HURRY: Big News is Coming for The Stock Market

Something big is coming in the stock market and I'm going to tell you about it in this video and it will make you a lot of money. Keep in mind I am not a fortune teller. I'm not a financial advisor, but I've been doing this a long time and I can tell when things are shifting and I do believe that big news is coming. But I want you guys to come to your own conclusions. I'm not a financial adviser, but let me give you a quick example. In the trading community today, we were only down around a half of 1%. It was kind of a normal minimal day. On the other hand, the NASDAQ 100 was down almost 2% today. So, there's a big disconnect there. And to take it a step further, specifically AI hardware stocks got smoked today. SanDisk down 10%, Intel down seven and a half, AMD down five and a half, Nvidia down over two, Broadcom and Micron and even Meta just destroyed. Even your AI industrials like Caterpillar, um, Eaton and GE Veronova down 6 to 7% a piece. software outperformed today. Financials, communication services, nonAI industrials and cyclicals and healthcare and consumer defensives outperform. Just that in and of itself tells you that something is changing and I will share that with you in today's video here in just a moment. But first, a quick message from our sponsor, which is us in the trading community. We're up about 88% year to date. We're smoking Wall Street at their own game. The only thing we're doing different is we're looking to spot big winners before Wall Street does. I want to beat Wall Street to the opportunity. That's what we're doing. That's the only strategy that works in 2026. If you're trying to make a lot of money, and that's what we're doing. Now, I'm actually teaching you guys how to do this in the link down below in the description of today's episode for the Patreon. Yes, you can sign up to join us over there. But I have a free course that's totally for free. The first two episodes are already out. The next one drops tonight at 7 p.m. I'm teaching you how to do this if you guys want to learn. It's totally for free. Link down below in the description of today's episode. But nonetheless, what happened today in the stock market? Why did AI stocks actually sell off and the markets broaden out? There's a couple of small reasons for this, but it does not explain the sheer amount of carnage there was in AI hardware stocks. First thing you could point to is the ADP employment change came in weak today at 9 and a half thousand jobs. This has been on a downtrend for a while. That's actually better than last week's 8.25,000 jobs, 800 or 8,250 jobs. But you've been on a downtrend for a while now. As we talked about in the last video as well, export prices month overmonth fell negative 1.3%. And import prices month over month fell negative0.4%. If you look at both of these metrics, they're now declining for two months in a row. Well, you know, April and May, there were big increases here, right? April was up 2.1% for import prices month overmonth, and May was up 1.7% month over month. Now, the US economy imports a lot of things. So, if import prices month over month are coming down are negative two months in a row, that's probably a pretty good sign for inflation. So, yeah, just reading the tea leaves of this, it probably means good inflation numbers are coming. Now, following this much better than expected import and export, uh, basically inflation data, 10-year Treasury yields today were 4.75% at the high. They are now 4.71% nearly 4.71%. Actually down over one and a half basis points today. So yes, that is a reason why you're getting a little bit of the broadening but it doesn't explain why AI hardware stocks are are down so much today. Something that we can point to though is yesterday it was actually in the news via the Wall Street Journal that there is three trillion in offbalance sheet liability. So long story short, what's happening here is like a Meta will go out and take a 20% partnership for a new data center with Blue Owl Capital. So because Meta is only a 20% partner and Blue Owl Capital is putting up most of the money to actually fund the data center, Meta doesn't have to go out and report that debt initially on their balance sheet. But what happens is Meta is actually running the data center. They're going to be paying for the data center. They're just going to be paying Blue Owl Capital for basically the lease, right? Well, once the lease starts, then it gets reported on the balance sheet. So, Wall Street was like, "Okay, you know, Meta has a hundred some billion dollars worth of debt. That's not too bad for a company that's, you know, $1 and a half trillion dollars." But there's going to be a lot of debt hitting the balance sheet as these data center leases actually come online. On top of that, there's a lot of purchase commitments out there for equipment, for energy needs, for GPUs, so on and so forth. And that's $1.5 trillion just in that alone. So, Wall Street's saying, "Oh, yeah, now that the cat's out the bag, uh, this $3 trillion number might be too much for Wall Street to handle." And you could look at things like credit downgrades, stuff like that that that could come as a consequence of this because basically all of a sudden now Wall Street realizes the hyperscalers are not in a as good of a financial position as we thought they were, right? So, some of the fear out there is maybe some of the contracts get cancelled. I don't think that's going to happen. I think that's pretty irrational. But that is another reason why you could make the argument that AI hardware stocks are declining so much today. But I think there's a bigger reason for this. Yes, there is always a bigger reason. And this is really the the part of the video I think you need to pay attention to because if we read the tea leafs here in what happened today in the stock market, it's pretty clear to me. I know people are going to hate saying hate me saying this, but we're about to get good news via the Iranian conflict. Yeah, I know I I said it, right? I I I shouldn't say it. people don't like it. But my job is not to be liked. It is to help you make money and to figure out this market. And mix that with all of the news that I previously shared. And that's why I share that news to kind of give you the backstory here. On top of all of that, this conflict with Iran could be coming to an end soon. So that's kind of amplifying all of this. Now you're going to say, why are semiconductors selling off in that environment? If the Iran war comes to an end, isn't that great news for semiconductors? And yeah, it's it's not bad news, right? 10 years Treasury yields come down. You know, inflation expectations are going to come down, oil is going to come down, but it's not that big of a positive for semiconductors versus other areas of the markets, right? Again, would you rather own Delta Airlines or Nvidia if oil goes to $200 a barrel? You'd rather own Nvidia. Same is true on the opposite side of that. If oil plummets, you would rather own Delta Airlines than Nvidia because, yeah, sure, it's a positive for Nvidia as well, but it's a much bigger positive for the other areas of the markets. Hence the areas that are outperforming today like cyclicals and financials and software and smaller communication services names. Now look, I have had this belief that we are most likely going to get deescalation in the Iranian conflict heading into the midterms. Why? Because look, I hate all government. I'm I'm I'm really not that political these days. I I think all government is bad. They should stay out of my business. They should stay out of your business. I believe in low taxation. I believe in free markets and capitalism. I'm very anti-govern. I I kind of just don't like any of them. They don't do any good for people. Innovation improves the standard of living. The government never does. Okay. Well, I've been under this view that look statistically it it looks like Republicans are going to lose the midterms. Trump doesn't want to get smoked in the midterms. The only lever he can really pull at this point is keep the stock market high, have oil prices and gas prices come down, and make it look like we're not going to have a forever war with Iran. Those are the levers that Trump can pull right now to help the odds of Republicans winning the midterms. That's a fact, right? Other than that, there's not much you could really do at this point to help your party in the election. So here I put together kind of the headlines of the day today around this conflict. Um and if you read the tea leaves here, we are going to get deescalation. We are going to get some positive news on this Iran front. A US official today says positive discussions took place with Iran, but Trump decided to wait. This same US official says Trump instructed his team not to engage in talks with Iran until it is ready to sign a deal. The Pentagon is weighing a smaller US military presence in the Gulf once the Iran war ends. Huh? No shocker here, right? Put those three headlines together and it looks like there was some kind of communication behind the scenes. Cutter says, "We want an agreement to reopen the straight of Hermoose and establish a ceasefire simultaneously." Iran's foreign minister says Thyran rejected ceasefire proposals. Iran's foreign minister says the war must end, not pause. But the the hangup at this point is Iran and Oman are still trying to finalize what shipping lanes are going to look like in the Straight of Hermoose. So Trump doesn't want to go out and start negotiations with Iran until that is finalized. So we don't have negotiations. We can just sign a deal. Say, "Look, you got your figured out in the straight of moose. Open the straight. We'll walk away. We can negotiate things later." That's what is going to happen. And and look, you know, putting together all of this news today, these headlines and the rotation in the markets, the violent rotation, it seems very clear to me that big money is positioning for deescalation. I also came across this uh article here as I was looking at Delta Airlines stock. I was trying to find a way to play this and we did make some plays on this idea. It says here, "The billionaire famous for betting big on Micron just bought airline stocks. Terappa Appa Palooa opened 7 and a half million shares in American Airlines and 800,000 in Boeing as Berkshire and Drunken Miller also entered aviation the same quarter. Now, Stanley Ducken Miller famously said that if you're buying airline stocks, you're making a macro call on oil prices. And even then, if you go out and look at some of these airlines options chains, like this is Alaska Airlines here. This $45 call expiring September 18th has 2,600 for open interest. Uh, that one has 500. This one has 6,250. This one has 2700. This one has 3,800 for open interest. This one has a,000. Right? You get the idea. It's kind of unusual for a $4.5 billion airline to have that kind of option activity. So, I'm putting all of this together. I'm saying look at the the headlines of the day today from Iran, Qatar, the US, and all of that. And and and that sounds like we're moving in an deescalatory direction. I'm also looking at, hey, the midterms are coming up. Republicans are not going to do well. What is the one thing Trump can do to improve the Republicans odds during the midterms? Well, end the conflict, get oil to fall, keep the stock market at all-time highs, right? Those are those are clear. And then I'm looking at the rotations in the markets today from the lens of what if we get deescalation? And the the rotation is literally screaming deescalation is coming. Now again, Wall Street, big money, they know things before we do. So I'm not surprised by this. The citadels of the world already know what is going to happen. The Citadels of the world, they know what the talks, the posit Let me let me share with you guys again, right here, right where it says a US official positive discussions took place with Iran, but Trump decided to wait. Uh hello now big money. They know exactly what was said in that conversation. Don't think for a second they don't. And then putting everything else together, it's looking like deescalation is coming. So yeah, what I'm seeing out there looks very much like deescalation is coming. Now I don't care what happens at this point. I'm preparing for the postmidterm rally that I think will be coming. And this is a a chart here of the 12 months before a midterm election and then the 12 months after. Now, you tend to get volatility during this time of the year. We are getting this volatility like it's it's it's already here, right? Markets are starting to move a lot. I don't think you have to have a full-blown correction. Like the NASDAQ already fell 11 12% from high to low. It's still down about 4% currently. Could the NASDAQ continue to fall? Of course it could. It really depends what happens to hyperscalers and AI hardware stocks. Even on again a day like today, a lot of stocks are actually doing quite well, but it's not going to move the S&P higher. What is going to move the S&P higher is hyperscalers and semiconductors. And I do think personally Trump wants to move the markets big on one of his tweets soon because Truth Social just started selling the early access news wire to institutions for like $100,000 a month. It's been a while since a Trump tweet has caused the markets to move a lot. So I think Trump, he doesn't want the next Iran, you know, big development to just be a continuation of a ceasefire. He wants the next development to be an end to the conflict. That's my view. I I obviously I don't know Trump, but just putting all of this together, it's making a lot of sense to me. Again, I could be wrong. I am not a financial adviser. I'm not a fortune teller, but I do think you should be kind of leaning in this direction at this point. I think it's the most likely outcome. Now, I don't know what day this is going to happen. It could happen tonight. It could happen tomorrow. You know, Trump likes to put out news early in the morning, late in the evening. Let investors kind of react to that. So, do what you will with that information. I mean, a couple of weeks ago, it was reported via Trump's advisor that Trump would be willing to walk away from the Iran war altogether without a nuclear deal as long as the straight of her moose opened. Why? Politics, right? Midterms. negotiate a nuclear deal down the line. Just get the hormuse straight open. Get oil prices lower. I continue to dislike hardware stocks, AI hardware stocks. I continue to dislike hyperscalers. I don't like hyperscalers because they're spending a lot of money for not a guarantee, right? Google spending a trillion dollars on, you know, their AI projects, going into massive amounts of debt, deliluding investors. is they are no longer a shareholder friendly company and they're not even guaranteed to have a good ROI on on their investment. Right? So, I don't like hyperscalers for that reason. I don't like AI hardware stocks because expectations are high. There's a lot of crowding. The FOMO wave already passed. Once you burn your hand on a stove or sever your pinky tendons, you're a lot more careful the next time you're in that kind of similar situation, right? So, those are some of the reasons I don't like AI hardware. Um, what I really like right now is the next AI trade. If Google and all these hyperscalers are spending trillions of dollars to win in AI, they are also intuitively saying there's going to be many other big winners. I think robotics, automation, AI software, and cyber security, that's actually going to be a large chunk of the future compute demands for AI. And I think those are areas that Wall Street hasn't quite figured out yet. I think part of that is the midterms, you know, volatility around that event risk hedging. I think part of it has to do with uncertainty around the Fed. Part of it has to do with the Iran war. Once the Iran war ends and oil comes down and we know the Fed's not going to be hiking rates, I think that opens the door for the new AI trade to actually start doing exceptionally well. And I think that's what makes the most sense to be positioning into right now. I also like cyclicals industrials financials. These are not going to be stocks that 10x like we're always looking for the next 5 10xer. I think it's going to be robotics automation AI software and cyber security. But if you wanted a safer approach, I think cyclicals, industrials, financials, the broadening trade is a is a great area to also be investing. But again, those stocks are not going to 5x anytime soon. But could they double in the next 12 to 24 months? some of them. Yes. So, if you guys can't tell, I'm actually very optimistic over the next month or two. I do understand that it is going to be volatile. There's going to be a lot of headline news that's going to move markets higher or lower. But I think one of the big problems right now, really the only problem right now, to be a matter of fact, is is the Iran conflict. Right? Once the Iran conflict ends and oil comes down, we no longer have inflation problems. We no longer have Fed rate hike problems. I mean, that solves like 80% of the market's issue. Midterms, that's not being cancelled. That's just something we're going to have to get through. Uncertainty and volatility. But the real problems in the market stem from the Iran conflict. And I do think again based on everything we talked about in this video and the examples and points that I showed you, I do think we are heading towards deescalation. And I I I think that's what the markets effectively snitched today. So ladies and gentlemen, let me know your thoughts on this down below in the comment section. If you guys want to come trade in, invest alongside of us, that link is down below in the description of today's episode for the Patreon. Also on the Patreon, again, is the course coming out, how to find 10x stocks, what we are doing in the trading community every single day. I'm sharing that for free. Now, it takes a lot of work. It takes dedication to go out and find these stocks. It's not easy, but the reward is massive. If you guys just want to come be a part of the journey with us where we do the work, well, that's where you can check out the trading community if you guys would like to. But, uh, new lesson comes out at 700 p.m. Eastern Standard Time tonight. That is it. Have a fantastic rest of your day and I will see you in the next