PreMarket Prep by Benzinga

December 02, 2021 What's Next For The Markets

On Today's PreMarket Prep:

The Market Has No Mercy
Apple warns iPhone demand is weak AAPL
Snowflake earnings SNOW
Okta earnings OKTA
Splunk earnings SPLK
Crowdstrike earnings CRWD
WeWork has to restate financials WE

Meet The Hosts:

Dennis Dick

Twitter:https://twitter.com/TripleDTrader

Spencer Israel

Twitter: https://twitter.com/sjisrael

Joel Elconin

Twitter: https://twitter.com/Spus

https://www.premarketprep.com/

Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.

Transcript:

Good morning, everybody happy Thursday. We're in a fast market. All right, we got Joel here. We got Dennis here. We got a lot going on. Obviously we got to digest. What happened yesterday? Digest. What happened overnight? We got apple news going on today. Let's get right to it. We had a lot to discuss. This is pre-market prep with Joel cannon, Dennis Dick and Spencer Israel.

Joel, Dennis. Good morning. I know Dennis. You're feeling a tad under the weather, so appreciate you fighting through. To, to hang out with us for for the show today. Good morning to you both. I, I mean, Joe, I feel like we should probably just start with, with your charts, right? Because we, if you were with us at the close yesterday, you'll watching it happen live.

It was not the kind of close anybody like to see, Joel, why don't you walk us through that again, if it flows that Mr. And then you can walk us through what happened overnight, and then we can talk about yesterday some more. Well, I've been reversal yesterday, 150 point range. You had the fed speak and then you just, you just started to erode the games and it's just started to cache got all the way down after hours under 4,500 psychological level.

Also that is halfway back folks, if you look at it, I mean, what just, we just got back. I mean, we're not even back where we were at the beginning of October, so. Maybe this is the pullback. This is the dip to buy this is it. But really we've just given back half of the gains. I'd say since October 1st they bought, they bought the clothes, the closers all weighed 50.

They ran it up to 52 and now we're just sitting out mid range. But I do like this 50%. I don't draw it that much here. So as long as we hold 4,500, we got a chance for a little bit of a rebound today. As far as the clothes goes, when I think what happened on the clothes is nothing uncommon knowledge, but I think some people were just getting blown out of their accounts.

I mean, I, on days like this, the clearing firms, they look at things and they're like, you're done. You don't have any money left. You don't, you got the, yo you get the margin call in here or you're out. And. Indiscriminate selling it to close. That's my theory. I'm not sure what the imbalances were, but that's what we're looking at.

Let's get back over mid range. Under session. Love to take out the pre-market high and man had least settled, you know, back in 45, 50, 45 60. Not sure that's going to happen. Crude's moving around ahead of OPEC meeting up 20 cents, 65, 77. Gold's doing nothing down three 50 at 1781. Silver giant to hang in 22, handle up 16 cents 20 to 50 Bitcoin down a buck 90 at 56,800.

Ethereum has been strong a little bit in the red today. That's down $38 and 50 cents, but let's bring on. The most dedicated person on wall street. Who's not feeling well, but he is coming on Mitch, Spencer, and I said, get outta here. And he said, no, I love my Twitter followers. I got to come on today. I am under the weather big time, a little bit better than yesterday, but definitely got a nasty flu box or throat headache.

The whole shebang I have going from COVID I've gone for the COVID test this afternoon. So I will just make sure it's not COVID although there's been a nasty flu bug that went around my brother-in-law, both of them had it, their kids had it, they had COVID test and they were negative. So I'm assuming that it's just this nasty flu bug that's going around, but go for the Tacoma tests.

It's also about your internet. What happened there yesterday? Oh, just a ridiculousness. So anyways I've trading at four o'clock in the morning, so I'm sick and I'm still trading at four in the morning. 4 45 internet just goes down. So I'm like, okay. So then I go through. Call up. You don't try to get ahold of Rogers.

Get actually I was online talking to the online assistant. They said, well, there's no outage in area, so it must be on your end. And I'm like, yeah, but the modem went down the same time a cable TV went down and those are separate things. I'm like, that's telling me it's a signal. They were like, oh no, it could be, you know, the modem could affect the TV.

I'm like how it's separate. So ed went down the exact same time. So anyways, they argued with me. They try to do all these fixes of the motor B. And while I'm thinking, they don't know what they're talking about. 20 minutes later, you know, they're like, okay, we'll send a out, cause your motor must have a problem.

And I'm like, I don't think so. So I hang up, I call Rogers back again and get the next person on within a minute that they could take 10 minutes to get a person. Cause that's the way this world works. But within a metaphor it's like, oh, you know, there's an outage in your area. So that was all for nothing.

Oh yeah. Fake like cable TV, separate box from your motor, both go down at the same time. Sounds like a signal issue. So anyways, that was my four o'clock in the morning story while I'm sick, trying to handle all that finally got the internet back at like 8 45 and then I was underwater and I wasn't coming on the show for the last 10 minutes.

Cause I was like, you know, trying to get possessions, trying to train. And I had probably over a hundred overnight positions trying to work out of all those just, just a mess. But anyways, I'm back, back back. Well, I hope, I hope that was the bottom for you yesterday or is the bottom? It's all it's going to turn up and Dennis here going forward.

I think I hope so too. Cause I'm feel like hell, but let's talk to markets. I mean, you've got serious selling across the board, apple, the safe Haven yesterday. They pulled the rug out from under the afternoon. And the afternoon, and then they pull the rug out from it more this morning. What's the headline on apple because Apple's down.

Yeah. So we recall that apple had previously cut their, their iPhone 13 production target guidance by 10 million iPhones. That was back in September. They said that I think rent cause it's supply chain. Now the news yesterday though, was that they again, went to their suppliers and they warned them that okay, we're going to lower our iPhone guidance again.

It's not, it's not because it was a supply chain. It's because of demand. Demand is weaker than we thought demand for our iPhone 13 or were they, we thought it would be not as many people wanting to upgrade this. So, not only do we have supply problems on the iPhone 13, we have demand problems on the iPhone 13.

And of course, of course it happens to the apple now, which was like your rock star the other day. And so who knows what that means going forward, but yeah, timing really couldn't have been timing. Definitely not great. I mean, this is the market that we're in here right now, though. It was seen as a safe Haven, which I never understood.

I own apple full disclosure. I didn't sell any of my apple, but there is no safe Haven really in this market here right now. They're looking, you know, to sell first and ask questions later. Yes, we're bouncing. It, it's a question of, this is what going on. This isn't something that just started a couple of days ago, three days ago.

This has been going on in the growth stocks for the better part of a month that I half, I mean, you look at a R K K, which is a good indicator for growth. So it's selling off beginning of November and we're down 25% in a matter of. So that's your growth names. You look at IWM, you know, get away from the side because it towels it doesn't tell the whole story.

IWF pops on November 2 44, 2 13. He just talked about a 15% fall in the majority of your small cap stocks. That's more broad market. You've been hiding this in the spy because apple has been holding up Facebook and Amazon while they started to crater here too. Now. So apple being the last shoe to fall, maybe the sporting.

So question is, are you coming in and buying the dip or is this, you know, just, you know, a wait and see approach? I think from an investment standpoint, I think from a trading swing trading standpoint, I think you gotta wait until you see how this, you know, washes itself out because there's a lot of people buy the dip hasn't been working really for the last two months.

It really has not. There's been a lot of depths in stocks and if you've been buying those depths for the most part, you've been losing money, sell the rip has been working. Than it ever has in years. So I'm going to continue to say, I'd rather be shorting stocks on strength than buying stocks on weakness of this market.

So you're getting a nice rep this morning, you know, but you know, we fall seal 120 points. You get 20 back. It's tough. It's a tough market for newbies because they haven't really seen, you know, a serious sell off in a long time. So I don't know what, what are you, what are you saying, Joel? What I poured. You have to look at like the individual stocks and base them on their own characteristics.

I mean, some of these stocks have just been falling and falling and falling, you know, so to take a stab and nose is a whole lot different than the take a stab is something that has been in an uptrend and has been stabilizing. Just with respect to apple these last couple of days where like, why is apple going up?

What's going on? What's the reason there was no real. You know, it was just, people were hiding in the stock. So something like this, which is so strange. Yeah. I'd be more inclined to, but like your Twitters, your arcs, all these other stocks I'm in you're G you know Penn draft Kings. I mean, you just name it.

You're just, you're just blindly trying to pick a bottom, but with sticking with stocks, like we'll just go specific to apple. I mean, it had a two day, 10 day run. I mean that just apple doesn't do that. So let's just look at the dailies, the pre-market loads, just under one 60. Here's your two day low 1, 1 59 92.

If you think they're just going to sluff this off, you'll take a shot. Your three day low is just about a buck below that. So you give it a ring. Maybe it gets a little bit of this back, but I just, I like the Twitter. I'm looking at this Twitter, the news that came from. You know, some of these other stocks, I'm not, I'm not doing it.

I do it in a strong stocks, apple be one of them, the news today. I mean, they come out with good news and come out with bad news. This is a bad news day. Yeah. I, and, and, you know, I want to bring over to this graphic that I saw going on Twitter yesterday. It's like, where are, where are you going to hide?

We're going to hide. SPACs no COVID plays no reopening plays the opposite. No, payment's definitely not. Right. What's next? SAS, Salesforce got crushed yesterday, right? I mean, and that's kind of the king of the SAS docs or, or, or at least the companies they're hiding in bonds. That's where they're hiding the TLT rip it.

We're on hired. Do you want to hide in the TLT? I get a 1.3, 4% yield for, for your cash money. I think that ends ugly too. So you know what a rising interest rate environment, it doesn't make any sense. They just don't know where to go. The Tino alternative. They're like, okay, well maybe call it safe Haven.

We'll just go home. So U S dollar is hiding there to a certain extent, too. They're hiding a little bit in cash. It's not equity. This is my point. Do we forget about all this in a month and go back to business as usual? I mean, we still have an inflation problem. We still have the Tina than no alternative.

I think you do. I don't think I want to try to catch the falling knife here, you know, like, but I do think you want to have your shopping list ready and when the stock stopped going down, maybe use that opportunity to start, you know, light or start, you know, putting some capital to work, but just blindly caching, the falling knife here is dangerous because we're, you know, we're, we're over bought for years here.

I mean, let's put it in perspective and look at the spa. You go out to the monthly chart and you don't even see a sell off. You just see this ridiculous unsustainable, huge uptrend for the last five years, especially in the last. So I don't want to just jump in blindly and be too early. Again, as a day trader, this is an awesome environment.

I had my best day of the year yesterday, despite being sick. So, you know, what, if I'm not sick, I'm probably even doing better, but this is the type of environment that we're in is it's great for trading by a dip salad rep seldom short sellers, short reps by it dips, but from a long-term perspective, I don't know if I'm early and that's why I'm just sitting with what I have.

I haven't sold that many stocks was set with like, like 25% cash did go up to 40, whatever earlier it was like, go to 40. I didn't do that. I'm sitting at like 25, 20, 25, just in case stuff that gets ugly. But looking, you know, with a shopping list at eight, eventually, maybe you'll get down and dirty and some names that I want.

Not yet. I think you're too early. I think you also, I mean, look at the last two days, I guess today will be a little bit more of a towel because you had yelling and piled on Capitol hill yesterday. The SOP is the market is just making just random 10, 20, 30 point moves on. Nice. You know, on these statements.

I mean, I don't know how you can base any kind of long-term trading decision. We all, well, oh, this is good, but this is bad and wages are high and wages are low when it comes right down to it. We wanted the fed to fight inflation. That's what the market wanted. That's what the market's been calling for.

So now they said they're going to come and fight inflation. The market's been calling for that. Paul's Mitchell easy. The market likes easy money. Joel. I think the market does not want him to fight inflation. They want us to go about business as usual. I want, I guess I had the pre-market prep and the public is a little bit different.

Right? Well, this just want the market strong. I mean the little guys, the one that really gets punished, it's not the person that's investing in the stock work. It's a little guy, you know, or, you know yeah. You know, the, the middle-class and, and obviously you, don't just, they're the ones who are getting hurt by inflation and I'm getting hurt as well.

We all get hurt by inflation to a certain extent, but the, the, you know, the upper class, you know, the mid class to upper-class actually doesn't get hurt nearly as bad as, you know, a lot of other people that can't afford to pay higher prices for stuff. So I think the market wants more business as usual.

I don't, I think, you know, the fed is doing. Because we got to think of the people who can't afford these continued price increases that aren't invested in the stock market because they don't have the money to do it. You know, inflation just, you know, eating them alive because here, you know, they're trying to make it go on 15 bucks an hour or 20 bucks now, or, and you know, and you're seeing prices go up all around here.

Like how do I do it? So they've got to attack this problem for the little guy, but I think the market's still wants business as usual. They'd like the fed, just to forget about it and keep printing money in the market. We'd go higher. I don't know. I think that the tune changed though, and that's why if we're getting away from easy money to a certain extent, which might be necessity, you know, once Powell said that, you know, he just dropped at the transitory word.

That was your tip-off that stocks could get ugly here for the foreseeable future. And that's why I I'm being, you know, I I'm being cautious with what I buy here right now. Yeah. And there's that stat that I think are just put in the chat. I'm pretty sure it came from the fed 10%, top 10% owned, 90% of the stocks in the U S right.

So the wealth has all concentrated at the top. So those people aren't worried about paying higher prices for some, because the rich, I mean, they are worried, but they can afford to be worried, you know, more so than, than, than other people or less so than other people. How's job is not to continue to make the rich richer, you know, and that's what he has been doing.

So I'm glad that they are taking a different stance because inflation is a serious concern. And if the market needs to pull back a certain to, to price it, you know, not to price in the Punchbowl, getting taken away, that's a good thing, but for everyone in the long term, but it might not be a good thing for the markets in the short term.

But again, there's two markets though, right? There's tomorrow. There's the, there's the indexes I'm, I'm sorry, you weren't here yesterday. There's the indices, the indices. And then there's the individual names that were all the high flyers last year. And they've gotten destroyed this year. Sloss casinos, reopening tech, basically most of the S and P 500 is down in the last.

A month. I haven't done enough research to know what the median job is. I, I, I would guess a lot more than you think. I would guess 10% dentists would guess 25%. You're probably looking at 25% drop in a lot of stocks, regardless again, but there's, there's two markets though, right? Is my point. There's the, the, the SMP and the QS, which can keep on going higher pretty much, you know, with minor interruptions here and there.

And then there's, the stocks are down 40, 50, 60% this year, right. More right. SPACs Kathy woods investments, right? I mean, And I guess there's probably a different way to approach those, right. You know, approaching the overall market versus approaching the stocks that have already been punished. They already punished.

Okay. I think you deserve to get punished though. She could not be more wrong. She gets on CNBC is the concern. She cannot be more on the wrong side of the trade. So she deserves to get pub punish the most she's in these high growth names that inflation hammers, because those future earnings are worth a hell of a lot less and she's paying growth at any cost.

So it's deserved if you're long air K K, you deserve to be losing money right now because we've been warning about this on the show for a very long time. It doesn't make sense to own these stocks in an inflationary environment. It makes sense. Don't commodities. That makes sense since their own, you know, a lot of other names, even the bags, it does not make sense to own high growth tech in an inflationary environment.

She has been absolutely rock. Can it turn. But, you know, it's been telling you for months, you know, that we've been saying the transitory word is not transitory. She's been calling for deflation. She's been calling exact wrong thing. So she deserves to be down 35% in the last week or in the last month it's deserved.

So, and you know, I obviously she continues to buy the dip on these names. She's going to continue to go with her deflationary theme and that may turn out to be correct, but right now all signs point to that, she is wrong and she may stay wrong for a while and she's not going to change her stance. You know, she continues to buy zooms down another $4 a night.

We rally Zuma was down every single day, you know, and she buys more. So eventually these things are so oversold that they're going to bounce. There's going to be a bounce in these names eventually. I mean, Zinn was $300 a month ago. It's now, you know, it just got cut 30% a month. So eventually there will be a bounce in some of these names.

But I'm not trying to call a bottle on these things. And I think it recovered in the Kathy air KK saying, well, got to go back up, look what you're buying. You're buying a bunch of high PE names at ridiculous valuations. And we're an inflationary environment that, that trait doesn't work. So if inflation starts to cool off that trade will start to work again.

But Italia seeing signs that inflation is cooling off. I think Eric has a no touch. Yeah. And I mean, I just, this goes back a long ways and a lot of people are probably not going to remember this, but you know, long-term capital management. That's probably even before your before your time, Dennis, I mean, they just got levered hedge fund.

They just take, take dish were wrong. They were dead wrong and they were doing a similar kind of thing. So I think that, I don't know if you're seeing any of that. I don't know who she clears or you know, what that situation is, but you know, there is a point, you know, where she was thinking of starting to leverage front.

Oh, she didn't do it yet. I mean, I, you know, I don't know, that's the only a fair investor start pulling out. That would be the bottom to start, you know, reteaming like crazy. Then that could be an issue for her that could have. Okay. How would you, how much pain would you take if you had money in there? It's Spencer, what do you got?

A R K dot. I mean, I've got like, well, I was more of my portfolio now it's less diversified, but it's not going to, it's not going to kill me. He's my point. Cause you're diversified. And also last year was so good that the whole thing was kind of a, kind of a wash at this point. But yeah, no, I, I, it's not going to kill me.

Right. Cannabis stocks and I own not going to kill me. R w all of this stuff is ridiculously overvalued though. That's the one thing it still is overvalued. You can say, oh, look how cheap Ark is because people look at price, lift up the hood, look, what's in there. All of this stuff is trading. She's buying stuff at 15, 25, 30 times sales at a certain point in time.

It didn't make any sense. It didn't make sense then, but she got rewarded because risk rate, nobody cared about valuation. You know, all of a sudden people start. So we are completely repeating 2000 March, 2000 ratings, all the tech bubble crash, everything crashed, you know, how long that took. It took two years.

It was death by a thousand cuts. We started going down in March of 2000. We did not stop going down until the beginning of 2002. And so after that, the NASDAQ, we went from 5,100 to 1100, you know, peas, a Walbert, you know, I've said before, we're 50, it was just stupid. And you know, they got back down to 10, 15.

Well, that's what it comes down to when it really starts to calculate valuation does matter. Valuation, all of these stocks are just extreme. So she she's just didn't read the playbook from 1999 before and history doesn't always repeat itself, but it often rhymes as mark Twain and our friend Ryan Dietrich says, and this is completely completely.

The 2000 tech bubble burst, which took two years. And we didn't even have inflation in that environment to, you know, as if we needed another wrinkle, I think you gotta sell all rallies and all those stocks. And, and the, the one thing is though, is like through the, you know, the entire year there has been places to hide.

You can look at it like a sauna, right. Which was like, or like there have been high flyers, right? Dutch brothers. Are we talking about a sauna? We talked about Monday's $400, M N D Y. Those have all come off now, right? The, the number of doors to ha to, to hide behind a number of rooms, it's getting smaller.

It is, it is undoubtedly getting smaller here in the last. To Dennis's point, you know, treasuries people in the chat are saying crypto, crypto, crypto, maybe. But in the world of stocks there are fewer places to hide now than there has been at any other point. This year is sort of the point that form that is being made here.

If it really starts to get ugly, the hook crypto to if it really starts to ugly, they will hit crypto too. You know, what's so interesting is like, so we did we know how crypto can behave during a crash? Cause we had a crash last year, but what we don't know is how crypto could behave in what you were just saying, Dennis, in a, in a two in a multi-year bear market, right.

In a two year downturn, if that were to happen, we don't really have precedent for that since Bitcoin went mainstream and it's crypto has been a thing really. Right. So like we don't know. I don't know what, what Bitcoin would do if the market, if the stock market were to go down steadily for two years in the street, like you did in 2000 oh 1 0 2 0 3, right?

Well, I don't know what crypto would do. I don't what it would do. It's possibly correlated that hasn't happened before. How do you know that it's a risk asset assets, a speculative asset. It will start to correlate show us a shared right here. Here's the big way future. I just want to say one other thing and now, you know, everyone's like, oh, it is, you know, it's an asset class.

Right. And it is now part of, you know, the managers have to be involved in institutions. It's now added to be a big part of their portfolio. Well, yeah, that's good. They bought it up. What that also means though, is that if they're getting whacked somewhere else, they have to balance their books. Right. They have to move money around.

So eventually they may not want to sell their Bitcoin. But if they, you know, are, are, you know, getting hit and other things and need stuff to, you know, maintain their assets. They're just going to have to hit it. So I don't, I mean, it's a, it's a positive that it, oh, it's a, it's an asset class right now. And big Muddy's invested.

Well, you know what, when the big bunny one watch out and the big money, they don't care. 55, 54, 53, 50, 2 51. They don't care. What if they started buying this thing at 25 or 30? So if you're going to look at it as an asset class and you have to look at it, is that, Hey, you know, a lot of these guys are probably still sitting on some big profits, 56 K.

They don't care. They're going to whack it. If it, if they need to. Right now the charge of town yet you don't go over 60 soon. You're going to roll over 55 has been a pesky number on the downside. If you take out 55, You know, boom. You had four days when you went from 45 to 55. If there's anything we've taught you guys on the show, when something moves up quickly to an area, it can move down just as quickly.

So you got that, that 55 K holding it up. It's consolidating, it breaks above 60 K, then everything's peachy keen, but a consolidation and Bitcoin here. And I don't think it's a, it's a place to hide either. Okay. I'm an Italia. I look at that Charlotte, that coin, I want to sell it all. Don't not good at all.

Joel. And you've outlined the technicals very well. If you lose that low from six days ago, and it is a risk asset, it is a risk asset. Don't kid yourself and they're hitting high growth. Wow. This is thrown right in that category. I'm not saying it can't go. I also want it. I'm up in my Bitcoin. I have a small piece left of the term account.

I just want to sell it. When I look at that shirt about us, I think you got to look at the value days. People are saying, I'm not saying don't buy the dip. I say, don't buy the ticket dip in these high growth names. So I think you're lucky. You know, some of these depths can get bought, maybe some of their commodity names.

Cleveland clefs look at this one. I mean, it's all the way back down to 19, which is a huge support level. I mean, if inflation is going to stick around for a bit, some of these commodity names have come off substantially. That's where I'd look more than just jumping in. But I don't know right now there's so many unknowns here right now and there's, you know, a risk trade coming off.

I don't know how ugly it's going to get, so I don't want to be first. I don't want to buy them when they're coming right down right now, I'm holding. Wait until it stops stabilizes and it starts growing up. Like not trying to catch a falling knife a day, one day, two day three, we told stabilizes, give me a level that I can lean on and then make the tray right.

Each sale on that. Great. So, and just just to illustrate our point, just like to the T you know, how I, you know, fi file the top components in the, in the S and P 500 index. And I put that part of if you're part of pre-market prep, plus you get a daily wrap of all the stocks in Dennis, you know, the stocks, what was the biggest gainer?

Just, if you take a guess at all the stocks, when you're looking for safe havens, what was the, the stock with the biggest percentage gain yesterday, and it's trading up a 0.8% this month. You probably do. It's it's an old stodgy stock. It's gotten beat up. It's been around in the top 10 forever. I just put it up on the chart and it was Johnson and Johnson and Johnson.

Yeah. That was your top gainer yesterday. And it's trading up again today. So I'm not telling you to rush out and buy Johnson and Johnson and some of those beaten up healthcare stocks. No, but if the, if money's looking for a place to hide, it's going to be in, you know, truly if we're, if this is just not just another by the dead, get in there and get all the hot rides and in videos and your Teslas and all these kinds of things, then these kinds of stocks, you know, are I think where the money will go.

All of these, I think you, and this is the way I'm approaching it. I think you look at the rallies in the higher. Ridiculously valued names that they use those shorting opportunity. I want to, I want to give some actionable examples today. So can we, can we look here we go. We love like snowflake, for example, right?

I knew you were gonna say that. So, so snowflake had earnings last night losses narrowed dramatically on a year-over-year basis, but I know you don't, you guys don't care about what the fundamentals are right now. What you care about is the fact that snowflake is up $50.

It's holding up. Well, hasn't given much back. That's the good news. The bad news is bag holder central everywhere in this thing. And this is the kind of name they don't want to own right now. So if I was logging it, I would sell it and take the gift. Am I going to short this name on the strong earnings? I don't know.

It's different. There may be easier money shorting. Are you going to buy my own? And I would sell it. I would sell it, sell it, sell it. That's what I would do my opinion, but these are not the stocks you're looking for. Let's just say that as far as like a PE basis stoop forward, PE no no coming right into this.

How about this? How will this raise the sales of 1 0 9? No, thank you. I can't even wait. I can't be right. That seems high, even whatever. Okay. Moving on. And in the same vein as snowflake, right? You get names like AI, which is, oh, if you see net chart dentist, so hated it's actually it is was up more this morning.

You get names like they, these all had earnings last night Splunk trading higher off its report, Okta higher off its report. Right? CrowdStrike higher off it a little bit higher, not as high as it was, but higher off it's important in the west where all these names got a pop in the pre-market today.

Some have come back some have not, but they all can get lumped together. Just if you are trading these and your dear totally fading us on this, just make sure it gets through the pre-market high. It just keeps on going. And also that opening print, especially with what was it that snowflake and. Boom.

Look at this. The initial reaction right after the numbers came out is when your high 365, 26, you're 11 bucks off that. And you've already seen you hit that level. That shift after 4:00 AM, too. So people are saying, Hey, I missed the 360 fives and I probably missed the three sixties. If you got caught in this thing from the last few days, and it closed at three 11, I mean, you don't want to lock it down at 3 55 right now because you wanted to still, you know, get some bids out there.

But God, if you're, if you're looking for Lauren, this one, please, please make sure in that first few minutes, it gets through that pre-market eyes 365, which is 11 bucks away. And continue. I mean, they don't, sharding is not easy folks. It's not like we just go, they shake you. They will scream higher on the first hour.

And just to make your shake out, it's not easy. Shorting a stock is up 43 points. He was shorting the strike. When the dust settles this thing three days later, I don't know where it settles out. I think it starts to leak again, unless the whole market turds at which you could do. I mean, we are, you know, massively oversold on some of these high growth days.

We can, you know, even our a R K K. I mean, if your covenant sell it now, I would wait for a bounce. I think, you know, it's massively oversold as $125 two weeks ago. Now it's 98. So you sell it. Now you're late to the party it's over sold, but I'm saying, I don't think I'm buying that debt because it's still, when you look under the hood, it's got a bunch of high P stuff that's out of favor.

So I don't know where it bottles, but eventually it's going to left a little bit, give you another opportunity and then you sell it. But, you know, it's just my opinion. So this is what you guys are. Oh, there's our art. I mean, you do have a monthly low here at 97 22, you hit 98, 53. So there was a couple of monthly lows under that.

Batiste know what I would rather see before I bought this. Look at this formation on the upside three monthly highs in the same area, all in the four monthly highs weight, or these are daily eyes for daily highs. Wow. She got quad tops everywhere there. A triple top here at 1 0 8 on the dailies. But then look at your monthly's here.

You had four months highs right around 1 25. So if you're going to take a stab on this thing, you don't let it set up that not a daily load to daily. Let it, what's your set up? I don't know, new lows every day for a monthly or at least a trip. I mean, I guess 97, 22, which was the little back from April.

Once you lose that, then you're looking at 80. It's tough to just say it's going to bounce her at that level, but it's over sold. I wouldn't short it here cause it's. Yeah. So again, selling, not selling depths. So always remember, you know, this is one thing. If I, if I'm wanting to sell a stock, I'm not looking at, oh yeah, that's getting killed.

I want a shorter here because then it rips audio and then you get to shake it out. You want to use those opportunities selling straight on weak stocks, buying depths on strong stocks. Right now, there isn't a hell of a lot of strong stocks. That's why I'm more inclined to sell reps. Where'd you dump that last Vegas Shan's brutalized.

I took the loss. It was enough. I haven't yet a 47. I dumped it at 41 7 days ago. I think it was I for the simple reason is that it wasn't going up. I'm pretty sure if you like group the S and P 500 by like industry or sub-industry that casinos would be your worst performer of the year. Horrible, horrible drought.

Just assassinated. It's been, it goes down every day. It doesn't battle. It was $60 two months ago. It's 32 for one stocks, but, but you didn't get the extra stock. I mean, this is ugly. Is it oversold? It is oversold. What I shorted here, not now. They already way too late for the party, but what I sell rips on this.

Yup. Cause I don't think it's coming right back. Yeah. Now on the other hand, take a company like Kroger, right? They had earnings this morning. Oh, what did they do? They beat any, raise their guidance. Why do you think that is inflation? Sorry. In my third year passing costs through, through through to consumers, obviously that's what they do there versus lunch.

This is a different kind of company and the different kinds of stock and the relative to the, all the names we just spent the last half hour, you know you know disparaging Kroger doesn't look nearly as bad. To be moved out for Kroger two and a half box. He spiked over 43. You got the 43 27.

You have this lonely high up here in 44. So you've backed off. If you get through that 44 would be a gift of above 44. You know, you're looking in the higher 44 is an a gap. But once again, look at the last four days of price action. You bought this thing at 43 things have a good earnings report. You bought it in 42, you're in the money 41 year in the money.

You scooped it up yesterday, you're in the money. I mean, it's just tough when you have those kinds of candles, just to pick it up, like you, they, you know, Warren's going to be coming in here, buying this thing up two and a half bucks. No Warren's buying in here and Warren's buying in here maybe a little bit in here.

He's not, he's not chasing this thing, but as I always say, I love the Kroger's. And, and, and I mean, as gentleman come yesterday, you know, Johnson, Johnson being the best performer of the, oh, the top components. I mean, what was the best performer in the Martin yesterday? It was, it was Stacey. It was utilities.

It was consumer stables, like Kroger. Right. That's where your strength was yesterday. It's not a good sign. When those stacks are the ones leading the higher. Well, they started to roll over at the end of the day, too. Okay. Yes. Yes. I've been made from that part. These are been vicious, sell offs on the clothes too, by the way, vicious, there should sell offs.

I bought a pile of stock or the clothes yesterday for the simple reason is that I watched the S and P fall 35 handles at five. And usually they'll snap back and that's exactly what they did. They snapped back into getting the stamp back rally here this morning. I've already lightened all that stuff up, but I mean, that's what I mean, like when stuff just gets stupid and there's blood, you know, flying around, I do come in and get down and dirty.

Now I do hatchway. I'm hedging myself as best I can, but I'm waiting to hatch too. So sometimes, you know, and that's with trading, you know, and that's a different animal that long-term investing. Obviously we have three different types of listeners. We have the long-term investors with the short-term scalpers, and then we have somebody in between, which is more of a swing trading perspective.

I try to wear all hats at certain times, right now I have no swing lawns on whatsoever zero swing logs. We know I'm short MasterCard to a certain extent because I bought puts on something, which I'd never do, but I bought some extra putts. So that has worked out well. But for the most part, I'm like no real swing trades it's day trading, you know, just playing the chop in and out, in and out, in and out at efficiency central.

And then long-term investing. I. I haven't bought any stocks. Long-term lookout right now, because again, I don't want to catch a falling knife and this turns into something really ugly. I want to wait until I feel like I have a level. Wait until, you know, we at least see, you know, a couple of updates, you know, some stabilization, and then I could try again.

But as of right now, there's I don't, I don't think you're in a hurry that we're just rip-roaring and going right back to the highs, you know, I buy the apple dip today. I already own apple. No, you know what? It's both safe Haven. Come on. Apple's not a safe Haven. I don't know what this market thinks. So reverse was yesterday.

It comes down because I'm like some of these companies, it doesn't have a price of sales of a hundred. That's why they call them his dope own stocks with a price to sales of a hundred. And your long-term portfolio, 2000 apple. Doesn't that's the point. Yeah. And that was okay. And I ordered the long term portfolio, but again, one, you know, there's been, you know, if you look at my term portfolio, there's nothing.

Nothing like that, those zooms, you know, no, no crazy valuations. Don't snowflakes, you know, Microsoft, apple. Yeah. It was all right. And you know, and obviously got a lot of other, you know, different trades while it's got some bags, you know, it's a different things. And that's what I'm getting at too. My only high P stack is Peloton.

The ones who wanted to sell Peloton and Lulu, you also have Lulu still don't you? No other retail there, formerly known as Alberta. I'm sorry. I don't even know. I got to look to see what I have on that because they did the splits and everything. And what is the symbol on that? I bet you looked up.

Yeah, it's funny. It's mentioned as long-term account. Cause I was just thinking the other day I haven't bought a new stock in a while. Like maybe we should be like, I haven't bought anything probably since this. If not earlier, if you're set with a hundred percent cash, your long-term account, I don't know why you'd ever be sitting with a hundred percent cash and electrodermal McKayla, but you got to put some capital to work.

If you're sitting with 10% cash I'd be uncomfortable with 10% cash only right now. Like I said, I think I'm sitting around 25% cash. So I got some bullets in there, you know, about the stocks that I'm in or, you know, my biggest position is QQQ then I'm spy, you know, I'm index indexing that longterm stuff.

I'm not along, you know, and I do some investing long-term, but my bread and butter is. You know, and obviously we look here and you think, oh yeah, you got to just buy the debt because it's blindly worked for so long by the DEP has not been working for months here. Now. It really hasn't. If you've been buying the dip on a lot of, you know, there's other, you know, these growth names you've been getting absolutely punished death by a thousand cuts, a dip just keeps on getting bigger.

I mean, I bought Penn gaming. I sold some of it after the port north thing. I wish it was sold at all dead wrong. And you know, and, and I know a few stocks like don't kid yourself. I have a few that I've been getting things done. For the most part I've been trying to lay off here right now to see, you know, because this is play playing out like 2000 where we're death by a thousand cuts.

I mean, the Penn gaming has just been slowly going down every day. It's not like it had the big down whoosh. I live from 60 to 61 and then it's 60. And then it's 59. That's 58 minutes, 57. That's what I'm talking about death by a thousand cuts, you know? And, and, and not just Penn. I mean, there's so many names like the draft Kings obviously would stay in the same sector just down every day.

And you guys keep telling me, people work in, run out of money. You guys, you told me that, that people are just always going to keep gambling. And the,

I don't think DraftKings is going out of business. The business is sound. I just don't think it should be trading at a valuation that it was trading at. It worked. We were long some of these stocks when valuation didn't matter, you know what valuation matters right now. And you can't be along these high growth days.

Evaluation starts with. It's going to come. If people already lost their money, if people already lost their money gambling, no. At the beginning of time, gambling is not going away. It's not like all of a sudden we're all going to stop gambling. Life is a gamble. What you, when you're bored, it's a gamble.

Everything is a gamble. So gambling is not going away, but should you be paying ridiculous valuation for these gambling stocks? Not in this environment. Yeah. That's not an issue. And it just, it's just crazy how this is literally the exact opposite of of 12 months ago. Okay. Under 10 bucks, do you see that genie?

We're all junk. Yeah. I mean 12, all the death March and you know what? It didn't happen one day. Joel, it's death like a thousand cuts. There's a little bit every day. Oh my gosh. This side, this genie may be setting her up. No.

He didn't tell me to sell this chart, told me to hold on. I did go roll. That's. What happens when you invest? What happens when you put it in your investing account? Yeah, 15. It had 15 down days in a row and no, that 16 down days in a row and had 16 down days in a row that it went from 9 76 to 10 0 2 and then it had 16 or 17, 17 of 18.

18 and 19 down days and that one macro that's five-year record. I cut some of it yesterday. You see how there was a little consolidation on that chart. And I had the, it looks like, and I don't follow the company closely now, but the thing behind the thing, when a thing, all these docs starts going down.

You don't want walloped right now. Did we have an alternative? Did we have a F eight 30 number or we did. And it was actually not bad. It was really selling. The rep has never worked better in years. And it's working right now, just blindly selling the rep on stocks. And what do you mean? It's like, you're, the stocks are rallying up.

You go you're you're shorting, or you're selling them into the strike and it just continues to work right now. It's working better than buy the dip did for, you know, for forever selling. The rep is just working, you know, any type of these weak stocks of show strike. It's like, you know, they, they, they can't hold it for more than a day.

So just PSA tomorrow, we have a jobs number. Don't forget that. But I, and you know, we aren't even talking about today is like, you've gotta seen AMC. And I know Joel has, well, that's deserved too. I've had a $10 price target on that thing for, for a year and you know, or maybe not a year, but since it went to ridiculous to 60, my price targets been 10 for a long time.

People get pissed off. When I say it, I think it's going back to 10. It's been held and held up. So I know it's broken. And I think you got to sell rallies on this thing. I do think AMC has a date with $10, you know, cause that's where maybe you start to think, okay, well even at 10, it's over valued. So, but you know, valuation, hasn't mattered.

It's a story and we're apes, we're going to hold and it doesn't matter. We're going to take over the world. Well, you know, we'll see how well everybody holds with the stock actually starts going down. It's easy to hold stocks with an awkward. It's not so easy when they start going down. And I think we lost a few wipes yesterday.

Sorry. I think, I think AMC is going to 10 bucks. That's my opinion. Gomez GameStop up or had it up before a glass, half of that stupid to last half full in GameStop. At least you can draw from line and say, it's actually. Glass. I'm just, the guy looks like a great selling opportunity,

Dennis, this is taken one seventies. What he's thinking. It's like, okay, this thing has a day with one 70, but that AMC, I mean, I don't even keep an eye on it, but for the longest, you know, and it held that third look at that 35 going all the way back here, going back for about a month and a half 35, it got the bounds trading range and this day was your signal.

And then it gave you one more shot. It broke 2 35 that one day it came back up 34 94. Wow. Let's see here. The other thing too, I mean, all this we're talking about it. It's we have Mr. Scott Gottlieb here on and CNBC talking about the Yeah. I mean, I'm kinda not, you know, I saw three weeks ago, the pandemic, those comments now, and you know what, and I, and he said, I saw something on Twitter and I was going to respond and I, I have a number one rule.

Don't tweet mean things. I know everyone else on Twitter, doesn't employ them. That's my rule. That's a good role. I need to stop doing that. I treat a lot of me thinks about cabby. I need to stop that.

I make, I make fun of it to a certain extent, really good mean tweet after the Michigan Ohio state game. And you kept it to yourself and I kept it to myself because I did it. Cause you know what? We got our butt kicked 17 out of 18 years. Like I need to be mouth and off after one victory. But you know, I have had, you are a malty, Joel, you got us almost kicked out that Notre Dame game where we went Notre Dame, Michigan there that deck 10 years ago or whatever that was that Joel, Joel, there has to slip it.

He sneaks in the flask. He has to sneak in the flask and then we're both having a. And because we had the Michigan gear on you were so mouthy in that section, that they'll all the fans in the section, ratted a seven on the flats. Can I just say, w w the one game I went to with Joel, maybe we went to, I don't remember.

Joel was heckling the refs, their game didn't even start yet.

a heckler. The guy was really nice. He was really nice. He he took us out and he said he dumped it. And you know, whatever we had in the flask and then he let us go back in. Oh yeah. That game. It was nice. And then everybody cheered when we got kicked out because we had the Michigan here section and then we were back like five minutes later, everybody Buddhists.

All right. I I've got some that I'll cheer you guys up. I think Kurt, Kurt, courtesy of Mitch here you know it, it, it's the holiday season and you know, we've been talking to be just about the market, just, you know, obviously we're not feeling super positive here. Positive the market feels like it's a bit of a menace right now to menace on all of our psyches.

And so Dennis, this one's for you and enjoy your.

Dennis, Dennis, Dennis. That's it like a dude, like, man, that was your face on Dennis. I said that we did that bitch.

I was looking I'm like, I don't want to say a mean thing, but that really looked like, I didn't know. I was like, that was so good. I, I feel like, I know, I know, I know where Joel is feeling right now. Joe is kind of

how about that? That's awesome. One more time. How about that Joan's feeling right now. How about Michigan getting their butt kicked in basketball last night by North Carolina? Yeah, I don't have any know about that football school anyways. Alright. Let's move on. Stops your time. Take your time. Drop your questions in the chat.

We had a question. We had a question from Dean yesterday that we forgot to get to on the, at the close shows. I'll ask her right now. It was, it was a question for Joel. And, and I'll read the question exactly. And he goes yesterday and in exchange with Mitch, Joel, threatened to quote, reach through the screen and ring his neck for training on a one minute candle.

Why would Joel prefer a five minute candle for day trading? Okay. What's the guy's name? Dean. Dean. I'm going to reach through the screen and ring your neck. It shouldn't, it shouldn't be a five minute candle, either 15 minute candle. I thought about this question and I don't and I'm going to take it away even from the markets.

Okay. Do you live your life on a minute to minute basis? In the aggregate. Yeah. Sometimes. I mean, I just say that to so much action. They in one minute, and there are so many algorithms and there's so many things that are so difficult to interpret and also that shorter timeframe that you're going in, you know, who you're competing with, you're competing with the machines.

So I don't, I don't have any of you guys see right here. I don't know anything shorter than a 15 minute. I like the dailies 60 minutes. The reason I have this on the bottom is because you get to see the after hours in pre-market. Now, if you're scalping, if you're just a scalper and you're, you're trying to trade nickels, dimes out of bank America.

Okay, then go to a one minute chart, but I just say that there's just, just too much noise in those. And it's just, you know, 15 minutes of the ignore the noise completely agreed to all ignore the noise. It's too short. Yep. No one says competing with virtue and set it out. They got that wept compete with the big boys Tiggers here.

Staff would like some clarity over Uber. I mean staff, this it's a high growth name. I, I, I'm not sure. I don't know what to say. I saw, I saw all reps know stuff right now, and again, it might vary, but if you're trying to catch the falling knife and you get it, you just got lucky. Like it's not because there's nothing in here.

There's nothing in there till 30 rally. I mean, valuations are coming down right now. Nosebleed, valuations are coming in. It will have a bounce. Eventually we're oversold. We just from 46 to 36 in the better part. It's a big move, but why try to be the hero and say, it stops at 36, somebody was trying to be the hero at 40, and they're trying to be the hero 38.

And they're going to try to be the hero at 36. How do we know what stopped? You know, it's, it's bouncing sporting. We had fast buddy talking uplift last night, saying they all wanted to buy it. And that actually started lifting Uber as well. But Lyft was playing a trade up two bucks off, fast money I as another good selling opportunity.

And that stock too. So. It's tough to be a buyer of these stocks that are, you know, it's trying to catch the falling knife and I've been caught too many times trying to do that. Yeah. The baby it's trading up 48 cents. I mean, wouldn't you have anything on the monthly share a monthly low at your next monthly Lowe's 34 0 6.

So if you want to lean on one daily low, and you're prepared to sit it out to. 33 50, just on a stab, then you're leaning on the monthly low, actually there's two monthly lows in the same area at 32 90 34 0 6. So maybe, you know, 33 box. And if, you know, just going back to the monthly here, I mean, I guess I could get rid of that one 50 line in Disney.

But that was, you know, that was the area of a monthly loan. So, you know, big red candle like that. I just, you have to go to go to the monthly's on that one. If you want to take a stab here, it's fundamentally, I think they're so expensive. And then you go to the, you know, where we're at and the old, you know, the reopening and I mean, we've hardly talked about that today, as far as, you know, the virus is just so many other things going on.

I don't know. I only just going to have like robo thing. I mean, robo Ubers or things like that. So that's the way I'm looking at those stocks. Never been a fan of them. If you keep you asked about sq square I think what you meant to say is Because they changed their name, the name innovation, and it's financed dentists.

I rarely tweet you know, actual opinion on a stock. And I w I, don't never tweet if I'm actually in the stock for a trade, because I don't want to like talk like buck, but I said it last night, I, I didn't have a trade on it there, but I said Christian from here wants to just weed out. Obviously the baby change, like what tweet said, I'd sell this rep.

And that I said, just buy a Patriot. That was what it was 1 97, 1 92 and a half just pure stupidity changing. I hate companies to change the name of Square's a cool name. Block is a stupid name. It's a stupid, in my opinion, stop making new lows on the move. I don't want to own stocks making new loans on the move, especially when they're trying to reinvent themselves by renaming themselves block.

So sole to you. I think we're could pull a PayPal and go down for the next month. I would sell all rallies and square. I don't like. I mean, you're coming in. I'm just going to give you a monthly, it we took out the 93 93 at this month, low you're already trading below that. So you resistance between that and the close next monthly low is 1 90, 1 36.

And then look out Loretta, you're looking at 1 50, 1 10. That was your November.

not the minute Lowe's I? The PayPal chart is going to look like the square chart. I think if you look at the PayPal from two 40 to 1 79, I think Joel is right. I think this, they could go to 150. I'm confused. Did Georgia say $51? 1 51 50 $1 it's square. It goes to $51. I will buy it at 1 51.

There's one date. I want to point out on this chart is October 27th. That was the day that that headline came out from visa about the DOJ investigation ever since then. It's downtrend. Yep. I got that today right here. Yup. The 27th you went to 63 0 9 53 0 2 and got a little bit of a bounce. Yeah, I. I don't know, that's square block, whatever you want to call it.

That those monthly, how many monthly charts do we see that look like this, Dennis? I'm so glad I want to buy this. I never did it. I wanted to buy it for a year. That's critical support. You've got that line drawn. Nice. Joel. We got to hold that. What does that level of the level of light of the sand below that 1 51?

Yeah, but you may get us. I I've employed. You'd make me throw out the March low. It's an artificial low. It's not on my chart. So, you know, I'm not going to draw. Cause if I draw a 50% retracement of this, then people that are going to head for the Hills, because what. I mean, even like that. And I missed the high by 30, 40 bucks.

That's 1 56. It's probably like right around one 50 halfway back to that move. Yikes. What do they get to in the financial or not there? The COVID 30, 32 bucks. And then you got nearly the 300, so boom, 2 61 31 51 60. We'll see that that's way down there. It's certainly is not going to happen today. All right.

A couple more minutes here. Here's an interesting one from who dropped this in the chat just now stem. It was from Andreas, S T E M. This is a mid cap energy storage wait, energy storage or electrical storage. I dunno. Defensive is the bottom line here, I think. And Andrea says they have great Q3 earnings.

I okay. I, if you say so, Andreas, I don't know. I love shorting breakdowns are working as much as breakouts are not working. Breakdowns are working in this environment here. So I think you're looking here and he got to continue to be selling strength on stocks like this. I externally, eventually could break down here through 20. I don't like the technicals on this at all.

I know nothing about the company. I know nothing about the fundamentals. Technically it's been sitting down here for too long at 20, and I think eventually could break down. I know nothing about the company. Yeah, last month slow. I mean, 20 bucks that load from yesterday, it's flat. And I had to say the same thing and STEM's gonna, yeah.

Maybe it's I've done it. No, it's not stem cell. So I didn't know. At first, one more quick, I'm curious to hear a thing about Tesla. Cause it's interesting here. It has some news on that after the close, there was always news on Tesla. Can't I can't keep it straight. There's literally every single day.

There's African clothes yesterday. Cool. Yeah, there was a headline. No, nothing interesting. Nothing. STEM's gonna change their name to twig. Okay. The only reason I was fuzzy, so we're going to talk to us. So the only reason that's the only reason Tesla is immune to the growth, high growth names sell off is because it's such a large component of the S and P and there's arbitrators.

That will just continuously by Tesla, just from an arbitrage perspective. So it was the smartest move for them to get into the SOP at such a large component. That's why, you know, as long as bias holding up, Tesla holds up to I don't want to be logging it. It's not to cut a day by want to own, but it's the only reason it continues to hold up is the arbitrage traders are holding.

It's a, it continues to be its own beast is a takeaway. It's a PB Snell though. It's a huge put it in there. So that gives it support all the time. Well, these ugly, ugly days it's getting support from the Arabs. Yeah. I'm still just, I mean, they got through the 50% and then some, and then, you know, you fell apart a little bit and you're still holding that area.

Took it out yesterday, but it just looks like he got the rebound and now it's just kinda, just kinda. You know, it just looks like, yeah, I I'm sorry. I stayed on here a little late, got to hop. I'm going to go cover some more takers at pre-market prep plus and checking in with later Spencer, with you later, Joel, Dennis you are trooper and give me a COVID test this afternoon for those gig.

Again, I don't think it is because there's been this flu bug going around and both my brother-in-laws tested and they were negative. So I'm assuming it's the same flu bug going around, but getting tested here, believe it or not, there's actually flu is out there. Not just COVID it's used to, you know before COVID, when his kids would always get sick and he knows get the cause that is that's what's happened here again, like, boy, he got sick.

The girl got sick, I get sick every that's how it works

for us. Help you feel better, man. And try to, you try to get, sorry to be, you know, the poop who on obviously all the growth names. No, I think I am by the DEP on some value names, have your shopping list of staying away from growth. Although growth will rebound eventually, but it's just not it's it's, it's too easy to lose money.

It's too dangerous right now, cautious. This is what some people, you know, everybody thinks they got to come in and make money, make money, make money. The time, if you're a swing trading or long-term is to protect capital. And as the markets go down, if you're not losing money, you're getting relatively better off than everyone else.

So, you know, as a professional, I can make money shorting stocks. I don't suggest to coming in as an individual investor and shorting stocks. I never short stocks in my long-term account, you know, but I just think right now it's prudent to try to protect your capital more so than trying to think, or I'm going to get rich.

Our next guest has nodding his head. Peter, talk me in the Einstein of wall street. Let's bring him on Peter. You agree with that? Protect your capital, Batten down the hatches. You know what a good morning. Nice to have you as great to listen to the boys. You know what, look I've been talking about it for the last couple of days, that what we were going to see until the end of November is that a lot of funds, you know, close out their positions at the end of November, right?

It, a lot of them have had a good year. And if your op 10, 15, 20% on the year, why would you not take December? Can be choppy. It can be. And I don't even know if there's any playbook for this December, because obviously we're coming out of the gate here in crazyville. Right. And so why wouldn't you just shut down?

You know, I think that was some of the cell pressure that we saw into the end of November. The closeout besides the MSEI and whatnot was people shutting down their accounts for no, at the end of November and to, you know, getting their commission for their year, giving their customers whatever their profit was for the year and then not letting December.

Right. And you don't go take a freaking vacation. And I think the, you know, and then two days into the month, we've already seen that to be a, probably a good posture. Alright. Alright. So you're saying this in a, in a sense could be a reflection of Friday in that the bad news was exacerbated by just lower overall volume in the market.

You're saying that that also could be the case for the whole month, just low. I think we saw that happen a couple of days last week into a coming into Thanksgiving, sort of thinking about it before I went on about what's really going on here. And I think, look, we've seen that the market has, has, you know, I, I went out on social a couple of weeks ago and I was just sort of jokingly saying, good news market goes up, bad news market goes up.

No news market goes up. And I think that what ends up happening is the market is able to, if I sort of analyze it and you know, I don't, I'm not buying these stocks, trading these stocks from my own accounts. So I don't have any, any ax to grind on that side, but I think what's sort of important to know.

That the market is able to absorb one bit of good news at a time or bad news that it's on. Right. We saw the taper story or a lot of people who saw it that was going to put a cap in the marketplace. It didn't the market forged on, on that last fed meeting. You know, then we've got supply chains, issue issues.

The market did not respond in a major, negative way on that either. And so you know, each one of those things that would have normally been. Things that would have really put a little bit of resistance in the, in the higher bullishness of a sentiment of the market did not. It was not until we sort of this saw this and I call it the perfect storm where you've got multiple situations happening that sort of starts to fracture the confidence and fracture the traders and fracture, everything that really sort of pile on effect.

And it really has caused the problem. You know, what did we have Friday? We had Friday coming into the end of the month and I think the close out of a lot of hedge funds was a contributing factor. Obviously the market got spooked by the, by the Omicron Omicron virus and light trading on a half a day on Friday that caused the down 900 on Friday.

We came back with a bit of it, bounce on my. Then we opened up on Tuesday, but obviously market got spooked by the, by the congressional presentation by Jay Powell. And that sort of knocked the market down. We ended up having over two and a half billion for sale on Tuesday in our world. You've, I've talked about it with your team before that.

That's how I trade the market. We trade the market on closed. We had a huge sell imbalance, and I think that was sort of people repositioning and a lot of this hedge fund stuff going on. And. And that was at the end of the market. We saw the market open up yesterday and we saw one of the big reversals that we've seen for awhile.

There was a thousand point a move in the market. Where, when did the markets start to roll over yesterday? It started to roll over when Jay Powell, once again, went back to Congress, the world seemed like it was sort of waiting for him to sort of talk back his comments about the day before the inflation story, which social media just took and ran with it.

We're burying the trade, the word transitory, we're moving on. It's going to be here for awhile. And they were hoping he was going to talk back that story. And in fact, he didn't, he held his ground and said, no, I'm holding this. And that was really at the top that moment when he started talking, that was the moment the market rolled over.

I kind of think people were hoping he would pull us talk that story back. He did it. We ended up once again, having a huge cell imbalance yesterday. So there's Mo money being moved around and whatever it is coming into the end of December, as Dennis said, people are protect you. Look, if you're not losing money now you're probably doing, you're doing a good job.

You're protecting your capital coming into a year. And there's, you know, we always talk about it at wall street global and with David never turned a winning trade into a losing trade. Well, let's not turn a winning year into a losing year. It would be really disappointing to have the, there are a lot of people who made money this year.

Not everybody did. It was a hard year because individual sectors got bopped around, but it would be a shame if you were up 10 or 15% for the year and you gave it all back. I don't know what December is going to bring. It's so interesting that you, you say you put it like that because as recently as last week, Friday, even, you know I, I was, I was feeling, I took that same logic.

To the long side, cause you can do that too. Right? It's all a matter of perspective. And I was like, well, you know what, why not just, you know, there's going to be some people doing some tax loss selling, and that's all dandy, but December is historically a pretty good month of the year. So you know, why not bet against that?

But I mean, your, your point of view also is worth, is worth noting. You're you're not on the floor right now, but, but Peter, I'm just curious you know what, when you are down there what is the sentiment been like in the past past week or so it's been the past couple of weeks. You kind of, you're getting a sense of sort of excitement in a way of probably a little bit of anxiety.

These moves are big moves and you know, Yeah, we don't have 10,000 people on the floor anymore, but, you know, and we are running it probably about a third of our footprint due to COVID and whatnot, but you're just sort of getting a sense from the media around and the story is going around and I'm seeing it in our imbalances.

That's kind of how I judge what's going on. When you're seeing big moves in the market intraday, you see that two o'clock posting come out of what's to either buy or sell. And the market is actually responding to that information. It's always, it doesn't always do that. And balances are not a perfect science for us.

We've been analyzing them and trading them for years and years. But when the market does that and you suddenly see this big sell side, come in in waves, you know, it does it, I mean, for me, it doesn't cause anxiety because I don't have, I, you know, whether I'm long or shorter, the market goes up or down and it doesn't really bother me.

But it's fascinating to watch from an analytical point of view to see that there is money being shifted around. You know big waves of sell side, come in. We've seen it two days in a row and let's be clear one or two days do not make a market. We're seeing a bounce this morning. The last time I looked, I guess we're up to half a percent.

I don't know what it is now or flat now Peter's flat. Okay, fine. But anyway, look, yesterday we were up five, 500 pre-market we ended up closing down 500. So these moves are. Right. They are, they are. And I was fascinated to listen to the guys beforehand, because definitely as Dennis had said, there are some high look, we're going to see some tax selling stocks that got eviscerated.

We're going to see some profit taking of stocks that did well. We are seeing certain sectors that, you know, the, the, the high growth stocks that are getting a little bit tossed around the movement is amazing. I have to go back to it guys at the end of the day on days that are bad. Don't look at your long-term portfolio, but this is a traders market.

The opportunity is if you guys know technical analysis, right? Whether you learn it from me and David Green, are you learning from every, anybody? This is an incredible market for trading, right? Every day there's opportunities. You're seeing stocks move yesterday. Snow right into earnings stock was down $30.

Earnings came out at rally. $20. Oxen are hitting technical levels, but, you know, hitting, heading support, hitting resistance, overbought oversold. I mean, this is a. Paradise. Yeah. Yeah, that, that, that's probably, that's probably more, more true than it's probably a better time to be treated than it is as an investor.

If you're an investor it's, it's painful, you have to kind of close your eyes and grit your teeth and just grind through it. But yeah volatility is good for traders, even if the volatility means market's going down, you know, we talk about selling selling ribs, spying dips you know, playing that obviously, you know, some people had a great, great year last year with all that.

So it, yeah. It is funny how there's nothing my price to change. Send to me. Cause a few days ago I was trying, I w let me say this, I've definitely gotten a little bit less, less bullish than the last. Three days. And I th you know, then it was before that. But but yeah, it's just, it's funny how, how price can change that.

But I would just remind everyone that we haven't had, I just looked this up just now. We haven't had four down months in a row in the S and P since the end of 2015 into 2016. So it's been like basically six years since we had, and we just had one down a month just now, November we're down for December in, in, in two, in a day, right.

Our first day. So let's just put that into perspective here. Right. We, you know, we, haven't had four down months and in six years. But, but yeah, there's definitely nervousness out there, Peter, and I appreciate you coming on and, and, and painting a picture of, it's not all bad if you know how to play it, right.

If you, like you said, technicals, you know, using support resistance, whether it's moving averages, whether it's indicators like RSI, whatever works for you, right. You can trade any market, right? So, you know what Ms. Spencer, look, if history tells us anything, and obviously there's been no playbook for what we're going through here in the market, the economy and the world and pandemic and all that craziness virus, vaccine, and volatility.

The bottom line is history tells us markets go up over time. Every cell side that we've seen with a crisis or, or, or, or, or whatever economic slowdowns or whatnot have been buying opportunities rather than selling opportunities, net, net over time. What we haven't ever seen is a volatility like this.

That is a trader's playground. We're literally, if people know. Technical analysis and know how to do it. If you're a long-term investor, this is not a time to be looking at your portfolio on down 900 days, because it will just give you you'll get emotional about the money and you'll make a decision that you'll regret at the end of the day, every cell side we've seen over time and surely over the last couple of years, no matter what as radical, fast and furious, let's be clear guys, you've got algorithms, reading content.

You've got people slinging around big dollars. You've got, you know, a liquidity that's questionable at times, which makes markets move. There are, there are algorithms that can read the sell side coming in. They buy side steps away. They sweep, sweep it down and then they rally them back up. So these big moves up, big moves down.

We've never seen anything like that before. So I begged people to educate themselves and get some experience within the technical analysis space. So they can take these opportunities, these financial instruments that are now, every stock that's made. These kinds of moves are incredible vehicles to make.

If you're a long-term investor stay in it. Don't, don't fret. If you're a trader, you know, have fun and have fun on the upside and the downside I'm having flashbacks. I said this yesterday, I'm having a flashback to the end of 2018. When the market went down for literally no reason at all, it just went, it went down because it did.

And it was a healthy pullback. Can we rebuild it nicely off that? So I dunno, we don't need a reason to go down. Well that was it. That was the year that it went down from like September that, that breakdown from the end of September. Yeah. And then it got worse in December. Yeah. It got in December was, was absolute a bloodbath.

And then January through March market rally 20%, it was like, look, if you look, you know what pull backs aren't look, w it's a matter of what term you use to describe what's going on to see either right rotation, a consolidation, a sell-off a pullback. It is not a crash or a. You know what I'm saying? And all these things tend to be.

If you look at a trend trade, you don't get into a trend trade until it pulls back to support. So when these things happen, we've been up on a furious fast and furious terror on the upside of pullback is a healthy thing in any market. That's it? Peter Thompson is the Einstein of wall street. You can learn more from his stuff.

Wall street, global trading academy. The link is in the description of this video. Check it out, Peter, as always. We'll talk to you again next week. That'd be holidays, Peter. Okay. Here's a plan for right now. We are not doing live printing today. Why? Because we have an all access show coming up next, starting at nine 30 when I will be your host of all actors, we're talking to eight cool emerging companies today.

Again, the point of that show is not really to talk about the markets, but just to do a little bit of a deeper dive into, into, into smaller companies and tell their stories a little bit. So what's gonna happen right now is maitre is going to come on a walk, you guys into the open show you what he's looking at.

So you're his charts. And then at nine 30, we will transition over to all access with me. So Mitch, are you here? Are you ready? What's up, man. Let's do it. Let's do it. How how's your morning going so far? Not bad. I bet. At the end of the day looking around for trades, let's go ahead and start doing it.

Let's start doing it. So I will catch you guys later live trading. We'll be back to. I promise just a one day hiatus. And I will catch you guys over on all access, Mitch good luck today with your trades and, and, and everyone hit that like button, please. And thank you. Let's do it. All right, guys, you guys will see Spencer on up next on Alex.

This, but what we're going to do right now is let's go ahead and take a look at the market. See where we can maybe make some trades on the downside. I'm actually looking for some shorts today. I'm still going to be doing some shorting here. Let's see. Can I jump back in? I forgot to do something. I'm sorry.

Aaron, Aaron, Brie just reminded me. I was supposed to, I was supposed to make the announcement. I literally put it in my doc. I highlight it and I forgot to say it. This is my announcement. If you are a Robinhood user and you want free Benzinga swag, here's what you have to do. Send us a screenshot. All of you sending a message to Robin hood telling them how much you like bending a news in the app.

If you send Robin hood a message, tone, lamb, that you all bins in the news, you want to see more of it and you send us a screenshot of that message. We will send you free stuff. I promise you if you send an email to [email protected]. Okay. So step one, send a Robin hood a message saying how much you love.

Benzinga. Step two, send a Benzinga EMSA, an email with that screenshot in the email to show to the email that's on the screen. Step three, we send you free swag. That's all you gotta do. If you're on Robin hood, do it. Now do that nowadays. Thank you for reminding me. I agree. Okay, now I'm done. See you Spencer.

All right, let's go ahead guys. Let's take a look at the overall market. I'm going to also look at the chat. If you guys got a stock that you guys want to take a look, definitely call it out and shorting is evil, evil. That's what we're going to definitely find out going into next year. I think you definitely need to learn how to short if you've never have.

I know this is a strategy that I actually learned before learning to go long. So I'm going to be looking for some shorts. Let's take a look at the sectors first. So utilities starting to kind of crack there, but sideways action right on the daily. Let's take a look here. It is starting to crack a little bit, but not as bad.

Now. Look at healthcare, healthcare cracked really hard here that I don't like to see consumer defensives were a big yesterday and then it just turned around fast here. I'm not liking that right now. Even communication services, look at that day. Really bad right now, guys. I'm the one that I'm really starting to get concerned about is real estate, because it's starting to crack you take a look at the major stocks.

Zillow looks like it wants to crack down to the next level. We can click that open. You're also seeing that horrible turnaround there in the housing market, just to be careful with those. I've been looking to see if the housing market's going to crash a little bit and I'm kind of concerned now.

Let's go ahead. Let's take a look here. Maybe technology look, how is starting to catch the kind of this trend line here, but then now starting to break down, we're going to look for next touchdown here. But definitely. Retrace here. Tesla's the one that I've watched. If this continues to break on down towards this 900, we're going to probably keep going down here.

I'll let's take a look at the spy overall. Right now we're at 4 50 74. I want to see us get back above 4 53 today. Let's see if we can get back above there. If not crack down at the open now for shorts, what can you be looking for? So one that I'm going to put out is sprout social. Why do I like sprout social?

Because I've been watching a lot of these software application companies just get crushed. I'll look for a bounce up towards a 100 and then a crack down. We'll see what happens on this one right now. You're kind of trading in kind of this bear flag pattern. Look for a little bounce up, and then I'm gonna look for that wash out to happen here and sprouts.

Another one you can take a look at is Monday. Monday is a software company that I think could also start cracking down, you know, tried the look really bullish up here, but then created that head and shoulders right here started cracking down. It did bounce there, hit the resistance and got shorted.

Again. We'll look for a little bounce here. See if we get the bounce closer towards, let's say up towards this close here, I'd say 3 27 forties. Look for that to kind of bounce in there and then wash out through the 300. We'll see if this one can keep cracking down look for IPO's to start cracking down too.

So yeah. E X, F Y I think this one's going to start cracking down on the downside. And for that being mentioned, you could take a look at a lot of these. I mean, these IPO's have been getting crushed, so just be careful out there with IPOs, like coin, I think is going to get crushed today. And I personally would stay away from these payments stocks, definitely a stay away from me.

So let's look at something that you can maybe be trading on the upside. I talked about Sark yesterday. And I've been talking about this for weeks now. I actually interviewed the person that actually created this ETF. Matthew. So definitely you guys, if you guys haven't checked it out, check out SARC SARC is short eight innovation ETF, a R K K.

A lot of people can't go short AR K K, because the borrowing cost is just way too high. So one way to go about it is to just get as. R K and this could also be a hedge. I think some people are probably using this as a hedge for the market right now. And if you can see from this daily, we've been really strong in AR K K.

If that breaks and stays underneath 100, I think this is looking really bad and this can come down towards the next level. Next level down is 80, and then it's just going to start leaking and looking really bad. We had a chance here at 1 25 to break out, but really bad turnaround. And now holding that trend line rejection there at one 10.

Now we're really getting underneath 100 today. It could be an ugly day for Cathy wood. All right. What's going on out there. What's up lucid and Macy's short idea for the week. I do like that one. Let's take that. So the first one that you called out there I would take a look at lucid. Let's take a look at lucid.

All right. So it's 9 23. I'm going to take you guys into the bell at nine 30. If you guys got to stock, you guys want to take a look at, definitely throw it up in the chat. All right. So lucid, we were looking forward to doing. Have that breakout move. It really was looking great right here. And now you had that turnaround.

A lot of these stocks are doing this where it looked like it was going to break out. Like if we, if we go back to that Monday chart, look how it wanted to break out and then turned around. Same thing I'm going to expect. And lucid, it looked like it wanted to break out. Now I'm going to expecting a short through that for 49 99.

So let's take a closer look at the pre-market. What are we seeing right now? I'm going to look for a bounce towards this resistance here, especially if despite gets a little bit of a relief bounce. So I'm looking for a bounce up there towards 51 13, then to go short there. We'll see what happens. Let's take a look at, of course, AMC guys.

I know that AMC is a stock that's on a lot of people's radar. The apes out there be careful, you know, we had our chance to break out. I've drawn this chart plenty of times. And I said that right here, we were supposed to break out. And if we broke 40, it was going to be dangerous. And ever since that break of 40 nothing but red candles on AMC, just be careful.

We need to get back up to that 40 and it could be crashing down here and go into the next layer of support. Next layer of support is down towards 1990s or 20. We'll see what happens at AMC. GME is one that I'm going to be looking to lead that trade today. EMC led the trade on the downside yesterday.

We'll look for GME to lead it on the downside today. That crack of 200 was very important. This last drive, the two 50 failing now turning around. Same thing that we're seeing in multiple charts. All right. So KR being mentioned in the chat Kroger is doing good today. This is in what consumer defensive sectors.

So this is an area that we can look at today for a bounce, right? So we can pull up the consumer sector consumer defensives and we can see tobacco's up today. Household products let's look at grocery stores. See what is moving and grocery store looks like you got KR, D D L M F, and NGVC on the upside today.

Of course, KR is the leader. It needs to get back above 43 I think for a trade today. So if we look at this on the one minute, There you go, you guys are seeing kind of a sideways base in pattern here. Looks like it's trying to base here at 42 47, then get back to 43. We'll look for that breakout in Kroger's to get above that 40 to 66, and then looking for that push towards 43 in Kroger's.

All right, guys. Let's see what other stocks we had mentioned. I do see MTTR. Yeah, that's that's an ability to go short on that stock. The only problem with this one is I would look for a little bit of a drive up, but it could just wash out through that 30 good luck and chart there for a turnaround.

We'll see what happens right here. 29 99 is an important price point. I think it's held it before. I would look for maybe a little bit of a bounce here towards 31 and then the flush down through, but we'll see what happens in that. I miss the specks attack. Yeah, man, I, I miss suspects, attack family too.

You know, one of the things is Chris does cover specs on Benzinga live. So if you want to check out, Chris, definitely don't be missing out on Benzing alive. Normally it's when we have an interview. Now we're not just trying to just do a whole hour on specs because I mean, look at the charts. They're not looking the best, right?

So let's keep going guys. Let's let's keep it going. We got about three minutes to the bell. So let me see what stocks are being mentioned in the chat and I'll definitely nail it down. What's up, what's up Mitch SLAs AB turn off the PMP banner, not sure where you're seeing the banner at. Let's go ahead.

Let's take a look there. So you're talking about snow. All right. Let's take a look. No is pulling back a little bit after that push and pre-market up towards 360. I think, you know, you want to see this test one more time and then pull back, hold the pullbacks. I would look at the 15 minute. You guys know how Joel loves the 15 minutes.

I like the one hour also. Those are my favorite charts. So this looks like a nice hourly pullback. We want to see it. Hold here and then test back up to 360. If not, it could just give up the gains that you saw on the pre-market. All right. Got you. I can take that off. Boom. Thank you. Super spec, man. I appreciate the clarity.

All right, let's keep going. So Palentier bottom here. Let's take a look at the pellets here bottom. See what. All right. So Palentier is one that I'll tell you guys, this is a clear example of a company that I feel has really good story, but story isn't everything in this market anymore for a long time story was everything in this market.

As you're seeing stories, not everything anymore, evaluations are coming into play, and you need to be paying attention to what the technicals giving you signs that the fundamentals, even if they're pointing to the upside, aren't going to that upside. And the story with Palentier is a great one, but at the same time, the fundamentals were looking upside, but the technicals weren't here definitely a turnaround there and Palentier and starting to crack.

It gave that chance to break out. And it just couldn't hold here on the whole, the support of 20. Now that we're breaking 20, this could come back down, test the next level. Next level I'd give it is somewhere in the 1850s. And if we don't hold there, that's when it really can start coming back down and I could see it coming back down and testing towards 1611.

We'll see what happens in Palentier today. You guys see the circle. I wanted it to get up here, pull lucid, but it doesn't look like it's going to happen, guys.

Sorry to all the Palentier holders. Hey, just calling and high is right now. So one tray that you guys can look at is oil down trade, right? So I've been looking for grit to get strong. I traded this one when it was at $5 into the fives, and now it's been pulling back there and strong today. Look for this to continue.

You could also trade some oil names, short like Chevron. I think it's going to break this one tent and start coming on down. You can also look at MRI. Maybe this one breaks 15, it starts coming down towards 14 today. Definitely this is an oil trade on the downside, and I think this is actually helping the downside push that we're seeing in the spot.

Where could I see the spy catching some hold here? I think we might pull back even further down. Test the trend line back to like 4 44 is our four 40 fives. We'll see if we get that move today. But I'm not really feeling bullish today. Here, near the open. We'll see if we get a kind of relief rally where it pops and then sells off.

That's what I'm kind of expecting. And I'll be looking to take some shorts into that move. AB U S B and mentioned. This was one stock that we called out on live trading to the key, literally to the, to the key. So let's go ahead and take a look here. If you see a B. We called this one out at four fifties.

It has an up going all the way up to six. Right now this one needs to recover the five kind of hold here sideways. Let's take a look at the daily daily hasn't holding right now, but it feels like it's going to test this low four 11. And if it does test that it could get back into the shadows zone, which is over here.

So just be careful with this one today. A B U S. All right. So up next guys, all access. I'm going to get you guys over to it right now. So if you guys want to stick around with me trading, what I'm going to do is I'm going to go over to all access and I'm going to hang out in the chat. So you guys do so yourself.

Maybe you're not so focused on the all access, but you just want to trade with us. Also, just come hang out in the chat. I'll see you guys there on all axis and let's keep the morning going like. Battle out there because I know it's going to be a tough market. So like always the stick to your rules and we'll see you next time on pre-market prep.

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