Are you ready for the economic reports set to be reported tomorrow? What's going on? Team? It's Ricky here with Tackled Solutions Hope that you're all having an amazing Tuesday Make sure you drop a thumbs up and subscribe if you guys haven't done so already. but let's jump right into it. So the overall NASDAQ Market as of right now is up 0.11 But of course, like we've seen so many times before, just because the NASDAQ Market currently is in the green does not mean that it has to open up in the green. then today was a great example of that.

Now what exactly caused there to be someone selling pressure? The uncertainty of 2023 Tesla Tesla got absolutely destroyed to say the least, right? I Mean let's look at Tesla firsthand: Tesla selling off on the day it lost 11.41 and after market hours an additional 2.4 I Mean, think about that. We are talking about literally almost 14 of a loss in valuation in just one day from 414 dollars a share all the way down to currently at 106.. So again, a lot of people were asking hey, Ricky is it possible for Tesla to drop below a hundred dollars a share I think now it's you know, not very far fed, spaced off of us being closer to 100 than we are to 200, right? Uh, So Based off of Tesla at current price point and its previous all-time high, it offers about 279 Roi almost 280. If it were to make a recovery, of course Tesla does not have to recover, it can continue to sell off.

And I gotta asked a great question like can Tesla not recover? Of course companies fail all the time. Now imagine that type of story where Tesla and Elon Musk goes from the richest man in the world to then going bankrupt. That would be an insane straw. I mean Elon has an army behind him, but it seems like ever since he acquired Twitter not just because of how unfortunate 2022 has been, but because of that acquisition, it's been going downhill ever since then, going from 300 a share all the way down now to 109..

So one of the things I quickly want to talk about is I think um, that I really like to focus on my channel are economic reports. They sound super super boring, but trust me, they're very, very important, especially if you're just getting started into investing and or trading in the stock market. So these economic reports are released on a weekly basis and there's a schedule for them. The ones that are set to be released tomorrow are the NBA Mortgage Application index.

It's not super significant, that's going to be about one hour and a half before sorry, two hours and a half before the Stock Market opens. But the one that I want to talk about is 30 minutes after the market opened which is at 10 A.M eastern time and this is pending home sales. So if you're part of my learn plan Profit Group tomorrow at Market open for our live trading session we will be able to capture pending home sales report and how the market reacts to this. The market does have an expectation so it expects pending home sales to be down negative point two percent.

Uh, the prior report was negative 4.6 percent. Now great question that I got asked is you know, well, what exactly are pending home sales? Well, the number of properties currently in the US month over month that are under contract meaning that they're not properties that have necessarily been sold, but they're under contract to be sold I Obviously the buyer always has the option of canceling that contract. But let me share with you why this is important, right? The Federal Reserve has been trying to fight inflation. Inflation was at a 40-year high and by raising interest rates, they made it more expensive for people to borrow money.

This has sent mortgage rates to Skyrocket right? We went from an average of 3.5 percent to an average of over seven percent across the United States. And if you actually do the math, it's very, very expensive. It's like literally a 40 increase on your mortgage. So how has this affected the stock market? And again, I Love sharing this data with you guys because I Feel like it will give you a better understanding of why the market is reacting the way that it does shortly after these reports.

right? So these, uh, pending home sales reports are reported on a monthly basis, right? So the month completes itself and then it reports. The great thing about this is that as of now, right? So based off of just as of last month, we have the Uh Pending Home Sales Index currently at a level of 77.1 percent. This is down 80.8 percent since last month, right? And then it is down 122.4 year over year. This is a change of negative 4.58 from last month and a drop of 37.01 from a year ago.

Now, the thing that I want you to understand of this is that you know those are just a bunch of numbers, right? The percentage is kind of like the thing that I really like to focus on. It makes it a little bit easier for me to understand and I like to keep things simple. I Don't know about you guys, but a drop of 37.01 Since last year, That means that nearly there has been a 40 drop in Pending Home Sales year over year if you did that a year ago, right? The number of properties that have been sold, or nearly 40 percent more that were currently under contract and it's not much of a surprise, right? A year ago, the average interest rate was around maybe three to four percent, right? Three and a half percent. To say average.

Right now, we're still looking at an average of six to seven percent of six and a half six and a half percent interest rate. which makes it a lot more expensive to actually afford a mortgage, right? Also, with the uncertainty of the market, it is instilling more fear and potential new home buyers. Which means that as of right now and again, this is, uh, something that I've been able to experience myself. A lot of You guys know that we flip properties in the Arizona area and when I went from you know, flipping I would say one to three properties every single month last year to as of right now we only have one active house flip and in the past four months we have not acquired a new house flip.

I Mean it's it's really, really slowed down, right? because of the uncertainty. You know homeowners don't want to sell below what they think their house is valid and obviously buyers don't want to buy Above because of the uncertainty of the market. So I just wanted you to understand of the why of why has the market slowed down? Why are we seeing a Slowdown on pending home sales and how this can affect the report right? So now this is kind of like the question: how is it that this report affects the stock market? Well remember, the Federal Reserve wants to see the economy slow down. They would love the economy to feel the pressure.

So if they actually based off of this current report right pending home sales, it would be in favor of the Federal Reserve For them to see a bigger slowdown than what is expected they have seen and are expecting a drop of negative point two percent meaning that pending home sales should be going down negative point two percent. But if it goes down any more than that, the stock market might react in a positive way. and it's a weird way of thinking. But right now bad news is good news.

and good news is bad news. And this is in the eyes of the Federal Reserve because if the pending home sales actually comes in worse than expected meaning less homes are actually pending to be sold, this is good for the Federal Reserve And hopefully they can justify being less aggressive in 2023. And if they're less aggressive in the way that they raise interest rates, then that means that again, it will lessen the effect that they have to the overall stock market, right? Because when they raise interest rates, it decreases growth because it's more expensive for businesses and business owners to borrow and leverage money, right? So again, just wanted. You guys have, uh, one of you guys have a little bit of a better understanding of the significance of pending home sales, Why it's important and why it's down so much year over year.

So if you have any questions again, I Hope that you know that you can always send me a direct message via Discord And trust me, there is no questions. We all start knowing nothing right? You can try to Google search your question and I would encourage that. but if you still can't find the answer to your question, if you're having troubles, you know, deciding what application to use, just send me a direct message, right? Try to figure it out on your own, but if you can't figure it out, the first link in the description down below is my Discord and you can send me a free direct message either via Discord or if you're on Instagram that's that third link in the description. Friendly Reminder: if you comment on this YouTube video or if you try to reach out to me via Instagram I Only have these accounts I'm verified on Instagram and I'm verified on YouTube as well I Do not have any other accounts I Do I will never message you through WhatsApp I will never message you through telegram I Don't have any crypto fund I Don't trade for other people.

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let's make sure that we end the year on our green note. Take a dizzy team.