Why the Market is Dropping Today [Stocks, Bitcoin, Tesla]

hey everyone me kevin here what the heck

is happening in the market for the last

about week and a half the market has

been pretty tenuous

we've seen green days followed by red

days and we've kind of seen an

average of uh more kind of pain in

especially the technology sector then

we've kind of been used to because

we've kind of been pretty dang blessed

since well

november and quite frankly since about

the end of march march 23rd

everything's just been on a rocket ship

and right now it feels like we're losing

a little bit of

a thrust technology is getting spanked

in the pre-market and so is bitcoin

tesla and bitcoin both suffering in the

pre-market

a sign of potentially people reigning in

their

expectations for these high-flying

sectors again the kryptos

and tesla both obviously very high

flying stocks we've got tesla hitting

over 900 dollars a share previously

just within the last a month and a half

here and now tesla's down three point

two four percent in the pre markets

down to 756 dollars we've got bitcoin

failing to find any support at the

moment we've got bitcoin essentially

just free falling

this free fall kind of began yesterday

afternoon

and we failed support at around 55

9000 and bitcoin went straight down from

its ultimate high here of 58

366 down now to

around 54 300 trying to find some

support there was a moment where this

went into the 53

000 range as well but i'll tell you the

pre-market is not looking pretty today

we've got a few things that are green

a game stop churchill capital green

we've got frx the

disney uh former disney

executive founded spack here uh that is

doing very very

well in the pre market holding up ten

percent but i will say

cciv in the pre-market here it did even

better

than what it's doing now it opened up

about 15 percent up on that news of that

spac deal potentially going through uh

tomorrow

uh tuesday the 23rd and so we opened up

15

up but that quickly started selling off

here as the pre-market hours are

continuing

we're only up about 10 now bringing cciv

over to that 58 dollar price range

but i will say this is it everything

else is

red red red take a look at this you've

got twilio

uh selling off 1.3 percent you've got a

riot down

13 e hang down 10 percent it was great

for a short term swing trade but

otherwise

whoo now you've got sen selling off you

even got clever selling off

uh tesla there's that 3.2 percent down

you've got square selling off let's go

to the full list right here

what's selling off the most right now

micro vision down

eight percent sundial seven percent cape

uh the spec that is

advised or some investors were advised

by arc but is not actually

exactly or at all invested in by arc

uh ogi you've got matterport after the

big big big pump we had

on friday uh from a cnbc pitch which

i'm so grateful we we got into

matterport before

the cnbc pitch but definitely giving up

a little bit here with the 23

rise uh almost 23 rise on friday

giving up about five percent here in the

pre-market hours

but yeah we've overall i mean the

cannabis sector the ev

sector everything selling off a little

bit here in the pre-market

let's look at pound here just to compare

also down about 1.9 percent

still in that 28 range 28.43

but no breakout so far in the pre-market

here

really really tenuous market and it kind

of makes us wonder like

what's going on why is the market

behaving like this

a few reasons for this one it's really

the more we see this treasury rate go up

as people are selling off bonds

it's a sign that the market is expecting

interest rates to go up

the reason that is is when the reason

people want to dump their bonds is

because let's say you have a

treasury bond and i don't know it's the

10-year treasury and you own it and it's

one percent

and you're looking you're going i don't

know i think i think inflation is going

to be coming

and i think that if inflation comes then

rates are going to go up and i'm going

to get way more than one percent on my

10-year treasury bond so why don't i

sell that treasury bond when you sell

and there's more

selling pressure on treasury bonds what

happens is

the price comes down it makes sense more

sellers price goes down right

when the price goes down the yield

goes up so the quoted interest rate on

the 10-year treasury goes up

and so that's kind of what we're seeing

so definitely have to pay attention to

inflation as

one of our factors a second factor could

be margin debt margin debt's gone up

over 23

in just the last six months more people

spending more money on margin means more

people with less money accessible to

spend into this market

which means at some point you just run

out of the cash to be able to continue

to sustain

uh the market to essentially continue

moving up

when people run out of money they stop

having money to invest in the markets

and then

you potentially risk a market sell-off

uh this is one of the reasons that i've

been trying to soften my margin position

get this down to 20

ideally under 20 percent i did sell some

shares

last week on monday uh just as we

started seeing some of the tenuousness

uh in the market and and that feeling

really continued throughout the rest of

the week

uh you know right now i'm looking at my

portfolio thinking is there anything

else that i really don't want to

like hold on to and carry into a

potential market sell-off and the answer

is yeah

there are some that i don't want to

carry into a market sell-off i might

want to just take some profits on

and have that cash to pay down some

margin and be more prepared in the event

this begins to

spiral into a little bit more of a

sell-off or correction we want to be

prepared for those opportunities

so we can actually go by the dip last

week i did a bit of dip buying i bought

palantir

uh this week we'll see what happens

certainly i'm gonna be issuing uh if

i sell any stocks i'll be sending out an

alert right away to all of my course

members you'll be the first to know and

what if anything i sell

you'll know exactly what amounts of what

price i'm selling at you'll also know

why

so i'll be posting those immediately if

you're not part of that group yet check

it out use that coupon code hotel or

huddle

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get all my alerts and

you get a whole set of education as well

i posted over an hour of educational

content

this weekend as well additional learning

material so you'll find that very

helpful

but overall let's go back to the market

here we got to remember

when the market is tenuous for inflation

concerns those inflation concerns

aren't going to subside probably until

june if the federal reserve is right but

remember the fed could be wrong so if

the vet is wrong

hey we could see that inflation stay if

the fed is right

then we might see a little bit of pain

in the market as inflation shows itself

uh here going into march april and may

some of that data being lagging so who

knows

you know some say we have a little bit

of time before that data comes through

but some are saying the stock market is

already starting to price in

some of that pain that has been going to

be expected with higher inflation

leading to

expectations that there could be higher

rates than uh to follow obviously

but you know if the fed is right that

pain is going to go away

sometime in april may or june

when inflation levels sort of start

leveling out again at least on the

year-over-year data

and potentially then the market realizes

okay okay false alarm

now who knows can be totally wrong but

this is the kind of market you want to

be prepped in

especially when you've got some great

news coming out on a ccv you're in

pre-market up 15

and all of a sudden you give up five

percentage points in the pre-market uh

so you know look i'm all for diamond

hands you all know i've got the diamond

hand buddy here

uh but you remember you got to be safe

with margin two

and we can't get diamond hand into focus

here uh potentially that is a that is

oh there we go potentially that could be

an omen but anyway there we go diamond

hand gun

all right uh let's just do one more look

here at uh the chart this is obviously

pre-market we got game stop running 15

good run here in the pre-market just

sort of a sudden push-up

it does look like a few more things are

starting to turn green that were

red uh earlier there were only about

four things

that were green another thing that we're

seeing in this market right now is we're

definitely seeing a lot of

uh this this sort of weird switching

around where

uh the markets will start off red and

will open red

and then they'll switch and start going

positive later in the day

uh but it just goes to show the market

is definitely on

edge the market's just not super happy

still eight percent on microvision

uh okay softening that loss a little bit

at tesla here

you can see tesla trying to bounce back

from the bottom here

so maybe people are going to start

buying this dip here

we'll see it looks like some other

stocks are behaving in that way as well

so we'll have to pay attention to this

but when we keep seeing these tenuous

days in my opinion

it's a little bit of a warning sign and

you want to make sure that you're not

too heavily extended on margin

in the event we do in the event we do

excuse me go into that kind of a

correction

uh anyway uh that's the update for now

thank you so much for watching the

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next video

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