So we just wrapped up our live trading session with the Lpp team and one of the questions that you know was kind of being brought up is why is the market selling off if what was reported today with Big Banks, you know actually better than expected What's going on guys, It's Ricky here and I'm here to answer that question. So I really hope that you learned something new and if you do, please consider dropping a thumbs up and subscribing. If you feel like we earned it, let me go ahead and start sharing my screen so you guys can see exactly what it is that I'm looking at. So NASDAQ Market is slightly in the red.

It's not a very red day, it's not a very Green Day but overall slightly in the red. It's already beginning to form this overall reversal and why right? Why is it in the red? If JP Morgan stock right is up 7.5 on the day and JPMorgan out of the main three I mean all of them. Citigroup is also one that reported earnings today. it's up 3.3 and it was up closer to four percent.

During that pre-market session, we also had Wells Fargo which is WFC also also reported earnings today slightly in the green. So all of these companies reported earnings I want to use JP Morgan as an example came in beating expectations with its earning per share and its Revenue. So this kind of does support the case that what Jerome Powell has been saying for from uh, you know the head of the Federal Reserve what he's been saying about the banks that it looks like banks are sound and resilient. So then why is the market selling up Now the only way that I can justify this sell-off is looking through the eye from the Federal Reserve.

So what does this mean for the Federal Reserve That banks are doing well well? The big concern on why we were thinking of pausing interest rate hikes, right? So the Federal Reserve raises interest rates. But one of the reasons that we were thinking of pausing that is because, well, what if we continue to raise rates and then more Banks larger Banks begin to fail, right? That was the concern that the Federal Reserve had. Now this gives us an inside look that we're not really even close to that. So the reason we believe, right? It's the one talking to the Lpp team.

The reason that we believe that the market is actually selling off a little bit. It's that it's factoring in that on the next interest rate hike which is in early May right? May 3rd, if I'm not mistaken, the Federal Reserve could justify another interest rate hike because they know that the banks are not in the you know Brinks of potentially failing as well. Like Silicon Valley Silicon Valley seems to be a one-off exception. Uh, you know it being a very unique Bank in what it really focused on and how overly leveraged it was and then a poor investment in the bond market.

But as of right now, why was the market selling off a little bit? I I could only justify it with what was announced today what was reported. It shows that we have a strong banking system at least from the main three, and JP Morgan's performance itself speaks for itself. But how this can justify the Federal Reserve can continue its fight against inflation without the fear of more Banks failing. Because if you guys remember, the original concern when these Banks began to fail was that the Federal Reserve needed to pause interest rate hikes because other Banks could fail.

And right when that began to get factored into the market, the market began to Skyrocket. Why? Well, because if the FED begins to Pivot then that means that they actually begin to create rate Cuts. Right now, it means that the Federal Reserve can potentially stay the course, continue its fight with inflation, get that under control without the fear of putting larger banks in some hot water. And the other thing that was reported today uh, was also retail sales.

This was all during that pre-market session and we can see that retail sales came in one percent lower uh than you know the previous month and then the expectation was negative 0.4 Four percent. We came in at negative one percent, so a little bit worse than expected. And then retail X Auto came in at negative point eight versus the expectation of negative 0.4 so when these reports were actually released again, this was all one hour before the market opened. The market did react in a negative way.

as you could imagine, right? So I'm still having a difficult time like many of you guys having a better understanding of you know, are we going back to how things were? Where bad news is good news or is now bad news? Bad news, right? And it's still too early to tell because a lot of these different reports mean different things. But remember, a lot of people are making assumptions based off of what they think the Federal Reserve will do. There's nothing wrong with having a plan in place. but remember, our job is not to predict the future.

Our job is to just simply prepare for it. So I just wanted to make sure that you are reminded that no one knows exactly what the Federal Reserve will do, but what it is that they do announce when they do, it will affect the market and will get factored in right away. So really excited to follow up. Just wanted you guys to have a better understanding on why if Big Banks reported positive earnings, why is the market slightly in the red? I Just wanted to give that explanation to you guys and open to a conversation down in the comment section.

So very excited to follow up. I Hope that we're in your thumbs up in this video. Do not forget to subscribe and again Friendly reminder: I Do Trade Live Every single morning with my Lpp team. It's a one-time payment, lifetime access and if you're struggling to figure this stuff out on your own I Trade Live Every Single day.

So ask yourself a simple question: Would it be of value to you as a complete beginner to be able to have access to my morning live sessions Where you get to see my entries, you get to see my exits, but most importantly, you get to understand and hear my thought process behind every single trade. I Take during these live sessions and again, that's that second link in the description down below If you want to learn more about it, to see if it's a good fit for you, appreciate your time like always. Let's make sure that we end the year 100 team.