So let's talk about the Economic report that was just released this morning. What's good on team? It's Ricky Here with tackled Solutions here to provide for you a super quick stock market update on why the market is reacting the way that it is. Let me go ahead and start sharing my screen and it was actually the economic report that was released one hour before the market opened and that is initial claims and continuing claims at 8 30 A.m Eastern Time We had initial claims and continue. Uh, continuing claims being reported.

What this is is the people file in for unemployment for the first time. That is initial claims. This is a weekly economic report almost every Thursday one hour before the Market opens. Then we have continuing claims.

People that continue to file for unemployment checks week. Uh, week after week, right? And this one again never has an expectation. but it's just a reporting on how many people continue to file for those continuing clinical for those continuous unemployment checks. Uh, the expectation was 194k, the prior month was 100 I'm sorry.

the prior week was 183k and we reported 196k. That was actually not bad news. So when you're asking the question of why did the market open up in the green, remember right now, bad news is good news and good news is bad news. Especially with the unemployment report that we had last week where the unemployment rate came in at 3.4 percent, but the expectation was 3.6 percent.

And then we looked at payrolls for the past month and it was more than double than what was expected. Remember Jerome Powell said hey, if we continue to have a strong labor market and inflation doesn't continue to go down, then this will only support the case that we will raise interest rates even more by this unemployment report coming in higher than expected. All this means is that more people filed for unemployment than what was expected. The expectation was 194 000 people would follow for unemployment checks for the first time as of last week, but it was 196 000.

So literally just 2 000 more people than what was expected. It's not anything too significant, but based off of what we saw last week, right and the reports that were released, this at least shows that there is some form of slowdown. Or at least we're not continuing that same rate of decline of unemployment, right? Or uh, what's it called um of employment mean that we we want to see a good balance. I Know that it's it's considered to be obviously healthy, that the people that are looking for jobs can get a job and it might be a very weird way to kind of like digest that report because you might be asking well, how does people losing their jobs and or not having a job how is that good for the market And it's just because of what the Federal Reserve's goals are and the the goal is for the Federal Reserve to slow down the economy because inflation is so high right from 9.1 percent down to 6.5 And if inflation doesn't continue to drop month over month, then this will only mean that the Federal Reserve can be more aggressive and they will only support in being more aggressive with future interest rate hikes if they also see a strong labor market, right.

The analogy that I give yesterday is let's say that you know you and your um, you know, guy friend or people that like mess around with one another as in like he has a rough with one another. If he's like a bigger guy, you're more likely to be more rough because he can tolerate and sustain. You know if you punch him or something like that, right? The same thing with our economy, right? You can see that the economy is doing well. Job growth is is better than expected, and if we continue to see that job growth continues to be better than expected, then obviously if they want to lower inflation and they want to be more aggressive because because the economy is strong then it can tolerate more I Know that might be like a sideways analogy that might not make sense to everyone, but the stronger the economy seems to be, the more aggressive the Federal Reserve can justify it to be.

I Think that's the best way that I can put it for you guys. So that's why that's what caused the initial you know rally. We peaked at 26 dollars a share. But one of the things that I do want to remind you is that on NASDAQ on the one hour time frame, you could even see it on the four hour time frame.

we are very overbought. and I think this is kind of the struggle that we are seeing right next week. we have, uh, the CPI data report on the 14th and this is one hour before the Market opens. We're very overbought.

We're very overextended. and if this CPI data report right? I'm saying this now. if this CPI data report does not come in lower than expected I hope that you are ready for a significant drop, right? I mean I mean there's no other way to sugarcoat it. As of right now, we haven't made much progress all week.

We hit highs of 314 on NASDAQ on QQQ right? and we've been consolidating here. So one of the focuses that we have within our Learn Plan Profit Group is that if there is no signs of continuous progress, why are you still in an open position Going long, right? And or why do you still carry an aggressive position going long? This is going to make sense to some of you. This is not going to make sense to others, it just depends on how experienced you are. If you're part of my Lpp team, you know exactly what I'm talking about.

If there's no more continuous progress and we're this overbought, then again, any open position is a position that's open to risk and this is where reducing your position, size and or lock-in and profits to stay in cash for direction to be, waiting for direction to be more clear is where it pays. You know to be patient, but only time will tell. As of right now, it looks like we're pretty much giving back everything it is that we gained and we're going back to retest that same support so we'll see if we actually hold above that support once again. if we don't right then we're heading right back down to this moving average which is going to be right around 300.

and if we lose five dollars per share, that's going to be another 1.25 percent for a QQQ Which means another, uh, we'll lose another. What is that like 4.5 percent for Tkq? So just know that we do have some downside. but overall what I'm looking at is I'm paying attention to the one hour time frame to making sure that we still continue to hold above that moving average and I'm also paying attention to any economic reports on how the market reacts just making sure that I understand the market sentiment. But again as right now we're taking it day by day because of how overbought the market is based off of the January rally and this up and coming inflation report known as the CPI Data report that's going to be released next week on February 14th.

So if you have any questions about that, you guys know exactly where to reach out. to me, that's going to be via Discord or via Instagram and that's the first or third link down below. I Do have a position that I'm going to be opening and adding more to. If we begin to see indication of a reversal right pattern sensor, repeat themselves.

They don't always have to. I'll keep you guys up to date in our trade Ideas section for Lpp. Again, friendly reminder: I Trade with one team and one team only and that's my Learn Plan Profit group. They got to see Me Trade Live this morning.

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so if you've ever wanted to join, that's going to be that second link in the description down below. I Appreciate your time. Also, don't forget I'm using the Weibull trading application. It's free for everyone in the US and you can use the fifth Link in the description down below.

And if you use my link and deposit one dollar, you can earn up to 12 free shares and I earn one free share. So it's a win-win for both of us. I Appreciate your time like always. Let's make sure that we're in the year on a green now.

Take it easy team!.