Hey, what's going on team, it's ricky with techwith solutions, and i wanted to explain the correlation between the nasdaq market and tech. I got asked a really good question today, uh this was actually through uh dm on instagram. So if you guys don't follow me on instagram uh, my link should be popping up right here, but one of the things that i got asked is, like you know: ricky like yeah, the nasdaq market is overbought but like tesla is just beginning to. You know indicate signs of an option.

I do agree with you right. I do agree with the idea that if you look at tesla on the four hour time frame, you know jumping into my screen, you can see that we broke above the estimate line. That's been something that we've been struggling and doing before and that now, especially with today's performance, it pushed up nearly five percent right at trading at 650. A share tesla was previously trading at nearly 900.

You know - and it's like we're only at 650 ricky like why yeah the nasdaq markets overbought, but why would you sell tesla if the nasdaq market is overbought and i want to just share with you uh the like what i what i view as like an external Variable uh for tech stocks right and i i just i've, seen it before it doesn't mean that it has to happen. I know and - and i will admit this like - i did - sell tesla early no question about it. I jumped into amc and amc's performance started off. Very strong, it started off at four percent uh we're still holding above the ema line i jumped in pretty heavy.

I have 3 000 shares and i'm pretty much break even on the day, so it was definitely not worth it uh. Today it was worth it yesterday. Right i made uh 24 000 yesterday uh, so it was definitely worth it yesterday, but today, tesla's, the one with the strong performance and amc is the one that's kind of just like break even right. So i just want to give you an example, and i hope that it makes sense to you, uh and let me know in the comments section if it does right.

So what i, what am i talking about as an external variable? Well, the really important thing that you guys should know is: first look into the nasdaq market and what different stocks make up the nasdaq market and then you can look into within the nasdaq index. You know what are the top 10 to 20 stocks that make up a majority of the nasdaq market, and you can see that something that is very popular. Something like you know, tesla and there's a list of them right. But one of the things that i've noticed is that when the nasdaq market, regardless of any positive news that tesla might see, yeah there's those positive catalysts.

As in like you know, positive news that we experienced today for tesla that the nasdaq market's going up. But tesla is surpassing just that normal motion of the nasdaq market going up. There was more positive news towards tesla based off of what it reported today right with its top performing selling vehicles and stuff, which is great for tesla. But if the nasdaq market begins to pull back and because of the current levels that it's at looking at tesla and again, i'm just using tesla as an example but looking at tesla, i i get the concern right when it comes down to where we're at right.

Now, and just where we were at a couple months ago, right at 880, this is about 35 potential and based off of where we're at. If you look at the you know how much it has to gap to cover it's like tesla's just getting started. I agree with you. I 100 agree with you that tesla is still very, very cheap in comparison to where it was before.

I'm not disagreeing with you. All i'm saying is that the nasdaq market has such an influence overall major markets, nasdaq s, p 500, dow jones, and when these markets are super overbought, meaning that they're overextended they're no longer cheap stocks right or no longer cheap indexes, they're they're overpriced. You can see that based off of previous patterns, it doesn't have to happen, but they tend to pull on back and it doesn't matter how bullish certain other stocks might be right. Tesla might still have some catalyst that might shoot it up from time to time, but when the overall nasdaq market begins to sell off, you can see that tesla and a lot of other tech stocks follow right and they follow.

And then, when the nasdaq market begins to recover, sometimes they do follow, and sometimes they still you know hold at that support level, but tesla will never get to 880 if nasdaq and smp and dow jones begin to pull on back because they have such an influence On overall tech, right, especially nasdaq, has a really big focus on tech, so it's great when it's bullish and it's great that it's still showing signs of an ascending up trend pattern for both tesla and the nasdaq market. All i was talking about was we can't prepare for tesla to make a full recovery if we are preparing for the nasdaq market to pull on back. So if you think that the nasdaq market is going to remain bullish, that it's not going to pull back, then yes, if it stays true to that thought, and that idea as long as the nasdaq market continues to uptrend and the s p 500 market continues to Uptrend then, yes, tesla should make a steady recovery, hopefully right if the fundamentals are there on top of the positive notion that these major markets might have on it, but because these are so overextended and you will see right - i mean let's test it out right: it's Not about predicting the future, but it's just about preparing for it. But it's because these overbought levels of nasdaq and smp are so overextended that once and if they begin to pull on back, it doesn't matter so much about tesla's, current price and how much it was before, because the major markets are pulling back and they have such An influence on tech stocks such like tesla that they'll pull it back with the overall major markets, and this is why sometimes you guys will see that you know for apple an example right.

A lot of these major markets - s p, 500 nasdaq - have so much money invested in apple and they make up such large pieces of that pie of what makes up the nasdaq or what makes up the s. P. 500. You'll see it sometimes that, if apple experiences a negative catalyst, it will affect directly affect the nasdaq market or the s p 500 market, and that will then directly affect all the other stocks that make up within that index.

Um. It's very interesting! It's something that you can look a little bit more into. I just wanted to explain my understanding of you know. Why is it that if tesla is bullish, if it's now finally above the sma line, if it's now finally above the ema line, if it's now finally indicating sign of an uptrend, why can't it make a full recovery and i'm not saying that it can't? I'm just saying that, while looking at nasdaq and how overbought it currently looks, it's just if that begins to pull on back, most likely tesla will follow and a lot of the other tech stocks.

So that's why i'm not really expecting tesla to make a full recovery. So, although it's great to see how bullish it is um, you know one mistake that i made and let me share this with you is i decided to go all in on amc right, so i sold my entire long positions. That's my mistake and that's you know as of today, it's a mistake because it didn't play out like it did yesterday right yesterday. I did really well, but one thing that i could have done better and i'm here to learn from my mistakes and i'm always working towards getting a little bit better right.

One thing that i can try next time is: maybe just selling 50, maybe selling 25 um or maybe selling 75 right. So just the idea is at these overbought levels. You don't always have to sell your entire position. Uh, you don't ever have to copy, never copy.

What it is that i do or never copy what anyone else does right your goal as a trader. Your goal, as an investor, should be to understand what it is that you are doing and to ex and to have an intention behind it, which is exactly why. I'm making this video, i want you guys to understand my intent and the reason why behind something and not just like, i did it because i did it and that's all right. You don't learn anything from that.

So i think it's super important for you guys to know that there's so many different ways, of course on how to approach the market, and just because we're at these overbought levels doesn't mean that you should be. Scared doesn't mean that you have to sell your entire position just because i did um. You know if you want to still have some skin in the game, and you want to play with 50 75, whatever it is of your position. Size then great, so be it you're at least preparing for a pullback, because you offer money left over to buy at those lower levels if it does pull back.

But you have some money in the game that if it continues to rally, then of course you get to reap the benefit, so that's kind of the best of both worlds um but yeah. I'm super excited to follow up. I want to congratulate each and every single one of you for your successful day. Um amc is still holding well above the ema line, but it's not really holding well above 60, so we'll see where it goes from there and again.

That is my mistake, and you guys know that i love sharing my red days with you. I love sharing my green days. It's part of the par uh process. Let's not try to ignore it or pretend like they don't happen, let's embrace it.

So we learn from the challenges that the market has to offer. So let me know what you guys think about these new hustle hearties, these hustle hard tees on our shop tech buds website are only 10 and it includes free shipping. All you have to do is if you buy anything on the store, literally anything on the store. You can add one of these t-shirts and it will automatically discount it for you for ten dollars, so they normally sell for twenty dollars.

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Like always, let's make sure that we end the year on a green now, take it easy team.