Choppy Choppy markets. What's going on? Team: It's Ricky Here with tackled Solutions Uh, why is the market so choppy Today There is a Federal Reserve speech today. So the head of the Federal Reserve is known as Jerome Powell speaks today at 1 30 P.m Eastern time and it's an economic Outlook Is this significant? It's probably the most significant thing that we're going to experience this week, and it's because he is supposed to give some guidance or hopefully some form of expectation of where he thinks the Federal Reserve will be when it comes down to the next interest rate hike. Remember, if you guys look back to the one hour time frame, let me take you back to the NASDAQ ETF on the day chart. Actually on the one hour chart. Remember this big gap up That was because of the previous CPI data report CPI came in lower than expected, and because that did, it was expected that the Federal Reserve can hopefully pivot soon and slow down in the way that they're raising interest rates. Anything lower than 0.75 percent would be a positive outlook and positive for the stock market. Now, as every economic report that's being released showing and supporting you know, lower interest rate hikes? Not necessarily. uh, today, especially during our live trading session with the Lpp team, there's a series of reports that were released pre-market Those were just fine. Uh, but the ones that will report shortly after the market opened were not necessarily the best. You guys can see right here that the GDP second estimate was 2.9 percent and the expectation was 2.7 percent. But Ricky if 2.9 percent is higher than 2.7 percent, isn't that better because the economy is doing better than expected exactly. The whole point is the Federal Reserve wants to slow down the economy and if they see that the Market's expectation is actually higher than expected, that's not a good thing, right? It's like trying to put out a fire. and if the fire is not being put out, you're only going to use more of your resources to put out that fire or be more aggressive, use more water. The way that the Federal Reserve is trying to put out inflation is by raising interest rates to hopefully encourage people to spend less money. And when it comes down to the Chicago PMI that came in at if I'm not mistaken if I'm reading this correctly. 37 1.2 Market expectation was 47.5 That was very positive and the same thing when it comes down to let me let me double check. Yeah, the GDP deflator which is 4.3 percent. Now, the thing that I quickly want to talk about are job openings. So we did see job openings come down a little bit from 10.68 million to 10.33 million meaning that Less jobs are being opened or available based off of this report, right? And the last one that I quickly want to cover is pending home sales. This is the thing that confuses a lot of people. Market Expectation was negative 5.2 percent meaning that they expected there to be a drop of pending home sales meaning properties under contract to sell. They expected it to drop 5.2 percent from our last report and it only dropped 4.6 So again, it's dropping, but not as much as the market expected. And because of this, that is not a good thing. Meaning that based off of the Federal Reserve and again, all we want to see is, you know, how is it that you should think about the market right? The way that I tried to position this the best To our learn plan Profit Group is put yourself in the shoes of someone like Jerome Powell His job for the Federal Reserve right now is to bring down inflation. You want the economy to slow down. Therefore, he's making it more expensive to borrow money by raising interest rates. If it's more expensive to borrow money, people are less inclined to spend more money, right? But if we see something like that where the pending home sales are actually not going down as much as expected, it means people are not as much in fear or they're not really feeling the pressure of these higher interest rates. So what does this mean? Well, again, the Federal Reserve has a goal to bring down inflation. so if you're not feeling it now, they'll only be more aggressive in raising interest rates, hoping that you actually feel it later down the road. So again, right now, bad news is good news and good news is bad news. and that's just that way that the market is working. and again right now it's 10 10 A.m here in: Arizona The live speech for the Federal Reserve is going to be at 11 30 A.m Arizona time it's at 10 30 A.m Pacific Standard time and at 1 30 PM Eastern Standard time For those that are in the central or the other time zone I Don't know, you guys are probably at 12 30 or something like that. but again, at 1 30 P.m eastern time I will be live streaming this. all you literally need to do is drop a thumbs up on this video, subscribe to the channel and make sure you turn on your post notifications. The reason I'm telling you to turn those on is YouTube will not alert you when I go live if you don't turn on your post notifications. so again I will be live streaming this about 15 minutes before the actual event. so that's going to be at around 1 15 p.m eastern time. Okay, so in just about one hour I Really do appreciate you guys time. Wanted to provide you guys with a market update and for those that are asking what's my plan I'm cash right now I Have not taken a position during our live trading session I have not taken a position moving forward since then I am waiting to see how the market reacts in response to what Jerome Powell says during his speech. If the market reacts in a bearish way, I Will consider shorting the market if the market reacts in a bullish way. I will consider going long in the market, right? I Would rather be late to a rally than early to a sell-off Remember the only people that freak out during a market pullback or a market rally are those that did not prepare those that were hoping for something to happen and entered before confirmation. If you want to be one of those people that's up to you, you're an adult. You hold yourself accountable. But for us, especially our Learn Plan Profit Team, we're always encouraged to wait for confirmation and to be extremely selective to have cash on the sidelines and making sure that we put ourselves in a position in which we can tolerate so again. I'll follow up with you guys in just one hour for our live stream and that's going to be for Jerome Powell's uh fed speech about economic Outlook inflation and the labor markets I Appreciate your time, hope that we're under thumbs up again. If you guys have any questions, shoot me a direct message via Instagram or Discord and that's that first or third link in the description. If you're ready to join my Learn Plan Profit team and watch me trade live as soon as tomorrow, then make sure you click that second link in the description and I'll see you tomorrow at Market Open for our live trading session! Like always, let's make sure that we end the year on a green note. Take it easy team.