Market Crash Incoming? Here's What Just Happened

Markets are dropping. What's going on, guys? It's Ricky with TechWithSolutions, and what an insane bull trap is it is it not? Nasdaq market was up almost like 1 and 1/2% during the overnight trading session, even into the pre-market session, hitting highs of 695, literally just a few dollars away from 700. And then all of a sudden we get rejected, we begin to sell off, markets open, it leads to even more selling pressure, and now we have made new lows, going lower than we uh we did on Friday. What's going on? What's driving markets lower? And again, if you think Nasdaq market is down, semiconductor stocks, memory chip stocks are getting hit so much harder. SKHY, down 9% on the day, a very bearish day for these memory chip and semiconductor companies. SanDisk, down 12.4%, and at one point it was down 14%. Again, significant downturn. ASML, I'll talk about this one in just a little bit, down nearly 8% on the day. Micron, I bought the dip on Micron, and the dip kept dipping, right? So I've recovered a part of it just because I was able to buy more aggressively when it began to indicate signs of a support, it recovered, I trimmed the position, and now it has sold off a little bit, but I wanted to show you currently down three to nine three to $4,000 on this current position, but I'm going long on it, right? The biggest mistake that I can make here is that I cut losses. That's not the mistake. Trimming trimming the position or cutting losses, that's never in my opinion the wrong thing to do. But then revenge trading. Okay, well now markets are selling off, let me open up a short here when markets already are down 5.87%. We talked about this on Friday, we talked about this on Saturday. Don't overtrade just because you feel like market's against you. You're irrelevant, I'm irrelevant to the market. It's it's not that deep, right? It's maybe you went in too aggressive too early on and that's why you're feeling the pressure. I'm excited. I I I don't I don't know why but I don't feel the pressure too much as of right now. Um I don't want to lose more than $5,000 on the day, but with that being said, it's such an oversold reversal that I'm just waiting for indication of a slight recovery so I can really begin to step on the gas. And I wouldn't be surprised if we do end up green on the day based off of if markets do begin to recover. That's all based off of price action and and we don't have enough bullish price action right now. The thing that I want to update you guys is like yes, the S&P 500 erased all gains and turned to negative, right? Iran just nuke the market by saying no to peace talks, which again is is part of the process. It really seems like this peace deal or ceasefire um or peace deal announcement that was announced and and possibly agreed upon on the US side is now no longer being agreed upon on the Iran side. And can you blame them, right? And also, can you blame the markets not really wanting to react in a positive way because Trump has overused the peace talk and or the ceasefire announcement multiple times. Like it was long overdue. It should have not been impacting markets because it truly has just been manipulating markets, right? So uh we'll see. Hopefully it does The reason I hope that there is a ceasefire or peace talk is it's our brave you know, American men and women putting their lives at risk for what? Like I I just don't understand like what we're trying to do now that we weren't doing before or that we needed to do again. Like I it's just it's beyond the point like let's just move on. Uh it seems like that's what everyone wants. I just do not understand why Trump just can't get out of there. Um with that being said, the US strategic oil reserves hit the lowest level since 1983. This has been something that a lot of news outlets have been covering. The reason Trump is so open to the idea of a potential peace talk is because we're running incredibly low on our oil reserves. Uh when it comes down to the bond yields and bond market, they're beginning to creep back up and that's something that directly impacts at the rate in which the US government borrows at. Uh and also supposedly we have very low ammunition uh out there and when it comes down to the battle that we have going on uh with Iran, it's not going to put us in a very favorable position. Again, is it all speculation? Is it actually true? Trump has denied the claim of any of this being true, but that's so Trump to just deny everything until uh it just we know that he only folds when he needs to and having low oil reserves or having low at ammunition just makes sense. But again, we'll see what actually ends ends up being true later down the road. South Korean market is down again, which again I believe is exacerbating the entire problem of what's going on right now in the semiconductor and memory chip space. If you actually pay attention to it, it's kind of exciting, right? Uh because this pullback is something that a lot of investors have been asking for and even Nvidia. Nvidia first gapped up based off of the news, right? A lot of you guys saw that it announced a new partnership uh that was worth like I thought it was worth 200, 250 billion dollars. Uh says Nvidia leads AI chip stock lower after 500 billion-dollar partnership with SK Group. So they announced I thought two different partnerships uh overnight thinking that it would reignite, but maybe these partnerships are over leveraging Nvidia and that's what markets are reacting to in a negative way. It's just so it's so funny to me because sometimes this news is so bullish, right? If you would have announced this news, you know, 3 months ago, Nvidia would have been pushing to new all-time highs. But now market sentiment is kind of beginning to change, right? It's like, okay, now are these companies overspending? That's the that's the idea that's being floated around. So, I want you to pay attention to how sentiment is so important. How one news connects as a negative catalyst today, but just a few months ago it could have been positive. And vice versa, sometimes it could be negative today and then maybe positive later down the road. And I think this is a really important part to acknowledge when it comes down to trading in these public markets is that sentiment is always changing. And it is your job as a trader, as an investor, to be kept up to date with what these sentiments are, to know, right? You'll never be able to predict the markets, but you you'll be able to understand when to be aggressive and maybe when to be more conservative. And this is the part that's that in my opinion is exciting. You might be asking, "Ricky, how are you saying that you're feeling comfortable while you're down $3,000 on the day?" Again, you guys have seen my my good days, uh and those are north of $10,000, right? It's due to the dollar amount that I trade with. I don't trade share I don't trade options, I only trade shares. With that being said, I'm I'm buying the dip on a very relevant and valuable company in my opinion. I didn't buy so much that I can't tolerate the downturn. I didn't buy so much that I can't add more. I'm not using leverage. I'm not in a stressful position because I didn't put myself in one. That is the question to ask yourself. If you are buying or shorting, whatever it is that you're choosing to do in this market, does it actually align with your intention and with the timeline that it might take for this opportunity to fulfill itself, right? We are not like we cannot determine how long it's going to take for markets to recover. Remember, we have a really big week this week. We have Microsoft and Meta and Robinhood, Apple and Amazon all reporting earnings this week. If you think markets are bad now, who's to say that it can't get worse? What if we continue to attack in the Middle East, right? What if bond yields continue to rise higher? What if inflation concerns continue to present itself? And if I'm not mistaken, let me double-check. I'm going to have to refresh this. Scroll all the way down to our economic calendar. It is the 27th. Let's go uh If I'm not mistaken, let me double-check. Oh. Yep, FOMC rate decision on Wednesday. There is a lot of volatility that's likely to present itself. So, I think this is just another great reminder that never sell yourself the idea that it can't get worse, and that's why you're buying the dip aggressively. I would say that that's one of the biggest mistakes that you can make as an investor and even as a trader. You cannot predict the future. Stop pretending like you can. Your job is to work with the market and to take advantage of opportunities that you value. There's nothing wrong with that. You you can and will be wrong along the way. But all that matters is that you can tolerate being wrong until you are right. And that you don't make it worse for yourself by adding more to a wrong position instead of maybe trimming and or waiting for confirmation for it to be favorable. That's the exciting part. So again, I'll do my part in continuously keeping you up-to-date. I wanted to celebrate the people that decided to short the market. Congratulations to you, right? A lot of you guys know that we've been shorting. I didn't short the sell-off, uh but I'd love to see We're all here for the same reason. I love to see people making money. Hopefully, you do your part in taking profits when it makes sense. And for those that are choosing to buy the dip, understand you have different intentions, right? Kind of like myself. I bought the dip on Micron. I'm getting really excited that I see a lot of recovery potential, but it might take some time. Can you tolerate the time that it might take for it to recover? If you feel stressed, that is your fault, not the market's fault. That is your fault for going in too aggressive too early on. Do something about it. You don't have to change your intention or change your plan. It's just maybe change the aggressiveness of how much of a position you choose to take on early on. And again, that's the exciting part. Looks like we're seeing a pretty nice push here on Micron. Um so, again, all I've been doing is anytime that it rips up a little bit higher, I'll trim my position. And then as it sells off a little bit lower, I add a little bit more. But I'm working with the same dollar amount. I'm not adding more to it. I'm working with the highs and I'm working with the lows. You know, slowly chipping away at my loss, but most importantly, also lowering my average purchase price. It's, in my opinion, the best of both worlds. Again, these are concepts that we talk about within our LPP lesson library. If you feel like you are lost in this market and all it has to offer and is doing, again, every morning, right at market open, we go live. So, you get to watch me trade live. You get to watch the market react. Every good trade, every bad trade. You get to see it all happen live. And as news gets, you know, shared, markets react, and we talk about it together. If this is something that you want to be able to experience daily, it's the second link in the description down below. Like many of you guys know, it's not a subscription. It's a one-time payment for lifetime access. We have members that signed up back in 2018. They paid once, and they still have access to it today. Let me make it very clear. You can learn everything about trading and investing in the market on your own. And I have over 5,000 free videos on YouTube. If you want to join LPP, it's not free. But also, you get to watch these daily live sessions, and you get structured content. Do you value that? And if so, again, it's the second link down below. Like always, let's make sure that we end the year on a good note. Take care, team.