So Moody's downgraded the market on Friday yet the market did pull back originally but then saw a really strong Bull Run So what exactly does this downgrade mean for the market? I Saw this Uh video and I also read a few articles and I thought that this video did a really good job breaking it down on what this downgrade might mean and what areas in the market are the most distress. So again, I really hope that you guys learned something new and if you do, please consider dropping a thumbs up and subscribing if you feel like we earned it. So what does Moody's downgrade mean for the market? Let's go ahead and break it down. all a midsize banks by ratings agency Moody's is also hurting sentiment Moody's warning that a ratings cut for larger US Banks may be on its way as well Rael Solomon's joining us here with the details and it seems Rael that fears over the banking turmoil we saw in March are still present.

Just walk us through what's prompted this move, right? Christina So this warning from Moody is enough to eras some alarm. Bell is also enough to raise some eyebrows and send shares pre-market of some of these. Banks lower and I can show you for for a moment Bank of New York US Bank Corp truist Cullen Frost these are all large US Banks You can see they're off between about 3% let's call it and three and a half% So Moodies is saying that it is concerned and watching potentially uh, concerns about weaker profitability. With some of these Banks also concerns about and we can pull this up for you.

Concerns about the commercial real estate space you can imagine with work from home being a trend that has suck. If you guys also weren't being kept up today with what's been going on on the commercial real estate side, Um, it's really, really bad. The commercial real estate crunch is so bad that $80 billion worth of properties are now in distress. it's now at a 10-year high and also when it comes down to wework, I'm sure you guys heard the news over the weekend we workor filed for bankruptcy.

Uh, which means that SoftBank and other investors take millions of dollars of losses. This bankruptcy, um, filing show that we work had 15 billion of assets, but 19 billion in liabilities. This process is expected to take months. I Mean this is something that's happening across the entire United States Commercial real estate is really struggling.

and guess what? It's larger banks that tend to hold these loans for these large companies. But when commercial real estate is down 20, 30, 40, maybe even 50% I'm sure you guys have seen some of the articles about commercial real estate being so down, especially in those like San Francisco areas. It's again kind of concerning when it comes down to what can happen if these be if these Banks begin to fail just like they did earlier this year, right? That's where the concern is coming from. So let's go ahead and hear what they have to say.

We're on a little bit longer than I think most would have expected after the pandemic that has made commercial real estate that has made office space less valuable than it once was and so the smaller and the regional US Banks find themselves more exposed to that type of risk. So Chris as you pointed out, not far from when we had those banking Tremors earlier this year, you know, even in a vacuum. If we were to get a warning like this from Moody, it wouldn't necessarily Inspire Great confidence. But coming after, uh, the banking turmoil that we saw earlier this year, it gives you a sense of why we're seeing the reaction we're seeing in the larger broader Market The markets of course haven't opened, but Dow futures are off about 250 points and so it gives you a sense of why there is a larger concern even outside of the banking sector because of the type of year we have had I should also say Moody saying that it is watching for a potential mild recession early 2024 that also not sitting well with investors.

Christina Yeah, we will wait to which is wild, right? because if you look at the actual Market's performance right when the market opened, we saw a really strong push, a slight pullback. this is the Ndaq market and then we saw a really strong rally uh to end the overall week. Um, you know, extremely overbought and this is just so crazy to me because if you actually think about it, you know when asking the question, what with what happened with me on Friday This is where sometimes when you read these economic reports and you read this data, you formulate your own opinion about like hey, the market shouldn't be going up. This is concerning, but the market ends up wanting to do and does whatever it wants to do right.

And this is kind of the challenging part when you begin to read up more on different economic reports and different data. Um, because you do begin to formulate your opinion. but sometimes again, it's just keeping it simple, especially with intraday plays. So it's going to be interesting to see if later down the road.

If this ends up biting the market in the butt and just ends up catching, you know, the market at a bad time later down the road, right? Because any form of downgrade like this, or any type of concern when it comes down to Banks or commercial real estate, it's not something that's going to sit well with the market over the long period of time. Yes, we could see nice little bull runs like this for the day or maybe for the week. But ultimately right, if these Banks do begin to fail again, it's going to be very, very interesting to see how the market overreacts in the negative way. Um, but we'll have to wait for that, right? So no reason to over complicate it if the market continues to go up.

We're going to take it day by day. But I just wanted you guys to understand why I had such a Negative Market sentiment about uh on Friday um and why I was so eager to take that short position. So uh, one of the last things that I want to make sure that you guys are aware of is for this week. Uh, we do have that CPI report which is the inflation report.

Uh, November 14th 1 hour before the Market opens I will be live streaming it for free on our YouTube channel. Which means that we're going to be capturing this inflation report and this is probably one of the most important reports that's released on a monthly basis. That tells us if inflation is going up or down. So again, if you don't want to miss it, drop a thumbs up, Subscribe to the channel and I'll make sure that I keep you guys up to date.

I Do trade live every morning I'd love to see you there as soon as tomorrow at Market open. You get to see my entries my exits. That's going to be the second link in the description down below. And also, don't forget to enter our prize week for the BMW M4 giveaway.

Every order up until November 19th gets a prize. It could be one of these big prizes or up to $100 cash, but every single order gets a prize. And of course you get 10x entries to enter for the BMW M4 giveaway, which is our biggest multiplier yet that we've offered. and that's the fourth Link in the description down below.

So appreciate your time like always. let's make sure that we end the year on a green note. Take Care team!.