Hey everyone kevin here wanted to touch on briefly why this market feels like it just can't crash it's like impossible to get this freaking market to go down, so we could buy the dip. It is so difficult. We've got so many uncertainties right now. The ever grand and the potential for contagion coming out of china we've got the fomc meeting.

The bank of japan meets this this week. To talk about rates. We've got the taper talk. We got the debt ceiling, the infrastructure talks, we've got so much.

Inflation, economic growth, slowing down everything that we could want right now, bundled up into a pile of doo, doo and and uh people are smelling the doo, doo and they're, like that's all right, i'll, hang out here anyway, it's like not leaving the market. You just can't get this market to sell down it's crazy, uh and i think i know a reason. So i've been looking at this because i've got a a pile of cash that that i hoarded up here and i was watching the s p kind of trend down throughout the day here and i'm like this is what i was expecting dead cat bounce, which dead Cat bounce is literally the well figuratively. Imagine a dead cat that um it's already dead, it's okay, we're not killing it.

It's already dead, it died of natural causes and uh. You threw it off a building uh, because you know there was a very nice soft grave at the bottom or whatever, and the the cat falls. Uh hits the ground like. Yesterday, we fell in the stock market right.

This was uh. Here was your yesterday? Here's your fall uh and then you bounce because even dead things when they hit the ground really fast, they bounce up a little bit and then they come right back down right and so that's kind of the argument here. It's like fall a little bit of bounce and going back down right uh, but the thing is it just feels like every time we get a little bit of this pull down, we just by the dip and kind of bounce back up uh, and so i had The same thing happen on end phase to me. So this morning i sent out an alert and i literally bought in face right here.

Uh it was perfect. I was watching this on the minute sticks. I saw it turn green and i put my order in and i'm like, i'm ready. If i see that next candlestick go green boom went green, put the order in sent out the alert, buy, an end phase threw in six figures into end face here, sent out alert to everybody in stocks and psychology and money, as i usually do.

But but then i'm like dang it i should have bought even more, which is always like the problem with stocks like you buy something and you time it well then it goes up and it's like should have done more. You do a bad job and you're, like should have done less, but you got to break that psychology you got to get over it. You move on. You always got to look forward in investments, and so this is what i'm trying to understand.

Why is it that we could sell down 4 on tesla, but then we're immediately up one point: five percent: the next day. Why is it that we can go down ten percent on matterport and then we're immediately up seven point: seven percent: the next day. You know why can we go down eight percent and lucid and then literally go up eight percent on lucid again the next day right and the the reason that i believe we're seeing this happen is pretty simple: i'm going to pull this up really quick uh. What you want to type into google is fed reserve, reverse repos, there's a reason for this.

Okay, look at this, so you type in fed reserve, reverse repos, and you get this chart here. This chart tells us how much cash banks and institutions have and uh. If you really look historically here, it's it's the highest. It's ever been in its existence.

You've seen this massive amount of cash being hoarded, and this line here is a representation of how much cash banks are parking at the fed because they have too much. They don't know what to do with it. They have too much cash and personally, i believe that, even though we have a lot of these uncertainties in the stock market, i believe that we get these short dips where it's like. Oh we're, red.

Oh that's, pretty red! That's pretty red, and then we we bounce up pretty quickly, because there is so much money and there is so much of an appetite for buying the dip that it is actually frustratingly difficult to get a meaningful dip. And so part of me believes that there is this potential of just trading sideways, because all of these dips tend to get bought up pretty quickly to where maybe it makes more sense to just uh to just again uh sell calls like buy the shares and then Sell calls or or just sell, puts and try to get in a little bit cheaper to increase your yield a bit. Are we actually going to see a larger run? That's the downside, though, about selling puts - and this is kind of where you get to this this moment, where it's like. Ah, if you sell puts and then it runs you miss out like, for example, let's say on uh matterport you sold puts when it was uh.

You know trading back and forth over here and uh and it fell a little bit and you sold puts at 14 or whatever well cool. You would have gotten, maybe a buck or two dollar credit or whatever that'd be like net net selling it for 16. But then it runs, then you miss out right and if you own call options well, great call options are really sexy like if you buy a call and the next day it runs like today's call options for october 15th. I bet you were way up.

Yeah look. They're way up they're up 48 because the stock's up eight percent right, that's amazing! That's the leverage of these short-term calls, so this has kind of left me thinking to myself. Okay, so i don't want to do leaps in this market because i do believe that leaps will end up getting chewed up by theta decay. So leaps are not something so desirable right now.

I do like the idea of selling calls when something has run when running, but the danger of this is it could continue running. So, for example, you might sell calls on matterport at 18 and then it runs to 24 dollars right and it's like. Ah right, then, your your cell calls actually hurt. Uh selling puts is something that uh i would like, or and generally do like doing on stocks that i don't necessarily need to own more of, but i'm not opposed to owning them.

So i wouldn't sell, puts on something i did not want to own, but i'd consider selling puts on things, i'd be willing to own and i think the best thing and it's boring, but it's just buying shares and really what we're trying to do with buying shares Is we're trying to prepare for a broader rally once all of these negative catalysts go away? Evergrand goes away. The debt ceiling limitations go away, the uh. What's it called uh the issues with the fed taper go away, inflation and flex downwards the supply chain, shortages, uh flip to the other side, and this is something where all of these things, i personally believe, will have a very large benefit, uh on particularly stocks. Like end phase uh end phase is a is, is affected by the chip shortages substantially uh holds it back end face is a company that uh is, is part of the the solar revolution and with less competition from solar.

Now, with the solar leasing from tesla, i actually think you've got even more room to run on end phase than when when tesla was a bigger competitor with their their active solar leasing, so um yeah. I think the big bottom line message here is the market has so much cash right now that only sitting around waiting for the dip is is something that gets bought up so quickly that you end up frustrated now the downside is or the risk is that you End up just throwing all your cash into the market and then you actually get a real dip right. Then it's like dang should i had some cash, but there is a risk to being too cash heavy potentially and that's because everyone's cash heavy, so every dip kept, keeps getting bought and that's a frustrating thing in the market right now. So, what's the big bottom line of all of this big bottom line of all of this is look i'm a big fan of holding cash.

I like holding cash like the rcc i like, trying to time some trades, but with how much money people have. This is a very frustrating market to wait for dips on and to expect those dips to be super deep. It's just something! I'm realizing it's because so many people have so much money. All the dips get bought up right away so worth keeping an eye on when there's a dip, potentially pull the trigger a little bit earlier.

If you are trying to place money and you're getting a little bit too cash heavy anyway. Hopefully this was helpful for you and folks we'll see in the next one thanks. You.