Stock Market Dropping? Here's What I'm Watching

A very unique opportunity is currently presenting itself. What's going on, guys? It's Ricky with TechBud Solutions, and boy, do we have a lot to talk about. So, the South Korean markets have drastically impacted US markets today. Check it out. SanDisk down 13%. At one point, it was down over 17% all the day. That was after already its significant drawdown, hitting lows of $1,050. I want to remind you, just a few weeks ago, SanDisk was trading at $2,300. SanDisk is down over 50% from its recent all-time highs. And it's not the only one that's taking a major hit. If you actually pay attention, ASML significant drawdown, 3.9%. SKHY 6.8% drawdown. Nvidia was slightly in the red, picked up, but again, the setup that I'm looking at right now, and this is just intraday. This is just my opinion. Looks like markets created a V-shape recovery within a very short period of time, which is very impressive. But now it's gapped up, and based off of the lows that we saw today, all the uncertainty that was injecting itself is still present. South Korean market uncertainty still present, right? For those that did not see, South Korean stock plunges 10.8%. Now down 38.2% from their all-time highs. SanDisk down 30% in 5 days, 55% from its record highs, over $200 billion lost in market cap since January 22nd. The thing that I want to highlight is that now the Nasdaq is forming an overbought reversal. We still have the uncertainty of the FOMC rate decision tomorrow. We have Meta and Microsoft reporting earnings tomorrow, as many of you guys know, and Apple and Amazon reporting earnings on Thursday. If any of these companies, which again, my biggest concern is Meta, if they report that they are overspending over-leveraging themselves, this can inject more uncertainty in the semiconductor and chip space. So again, this is just my opinion. Because of how quick markets recovered, I think it's great. I mean, if you tuned on into our live trading session this morning with my LPP team, the biggest thing we focused on is as markets were selling off, we were buying the dip, staying light, and making sure that we were invested, that we had a position if markets do begin to recover as they hit lows of like 2 .1 to .2% for Nasdaq's QQQ. Now that it's recovered a decent amount, it's recovered nearly 2%. It's testing previous highs. We'll see if that momentum continues, but at any moment, if it breaks this structure, if it breaks this ascending support pattern, cuz that's truly what it is here. We have a big gap down. And again, all of that uncertainty can begin to inject itself once again. We saw how low the market could go today. Not saying that the markets have to continue to make new lows, but that again, the idea and the fear is there. So, the biggest thing that I don't want to do right now is over leverage myself at these overbought levels intraday, that if markets do begin to pull on back, that that I later end up regretting it, right? And vice versa, I also don't want to take an aggressive short position that if markets continue to continue to push higher, then I end up regretting it. I think the biggest thing to do at these critical levels when we're testing previous resistance levels where we've been rejected at before and it's overbought for a potential gap down, is we give it time. There's nothing wrong with having an open position, but making sure that we can tolerate if direction turns against us, right? Manage and mitigate risk appropriately. But the big thing is, again, there's just so much fear in the semiconductor space as of right now. I was I was just so in awe of like SanDisk and the hit that it took after taking a massive hit yesterday. It really me that I do possibly want to buy the dip a little bit more aggressively in these chip stocks, but then with how much we are seeing them sell off, it shows that there is uncertainty, there is fear, and we need to respect that. So, instead of getting too excited and jumping in with too large of a position, I want to stay level-headed. I want to have some skin in the game, right? So, that's why we've been buying the dip on some of the chip companies that align with our criteria that we see as fair value, but also not so much that if we do see another leg down, who knows what the next 2 days, the next 3 days has to follow. You know, things can definitely get worse before they get better, and that's the the message I continue to tell myself is don't put myself in a position that I'm not going to be able to tolerate the time that it might take for the markets to recover. And again, the overbought reversals that are kind of beginning to form. You guys let me know down in the comment section what you think. Do you see it? Do you see the gap down potential? Right? If we use this little trend line tool, based off of where we've been rejected at before, and the drawdown that we saw earlier this morning, I don't think it's far-fetched that market can break this ascending support, break that support, and then really begin to gap down. And we all know that if Nasdaq begins to gap down, these semiconductor stocks are likely to drop even quicker, right? They're not even recovering as much as the Nasdaq market is. I feel like the Nasdaq and the Magnificent Seven companies are recovering much quicker. I still It still seems like a lot of these chip stocks are struggling to recover. They recovered, but not as significant, right? They're still Like SanDisk is not back to pre-market levels. Yet Nasdaq market is. Do you see the discrepancy there? There's uncertainty in the chip market. Again, allow your position size to reflect that. I just wanted to come in here, share that, share my thoughts with you guys, and I wanted to remind you again, we're trading live every single morning. As overall markets are down, I want to remind you, our prices are down as overall markets are down. You guys have been loving this. For those that have been waiting for an LPP sale, it's a one-time payment lifetime access. It's $299 off using promo code deal26, second link in the description down below. You can lock it in right now for $299 off. And like I said, we have members that signed up back in 2018. They paid once, and they still get to watch me trade live today. As soon as markets begin to recover, our prices will go back up. So again, if you want to get in for the deal, check it out, second link down below. And don't forget, even before you join, if you want to preview one of our recent live trading sessions, just click on it, watch one of our previous lives. If it's something that you want to be a part of every morning at market open, then that's exactly what you'll get access to by joining LPP, as well as the, you know, LPP lesson library that's designed for complete beginners. I appreciate you guys' time. Hope that we're going to thumbs up. Please consider subscribing, and I'll do my part in keeping you guys up to date. Make sure to follow for follow for updates. Like always, I'd like to make sure that we end the year on a green note. Take care, team, and happy Tuesday.