So we were expecting the market to drop, but boy did it drop a little further than we expected. What's going on Team: It's Ricky Here with Techbook Solutions Here with a super quick stock market. Update: I Wanted to share with you exactly why the market performed the way that it did. Uh, now we talked a little.

Uh, talked about it a little bit. This morning there were a series of economic reports that came in hotter than expected. and for some people that's a little hard to understand. What do you mean hotter than expected? Well, there's a thing called ISM Non-manufacturing Index and the thing that that tells you is for overall production across the US Is it higher or lower than expected? Remember the Federal Reserve When I say we I mean the Federal Reserve The entire Market is focused on one thing and that is how the Federal Reserve will understand and make sense of these reports.

And if these reports show that production levels are coming in higher than expected, meaning that production is higher, Do you think that shows signs of a weaker economy or of a stronger economy? Remember, the Federal Reserve wants the economy to feel the pressure. They want production levels to be lower than expected. They want unemployment to be higher than expected. They want the economy to feel the pressure so inflation can come down.

That's their focus. That is how the market reacts. So we say this thing within our Learn Plan profit group and it's good News is bad news right now. And bad news is good news Now if production levels actually came in lower than expected expectations, expectation was 53.5 percent, the prior month was 54.4 percent.

So anything below you know anything at or below 53.5 probably would have caused the market to go up. But because it actually came in better than expected, production levels are actually higher. Which means that again, bad good news is bad news right now. Sorry I get confused with it as well.

It's a really backwards way of thinking. but I want you to understand why Right now the entire Market is viewing behind the eye of the Federal Reserve and I Think that this article does a great job explaining that. a hotter than expected reading for the November ISM Manufacturing Index further fuel the concerns that the Federal Reserve will continue hiking after the index topped Dow Jones. So all that really is trying to say is last week Jerome Powell spoke and this is why the market went up last week.

I Like to keep things and make things very simple to understand. Last week, the market absolutely shot up. Why? Well, because Jerome Powell spoke and he said that as soon as December based off of our last CPI data reading, which is our last inflation report, they can see them justifying a lower than expected interest rate hike. For those that are unaware, the Federal Reserve has been raising interest rates for the past four months.

0.75 That's very aggressive. The only thing that the market wants is for the Federal Reserve to be less aggressive and for the first time Jerome Powell clearly said in his last statement in his last paragraph making sure that everyone was aware that it could be as soon as December because of the previous CPI data report and because of up and coming reports that it is possible that they can potentially only raise interest rates 0.5 percent instead of the 0.75 meaning less aggressive. But when you get readings like this right that come in hotter than expected, that's not supporting signs of a Slowdown. Which means that therefore, the Federal Reserve can justify being more aggressive or just as aggressive, that's the easiest way that I can simplify what's going on.

So one of the things that again they try to kind of explain is following a speech last week by Fed uh, Jerome Powell Markets quickly, right and largely expect the central banks will approve a point five percent uh, interest rate hike that will Mark a step down from the series of four straight point seven, five percentage strike literally what we just said right? um, and at the same part at the same time. Again, one of the things that he did say within that speech uh, they just used various uh, very like difficult to understand uh terms, right? um and the vocabulary is always a little bit confusing. so all they're saying is yes Jerome Powell said It is possible that as soon as December they can possibly be less aggressive. but they need to make sure that these reports and economic reports that continue to get released actually come in lower than expected.

And not only just that, but they also are asking the question, well, how much longer can the Federal Reserve raise interest rates And that's kind of. The concern is okay. you're going to be less aggressive next month. That's a good thing.

but for how much longer, right? are you gonna absolutely stop raising interest rates? That would be a good thing. Hopefully sooner than expected. But what they're saying is they're nowhere close to where they want to be. so it's kind of the timeline right every single month.

Normally they tend to raise interest rates at least they have for the past couple of months. So then now it's asking the question not just how much, but for how long will you continue to raise interest rates and reports like what was released today of coming in hotter than expected, not showing signs of a Slowdown are not supporting any form of slowing and or stopping interest rate hikes. So this is why the market reacted the way that it did. This is why I Like explaining it because I want you to understand why.

Not that the Market's rigged or that the Market's against you. It's just at the end of the day, it's the markets reacting to whatever news was was reported. Now this report was released. probably.

Um, you know it was released like 30 minutes after the market opened, 15 to 30 minutes after the market opened. Yet the market sold off continuously. kind of throughout the entire day. One of the things that I want to show you is that you know if you kind of look at the day before, right? There's another economic report that was released on Friday of last week, right? last week.

On Friday there was an economic report that was released and the market aggressively sold off. But then guess what? it quickly recovered. Today it did sell off to that same support range, but it did not quickly recover. So just something to be aware of.

And if you look at this on the one hour time frame, we're still above the moving average, which is a good sign, but we'll see tomorrow. We'll see if we actually break below the moving average would be, which would be a great sign for bears and for people trying to short the market. Or if we show signs of a support here and we break above the EMA line, then we can. We can work our way back up to that same resistance level of around 294 295.

But remember, it's been a very common resistance level so no crazy money is set to be made being a bull as of right now. probably until the CPI data report that's going to be released next week and that's going to be on December 13th. And then there's going to be an Fomc minutes meeting that's going to be on December 14th if I'm not mistaken. So again, all of this is going to be kept up to date on my YouTube channel and all you literally have to do is subscribe and drop a thumbs up on this video.

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Learn a little bit more about our learn plan profit group and see if it's a good fit for you and if so, I can see you for tomorrow's live trading session. Also, you might be wondering what's this behind me. We just kick-started our new tech but apparel giveaway. We're also giving away two thousand dollars cash and a brand new PS5 It just doesn't fit in this area just yet.

But again, we just announced that if you want to learn more about the giveaway, it's going to be the fourth. Link in the description Down Below on how to enter I Appreciate your time like always. Let's make sure that we're in the year on a green now. Take it easy team!.