At cyber monday week, coupon code expires tomorrow, night check it out in the links down below and get lifetime access to the programs on building your wealth before the price goes up. Hey everyone meet kevin here in this video we're going to talk about two catalysts that we have to be aware of that are unfolding tomorrow. That's friday december 3rd. This catalyst shift tomorrow will be an indicator as to whether or not we should continue to buy the dip or we need to hold on with buying the dip stick to cash a little bit longer because things are going to get worse before they get better.

Remember i've been selling stocks for the last three weeks waiting for this dip and catalyst opportunity. I did not know exactly what kind of catalyst we were going to be running up against, but now we've got a pretty good idea of the catalyst we're running up against. We know that we've got end of the year, profit taking and a loss taking. We know that we've got the big ones, jobs and the uh budget deficit, government shutdown potential, which we're going to be talking about expectations for that in just a moment.

We know that we've got the fomc meeting coming up in the middle of this month. We know we've got inflation data coming up on the 10th of this month and we know that we've got some some euphoria in specific sectors that has been expected to cool we've. Seen software evaluations start getting compressed potentially under the fear that when rates go higher, software valuations will compress. Now i will say, i've been cheering for docusign to fall under 200..

I was not expecting it to fall to 169, where it is right now. So i did a little bit of buy the dipping and i might do a little bit more by the different, but tomorrow might be a tell for me. Am i buying the dip too early or are that is? Are things going to get worse before they get better, or am i performing just right where i've spent about maybe 30 35 40 of the cash that i have and i'm buying the dip and i'm waiting for some of the other catalysts over the next week to Play out, which honestly expect a lot of them to be nothing burgers, but let me tell you exactly what to pay attention to for tomorrow. Keep in mind the biggest goal that i have in this dip here is to buy more high growth, high margin, companies, my favorite most high conviction, stocks for high growth and high margin, which i do think i have the potential of selling down more - are etsy roblox.

So fine end phase apple google tesla, although their net margin isn't super high, yet nvidia chip play metaverse play uh and then outside of those i'm also looking at disney paypal, matterport and potentially a trade on some of the recovery stocks like carnival cruise lines. Although i'll be in that very uh briefly, uh also looking for a recovery or some sort of rotation on uh financial services like coinbase robin hood, which i do expect that we'll see so with that said, what are we gon na? What do we need to pay attention to for tomorrow? Well, there are a couple things. The very first thing you should write this down. The very first thing that you're going to be looking for tomorrow are payroll numbers.

If we get a big beat here well, there are a few ways we can cut. Let me give you the numbers first and then let's try to break this down so first things. First payroll expectations right now are that we will see 550 000 jobs so write that number down 550 000 jobs. If that number comes in way higher than expected at say, 789 hundred thousand a million that could potentially lead the market to sell down as individuals believe.

Maybe the economy is indeed overheating and jerome powell does need to lower uh or raise interest rates to combat inflation. But it's not just going to be that top line number, because the bigger that top line number is the more part. One of the federal reserve's mandate is achieved maximum employment right, but then we also have price stability and we also get a price stability till tomorrow, we're expecting an annualized month over month rate. So you take the month of a month rate.

You multiply it by 12, not compounded. I've explained that before already on the channel, we just want to know what speed are we going at right? Now, not the distance, we're traveling we're expecting a speed of 0.4. That is an inflation rate of about 4.8 annualized for wage growth. So the two big numbers you're going to look at tomorrow, top line number.

If it's a lot higher than 550 could be a problem. If it's a miss, if it's anything below 550, that could actually be good because it might slow down the taper lead more kind of cheap money to flow into the economy, so anything over 550, not so ideal. Anything over 0.4 on that wage calculation is going to be something that could potentially make the market a little bit more nervous, especially if we got a number like, let's say, 0.7, because 0.7 times 12 is an annualized inflation rate of 8.4 percent in wage growth. That's going to start creating nervousness and discussions for the next month about a wage price spiral.

This would be a negative catalyst, so tomorrow, i think, is a really big potential inflection point for the market. Where we're either going to see the market go. Okay, all right! You know things, things are good, things aren't overheating, but things are good and as long as things are good, then hey, you know what buy the dip. That, i think, is what we're looking for.

Otherwise, if we get bad news, the dip will keep dipping like docusign's. Now at 166. it started filming this at 169, and that is a dip that keeps on dipping right now in the after hours. It's not good, it is after hours.

So who knows it? Could it could end up recovering tomorrow or it won't remember? Uh we've been talking about valuation compression for software companies on this channel. For almost three weeks now, i've been warning that software companies are likely to see uh compressed, uh earnings and that's why i've been encouraging hardware companies with high margin, the end phase, the apple, the tesla, the nvidia, but anyway not financial advice, i'm just the stock doctor. All right so then, we've got the next catalyst, the budget, all right. We need to talk about this mitch mcconnell right now, at the time of this recording is actually meeting with joe manchin.

This is very, very rare. I expect that joe manchin and mitch mcconnell are talking about their strategy for whether or not that build back better plan is ever actually going to get taken up in the senate, but as they strategize on whether or not they're going to take up the buildback better Plan which i do expect they'll pay take up the buildback better plan at some point next year, because joe manchin could just roll and go hey. That's fine! I'm fine! With the buildback better plan. I expect that mitch.

Mcconnell is republican, joe manchin's, a democrat he's that key vote in the middle right. I would expect that mitch. Mcconnell is asking joe manchin. Hey look: we're thinking about uh kicking the can down the road on the government, shutdown, we're thinking about kicking the can down the road until february.

Are you cool, basically just holding out with us until february, before dealing with the buildback better plan mitch? Mcconnell would want that to happen because mitch mcconnell will then have his base and democrats nervous about the election coming up in november. Campaigning season is spring in the summer right before the fall election, and campaigning season starts right when that can's going to be getting kicked down the road for the 2022 election, which is going to make things probably tougher for getting the buildback better plan done. So i think mitch mcconnell is kind of looking for, like hey, we'll get you the vote. I'll kick in the can down the road till february, we'll get democrats to vote for this.

The house is voting to pass the extension right now. We expect it to pass the house, we expect it to pass the senate, but i believe that's what's happening here - background negotiations about hey, let's, let's kick the can down the road. Let's just pick up build back better in the budget in the springtime, let's get through the holidays, let's get through the vacation. In my opinion, that is actually going to if this ends up happening in the next 24 hours here 24 to 36 hours, and we end up averting a shutdown.

That's gon na be good news for the market, so you've kind of got this potential for double good news. Bad news or mix uh and cnbc will not stop talking about docusign, plummeting, which please fine, keep talking about docusign plummeting, it's fine with me. I want i've been wanting to buy that company under 200 for a very long time, i'm kind of happy that it's on sale, i think uh, we'll we'll see where it bottoms out, but uh. I might be adding to this one a little bit more uh.

Okay. So here's the thing what's very very important right now is how these two things are going to play out again. If jobs numbers come out in our favor buy the dip. If jobs numbers do not come in in our favor, we could be in for more pain.

A lot more pain then flipping the script. If we end up getting a budget or government shutdown, that's going to lead to more uncertainty and nervousness - and that's not good uh. Oh yeah look at this as we move through q3 and into the next quarter, and they just put the screen away. Basically docusign saying they're, seeing people's urgency to buy subscriptions for docusign waning and those docusign subscriptions definitely slowing down so at a slower pace.

And that's why they're slowing guide, i think documents still a great company you've got ta. You've got a um a covert play inside there, though right as cove. It goes away. The whole stay-at-home thing goes away.

We're gon na expect more coved uh stay-at-home traders to actually get out of docusign and into other stocks. So that's what i expect to be happening here, but again uh, even at uh, at 160 uh, it's still an expensive company, you're, still paying probably somewhere around 40 times forward. Let me actually just look at the financial analysis again here. 40 to 50 times might be closer to 50 times, so we're kind of combining this stream with or this video here with multiple different updates.

But that's fine. I think that's what you all appreciate anyway, so we're looking at uh eps of about 355 in 2025, nice compounded annual growth between 43 25 to 43 expected. We are expecting profitability this year, which would be great, so that'll be a very big rotation for docusign and a 355 on a 160 valuation for the stock. That's about a 45 forward pe with the growth rate.

They have it's not terrible, not terrible at all. It's certainly between a one and a two, depending on which year you're comparing to for growth. If you're, comparing to uh 2025 compounded annual growth about 24 25, let's go with 24., that's going to put you at a peg ratio of about 1.8. Definitely on the expensive side, but uh boy, oh boy, that one that seems like a potential oversell right there down to 166 right now.

Uh wouldn't be surprised if he keeps selling off the more cnbc keeps bagging on it. But that's okay! You buy the dip when there is blood in the streets. So again, it might make sense to wait, though, until tomorrow morning, to go crazy on docusign, specifically because of the uh, the catalyst that we have expiring tomorrow, so pay attention to those catalysts tomorrow, they're going to be big, we're going to get the jobs numbers coming In at 5, 30 a.m, pacific time and that's 8 30 a.m, eastern time and the budget regarding whether or not we'll have a government shutdown or not. We should know within the next 36 hours on that one.

I expect the senate will pass something last minute tomorrow, then we'll get the headlines. You know budget uh, government shutdown, averted blah blah blah blah anyway, uh bullish, a i'm glad. I raised a lot of cash because we're seeing a lot of pain and i like shopping when there's pain all right folks. Thank you so much for watching this video we'll see in the next one check out the program's link down below with that cyber monday week.

Coupon code expiring tomorrow, all right folks, thanks so much bye.