Welcome back to channel everyone today i'll explain why you should not be fooled, how the market is still crashing and it's likely to continue crashing for some time still so stay tuned and let's make some money. And now i want to dive straight in with the key information, so you may have noticed yesterday that the fed rose interest rates by 50 basis points as of tuesday. It was expected that the fed would raise these rates by 75 basis points, but yesterday, in a split-second decision, changed it to only 50 basis points now. Obviously, the wider market was expecting a 75 basis point hike and therefore, when the announcement of 50 basis points came, that was obviously good, because it means less tightening for the moment and therefore, stocks potentially have more room to run now.

Obviously, the reason why the fed is raising these interest rates is because, at the moment, inflation is currently so high when you're in a low rate environment like you were in the pandemic, it really spurs on spending and investment and therefore stocks go up, but obviously, when There's tons and tons of spending and investing prices tend to rise, as does inflation and obviously when inflation gets too high, you have to curb that inflation by increasing those rates back up. Obviously, the downside is that when these rates are increased and the fed spending is capped or curbed, it does create a tighter environment where there's less spending less investment and it can potentially cause stocks to fall. Now. I think it's important to note that there's currently many other catalysts that are causing the current market crash, which is likely to continue for some time still, obviously, as a result of this reduced rate hike compared to what was expected, the s p, 500 and the broader Market had a fairly good day with the qqq or the nasdaq up 3.38, but i do think it's important to remember that one good day does not mean the market crash is over and you have to look at the market on a much broader spectrum.

Clearly, during 2020 and 2021, the market was acting very, very bullishly, moving, basically directly upwards. However, as of this point in november december, the market has changed and has now been falling ever since this downtrending line has not been broken and therefore i do expect the market to continue crashing for some time now, potentially over the next three to six months and As michael brewer pointed out after the year 2000, the nasdaq had 16 mini market rallies over 10 averaging a whopping 22.7, but this was during the market collapse where the nasdaq bottomed out down a whopping 78 in total. If we have a look at this chart, there's tons of miniature rallies going on as the market was falling, some as low as 16, some as high as 40 percent 50 percent and even higher, but obviously over the broader two-year spectrum. The market had fallen by a whopping 78 and therefore, even though the s p, 500 and the nasdaq are currently having days sometimes even weeks of green, where we are seeing the market move upwards, the overall market is still falling.

Obviously, through the month of march, we did see a good gain in the nasdaq going from around 319 points, all the way up to 370 points, but overall, the market still has fallen from around 407 points down to lows of around 310 points. Looking at the s p, 500, specifically, we could see the s p, 500, bounce up to 440 points even as high as 460 points, but we could also see the s. P. 500 then fall to 400 points, 350 points and below and equally after the great depression.

In 1929, the dow also had 10 mini market rallies over 10 averaging 22.8 percent before bottoming down in total a whopping 89 again. If we look at that same chart through 1829, we can see miniature rallies happening, the entire time the market was falling. We saw rallies of 10, 16, 30, 35 and even higher, but overall the market was down by a whopping 89 and therefore i think it's important not to be fooled by a few green days. Thinking the market crash is over when it's very much still continuing and as jason gopher appropriately pointed out, the s p 500 was on track for more than a 2.25 gain.

On the same day, the fed hiked the interest rates - that's happened only one other time in the last 40 years, which was on march 21st, 2000. Okay, the last time the market rallied during a rate hike was right here in march 2000, after the market continued to fall, a bunch more biggums has a theory as to why the market moved up so violently. After this rate, hike was announced guys, if you didn't already know you can currently get up to buy free stocks worth up to three thousand five hundred dollars each and a free share of twitter. On top of that, when you sign up to moomoo using the link in the description below and make your first deposit murmur and future have also officially announced that future does not accept payment for order flow.

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On top of that, he said my guess: what happened with the spy is that the plunge protection team actually ended up getting involved. They pumped up the s p 500, so they could say that investors are growing confident in the economy after that meeting, and he also says it should be right back to par very soon. Okay, the market crash will continue very shortly. Many are also calling for a dead cat bounce and the s p 500 will continue falling and break past.

This 400 point level: zero, hedges even speculated by saying, considering, there's six fed speakers tomorrow. He thinks they will make it very clear that powell does not like stock surging aka, considering interest rates have been hiked and not hiked by as much as expected, the fed very much still doesn't want stocks to move upwards because they know that pain isn't yet over. This article says obviously, the fed raises rates by half a percentage point, the biggest hike in two decades to fight inflation. Funnily enough, it says the fed on wednesday raised its benchmark interest rate by half a percentage point, the most aggressive step.

Yet in its fight against a 40-year, inflation high, obviously half a percentage point is a small increase to fight this 40-year high in inflation, and i don't think this increase is nearly enough to fight inflation properly. He believes the american economy is very strong and well positioned to handle tighter monetary policy. He said adding that he foresees a soft or soft-ish landing for the economy. Despite tighter monetary policy.

Therefore, he expects stocks to have a soft or soft ish landing or a somewhat softish crash. Now again, i'm not really sure how stocks can have a soft-ish landing. It sounds very much like he's not telling us the full truth. Similarly, to when he said that inflation was transitory again, it's so interesting how they consistently changed their mind on inflation.

Previously they were saying that inflation had definitely peaked and was likely to fall and now they've changed their mind to say that we think inflation is close to peaking. Okay, that inflation definitely still hasn't yet peaked and is likely to continue increasing. Regardless of these interest rate hikes, even the article says that fed officials for months dismissed the inflation surge as transitory and then had to rethink that position, as the price pressures did not relent, and i think it's important to note that, even though interest rates have been Increased and the s p, 500 seemingly rebounded wall street still sees greater risks of default by major banks. As i mentioned yesterday, it says the cost to ensure bonds of goldman sachs, morgan, stanley and citigroup against default, hit two-year highs on monday on growing fears.

The fed's aggressive moves to tame inflation might tip the economy into recession. The oecd has said the current war in ukraine could potentially add up to two and a half percentage points onto the current inflation rate and therefore, even though the fed is raising these interest rates, inflation is still predicted to grow by an additional two and a half Percent now, obviously, a recession and a market crash is not good for everyday american people. However, it is good for amc and the amc squeeze thesis, as i've mentioned many times before. If the market does end up crashing these large hedge funds and large banks will be forced to sell off tons and tons of stocks and cover their shorts as they end up being liquidated.

This could potentially end with some large banks going under, like we saw in 2008 and would likely end with many hedge funds being forced to close their doors, liquidate their positions and cover their shores. Guys be sure to. Let me know down in the comments below what you think about the current market crash and what you think about the fed's decision to raise the rates by 50 basis points and as always, guys, if you enjoyed this video, be sure to check out some others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.