So why is the stock market pulling back today? What's going on? team? It's Ricky attack with Solutions and I told you so. Totally kidding. Uh, yesterday or not yesterday? Uh, last week I got absolutely spanked by the market I was way too early with my short positions I recapped every day, especially with my Lpp team talking about. you know what I could do differently this week? I mean I was ready to go long.

Uh, based off of you know, our um, you know, pre-market performance and how we were beginning to show signs of higher highs and higher lows. but then the overall direction ended up changing. It's one of the things I talked about with our Lpp team during our live trading session. Today is I was either waiting for a break above and or a break below the EMA line on the five minute time frame for QQQ.

Fortunately, I waited for that overall reversal. it broke below the EMA I began shorting the market and I just covered my short on NASDAQ and it wasn't too bad, right? I reduced my position size. Now it's a little bit more on the oversold side. I'm going to give it some time to try to see if it can try to pick back up and then if it begins to sell off once again, I'll short the market once again.

But why why I Wanted to make today's video super short and sweet for you guys. Why is the market selling off? Um, it's very simple so the first reason is I'm sure a lot of you guys have heard the news at OPEC Plus begins. Uh, plans to cut overall production output for 2023. So what this means is one of two things: It's going to make oil more expensive for people like you and I and for businesses as well.

Okay, well why would that cause the market to sell off? Remember, oil also known as energy is one of the things that is contributed and factored in into our overall CPI. It's also not included in Core CPI for this specific reason, because the Federal Reserve has no control on overall input or output of demand for this type of energy for food and energy, right? This is why Core CPI does not include food and energy. Because when things like this happen, it will be a natural reaction that the CPI report will come in higher than expected because it will show that there is more inflation. meaning prices are going up for oil itself, right? Because if they cut back on production, that means that our inventory of whatever it is that we have is going to become that therefore more valuable, right? And if it becomes more valuable, prices begin to go up.

I Mean you can look at oil prices today. Uh, they all jumped right? And if that means that those things are getting more expensive, then it's going to be more expensive at the pump for people like you and I and for businesses and for you know, transportation services. So overall expenses are are bound to go up. Which means that in the energy side and the oil side, anything that OPEC influences, it's going to naturally bring prices back up.

And when prices go up, that means that inflation is going up right. and this is why the market is reacting the way that it is. because if inflation therefore goes up, then the Federal Reserve will have to to justify being more aggressive with future rate hikes. Even though we know people like you and I that are aware of what interest rate hikes can do, they are not going to do anything when it comes down to these prices at the pump, right? because that is controlled by you know the big OPEC group, but just wanted to make sure that you guys were aware of that.

And one of the last things that I quickly wanted to cover are the series of economic reports that were released uh, during or after the market opened at 9 45 which is 15 minutes after the Market opens. The IHS Market manufacturing PMI came in at 49.2 and it looks like I didn't have this one pop up. The construction spending was down 0.1 percent. not too bad, but the ISM Manufacturing Index which pretty much means the overall amount of activity that we are seeing on the manufacturing side is down and or came in at 46.3 versus the expectation of 47.5 So this is supporting the case that there is.

You know some form of slowdown on the manufacturing side of things, which would be good in the eyes of the Federal Reserve But the question is, what's more important, right is what was just announced through OPEC More important of hey, inflation is going up and or the ISM Manufacturing Index right? And obviously, although it does have an influence of the overall Market, it's nothing too significant. So if you're asking the question, why is the market selling off today it's all things to the news that was announced by OPEC and how it's a domino effect that really just stems down to the idea of, well inflation is bound to go up. Which means that CPI data reports are bound to come in hotter than expected. which just means it's not going to look the best because it's going to show inflation at a higher level because we're cutting back on production that way.

but OPEC is cutting back on production for oil. So just wanted to make sure that you guys had the answer to the question. Some of you guys might be wondering on why why is it selling off so if you have any, if you have any other questions beyond that, I would encourage you feel free to message me via Discord And that's the first link in the description down below. but again, my initial trade on and my trade idea of what it is that I saw value in when you know I was waiting for that break of pattern on the five minute time frame was caught in my live trading session today.

So if you want to be able to watch me trade live as soon as tomorrow, friendly reminder: I work with one team and one team only. and that's my Lpp team. So if you want to watch me trade live every single day and right now also, you'll earn 5 000 automatic entries for the GTR giveaway. that is going to be the second link in the description down below.

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