So what is causing the stock market to sell off? what's going on? Team: It's regular Technical Solutions And my job here is to keep you up to date with the different economic reports that are being released every single week. And one of the things that we talked about yesterday that a lot of you guys really appreciated was my breakdown on the pending home sales. The pending home sales report was released today 30 minutes after the market opened Wednesday December 28th that was at 10 A.M Eastern time So 30 minutes after the market opened I was live streaming with my learntime profit team during our live trading session I Do trade live every single day. So if you want to watch me trade live as soon as tomorrow, click that second link down below.

But the really cool thing about this is that the pending home sales the expectation was negative 0.2 percent. The actual reporting when it came out was negative four percent. so not point two. but it was actually negative four.

Uh, the prior was negative 4.6 So this means that the number of properties in the US month over month that are currently under contract is actually four percent less than what was expected that were under contract. That's what pending home sales means. The current properties are currently under contract to be so not that are actually sold by currently under contract to be sold, meaning that the seller has accepted an offer on that specific property that was posted for sale. Now one of the things that I want to talk about is the market actually went up when that report was released.

A lot of you guys know if he's been following me for some time is that right now bad news is good news and good news is bad news. At least that's how it's been. Right with the Federal Reserve They've wanted to see the economy to feel the pressure. They've wanted to see the economy to slow down.

So therefore showing that the economy is actually slowing down more than expected. It's actually good news. Excuse me. It's actually good news for the Federal Reserve But right now it's just.

there's so much uncertainty, right? And you're gonna see I mean literally Google Search any type of news outlets and what they're talking about right now about the stock market and there's so much uncertainty of 2023, right? It's been like this: I Mean we're literally experiencing one of the worst years in the past 14 years, right? Uh, it's one of the worst years in 14 years since 2008.. So if you feel challenged, good and good, right? Because it's exactly what's been going on, it's been one of the longest bear markets in the past 14 years. With that being said, there's just a lot of selling pressure. What was actually reported is very good news for the Federal Reserve because it means that they can only justify being less aggressive with future interest rate hikes.

This is showing that the economy is slowing down, which is why originally we went up, but we just had a very solid resistance level on QQQ that had just continued to sell off. We established our support range pretty early on, right around 260. we rallied, but one of the things that I told my Learn Plan Profit Group is: I Made sure that they're aware that they didn't get too excited although we broke above VMA and we kept them up to date with that. although we broke above the moving average and we kept them up with that I made sure that they were aware of the true direction of the overall NASDAQ market right now.

and the overall NASDAQ Market is very bearish. so although we might rally for a very short period of time, I made sure that my exact message I could actually pull it up here with uh for them right now. uh, where? let's see. All right So first break above the EMA for KiKi Q So I put, don't get too excited.

uh, testing moving average resistance. Remember that we have been more bearish than bullish and it's just a reminder I Feel like sometimes beginner Traders Just need a constant reminder of why they should either lock in profits or reduce their position size while they're ahead. and if you listen clearly I mean if you were paying attention to specific ranges and levels, you could see that our old support level during that pre-market session and this consolidation we saw here right around 263 is now the new resistance level I Mean we literally talk about that all the time. Our old support levels become new resistance levels and vice versa As right now, we're still trading relatively within that same range of around 260 and that seems to be the support for the day.

It's already too close to the end of the actual trading day, so therefore I don't expect anyone to actually take a Trader now as the Market's a little bit more on the oversold side, but still absolutely bearish. But one of the things that I wanted to share with you guys is why it's so important right now when all these different reports are coming out. right? Because tomorrow we have initial claims who have claims and we have a series of Eia inventory reports. right? those are all going to be released tomorrow.

The thing that I want you guys to remember is all these different economic reports have normally short-term effect on the market, right? Just like kind of like what we saw today. Right now, there's a lot of uncertainty for 2023, and as these reports continue to come out, you'll see quick little changes of Direction. It's important to stay up to date with them, but it's also important to understand the long-term Vision right right now, as the market is approaching 52-week loads. If we go to the day chart, we're at 259 right now pretty much 260 and 52e closes at 253.

I Want to remind you that we are experiencing a very long bear Market It's one of the longest since 14 years 2008. right now is not a time where you want to be aggressive, but it's also not a time where you want to be scared, right? You want to find a good balance. at least that's what I'm choosing to do right I want to have enough money in the market that I feel like again I have enough skin in the game at these lower price levels. but not that I have so much that I can't tolerate a sell-off right? because things can always get worse before they actually get better, right? It's not an if the market will recover, but it's a one market.

Always recover. The only thing that will determine if you're a part of it is if you can tolerate the time that it will take for the market to recover. This is why we talk about position size. Do Not bite down more than you can chew.

This is not a Reddit group, right? You're not trading meme stocks. You're here to invest long term. So stay calculated, stay effective. But most importantly, stay light during an uncertain time, right? Don't be afraid to take advantage of an opportunity if you see it that it fits your criteria, but understand what and why the importance of position sizing is so important.

And I wanted to use myself as an example I wanted to use Tesla It shows that I'm up nearly 800 on the day, but I'm down right I'm down 424 dollars. A lot of you guys know that I trade with a couple hundred thousand dollars if you look at my actual position size I Just started buying to this, my average purchase price is 114. My market value is right around 25 26 000 I'm in with ten percent of what I intend to buy of Tesla right? Tesla has so much upside potential that I don't need to rush in to bind the dip in Tesla right. Most importantly, because I'm not certain that this is the actual bottom of Tesla but I know that it's at a good enough price point that I do want to take advantage of it.

and a way to manage my risk is to manage my position size. Of course, it's risky to buy early, especially before confirmation, especially with the selling pressure. Tesla has been seen, but guess what? This is why I do it in a little bit more of a calculated Way by managing my position size. Ask yourself one question: if you were to buy one share of Apple stock, one share of Amazon stock, one share of Microsoft stock, one share of Tesla stock and it dips 10 tomorrow.

Are you going to be really scared? No, Because you're lightly enough invested that you can tolerate, right? And that's exactly how I want you to feel to not be afraid to take advantage of an opportunity, but also to respect what's going on with the market and to understand that it is more bearish than it is bullish as of right now. But again, it's not an if the market will recover. it's a when and will you be able to tolerate the time that it will take when the market recovers And that's what I wanted to leave you guys with. So again, we'll talk a little bit more about this within our live trading session tomorrow with our LPB Team friendly reminder again I Do Trade live with them every day.

And if you're tired of guessing and you actually want to start watching me trade live every single day, it's a one-time payment, it's lifetime access and you can click that second link down below to learn a little bit more about it. A friendly reminder. Also, we are doing our Christmas giveaway and if you want to enter to win this PS5 that you see behind me this Christmas giveaway to learn more about it's going to be the fourth Link in the description I Really do appreciate you guys time. Hope that your thumbs up.

Please consider subscribing. And let me know in the comment section what you guys think about my Tesla position. Do you think it's an absolute horrible decision for me to put twenty five thousand dollars into Tesla which is about 10 of what I intend to invest in? Or do you feel that it's calculated enough that again, when it does begin to recover, you know, based off of The Upside potential versus downside risk that the wrist award ratio is definitely my favorite. So like always, let's make sure that we're in the Year 100 team.