Why the stock market is crashing (And what I am doing)

Hey, what's going on guys? It's Ricky with Tackle Solutions. Here's a super quick market update. Let's go ahead and jump right into it. So, as many of you guys saw, the NASDAQ market had finally a bearish day. The news that is being released, just like we talked about it last week, it's nothing new. If you're part of my LPP team, this is why we've been talking about don't be scared to be invested long term. Just don't be overleveraged at overbought levels because the red flags that are presenting themselves as always the market will decide when it cares. The bond crisis has bond and treasury yields have continued to rise. This is something that the US cannot ignore. We pay nearly $2 trillion in interest payments alone on money that we borrow. Think about that. 42% of federal income tax that is paid is being used on just interest payments. Not Medicare, not Social Security, not our military or defense. So again, it's not a Democrat, it's not a Republican issue. It's a politician issue. It's they continue to mismanage our funds. This has been the same pressing issue that supposedly Trump campaigned on and again got a lot of people excited that he could begin to chip away at that crazy deficit, but only has added to it. Now, it's been a little bit harder to ignore. Right. The US 30-year bond yield just hit 5.334%, the highest level in 19 years. Again, it comes and it goes in the sense of when it's of concern and when it's not. Trump gets to decide based off of the tweets and the sentiment that he injects into the market. But something that you should always pay attention to when markets again are at overbought levels and you can see the uncertainty presenting itself with what we saw in the Japanese market. Again, we got an update on this today. Over 35, what is this? million billion trillion 225 billion USD has been wiped from the Japanese stocks as the Nikki crashed 3% extending its selloff into its second straight day in a row. This will bleed into our markets. Now again, it's not just this, but it's also the South Korean market. Remember, just a week ago and two weeks ago, the market pretended like none of this mattered anymore because a peace deal that Trump tweeted about. Trust me, I get it. It's frustrating. And and we report it because we know that regardless of what we say, the market only cares about one thing, and that's a peace deal. And if Trump tweets about it, even if it's not true, the markets will celebrate that. We've learned it, right? from the lows of 660 to the highs of 735. Why did NASDAQ market and S&P 500 return back to nearly all-time highs? Because Trump signaled a peace deal or peace agreement with Iran. What have we learned? None of it is true. But things were looking very bad, right? This is when the chip stocks were selling off. when Leah pulled from situational awareness got rug I don't want to call it rugpulled but was using forex leverage and got liquidated and Citadel Securities came in this was when the FOMC rate decision was supposed to be a rate hike according to Citadel Securities right injecting more fear into the markets formed a V-shaped recovery and don't get me wrong some good tech companies did report better than expected earnings some reported aggressive spend nonetheless the pressing issue that was causing ing and negatively impacting the market is still present. The South Korean market over 3.4% of the adult population have been margin called. Again, let's pick up and learn from their mistakes. What is their mistake? It's not investing in high-erforming assets. It's using leverage at overbought levels and then getting forced to sell and liquidated that is their issue. No one can force you to sell your position if you're only using your money. The only reason you get margin called or liquidated is because now you're borrowing money that you don't actually have and the direction or the stock turned against you. And then again, because you're leveraged, now whatever platform it is that you are using needs to make sure that you have enough cash on the account to cover if direction continues to go against you. So, Japan, South Korea, and the bond market, all still pressing issues, right? And let's not get started with Trump's supposed tariffs. He's not in a position right now because of what's going on in the bond market to be slapping other countries with tariffs. It wouldn't be very wise of him. So, President Trump says that he has paused the 50% tariff that was supposed to take effect tomorrow morning for a three-day period. President Trump says that US and Canada have a deal. We'll see if that's actually true. Right. There were a few things that I wanted to quickly talk about. Carvana supposedly is being linked to fraud. CEO Mark Walter is under investigation. If you guys did not see CRVA, right? No. CVNA. So, Carvana was a very good performing stock for a period of time. If you guys look at the week time frame, again, it has its history from its lows of $3 to its highs of 75. This was after the post-pandemic rally. It crashed down to lows of 71. It kind of looked like that might have been the end from 71 all the way up to highs of $97 and now pulling on back again. I want to learn more about this company. It's not trading at a crazy premium. We'll see if the fraud investigation actually leads to something. Uh but as of right now, I'd be very cautious and careful with the stock. Just wanted to make sure that you were aware. The series of trades that I took today, again, it was nothing special. But if you're part of my LPP team, remember they get to watch me trade live every morning. We started off pretty good. I ended the day at $5,600. I saw some of your guys' comments saying that Ricky loves when the market sells off. I enjoy making money. I'm here for the same reason that all of you guys are, right? It's no different. Yes, we've been talking about markets being elevated, but I feel like anyone with any form of common sense could acknowledge that. All we were waiting for was our confirmation, and today we got it. And that's exactly what the LPP team got to see play out. So again, if you want to rewatch today's LPP live trading session, you can click the second link in the description down below. Join our team and re-watch any previous live session before and start watching me trade live as soon as tomorrow. And again, if you want to take advantage of the current sale and promotion that's going on, it's the second link in the description down below. And like I said, it's a onetime payment for lifetime access. With that being said, position is fully closed. I have no intention of carrying the position overnight. Again, it was a 7% draw down on Micron. That's if you held overnight, but from the actual performance from where the markets opened at to where markets actually closed at, the overall range was around 2.4%. Now, of course, it sold off a lot further than that, but then had a slight recovery. So, $5,600. I'm satisfied with that day. Obviously, if I could predict the future, I would have just held a $500,000 short and I've made what, $35,000. But that's just not how the world works, right? Micron was bullish and it's in our best interest to just wait for confirmation and play it safe. The only other trade that I took today was a very small short on Coreweave and it's just because it's a stock that we've been talking about that recently gapped up. It finally broke below $100 today and began selling off. So, I took a very small position shorting it and I made 500 bucks. That's it. Other than that, as of right now, we're waiting to see. NASDAQ market has a very strong support here based off of previous support levels. If we break below the moving average and then break below 700, we have that nice gap down. Until then, remember again, we talked about the bond market, we talked about the Japanese market, we talked about the South Korean market, we talked about Iran, we talked about the tariffs. Guess what? It all means nothing if Trump sends out a tweet to change the sentiment. Our job is to work with this new variable that never impacted the market before. So, I'll do my part in keeping you guys up to date. And that's the whole point of our live sessions. We start our mornings together as a team talking about what news is currently getting factored in and giving the market the time that it needs to choose its direction for the day. And then that's when we choose to take advantage of those opportunities. If you ever want to tune on in, I would love to invite you. And you can even preview a recent live trading session before you join. And like I said, that's the second link in the description down below. So, I appreciate you guys' time. I hope that you guys enjoyed that little market update. I also, again, we have a specific stock that we're watching right now that we might invest into longterm, but we'll talk about that in tomorrow's live session. So, I appreciate you guys' time. Don't forget about the FOMC minutes report tomorrow at 2 PM Eastern time. And like always, let's make sure that we end the year on a green note. Pick our team.