STOCK MARKET CRASH GETTING WORSE! I’M SELLING IT ALL!?📉

Ah, don't you love it, guys? Don't you love it? More pain in the AI trade. Awesome. Beautiful. Just what we needed, right? So, we have to break down the AI trade today. Charts, stocks, what I'm looking to do, a couple of earnings, and we have to break down PPI. So, guys, let's dive into it. Hit the like button. Make sure to subscribe. Take a sip of whatever you're drinking. I'm on this uh What am I drinking today, guys? I have a 3D energy. Shoutout to 3D energy. I'm back on these energy drinks as the market is all over the place. So, let's talk. And the funny thing is, guys, the Qs are down. May- may- maybe that's not so funny, but all the other indices are up. The Dow's up around, let's see, almost 1%. The Russell's up 3/4 of a percent. The Qs are down 3/4 of a percent. And spy's pretty much at break even as gold's up, silver's up. We have WTI crude oil almost at a hundred a barrel. It's up over 3% as Brent is pretty much at break even. So, yeah, it's one of those days, man. Everything is moving all over the place. Tech stocks are getting nailed. AI stocks are getting creamed. You name it. Coherent's down. Nebius is down. Lam Research, Corning SanDisk Micron Nvidia everything. Maybe not every AI stock, but man, it is blood in the streets. Um it's not surprising considering the South Korean market overnight. I'm not sure if you guys saw, it got demolished. I'm pretty sure the Kospi went down six or seven maybe over 7%. At one point, Samsung was down another 10%. SK Hynix got hit 6 7%. It was a complete bloodbath in South Korea. And obviously, that's bleeding into the US market at least on the AI side. And like I said, we got PPI data this morning and we're going to talk about that briefly right now. So, let's do that very quickly, guys. So, this this essentially well, not essentially, but it does measure the prices producers receive for goods and services, right? Giving us a different view of inflation than consumer prices. In other words, than CPI. And headline PPI rose 1.3% in September versus roughly 0.6% expected, guys. Insane and an upwardly revised 0.5% in August. This was the largest monthly increase since September or not September, March of 2022. So, we're talking what? Almost 4 5 years ago. Unbelievable, right? And year-over-year producer prices rose 6.3% and excluding food and energy and trade services, prices increased 0.5% monthly and 5% annually. You know, in other words, the core PPI. And inflation pressure extended beyond energy. Obviously, energy was a major driver. Producer energy prices jumped almost 11% including a 20.3% increase in gasoline prices and overall goods and services or goods prices, excuse me, rose 2.6% while services increased 0.8%. So, the PPI numbers, guys, came in hot just like CPI. Is anybody surprised? Probably not. You know, you you shouldn't be surprised at this point. And what does this mean for businesses? That's the million-dollar question. And while I talk about that, let me zoom in on these charts. Believe it or not, guys, spy and the Qs still look good chart-wise. When in doubt when in doubt zoom out. We always say that on this channel on these videos, right? So, what does this mean for businesses? Well, higher costs can get passed along to customers or absorbed through lower profit margins. And what do you think's going to happen? Do you think these businesses are going to absorb these costs, right? Through lower profit margins? Yeah, maybe to an extent certain businesses, but this is going to get passed along to the consumer. Hello, wake up. That's obviously going to happen. PPI doesn't translate into consumer inflation dollar for dollar necessarily, but it definitely adds pressure, obviously. And what does this mean for the Federal Reserve, you know? Well, my read is that this makes rate cuts harder to justify, obviously, and keeps another hike on the table, maybe multiple hikes, more hikes at this point. And a hike isn't automatic, obviously, but persistent inflation creates a difficult backdrop for expensive growth stocks like we've talked about before. Maybe that's another reason why a lot of these are getting hit today. And this also affects companies relying heavily on borrowing, right? So, PPI came in hot. Nobody's really surprised. Are you surprised? I'm not surprised. And you know, the market Let me see the the initial reaction this morning to this data. I mean, nothing crazy happened, I guess, chart-wise, like it did with the with the CPI. But either way, man, this this market is volatile. And the funny thing is this is all happening as the VIX is not even over 17. The VIX is still pretty low. I mean, come on. The VIX is at 16 and we're seeing this kind of volatility in a lot of the AI stocks and the tech stocks. Could you imagine if the VIX got to 25, 30? I mean, things could get ugly. I'm not saying for sure that's going to happen, but keep in mind this is all happening as the VIX is pretty relatively low at this point. So, let's carry on now onto some earnings. I want to break down TSM and I want to break down Charles Schwab and talk about some other stocks that I'm watching. So, make sure you guys stick on throughout this video. So, TSM is currently down 3% after earnings and we're obviously falling through the moving averages on the 4-hour chart. Kind of looks like a falling knife right now, guys. The stock's at 417 after hitting 487. So, we're officially deep in correction territory, down about 15% from all-time highs and earnings were actually pretty solid. Revenue came in at $46.72 billion for TSM versus approximately $45.67 billion expected. Revenue increased about 41% year-over-year in US dollars and 16.2% from the previous quarter. And earnings EPS US you know, US listed ADR EPS came in at 460 versus the 446 estimate and net income reached approximately $23.6 billion, up around 70% in Taiwan dollar terms. Insane, right? And strong forward guidance they reported. Fourth quarter revenue's expected between 52.3 to 54.3 billion dollars and the 53.3 billion midpoint actually topped estimates of roughly 50.22 billion dollars. So, that implies another 14% increase from the third quarter as gross margins came in at 66.4%. Down a little bit from 67.7% last quarter, but substantially above the roughly 60% a year ago, and operating margin was at 58.7% as profitability softened sequentially while remaining significantly stronger year over year. So, they maintain their 60 to 64 billion dollars in capital spending budget for 2026. So, they're obviously still spending a substantial amount of money, and spending across spending across 2026 to 2028 is expected to significantly exceed the preceding 3 years as it expands capacity, obviously. So, the stock's down on this report because, well, guys, this market is not favoring or it's not rewarding grand slam earnings reports anymore. We saw it with Micron, we saw it with this company, that company. That's what's going on right now. It's not like these companies are struggling. We all know that. The market is just not rewarding them as of now, you know, in the current sentiment that we're in. And clearly, the earnings and guidance support, you know, continued strong demand, and there are risks still, as always, you know, but this report doesn't suggest that the AI business is falling apart. It's actually quite the opposite. And again, the question is, will this be rewarded, you know, will this stock be rewarded eventually? How much growth have investors already priced in? Is it already priced in? Those are the questions right now. But overall, look, the stock got hot into earnings. We're down 15%. RSI is very oversold. Healthy pullback is what we got here. I like the chart on TSM here. I'm not buying it. Honestly, guys, I got to be honest. I'm not going in and buying this considering how many AI names I'm in right now. But you could definitely justify, in my opinion, adding a little bit today. I mean, you know, if you're already in the stock or you you've been wanting to buy and you were waiting for earnings, you can justify adding TSM based on that earnings report. And by the way, if you guys want to keep up with what I'm actually doing in my portfolio, my trades, if you want to be a part of my private Discord, see how I'm managing my portfolio, it's all on Patreon. Link down below in the comments and the bio. Go to uh go to stossurfest.com um /patreon. I'll see you guys in there if you want to be a part of the community a bit further. So, we also got earnings out of Charles Schwab. This stock's down about 2 3% on the day. SCHW is the ticker and we're actually down about 20 bucks from the recent high, about 18%. So, it's it's right on the cusp of a bear market right now. So, Charles Schwab reported revenue of $7.17 billion um up 17% year-over-year. And let's see, EPS came in at a buck 69 uh versus the $1.65 estimate, increasing 29% year-over-year. So, they beat EPS on an adjusted basis. Um and it looks like they barely actually missed revenue. Again, revenue came in at 7.17. The estimate was $7.18 billion. Um net income came in at $2.9 billion for the company, up 23% year-over-year. Uh, they had strong client growth. They brought in $190 billion in core net new assets, up 38% and added 1.2 million brokerage accounts with total client assets reaching $13.3 trillion, up 15%. Think about that. And we saw very positive data from Goldman Sachs yesterday, or was that was that the day before? Either way, uh, we covered that in that video. Whenever, you know, whatever day that was, all these days are blending in, guys, with how crazy the market's been. Uh, so we saw very strong data from Goldman Sachs when it comes to equities trading, and we're seeing that here, um, with Charles Schwab. Total, again, total client assets reached 13.3 trillion, um, and trading activity increased. Daily active trades or daily, uh, daily average trades rose 44% year-over-year, while trading revenue increased 16% to $1.15 billion, um, with net interest revenue growing 14% to $3.47 billion. And this is a good sign. Trading revenue's intact. They hit a lot of record results on the quarter. And, uh, higher rates are obviously improving asset yields, but they can also increase funding costs, as we've talked about before, um, encourage customers to move idle cash into higher-paying alternatives. And higher rates aren't automatically a win for Schwab, like we've talked about with a lot of these, uh, financial institutions, but it's obvious clients are bringing money into the, um, into the company and using more services. That's good for the business, um, and investors are looking beyond just account growth right now and headline earnings to see whether margins can actually meet expectations. Um and that's what I'm watching here over the coming quarters, guys, on ST HW. Um the chart actually looks pretty decent. Um when in doubt, zoom out. You guys can see we are still maintaining um you know, $90, $95 as support, which we have over the last year. Um if I show you all this 3-year chart, clearly in an uptrend. Uh so, this pullback was much-needed on Charles Schwab. We got it. Earnings are strong. They hit records in a lot of categories. Um so, I think, honestly, this could be a buy the dip as well, just like TSM. And obviously, they're different businesses. Uh but if you if you kind of want to get away from some of these AI names, and you want some more diversity, um this is not a bad place to look. Same with UNH, which we've covered over the last couple of days, and it's finally breaking out. I mentioned this on uh you know, Discord this morning, on my Instagram. I posted a story. I was like, "Guys, watch for the break. Watch for the break." We're getting the break. Um I wish I bought some shares at 375. I was about to, man. Um now it's completely breaking out. We're at 412. I still think there's a lot more upside, but I'm personally waiting uh for this to cool off maybe a little bit. I don't want to chase it here. It is a bit overbought. But they crushed earnings, they crushed revenue, EPS guidance, you name it. So, I think UNH is just getting started, but there's no rush. There's no rush for me to just go all in right now. Um I'm going to wait for a little drawdown, but either way, it's breaking out. I think Apple's about to break out as well. Um you know, it's up around a quarter percent right now. We have a clear ascending triangle and cup and handle, like I've been saying these last couple of videos. It's only a matter of time. I think Apple's about to go. Uh you know, I think it's going to break. I think we're going to 375, 365, um, in the short term here. We have earnings coming up on the 2nd of November. So, in about 2-3 weeks, we're getting their numbers. I like the setup. I I I think we're going to break out into earnings. Then, it's anybody's best guess what we do, um, after earnings. So, the setup here looks great. I'm going to set an alert, might as well, um, at $350 per share on Apple. Uh, mark is at or above. There we go. And the software stocks today, guys, actually look pretty decent. Software, um, let's see. I think Toast was up earlier. Let me scroll up here on my watch list. And full disclosure, I am long Toast. Toast is up around 6%. So, all this money that's, you know, flooding out of AI, people are panicking. It's got to go somewhere. You know, some of the money, yeah, is probably sitting in cash, uh, but a lot of that money's going into software right now, into healthcare, into consumer staples, different sectors. Um, hey, a lot of these software stocks are doing pretty well. Toast is up 5 and 1/2% looks like it's trying to continue the uptrend here. It's It's trying to break out of the 180 SMA on the 4-hour chart. Stocks like Adobe are up around 4%. This chart doesn't look as favorable as Toast, uh, but we do have a cup and handle on Adobe. Maybe the Maybe this has legs to 275, maybe higher. Um, stocks like ServiceNow, I'm pretty sure, are moving as well. Yeah, ServiceNow is up 5%. Another cup and handle. Look at that. I mean, this is as clean of a cup and handle as you can get, you know, Apple as well. Um, I think ServiceNow is setting up for a break above 150. You know, a lot of these look pretty good. CRM's up around 4%. So, money's going into software today and that's not guaranteed to continue for weeks to come. Who knows in this market, but as money spooked out of AI for now, um it's going elsewhere and software is one of those destinations for the money right now. So, I'm going to wrap it up there, guys. What do you think? What a day? What a video? Uh you know, it's it's crazy times right now, but you got to be calm. If you're buying individual stocks and uh you're you're on easy right now, you're freaking out, you want to panic sell. First of all, you might be in too many AI stocks. Second of all, this might not be for you. You know, you might not be set out for buying individual stocks or at least yet. You have to work on your, you know, uh your discipline, your emotional control and it comes with time. Honestly, it comes with time, guys. And you know, once you're in the market for a while and by a while, I mean at least a couple years, um you know, it's this stuff happens all the time. You're going to realize you've seen this before. You know, I've been in the market now for 10, 11, 12 years. I've seen this before. This is nothing new. This is honestly not even that bad at all. I mean, yeah, AI stocks are getting squashed, but the overall market's still pretty much at all-time highs. This is not bad at all right now, guys. Imagine if the Qs were down 20% from highs or the S&P was down 25%, then it would be even worse, way worse. That would be bad. Uh but right now, this is nothing. It's not bad at all and uh we got to just take a chill pill, right? You got to take a chill pill. Buy stocks you believe in, close your laptop, go do something else, and look back in a couple weeks, months. It's going to be okay. You know, that that's what I think. So, what do you guys think? Let me know in the comments. And again, hit the like button, subscribe, check out the Patreon if you want to be a part of the community a bit further. That's linked down below. I'll see you guys in there. Have a great rest of your day.