton

the stay-at-home play is getting spanked

today basically this is jay pal j pal

coming in here and just smacking you

upside the head going

don't you think about continuing to buy

the dip i'm trying to create a crash so

i could go shopping in a dip

anyway tesla is actually doing

incredibly strong here i do think there

is a lot of enthusiasm and momentum

going into tesla because of twelve nine

the potential rumored stock split

announcement day which which is you

remember last time tesla announced the

split it ran up like 80 so people are

like oh my god uh also worth noting that

backed holdings was up 17 today and

that's because bitcoin was rallying

right we ran up to about 59 000.

now it's only up 0.98

this is a a cryptocurrency transaction

processor fascinatingly though i don't

even know if that's word uh

apple up 1.87 i'll tell you exactly why

folks people see apple as a cash park in

a flight to safety

even more so than google which i think

is really interesting i mean google's

down one point eight six percent but

folks apple not only does it have the

wind at its back for being a uh

uh you know what's it called uh

an s p play or really any of the big

industry place but people see it as a

flight to safety it's incredible i mean

even microsoft's down about 1.18 so

anyway

crazy market thanks a lot jay pal but uh

but honestly you know what finally

finally the federal reserve u-turns a

little bit on this this inflationary

talk now they're sending signals that

hey this we're going to go through

probably a little bit more of a painful

period here we're going to have to raise

raise interest rates and

uh sooner than expected potentially

and then and then when inflation rotates

down because at some point it will

either through their action or not uh

then they'll be able to unwind a little

bit unfortunately that this does not

bode well for the potential stock market

over the next possibly six months

because tapering is ultimately becomes

painful

raising rates becomes painful

so moving all of this uh the end of the

taper up it's no surprise that markets

are selling off this much honestly the

only thing that would potentially be a

surprise is that we're not selling off

more

so i don't know if we're going to peter

this kind of sell-off out until the next

days history will show us that

everybody's going to buy the dip later

today and markets are going to jump up

really today pay attention to that

market closing are you seeing

withdrawals from etfs by seeing big

roller coaster dumping selloffs into the

clothes that's usually a sign of a

little bit more pain to come at least at

least another day of pain to come it's

just a little bit of a signal not always

guaranteed but uh

the only thing that's guaranteed is the

fact that there is a coupon code linked

down below that will expire at the end

of this week it is the cyber monday week

coupon code it's not as good as a black

friday one but you know what it's the

best that's gonna be prices are going to

go up again and then then we'll move on

from sale season alright folks thank you

so much we'll see in the next one

goodbye