What is causing the stock market to drop what's going on team it's's ricky with tech. But solutions. I'm very happy that we made the video. We did yesterday um and even on friday.

Right overall nasdaq market had a great week as of last week. It was green everyone was getting very excited we were at a critical level and not only on friday. But also yesterday. I made a video talking about why it's so important to anticipate a potential pullback especially as we are approaching the inflation report or the cpi data report first off that is going to be on wednesday.

One hour before the market opens. But why is there more selling pressure today because normally when an inflation report is about to be released the market trades sideways leading up to that inflation report at least that's what happened last time. But what is causing the selling pressure today well we're approaching earnings season. And if you heard anything from the previous earnings is that obviously guidance was not the best for this up and coming earnings.

So this is something that you do have to anticipate. And this is what the market's beginning to anticipate that this earnings is set to be a very very rough earning so if things are worse than expected and companies report worse earnings than expected then this is what can cause more selling pressure. An example is well why does it matter if apple drops a little bit well if apple has a weaker than expected earnings apple's market cap is so large that if apple drops because it's influenced to the overall market. It can bring down other markets.

Which therefore brings down other stocks as well and this is kind of a domino effect because it's not just apple that's reporting earnings. It's every stock that's publicly traded reports earnings. So because of this this is what investors are beginning to factor into the market today. This is why we're seeing sqq indicate signs of an uptrend so i'm not choosing to trade sqcq and let me share with you why i see the market to be oversold.

Enough that all i want to prepare for is for the market to recover. I don't expect the market to recover right away so like we did on friday. We reduced our position size to be able to tolerate this pullback a little bit more i would rather stay cash than to try to trade the inverse etf right now i feel like i'm at a stage right now with tkq and with the overall market that all i want to focus on is for the market to recover. And when it does i want to be prepared.

I don't want to be concerned of hey. I'm still shorting the market or i'm you know going long on ask qqq. I don't want my attention to be diverted in any other way so i'm choosing to stay cash. But like i've said before just because i choose to do something never means that you need to follow in the same footsteps so what goes up when the market goes down and can things get worse well of course right with the inflation report on wednesday and with up and coming earnings.

The market can continue to sell off so just because i'm not choosing to short. Doesn't mean that you don't have to right so if we go to the oil section. We can see that we have sqq. Which is the nasdaq etf so when the nasdaq market goes down just like today ask qqq goes up it's triple leverage sp access.

This is the s p 500. Inverse etf. This is considered the bare etf this goes up when the s p 500. Goes down and then we have the s down up one point two six percent this goes up when the nasdaq market or when when the dow jones market goes down.

So as you can see all markets are in the red. The reason i'm sharing this with you is first so you can be aware if you wanted to of what goes up when the market goes down. It can be a potential way on how you can hedge your positions second. I need you to understand that the overall markets are in the red.

It's not just your trading account. It's not just you it's everything everything is in the red. So i want this i want you to for you to be able to understand that you're not alone on on this red day and second. I also want you guys to be aware that why why was the market or why is the market selling off today and it's the anticipation for this up and coming earnings season.

It's expected to be pretty rough and then of course. The inflation report that we have on wednesday. I just know that if i was someone that was just getting started. I would really appreciate being informed on what is going on and the why i think the why is always the most important part that people don't go out of their way to either explain or to understand.

And i'm pretty sure we both have the same goal right just like when i started to learn how to trade my focus was to learn how to do something and to understand why not just to be told. What to do so that is exactly why i made this video. So um other than that i'm excited to follow up i feel like the next looks like uh. We're already beginning to peak somewhat.

So maybe we'll begin to pull on back all i want to remind you is set those effective alerts. You don't need to waste your entire day day. Trading or waiting for an opportunity to present itself. If overall market conditions are not in your favor right your job is not to waste your time in front of a screen your job is to take advantage of opportunities not only when it makes sense.

But of course when conditions are in your favor. So i'm excited for a live training session again if you like when i explain my thought process. This is something that i do every single morning. Not only do i trade live with my learn plan profit group.

But they are the only group they get to work with me on a closure basis and these are the conversations that we have every single morning. So if you think that it would be a valley for you to start your mornings every day with me sharing my thought process being able to see where i'm buying where i'm selling then again that is exclusive to our learn plan. Prof group. If you want to learn a little bit more about it to see if it's a good fit for you i'd love for you to join me as soon as tomorrow for one of our live sessions.

And again that's going to be that second link down below. I really do appreciate you guys time. I hope that i earned your thumbs up please. Consider subscribing and i'm looking forward to live streaming that cpi data report.

So all you need to do is drop a thumbs up on this video. Give this video over a thousand likes and make sure that you subscribe to the channel. So you get alerted when it is that do go live um. Like always let's make sure that we in the year on a green now take it easy team.