What's up everyone? Alright, so in this episode I'm gonna talk to you guys a little bit about the Corona virus and what I see is its current impact on the market. and I want to reiterate and I'm gonna say this again during this episode that nobody knows what's gonna happen. There's a lot of speculation I Saw I've seen two headlines in the last week. one about how the market has just had its best Green Day in the last ten years and how this is an indicator that the market is really strong, it's gonna rebound and if this dip is a buying opportunity and then another headline about how the market is gonna drop another 50 percent and we're in for the biggest drop in the last century.

it's all Clickbank It's an and it's sad that it's by reputable news agencies because you know you might expect it with I Don't know some websites out there these kind of salacious blog posts about the market or about people. or you know about the three foods the will help you lose seventy five percent of your body weight in seven hours. You know this crazy crazy stuff, it's clipping. but when you see it from the big news agencies, that's frustrating at least for me because it feels like it's just selling the fear and you know I I Don't think the markets gonna drop 50 percent? Maybe I'll be wrong I think it's I Don't think that's gonna happen.

However, there are definitely stocks that are already telling us that they will make less money this quarter and this year because the Krona buyers companies that have a supply chain that starts in China and there's other companies that are already telling us that their earnings are going to be significantly higher because of the coronavirus. So it is definitely having an impact on some companies and it will have an impact. So Dart is on the overall market, so we're gonna talk about that a little bit in today's episode. I Hope you guys enjoy it.

Leave questions and comments right down below and I hope if you're not already subscribed the channel, but hit that subscribe. Alright you guys! so I Want to record this episode here? We're gonna talk specifically about the coronavirus and the effect that's been having on the markets. I'm going to preface the episode here by saying that nobody knows what's gonna happen and I'm not gonna try to speculate on what's gonna happen. Nobody knows what's gonna happen one of the things and I had a just for just just cuz it's funny I Have this.

I Took a screenshot a couple days ago of an article on my phone. Where is it? Oh let me see, it was. It was so ridiculous and it really annoyed the heck out of me. And well, so here's one article thou roars back from: Coronavirus sell off with the single biggest gain since 2009.

Alright, so that was the other day and and then before that there was a headline stock market crash Ivy League Professor Warns of Colossal 50% fall. That type of stuff drives me crazy. It seems like every day that you know I Look at my news feed and I'm looking at the business news. I'm seeing stock market crash.

Stock markets gonna drop 50% are you prepared? and then I'll see the top 5 stocks that will survive the next recession. These stocks are going to be exploding during the Coronavirus and you know what it is is clipping. and I'm not going to call this video. Why I Think the markets gonna drop 75% It's just it's all this clickbait stuff.

Now when the big news you know agencies or whatever you would call them, whenever they put out these headlines, they want people to click on them. They want people. They want to get those views. It's good for their advertising they want to put out.

really, you know, compelling and you know, confrontational type of things because it gets people engaged. The problem is that it also genuinely scares people. and as someone who's in the market every day, I Just I find it to be incredibly unhealthy Frustrating. So here's here's my two cents on the coronavirus.

Nobody knows what's gonna happen with it. No one knows how bad it's gonna get, and nobody knows the true effect that it's gonna have on the market or companies in the US Everything is speculation. Now, of course, there is some degree of educated guesses, looking at past events and trying to draw potential conclusions that well, this happened in the past, so maybe this can give us some direction of what might happen here in the future. So what we've seen so far is that the market has entered a correction.

The correction means the market is down more than ten percent versus the all-time highs. and this is the Sp500 right here. So this is a the Sp500 Of course, 500 different stocks and this is widely looked at is a really good reflection of the market. The Dow Jones is also a indicee that is a composite of 30 stocks.

So it's a little bit of a smaller reflection of the market. But oftentimes when people are talking about the markets down a thousand points, they're they're talking about the Dow Jones Industrial Average. In any case, this is the drop that we've just had. and what's interesting is that we were trading the coronavirus catalyst back here in January.

We've known about the coronavirus since when when did it first come out in in December that people became aware of it. It might have been back in this kind of area. This first drop I'm not certain, but it was. It was in December for sure and I think it might have been early December So the coronavirus you know came out and we knew it was really concentrated in China And so for the next three weeks the market continued to squeeze up.

However, what we noticed were that some stocks were beginning to respond in kind of I don't know as as using the coronavirus as a catalyst and so I'll give you a few examples. So let me pull up my second window of charts here. Alright, so what I will say is that without a doubt there are some companies who will lose money because the coronavirus. A few companies have already put out a forecast that their earnings will suffer as a result of this coronavirus.

Microsoft Apple These are companies whose supply chains are very much tied up in China And so the combination of quarantines, people not being able to go to work, it's absolutely affecting their ability to produce products. Just as an example, I bought one of my you know funny sweatshirts made in China and you know after I ordered it, they're like yeah, that's not gonna arrive for like three months so you know that's one company where some people would be like, you know what? Forget it. Yeah, I'm not gonna place an order when on the order page it says it's gonna take two or three months for it to arrive you know and and that those are small companies, but from small companies to big companies, it absolutely is going to affect a P&L profits. And I'm sure that you know Chinatown and Chinese restaurants are gonna suffer as well.

we were talking I was in San Francisco a couple days ago I was talking with someone who said that that it's a real issue because people are afraid I mean Chinatown in San Francisco I Don't know that there are any cases of Chrome virus, but people are. You know they're afraid and so it is having an effect. And on the other hand, and so we will see that effect reflected of course in the price of some of these stocks. Companies that have already indicated that their profits will suffer Microsoft is down a little bit.

Apple is down a little bit as well. And then of course there's other companies that are really not effective. In fact, they're companies that will benefit from this virus. which is, you know, like anything else, it's sad because it's it's a real buyers and there's people that are really dying.

and there are companies that are gonna make money because of them. So a couple of those companies, for instance, biomedical suppliers apt. Lakeland Industries, You know Lakeland Industries makes biohazard suits so you know you look at their stock price and the coronavirus for them. You know, starting in really I Guess it was January That's when it started to give them a real boost.

and clearly from eleven dollars to almost $30 a share, that's not nothing apt. This is another stock that's been benefiting from the coronavirus. The stock went from three dollars all the way up to forty two bucks. a HP I This is a stock that went from a dollar fifty to forty six dollars a share.

But what I find really interesting right now is that it feels like we're on kind of the back side of the move where we've already kind of seen the most extreme move in these coronavirus stock kind of trains Coronavirus Catalyst trades even though the Coronavirus right now is probably worse than it's been at any point. I mean it's in Massachusetts it's in New York it's in New Hampshire it's in Florida it's in Washington it's in California it's in probably several other states in the United States it's in European countries it's in South America I mean it's obviously in Asia it's really spreading and it's pretty scary and yet despite it kind of being all-time scariness and despite the fact that the S&P 500 on Friday hit it slows the peak in momentum to the upside was kind of I guess on Friday As the market hit the low and bounced up, these stocks started reversing and so even though we may see a stock like you know, whatever, whatever stock maybe come out with some type of catalyst that they're working on a vaccine. or they're working on some immune therapy, or they're working on some type of testing. or but they have a new biohazard suit.

or their orders for masks have increased by 250 percent in the last month. It feels like that Catalyst is getting a little bit over played in the small cap sector because we had such an overreaction on a HPI and apt. And remember when you have an overreaction like that, you have a short-term correction and so what that basically is is the stock got irrationally strong, came back down, and if you're a short seller, you would have been able to profit on this. move.

Back down of course I profited on the move up more than the move down because I don't short this these types of stocks. They're very risky. Obviously for all I know it can go up to 50 or $100 a share, so you have to be very careful shorting them. But clearly it seems that there there was some potential to the downside.

And so because that over you know exuberance that that greed has kind of tapered off a little bit, we're in a period right now where I feel that the market is a little bit more difficult to trade. the S&P 500 is as you can see between the low and the high. so we're kind of. You know, we're on slightly lighter volume than we were on the peak sell-off day.

So this is what we kind of call range-bound Where we're in range, we're not making new highs, we're not making new lows. We're kind of range bound and this can be a dip. A difficult area for day trading because as we get range-bound the volatility starts to decrease HPI apt Co DX and NBC These are all kind of range right now as well and NBC in January was one of the first ones that really started to open up on coronavirus sympathy through December I'm not really sure that there were very many stocks that had a coronavirus catalyst, but after we saw it on NBC that's we start to see things really pick up and then this was a pretty crazy move. If you look at this chart.

this stock and one day went from $3 to 1345, The next day it was back at 3. You've got to be kidding me. Then it rips all the way back up to $17 and then drops to 8. Then it squeezes up to 19 and then comes back down to 6.

So if you're a trader that is struggled a little bit in this market, don't feel bad. It's been extremely volatile, not as predictable as as we've noticed in the past, and one of the things that's been really fascinating has been the inverse relationship between these stocks that have been moving up and the overall market moving down. Bordering on it Feels like at times these stocks have been just like almost as if I was trading the overall market. And so let's look at this for instance.

so this is March 2nd. Alright, so let's go back to March 2nd. Alright, so what is this chart look like? So here let me make this a little bigger for you guys. So on this side we've got the S&P 500.

All right. So the SP 500 ends up. This is after hours. This is pre market so pre market is dropping and what happens here this this stock coronavirus sympathy is popping up.

Fear makes it go up and then the market starts popping up and what happens to this stock it starts dropping down. So when the market goes up, these go down. When the market goes down, these go up and look at today the market's dropping down and these are going on I Don't like trading generally the exit p500 and I don't want to trade derivative of it or a stock that is so fear-based that when the market drops it starts spiking. They can be extremely difficult to trade because apt it's not an SP 500 stock.

You know it doesn't have any direct tied guessing for 500 other than the SP 500 can be seen as a reflection of fear in the market. and so that's something that I found really difficult. And when I when I really started to notice it, it was what day was it was it this day here? Yeah, it goes this day. So let's look at the 28.

that might be one of the more pronounced days. So this is the 28. So after hours the S&P 500 is dropping. Alright, so what would you expect apt to be doing after hours moving up pre market.

the bell rings, opens, pre-market trading and the markets gapping down. Again, it's even lower and so Apt surges up and these hit all-time highs. As the market was coming down to the love's now, the market starts to recover a little bit and a PT comes back down. Now going into the open, the market actually started to sell up and that's why as the market was selling off right here I was like okay markets selling off this is probably gonna mean this picks up, this is squeezing up right here and then when the bell rang I was like okay, it's time to trade Apt added the gates right? This this looked like a good setup, but no the market was popping up and so that therefore was going to affect apt.

So I this is the type of stuff that is very difficult to trade when when this happens to be what's going on in the market. And I certainly had my share of losses now. February for me ended up being a pretty good month and if I look at my trades from like January 15 through the end of February it's about seventy eight thousand dollars of profit and you know in fact a PT and a HPI both ended up a a PT AHP I and CEO DX both losses. these three girl oxes and I CCC was a loss and this is one and where my my note was bought coming out of the first hall.

it was a coronavirus stock and so I have kind of found that the coronavirus stocks have been fairly difficult to trade. Granted today I did make $10,000 on a HPI on this pull back right Here is it squeezed up to 24. But generally speaking I have found them to be really difficult to trade party because of the connection that they've had with the overall market. Part of it is because they started getting a little too expensive up here in the 30 $40 price range.

The spreads got really big, some of the lower price ones that we've seen like Ino Today this had over a hundred million shares of volume, so reading the level two starts to become very difficult. I made 977 on this one today, but I generally found it to be during the morning when I was or earlier part of the day when I was trading it to be choppy. So the coronavirus no doubt is a catalyst that will continue to affect the market and to the extent that it's going to cause a 50% drop in the market. I think that that's fear mongering and I think that that's designed to sell newspapers to to generate cliques and I don't think that it's something that people who are writing those articles are actually expecting will happen.

But it doesn't mean that it couldn't happen. And if we look back at the overall market here, the S&P 500 I'll just adjust this time frame. Let's see the 24 hours here. So this is the S&P 500.

It's gonna be over a long stretch time. and as you can see over long stretch time. We've had a few periods of correction, moderate correction, and also certainly more significant. This is a very this has been a very significant correction, but in a lot of ways.

it's been a great opportunity to buy because we've had a the stocks all of a sudden drop by 10 percent. In these are stocks that have been very extended. Generally speaking, back here in December of 2018, we had a little bit of a correction. The market pulled back from a high of 291 down here to 233.

I Mean this was. You know, this was a pretty serious drop here. It occurred from the end of September to December and you know what? every single headline that I was seeing was. We're in for the next recession, The markets going to drop 50% Are you prepared for the big one? Because of course that's what sells I Am a big believer in cost averaging, which with long term investing like with a 401k, means that every month I just put away the same amount of money.

And so let's just say for instance, if you put $1,000 away each month, just for instance, on some months that thousand dollars might only buy you, you know, Let's say 10 shares of Neta on another month it might buy you 20 shares. But over the course of years and years and years, that all averages out. And so this is. you know.

for me, You know you look back at this kind of long period of time. and if every single month you know you're adding another $500 $50 hundred dollars. Whatever it is, you're just adding a little bit of money, a little bit of money. It doesn't really matter if you're adding at the peak right up here.

and then you see the market drop here, because long term, you know you've got time for the recovery. It doesn't really matter if you end up adding money right here, just before this drop or right here just before this drop. Because when you look at the big picture, the market and statistically has always continued to move up higher. So you know my two cents on the long term is that any dip generally speaking is a buying opportunity.

An opportunity to buy strong stocks. whether it's through cost averaging in 401ks or IRAs or you know, whatever you might have or it's through actively buying stocks. The prom of course of actively buying stocks is that versus in ETF is that you could happen to choose the wrong one. And what you don't have, there's diversification.

You have single stock risk. So if you said well, I'm gonna put my whole thousand dollars into you know Microsoft stock You know we can look at the Microsoft stock chart and you know, get it's not that it's been bad, but you know you might just find that you that wasn't the right decision because you know, go back here. This is back along quite a while ago back in Nineteen Ninety Nine, but it didn't have a peering from 1999 through. Gosh, when was it? I Mean it was really only in the last five years that it's really started to to open back up.

So that was like a seventeen year dip that it went through. Alright, so that was a really long stretch now. of course it's up now, but you don't want to pick the wrong one and then be kind of tied up and stuck. I'm trying to think of another one o XY This is a petroleum company.

You know this is one that you put all your eggs in this basket. It's been down while the markets been up. So in any case, I Do think without a doubt there will be stocks that that suffer as a result of the coronavirus. We're already seeing it in airline stocks now.

Delta Which is one of the airlines that I your line suck that I happen to like it's down but it's not down out. I Mean it's down, but like when you look at the range that it's had over the last few years, it's not what I really say crashing Carnival Cruise Lines Obviously people aren't super excited. Booked a cruise right now so you know they're suffering a short term. but you know a lot of people will.

you know generally are considering these to be behind opportunities, hotels, casinos, Things like that. I'm sure that they will suffer if the virus. well depending on where they are Prime businesses are located, but those that are in the United States You know we do see a really significant increase in the number of coronavirus cases and people stopped wanting to travel and you know, go to Las Vegas or you know, go to Disney No doubt we will see casino stocks, we'll see Disney and other stocks suffer. but no, nobody knows really how bad it's gonna be.

even its absolute worst, both for you know us as people for the markets for the individual companies. And so it's really just speculation. So it comes back to Risk Risk management. One of the things that financial advisors will often say is that nobody calls.

Nobody calls their financial advisor to complain when the Sp500 is hitting all-time highs, right? It's on these days that everyone's emailing their like it art you know as my 401k okay or is my, um, you know my retirement saving is going to be decimated. How bad is it? And so when you're thinking about your long-term goals and you know how your invest, you have to always have that mindset of what is my downside risk. And if that happens, can I afford And if you're 35 and you don't plan to retire for another 25 30 years, then this type of stuff is, hopefully you know, a kind of a blip on the on the radar and even 2008-2009 you know the potential global economic collapse that had a full rebound in the market. You know within, certainly within ten years.

and not even so. you know it's one of those things that for someone that's 75 years old and there's currently retired, probably being fully vested in the S&P 500 would be incredibly risky, but you know it's it's what's your risk tolerance. And when it comes to day trading, I Would say that the last two weeks for me to been a little bit difficult February was great. The last two days of February were both red days for me.

I I Do think that we're kind of on the other side of the really strong momentum just because I've seen waves of momentum. But this particular catalyst, it kind of reminds me of the Bitcoin cryptocurrency catalyst that just kept getting played out and it was like alright, another stock is coming out with cryptocurrency something or other. So like you know, if we start seeing every other small cap is coming out with news that they're going into the coronavirus for. You know, creating a coronavirus app and creating a you know coronavirus headband that tells you whether you're positive or not, creating a coronavirus you know I Just you start to get to a point where it's like alright, this is getting kind of ridiculous.

These companies, most of them are not going to benefit in any significant way from the coronavirus. They're trying to play off of it to get you know people to buy up the stock and it's it's gonna stop working. But there are of course some companies that are already showing in their their last quarter of earnings that they are actually benefiting from the virus and then you know it's gonna affect their bottom line in a positive way because they're in the biomedical industry and that's the same as when we had the shootings in Ferguson and the makers of Body Cameras their stock went up that was Digital Allied Egl. Why You look back at this stock back in 2014 and it's you know, fear your cells and the stock went from two bucks to 30 something dollars a PT and back in 2014 as well Made a really big move.

This was the Ebola virus Lakeland Industries 2014 Ebola virus. And so you start to learn some of these patterns in the market now obviously the Ebola virus. and although I think there might have been a new doctors that did come back to the United States with it, it wasn't certainly nearly as widespread as the Chrome viruses today, So I'm not sure that that's going to be super comparable in terms of what happened to the overall market during that period of time, But those standalone catalysts certainly did have short-term impacts on these stocks. So my focus for the next few weeks I'll continue to watch stocks that come out with Catalyst relate to the Corona Virus.

This was one of them today, but this stock, despite having a catalyst out at 9:00 in the morning 8:00 in the morning, really didn't do anything until all of a sudden here at 2:30 in the afternoon. So why is that? The news was out all day long? Everyone had every chance of buying it right here, right here, right here. But then it finally broke out right here. and I don't really know the rhyme or reason to that I know, Oh, maybe there was a headline.

see I'm not sure if this is actually a fresh headline that came out in the afternoon, but in any event, it's clear that the Kuran virus is going to continue to be in the headlines, both with small cap and large cap companies, and because it's going to be a longer lasting headline that we probably continue to see for the coming weeks, months, maybe even for all of 2020 and longer. It will be one that we'll have to keep a close eye on. There will be times where stocks react to a Corona virus really a catalyst very strongly, and there will be other times that they respond very poorly. ICC C was a stock I Traded back here in January and lost 1,000 bucks on the stock squeeze from six to seven I Got in way up here.

it squeezed up to a high of eight and then it reversed and came all the way back down. I was like this: I Love you makes you know it's got a great catalyst I Thought was a great catalyst, but no, couldn't do it and then you know em NBC Obviously this was ridiculous for the people that were long here at 10:00 to hold it as it dropped to 32 $3 then potentially blow up their account only to watch it go all the way back up and then do it again and again and again. The markets are choppy, so definitely a good time to be careful to be mindful of the market you're in I Usually find that I do better when we have quicker waves of momentum where we have one stock that you know over the course of a day goes up 400% and then it's guys own catalyst. totally standalone.

like fantastic earnings, and then that stock kind of fades and then we wait a few days, maybe a week and then we have another one that goes up, but each with standalone specific events. Those tend to do better than when you have a long drawn-out catalyst that stocks are just kind of continually putting out headlines about because they just start to get a little overplayed at a certain point. and I think that that may be happening here with a HPI an apt. although if the Sp500 by the end of the week goes back down to the lows I suppose those stocks are probably gonna go back up to the highs and I don't really know how I'll trade them, but it wouldn't surprise me if that happened.

So just something to be aware of right now and you know it's also okay. if you decide, you know for this period of three or four days that you know what: the markets a little too volatile. right now, it's better for me to step out and come back in when things kind of smooth out a little bit. A lot of traders will do that a lot of days when the markets down 500 a thousand points Big traders will just sit on the sidelines because it's risky and you've got to control your risk.

We want to be doing this for, you know, forever. So to take a huge amount of risk, it's just it's not worth it. It's a marathon that's worth all right? So that's it for me. I Hope this has been helpful and as always I Will see you guys first thing tomorrow morning and hopefully we see some good action in the markets.

I Expect a little thing to need to be volatile and my goal right now after a few red days is just to try to start digging myself out. One green trade at the time. One green day at a time. So that's the plan and I'll see you guys back at it first thing tomorrow morning.

Hi everyone hey it's me again. The most popular video on day training on YouTube was made by me. You can check it out below if you haven't already and as always, if you have questions, leave them in. The comments I personally respond to every question that's posted on my channel.