Why The Stock Market Is About To COLLAPSE

It looks like exactly what the US Treasury tried to do yesterday did not work and markets are seeing right through it. What's going on guys? It's Ricky. Let's go ahead and jump right into it. Overall Nasdaq market as of right now and this is after propping itself up, right? It's kind of on the overbought side based off of its recent lows and highs. It's currently down 0.32%. Now again, in my opinion, it should be down a lot more based off of what just got announced. If you guys have not seen the news, President Trump announces the most crushing economic operation ever taken against a country on Iran. Trump says that the country, any country that does business with Iran will face tremendous economic consequence. This is economic D-Day. So, in Trump fashion, everything is so extreme when done to another country, but again, if anything that he does wrong is acknowledged, you're an idiot. With that being said, I want to talk about what happened yesterday. So, yesterday the 10-year note yield was trading at 4.68% when the US Treasury announced that it would increase the bond buyback by 4 billion. The yield fell to 4.63 as the US pledged to provide liquidity, right? These yields, the US wants them to drop so they pay less in interest. We understand that. That's why they came in, they tried to intervene just like Japan did with their yen, but this time they're trying to save the bond market. Exactly 24 hours later, the bond yield is above the level seen prior to the announcement. Now we're back and above 4.71%. It's going to take a lot more intervention to tame this beast. So, from when it was announced, the yields dropped to now fully recovering. Why? Cuz everything that was previously a problem is still a problem and injecting some money into the market isn't just going to magically fix it. This is where quantitative easing is expected to come in. That's a conversation for another time. As soon as that got announced, over 300 billion dollars was wiped from the market. Again, and that's roughly where we're at right now, 270 to 300 billion dollars. Is it super significant? Well, no, right? Nasdaq market is still incredibly bullish, but also incredibly overbought. There's huge pullback potential. But again, Trump always continues to intervene. He doesn't want markets to drop, even though all the red flags are presenting themselves. To me, this is one of the biggest red flags that I've seen in some time. Walmart falls 8% after posting a rare quarterly sales miss with US growth falling to 6-year lows. Are consumers running out of money? Walmart, one of the best performing stocks over a long period of time, today is down 10%. It was trading at a little bit of a premium, and then now it has a really strong correction. You're telling me that again, one of the biggest employers, one of the biggest retail fronts right? Is now not performing as well as it once was. But yet, Trump will continue to tell you that everyone is thriving. Don't get me wrong, there are these AI companies that might conductor memory chip companies that are doing incredibly well. I want to invest in all of them. I'm sure you guys want to do the same thing. But how can we want to invest in them when all the other industries are hurting, and hurting bad? When again, it's only a matter of time for things to continue to get worse. I began going down this rabbit hole of kind of the domino effect. Well, Ricky, why wouldn't you invest in semiconductors or AI if retail is hurting? Well, again, I want to remind you um oh, this is oil. Oil prices rise $87 a barrel for the first time since July 24th as president says economic D-Day. Oil is rising. Bond market is rising. This will only make it more likely and it was commented on yesterday. And it was hinted on in the Fed minutes that were just released. A few officials support July rate hikes, believe that acting immediately could reduce the need for further hikes. Again, everything is pointing to the idea of higher rates, higher yields. Think about the AI spend. They're borrowing billions and billions of dollars. Us people aside, we're average people, right? All aside, the only real sector that is absolutely thriving, can we acknowledge that, is the semiconductor, memory chip, and AI space, right? The AI infrastructure. If we see that they need to borrow billions, but now the cost of borrowing those billions go up, are their margins going to stay the same? They need money to be cheaper. The US needs money to be cheaper because now we're $40 million in debt. But how can money be cheaper when inflation is only going higher? But Ricky, why is inflation going higher? Again, big contributor to this as of right now are oil prices and that's because of the tensions in the Middle East and the Strait of Hormuz. But again, Trump will refuse to acknowledge this or to accept accountability. I think that's the most frustrating part. It's about It's everyone else's problem or it's not that bad. But it's all his fault. We should have left a long time ago. That's a conversation for another time. But now, it's not just him that's going to pay the price, but it's us as well. For higher oil prices, higher rates, and higher bond yields. This means that the US and the money that it borrows will only pay more on money that it borrows. So, higher interest payments a year, approaching $2 trillion a year. This means that AI companies that are the only sector that's really thriving also likely to pay more in interest if these yields continue to go up. And unfortunately, because oil prices continue to go up, that means you and I at the pump, the average Joe, right? And inflation going higher, retail slumping, right? Not retail, I'm sorry. Um job reports slumping. Now, we get affected in all areas. And the part that baffles me about all of this is that we all know that this is being done simply, originally, I I don't want to say this to this degree, but originally, it was the whole deal no deal fiasco that caused the market to get to this point. And we saw it clearly with the disclosures that Trump made more money in the past year and a half to two years than he's ever made in his life. How is that not a direct conflict of interest? Now, I want to invest, and this is the conversation that I was having with my LPP team. There are so many great companies that are quite oversold right now. Meta being one of them. There's a concern of them possibly overspending, right? They They have a history with that, but I love Meta. It's one of the Mag 7 companies. They make a ton of money. But how can I feel comfortable investing in these big companies when we know that overall markets with the bond crisis, with the $40 trillion in debt, with rising inflation, with a weak labor market, how can we invest comfortably if we can see things imploding from within? Google's another one that got brought up from our group today, right? A lot of these companies are approaching technically oversold levels. That if everything was fine, I would buy the dip so quickly and so easily cuz I love these companies. I want to invest. I want to go long, but guess what? When you can see an administration is getting desperate and all they are doing is like yesterday intervening to try to manipulate the the bond market to cause yields to go down, to pretend like everything is fine, just for 24 hours later for it not to work, to me, that is a red flag worth looking into. It's not a conspiracy. It's a fact. Look into it. The same reason the Japanese did it into their their dollar. They had to intervene because it was getting so bad. But again, as of right now, Nasdaq market still holding above the EMA. We still have huge pullback potential. We'll see what actually ends up unfolding. If more escalations continue, if the bond crisis gets even worse, then yes, markets are likely to drop even further. This shouldn't scare you about being invested in good quality companies that you want to invest in. This should just remind you that when red flags are beginning to present themselves, maybe it's not the best idea to use leverage at overbought levels. That's it. So, I'll do my part in keeping you guys up today. Nasdaq market, like clockwork, getting rejected, pulling on back. It has a current common support range of right around 711, 710. And then we have Micron slightly pulling on back. Now I'm only up about a few hundred dollars to a thousand dollars. I'll add more to the short if it begins to sell off and we might hit closer to the five to seven thousand dollar gain on the day. So, there it goes. Just broke a thousand dollars. I'll keep my LPP team up to date. And again, if you ever want to watch me trade live, it's the second link in the description down below. You can sign up and start watching me trade live as soon as tomorrow once the markets open. It's a one-time payment for lifetime access. And again, if you guys have any questions, feel free to comment down below. I appreciate you guys' time. Hope that I earned your thumbs up. Please consider subscribing. And like always, let's make sure that we end the year on a green note. Take care, team.