Everybody welcome back to the channel, so the stock market sold off once again. Should you panic? Well, that really depends on whether you're long biased or whether you're sharp bias, if you're long, biased things things are not looking too good right now and in today's video i'm going to be sharing with you exactly why this sold the sell-off happened to begin with, and Also, what to expect next week, i'm going to be sharing with y'all a stock that you should be keeping in your watches as well, and i'm going to be doing the trade recap with some of the trades that we took on yesterday and also today, all right. Now before we begin, do not forget to annihilate the like button on your way in and also don't forget to subscribe, if you are new to the channel alright, so let's, let's begin, let's dive right in so um, as you can see right here. This is the spy and the drawings that i put on here are still there.

I did widen out the flag, um pre. Actually in the morning, i did whiten out that flag, but, as you can see, this move right here, this giant move was the one that i was expecting on that day. It happened yesterday and we were able to actually take advantage of this move through a stock which i'm going to show share with y'all later, but as you can see that bear flag that i was warning all about eventually broke down. It took 24 hours extra after i released the video.

It didn't immediately fall. It felt afterwards, especially after those um, those earnings results from amazon and apple. Now, with the with the nasdaq, with the nasdaq i told y'all. If we broke down that 12 and 400 was was very, very highly likely very possible and i'm not changing my mind, i think that we're going to get there on monday, it looks like it wants to get there on monday, we're breaking below this.

This previous level of support, i don't think we're gon na see a double bottom. No, it's gon na get longer all the way down before we see some type of bounce. All right, so that's my honest thought on the overall market, i'm going to explain what happened here in the in the trading recap. I will explain that, but for for next week a stock that y'all should be keeping in your watch list for next week.

That stock is, let me change this thing to the one minute there you go, that stock is bac all right, and the reason why i want to share bac with y'all is because it's because of this, if you go on to the one hour and you zoom In right here, there's actually a bearish planet on the chart that broke down today, it's quite clean. It's right there right over here, all right. It broke down today. This is 11 o'clock right here below 36.

and 31 cents, and then you just kept selling off with the overall market. How low can this one go? I think it can go real low and by real low i'm looking at okay, we're gon na go all the way back to the daily. First and foremost, if you go on to the left side, if we zoom in or right here, we make this a little bit bigger like that. We're gon na draw this level of support which broke.

This is not good, not a good sign for longs and for dead buyers. Definitely not, and then we also got some dips. Some gaps right here which have to be filled. Um, i think it's going to drop like even the weekly is very it's not even looking good, like the sell-off is still there.

We got a lot of bears right here in this way right there right and the trend is still bearish and next week i wouldn't be surprised to see a massive scandal down. Where is the kindle going to start? That is going to depend on how we open on monday, whether we have a massive gap down where it opens here and then drops all the way down, and then maybe buyers pick it up and then there's a long wick at the bottom, like that. Right like whether we see something like this and then eventually like starts recovering, and then it does some stuff in between. Like that's that's for another video, but watch watch for the drop watch for the drop.

The four hour is looking quite good as well. It's looking good, so watch bank of america for a potential short next week, all right now now, let's talk about, let's talk about what happened with the earnings results. Um, as i always say, on this channel holding anything through earnings is 150 gambling all right and um amazon amazon reported earnings, and usually they usually do well like it's very rare for amazon to not to to miss on revenue or to miss on eps, but they Reported a miss on thursday afternoon and the stock plummeted by like 12 free market, and then it eventually went down again. This reaction right here has a lot of impact, especially on the nasdaq and the spy right.

It's a very heavy stock that one, along with apple um apple, on the other hand again. This is why i say that it is gambling like holding anything through earnings. Gambling, first and foremost, apple reported phenomenal numbers. They crushed earnings, regardless of how the conditions are with their company.

They still came out on top, and yet they got annihilated. The market makers um made this turn out to be an option killer where the people who bought yolo calls and the people who bought yolo puts got annihilated. All of those contracts will drop by like 90 percent at the open because of stuff, it's called the iv crush, implied volatility crush it's very nasty, it's very, very sad, but it can happen, and you don't know exactly it's very hard to predict right. This is why i say that holding through earnings is 150 percent gambling congrats to those of you who may have gambled on amazon, because those puts actually paid off like the the roi on those plots were pretty massive, um so congrats to anybody who gambled their money Through that now uh some some, where is it gon na, go? Let's, let's talk about it? Where is it going to go? Since i told y'all earlier that i was expecting the nasdaq to drop to twelve thousand and four hundred, i would expect a lot of these stocks to also drop like i was able to drop all the way down to to reach at least retest 155.

Again, maybe even go lower towards 150. That is what i expected for amazon. It might trickle down a little bit lower. Is that 24.70 right now? I think, let's see amazon yeah it's at 21.

24. 79. It can go a little bit lower like when, when the earnings reaction is like this, when it looks like that it takes a long time to recover a very very long time. It happened before right here.

As you can see, it didn't immediately bounce right away and right now, with the market conditions with the way things are um people are like chilling. They're they're not like nobody is eager to buy this like right now like you, this is not usually what you do. You let the stock chill out for a bit right. It might take weeks, it might take months all right.

It might just trade between 2623 with 2200 all the way until their uh their stock split, and then it's probably gon na go even lower. Again. That's that's! My honest thoughts on amazon and apple, all right now for for the trading recap, let me show y'all the first one of the stocks that we took that especially yesterday, let's see here yesterday yesterday we took a trade on amat all right and the reason why i Took a trade on amat was because of this right here. If you look on here, it actually showed a bullish planet yesterday and it broke out quite cleanly at like 11 20..

This is where we bought in golf. Like calls that expire on the 29th, the 113 call for a hundred and ten dollars each right, and it was just climbing again. The momentum was just pushing the markets. Higher tech stocks were running, a lot of stocks were running.

This structure was very, very clean and the costs just get printed and printed so it went higher, but price target on it was 114 and 20 cents um. I ended up selling a little bit before that when it got close to yeah at 113 and 90. That's when i started to sell, i sold those contracts for an average price of like 190, each from 110 dollars each i should have. I should have handled this one a little bit better.

I could have waited for a long time because i should have waited for a while longer because, as you can see, you just kept going higher and higher by like a dollar more than the price target, so that was that was the trade. What happened the next day is that again pretty much the whole market started flashing down. As you can see, all of those gains got given right back all right um. So that's what happened with the stock? Where is it going to go next, probably lower, probably lower? All right now, the next day, trade after that was now.

This is the part where i'm going to explain the um forward, slash and q all right, so the nasdaq showed um. It showed this structure along with the spy, and i thought that the drop was going to be delayed. I thought that the drop was going to be delayed and here's here's what i mean. Let me just go back on here: let's do four slash and q, so i thought that this thing was going to pop over here right and then run all the way and test the top over here at around, like 1360, around 13 600, before we immediately flush, Whether it takes like throughout the whole day or whether it lasts for two days, i thought this was what the market was hinting at.

So unfortunately i i took the bait i actually got in here and uh, and i got in here with cause and i took a small loss. I took a loss on the way back down, so i had to stop out when i got like right below here when i got to this level when a spy. Actually, let's look at the spot when the spot got to here at around like 121.70. Let me see so let me show you there we go so when it got right there like this this.

This was a fake out. This was this: is a classic bull trap, so it happens. It happens. Like big picture, i had the right idea.

It's just that the attempt it looked really it looked deceivingly good in the moment, and it happened eventually. Eventually, i made it up with uh what a tesla trade so tesla tesla bounced right and then eventually it formed this thing to form this structure. It looked quite elegant and as soon as it broke down right there i got in with the 900 puts for 550 each all right and the price target that i had was 880. So i was just watching it fall.

It took a sweet time like it took a while to actually flush to at least like 890, so i was just watching it watching it watching it and then eventually, like only one minute. I don't usually look at the one minute, but i looked at it this time and deform this right here, all right, and actually this is what 1142 so 1142 tesla was right over. Let's look at it, so tesla was right here. 11.

42. 11. There. It is all right, so this is that little bullish planet that i saw, which made it easier to actually like hold because the contracts expire on that day right um.

The volatility of this contract is kind of like brutal, but this kind of helps, so it just kept falling downwards right there and then l1142, which is in this candle. This is when i sold half right here right there and then at 11 55. I sold the rest at 8.9 all right eventually, eventually, i got back in and the reason why i got back in was because i looked at it from a different perspective when you zoom out of tesla all right, especially after that first trade, which was right here When you just zoom out - and you get rid of these lines and you move it a little bit lower like that, you get another structure which is quite clean and the fact that the market was very, very bearish after i got trapped in the morning right um. Despite the fact that it was bearish, it was a very clean setup and i knew it was gon na drop.

It was just a matter of time like i even put out a warning that it was going to drop right over. Where is it at right? Over? Here all right, so this is the warning. It was just consolidating after my first exit right there and then it was just chilling chilling and then eventually, eventually it followed through with the plan, it did a little fake out at like 905 and then started to drop. All the way down into like one o'clock, which is when i took my second entry right over here, what the fee, what the puts the 890 puts for 515 dollars right there on a breakdown and the price target.

For that one was 870. I ended up selling um at 1 25 pm when it got to when it got to 884. Like let me look at the one minute there we go there. We go all right, so i ended up getting out at 11 25 when it was right over here.

For an average price of 900 again those contracts are right there - all right so 11 25 in this region right here, so we got it at like five dollars and right at one o'clock right here at 510, and then we exited at like 900. It eventually went even higher but again congrats to anybody who held longer. I was happy with the gains and my day trade was to pretty much make either a hundred percent on the trade. You know a little less a little more, but that was pretty much the day trade for today and yeah.

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