Folks Wall Street is officially sounding the alarm on Israel and the risk of global spread. Since the original attack on October 7th, we here on the channel have been talking about how Big Money is repositioning themselves as they anticipate this Middle East conflict as escalating and that is exactly what is going on. I have their latest moves for you here today and I Highly recommend that you watch to the very end because you're going to have a completely different perspective on not just what Wall Street is doing, but what Wall Street and those in power think is going to happen over the coming months because where they put their money is where their true beliefs are revealed. It's one thing to go on MSNBC or CNBC and say a projection.

It's another thing to move all of your money and your clients money to back up another thesis. Which one do you think you should trust more for me? I'll Trust where their money's going I'm also going to be violently breaking down what trades are working in today's environment and how you can potentially take advantage and get some rally ritos after all. on Thursday's video we presented on Wlr talked about how it was a hot short squeeze setup and it ran about 96% to to highs on Friday. We're going to break down exactly what happened and how you can find some of these types of plays yourself.

Okay, so we need to start with what's going on in Israel and how big money players are treating this because what analyst firms are saying reveals a lot about what Wall Street believes is going to happen in this conflict. The Israeli economy has taken a serious hit at the hands of operation Al Aassa flood, losing three billion in damages on the first day of the war alone a state that some economists say is worse than it was during their 2006 war with Hezbollah now just a few weeks into the war, Wall Street is officially downgrading the credit rating of Israel as a country. Israel was just downgraded by both Moodies and Fitch and more likely to come. Which really tells you that Wall Street does not believe that this conflict is going to be short-lived No, not at all.

They believe that it's going to be long and drawn out. You see, downgrading Israel is not is not a normal thing during periods of conflict. In fact, this has never happened before. Israel of course, has had many previous conflicts, but no previous war or global economic crisis has down downgraded Israel's rating by any of the major economic rating companies and the firms that are doing the downgrades well.

They are led by some of the most influential and wealthy and powerful and well-connected people in the world, and they are hearing what they are hearing at lunches, at dinners, at conference calls. Is that hey buddy, you need to prepare for this global conflict. It's time to downgrade because this isn't going away anytime soon. You need to start reallocating, not just your portfolio out of the region, but also reallocating everything.

Because this is going to be a global issue, pretty obviously are being told that you need to prepare for a much bigger conflict Quote: While not our base case, such large scale escalation in addition to human loss could result in significant additional military spending, destruction of infrastructure, sustained change in consumer and investment sentiment, and thus lead to a large deterioration of Israel's credit metrics. Fitch Ratings Wrote in a statement. On top of that, you can also see the Israeli shackle has been plunging since the attack on October 7th. At the same time, as many as 360,000 reservists are leaving their jobs and businesses to mobilize for military duty over in that country.

You know Israel's technology industry a driver of growth. Well, it has a lot of young people in it. A lot of young men, and a lot of those are being pulled from military service. Now, 360,000 people is actually a lot when considering that Israel's population is only about 10 million and maybe their working population is around five or 4 million.

So when you're pulling out 360,000 young men, well, you are creating a very, very big standstill in the economy. Pretty obvious in my view, that the reason that W Street is downgrading Israel here for the first time when they haven't before in other conflicts is because they believe that this war is going to continue to get worse and is going to continue to cause segmentation on a global stage and is going to continue to spread across the world and bring in more and more countries in one way or the other, either by proxy or God forbid direct conflict And and they believe that at the very minimum, Israel is going to be sadly uninvestable during this entrenched conflict. And this is the early early signs that this is what they are saying behind the scenes. Now a bigger picture reason why this is important is not just because of the Israeli economy.

Obviously, here in the United States there's not a massive, massive, massive amount of overlap from our economy, and Israel it's very, very small. Israel is a tiny country. The GDP is massive for what it is, but again not a huge overlap. However, because of how critical that region is and how controversial that area is in terms of geopolitical relations, well, there could be a massive massive impact here at home in the United States.

That's why it's so important for you to understand what Wall Street thinks about is because it also dictates what they think about the overall market and what they think about the overall economy. and as this crisis continues to worsen and it is indeed, unfortunately worsening rapidly. while the clearest and first bet that those with big money are making right now is getting the hell out of the overall market, now don't get me wrong, they are still positioning that money in certain equities and other areas which we'll discuss later. But the fact of the matter is that since the end of July money has been draining from the overall market.

and now with this Middle East crisis, the floors are falling out and setting up to fall out much much further. we broke August Support We failed a recovery off October Support and now we are heading for a breakdown. Right through that October Support Markets are losing more and more buyers and the more support levels you break, the faster. The breakdown is because sellers aren't going to be able to find buyers.

Think about this folks, if you are a big fund selling a massive amount of your portfolio right now, you need to find a buyer. And if there aren't many dip buyers, well you start getting Gap Downs which then forces more and more other funds to wake up and sell. and then the general public loses confidence fast as those support levels start breaking down. And with the current setup that we have right now, we are in the beginning of that, the beginning.

Just watch. If you break that 4216 low, we hit October 3rd which it could easily break below that within the next couple of trading days. Well, you're going to see another massive leg down. Almost every single time a bottom falls out, especially when there's a good reason for it to fall out.

you get a massive leg down. All of a sudden, the selloff starts accelerating and you start panicking out more and more and more and more people. Now again, whether the selling pressure comes over the next two weeks or over the next couple of months. the truth and the fact of the matter is that people are going to misinterpret it greatly.

But don't you make that mistake. Markets will be selling. Not because they're scared, but because they're strategic, they aren't selling and they're not going to continue selling because they're worried about the crisis they are selling because they want to make more money off current trends and they know that the way to do that is to deploy that capital in an area that is going to benefit not be bludge from this overall crisis that is breaking out. And so I Want to bring you over to this chart Here this is a chart of the change in funds in Money Market Assets In blue you have the retail money and in green you have the institutional money.

Market assets are things like cash, government securities, and other very very liquid assets you store Capital and money market funds when you want it readily available for deployment. And you could see that in this month of October October This current month, you are seeing a record withdrawal of these liquid assets not from retail, but from institutions. The people with all the connections and inside Scoops are moving money out of liquid assets and deploying it elsewhere. So again, this isn't a scary shared Market At least not from the institutional side.

This is a very, very very strategic Market This is a market that says hey, I see a crisis I'm going to figure out how to profit off the crisis. This is a Wall Street that sees a crisis and they're saying hm I'm not scared I want to make money. The people with the connections in the institutional world are making the deployment of capital, They're taking money out, they're taking liquid assets out and they're deploying it elsewhere. However, the people without those connections and without the inside scoop, what are they doing retail like you and I Well, they are choosing not to deploy that cash.

They are choosing to stack up cash even more. Which again, I'm not against stacking up cash. But when you're in the situation where you got a lot of Institutions that are saying we do not want to be in liquid assets, what does that tell you? Well, that tells you. number one: they think the overall Middle East crisis is going to get way way way worse.

Where not only is oil going to be a great way to hedge, but also this crisis could risk creating another inflationary spiral where all of a sudden you definitely don't want to have anything like a liquid cash asset now. I Know some people will argue that this would withdrawal is partially due to the tax extension deadline payments, and that's certainly a part of it. but there's something way more serious going on behind the scenes when you see the volume at which this money is being withdrawn all at once. Now, where exactly are these funds going? Where are the people with the most power, influence, connections and knowhow within this economy moving their money? While all the prices are up about 12% since the war rupted and that's one of the areas, and as I told you in the last video, many many are hedging with oil contracts by Ovx and you can see Ovx has broken out to yet another new high as of Friday morning.

Now the reason they buy this is because they want to lock in low oil prices before before oil really takes off and then they can sell it to those who really need it at Cutthroat prices. They can resell the contracts that they bought during periods of time where Oil was priced low at very, very very very elevated prices. Once oil goes up a lot, it's a way to not just protect and hedge your current portfolio, your overall portfolio, but is also a powerful way to make money off the current environment and trade with the trend. Now, the other thing that you need to keep in mind is when you see the world getting more fearful and problems start well, Vix starts Rising slowly and steadily and then as the time goes on and things escalate, it starts catching up and skyrocketing exponentially.

Vix measures the amount of hedging going on in the overall Market People hedge when well, when they expect more volatility and more uncertainty, right? And that is exactly what we are in the early stages of right now. And right now is not messing around, folks. No, it is not. It is not a little messy.

Mista Viix keeps trending Higher and Higher and Higher and breaking higher and higher high and the momentum is some of the clearest Vix has shown all year. We just broke out past the double top at 2080 and frequently when you break a double top and maintain your lead above it, what does that do, What does that mean? Well, all of a sudden that means you're heading for another run to the next resistance level and the next resistance level is at 2365 and then 3087. And as you might imagine, fear has an exponential IAL effect. So that means that once you break those levels all of a sudden, the fear it doesn't go down.

It doubles and triples and fples We are in what I believe are the early days of hedging. But if Wall Street's prediction of a much much larger conflict comes true, which again is what they are positioning for, well, you could expect previous resistance levels to be blown out again and again and again. This reminds me of back in 2020 when you had some on Wall Street slowly hedging and then boom. There was just an insane panic and Vix broke out huge.

Back then in the early days I made an argument again and again and again to by Vix, by Vix, by Vix AKA by Vix trackers. Back then, the Vix tracker was Shx. Now it's Uvxy. But that was the argument that I had made.

and the reason was because you're going to see uncertainty break out huge and it's not like a crazy prediction when something new and bad happens. uncertainty tends to break out more often than it doesn't so that makes Vix and Vix trackers a clear watch. The other area that you need to watch right now is Defense Folks. This week, we've got earnings for basically all of the major defense contractors.

RTX AKA Ron on Tuesday before open GE in 3M you've got Boeing on Wednesday before open Northrup Grumman on Thursday before open. And of course you already had Lockheed Martin on this past week. Now folks, when you hear the US say something along the lines of we are sending more Aid to Israel or to Ukraine Well, the military part of that, the military aid part of that comes from our stock piles here in the US or comes from new fresh orders and in both cases they are either replenished or created for the first time by defense contractors. Defense contractors.

have pretty large profit margins and and they enter into a big bull market. When you get big conflicts now, these companies aren't going to come out and say, oh, we project more war and thus more profit For our bottom lines. it doesn't work like that. However, they're likely to say things like hey, we have a lot of new contracts under negotiation With the Pentagon We have a lot of new contracts, We have a lot of new orders, we have a lot of more blah blah blah blah blah And that is how you project.

Not just what these companies are going to be earning in the coming quarters, but also what their analysts are saying about the war in the geopolitical situation, and what Wall Street is telling them about the current geopolitical situation Because these companies also have a lot of connections. Of course, at the Pentagon, they give a lot of money to war committees in Congress so they know all of the most recent information that we don't get for a few weeks or months later. So you want to pay very, very close attention to what they're talking about. And it's my view that over the coming weeks and months, you're going to see more and more big funds allocate into these defense contractors.

What about the FED Charlie Now with all of this, the other thing is that the support that markets have long been banking on from the FED does not seem to be coming anytime soon. At a recent interview, Powell stated quote, the economy might be somewhat less susceptible to rate increases, mostly due to the fact that companies and home buyers have locked in low fixed interest rates on their debt and thus are not affected by the recent increase in interest rate. Thus, pow stated that it might be that the rates have not been high enough for long enough and he's saying, hey, when we say higher for longer, we mean higher for longer. We aren't going to be supporting this Market with rate Cuts anytime soon.

And this is not something that markets that have been ralling largely on the idea that rate hikes would come down into 2024 once to here. Now of course, we know from history that when the unemployment rate starts really ticking up and the government can't brush it aside all of a sudden the FED decides to start cutting rates really, really quickly. And this could certainly happen if this crisis spirals like big money thinks it is going to. But as of right now, overall, markets don't have much to be excited about if you're someone who is long equities right now.

Overall market equities at least well, you have some of the worst risk premium in 20 years and you're going to have a rough time until get cut or the crisis ends. Historically, if you wait long enough, you'll do fine, but at the same time if you're somebody trading Trends Well, just so you know, long Oil, energy, gold, Defense Contractors and volatility. Hedges That is where a lot of the evidence is pointing to for the coming months and perhaps the next year. Okay, now it's time to move over to the small cap market and specifically some recent short squeeze ideas.

Let's talk Wlr o This was a short squeeze stock we presented on in the last video on Thursday after ours close and it opened Friday Premarket at $1 a share and ran to 148 and then sold off into open back to 106 and then ran to 196. Now that is a total run of 96% open to highs sometimes when you get these Gap UPS premarket they are too hard to play. So what was nice here is that you got that nice selloff and then and then you got the later retake over the directional SMA line which allowed for a really, really nice trading opportunity for folks who might have missed that pre-market open. Shout out to folks who played this successfully.

This is a huge Testament to doing your due diligence to have risk management to lock in the actual profits on a stock that runs and to show up every single day If you'd like to be one of the first to hear about most of our ideas and catalysts each and every Market open morning. Well, we've just opened up our Halloween 65 sale which will get you 65% off our onetime fee for lifetime membership to our program. coupon code Halloween 65 will get you that 65% off coupon code down below. We've had a lot of success in our briefings the last couple of weeks.

Some of our best ideas we briefed on in Zip creatu over the last couple couple weeks were stocks like Tpst. We briefed on Tpst for Zip Trader you members last week at 94 cents a share Wednesday morning and it proceeded to run to 1150 about a 1,1 123% increase briefing price to highs. This was a very unique setup and we didn't expect that big of a run, but market conditions were very, very hot and we did correctly identify the setup on that stock. We briefed on SEO at roughly 83 sets a share on the 16th and it ran to 181 over the coming days.

And of course, we also briefed on Wheeler a couple days before the channel as well. So again, for folks who do want to be one of the first in line to see most of our trade ideas and and Catalyst that we're watching, make sure to give that a look below while the sale is still on Anyways, folks, thanks for tuning in today! Make sure to hit that ravishing like button and subscribe if you found value in this video and we will see you in the next one.