Folks, we've got lots to talk about. Number one, the market setup heading into this week, number two, the hottest trade ideas like our Hpco play that went up about 278 percent briefing price to highs, and number three, the catalysts and Market events that are coming this week that you're going to want to know about like the CPI report that comes out on Tuesday Let's get right to work and I will put all the time stamps down below and today's video is brought to you by the very powerful investing and trading platform and broker. MooMoo You're going to like them quite a lot and just for trying them out, they're going to give you up to 15 free stocks and I will put the link to that down below. Okay, so we have had a very frothy start to the year.

January was basically all up everyone and their mother was trying to get back into the stock market. The NASDAQ was up almost 18 percent at highs this year in January retail Market orders as a percent of market value hit 23 percent according to data from JPMorgan Chase That's a smidge higher than early 2021 when Gamestop Gme trading first made mainstream headlines. Back at the height of the Squeezy Mcqueezy Revolutions last month, you had massive, massive inflows of retail Traders coming back into the market and playing everything from options to short-term trading on regular shares. And they weren't just coming in, but they were coming in and breaking things.

There were short squeezes everywhere. You also had many big players from outside of the retail space going in and buying back into the stock market to squeeze out some of their short competitors, also causing a lot of things to break. But then what happened? Well, really. Since the second day of February, the market has just really been pooping out a little poopy Mcdoopy.

And no one likes Poopy Mcdoopy's the soft Landing narrative and fed posi narrative are what drove the January uptrend. But now both of those things are being called into question. They're in a new cycle of being questioned. But why? Charlie Well, while a lot of companies in this market have been reporting beats on already lowered earnings expectations, the truth is that a lot of them are going and laying off tons and tons of workers at the same time.

So analysts are like wow, they beat our expectations and then the company the next day is like yeah, but we're going and laying off tens of thousands of employees layoffs.fyi recorded January is one of the worst months for layoffs since 2020. some of the biggest layouts the last couple of months have been: Google with 12 000 laid off, Meta with 11 000 laid off Microsoft with 10 000 laid off Amazon combined 18, 000 laid off salesforced 8 000 laid off and so forth. Every day you look up layoffs and there's a new major company that's like yeah, we just laid off 20 000 people but all is fine and dandy. Buy our stock but at the same time markets are a little bit confused on how to take this right, because sure, you're seeing record layoffs in a lot of different segments, especially in Tech, but at the same time, we still have record low unemployment.

Obviously, in most cases, these jobs are going to be lower paying jobs than the tech jobs that were created in 2021 and now are being cut back. But still, there's jobs to be found, right? So people are like, wait, is this a good economy or a bad economy? Is it a good thing if thousands and thousands of people every single day are going from high paying jobs to low-paying jobs and eventually those low paying jobs are going to disappear as well, at least on the current Trend that we're seeing. And then the other part of the narrative in question is the inflation narrative. The inflation is downtrending narrative if you look at inflation on the CPI Obviously, you've got a very nice downtrending curve, but it's still very, very high year over year, and there's no real reason to believe it's just going to keep plummeting like it has.

It could easily stay elevated at a level that may be lower than Highs, but is also much much higher than the Fed's two percent Target right? There's a lot of margin between where we're at right now, which is over six percent year over year and the two percent Target. We could easily get stuck at five percent and be stuck there for a very, very long time to the extent that the FED has to really bludgeon the economy. Still, a lot of people don't realize. Hey, just because you're down from all-time highs doesn't mean that the job is done.

In fact, markets are expecting the CPI that's going to be released on Tuesday to show an increase month over month at 0.5 percent, which is a complete turnaround from the downtrend, the disinflationary trend that we had in the last report. They're also expecting a 0.4 rise for January on the PPI the producer price index. Now you could have some months that are high and accelerating to the upside and still go down down year over year because that's how math works. But it does put that question in people's mind where they're like, wait, maybe this isn't going to be just one month of an uptrend.

Maybe this is a new inflationary spiral to the upside, And at the same time you pull up the charge, you look at the one year trend on NASDAQ 100 the triple Q index and you've for the first time in 12 months, broken solidly over that red directional SMA line and essentially obliterated it. Completely obliterated, it destroyed it. Complete complete catastrophe for that poor redirectional SMA line. Now sure, markets move very, very fast, and perhaps they got a little bit too overbought too quickly.

and as we see here on the RSI, they needed to cool down. But overall, this is still a statistically significant breakout when looking at the year. Trent Despite this little cooldown we've seen since the start of February I Think that markets are screaming that they want to play. And for those of you who read our first email research report that I sent out this morning, which by the way, if you want to sign up for those free, the link is in the description.

But for those of you who read it I was talking about this concept of a melt up. What is a melt up? Charlie Well, here's Investopedia's definition: a melt up is a sustained and often unexpected Improvement in the investment performance of an asset or asset class driven partly by a stampede of investors who don't want to miss out on its rise rather than buy fundamental improvements within the economy. Now in Charlie words: a melt up happens when investors are buying into the stock market for reasons that are not related to the fundamentals of the economy that are not related to the fundamentals of the businesses that they are buying. They're buying in, not because of economic.

Improvement They're abiding, not because of increased profitability. they are binding, not because of some sort of innovation. They are buying in because other people are buying in and they want to make money. They want to buy buy.

So they could sell, sell, sell Higher and Higher and Higher and the truth is that melt-ups, while they are unsustainable if you look at the history in the last 100 years of the stock market, melt ups are some of the best times to make a ton of money in a very, very short time period. Why? Well, because things go up massively for no reason whatsoever. In normal market conditions, things go up slowly as the data comes out, and a melt up. things go up massively massively.

massively. Everyone's trying to buy in as much as possible because they're scared of missing out. and really in these kinds of conditions. A melt up is very, very incredible because short sellers who are justified in shorting stocks get completely screwed on their positions because before the stock market goes and dumps again, they're going to get squeezed out and forced to cover.

And that's going to cause these stocks to go up three, four, five, Six hundred percentage points in a lot of small cap sectors now. I Believe that we're in the beginning stages of a melt up. I Think that we have a lot more in this overall melt up period left. It may take another week or two to start again, but I Think that we're just in the beginning of it.

It takes some time to really build that melt up. Every single leg of the Melt up gets more and more extreme until that last leg, which is huge. Just insane to the upside. and then all of a sudden Boop massive dump and then all these people that tried to sell you on Longs buy and hold until you're 70.

all of a sudden they go missing. So how does this practically translate into trading opportunities? Mr Charlie Charlie Tow, let's go ahead and start with the impact this has on Catalyst reactions. Look at Hpco and the lessons that we learned on this. We briefed on Hpco on Thursday morning at about 121 a share and it ran to 458.

That's a 278 percent increase. Briefing: price to highs. Now what was the Catalyst The Well. Believe it or not, it was the Snoop Dogg Hempico and Snoop Dogg Create joint venture to launch consumer goods Powerhouse of hemp and hemp derived products.

He said quote: I've been looking for the best team out there to produce hemp products with me and this team has it all the science The Innovation and the reach said Snoop Dogg I Am excited to offer my Snoop Dogg products to my fans across the country through this partnership and this is just the beginning. So here's the deal folks. A well-known rapper partnering with a small sized company. While that's always going to get a ton of attention, but in a melt up Market You're going to see runs that could be hundreds of percentage points like we saw on this stock.

As far as I'm concerned, a company that's literally just a bucket of garbage and steaming hot Dudu could partner with somebody like a Snoop Dogg and all of a sudden their stock price is going to go up to 300 percent. That's just the market condition that we're in. Sure you can be upset, say: oh no. Only things that are fundamentally sound should go up.

I Am going to complain because my fundamentally sound company didn't go up this much. People get upset, but this is how the market works. so be on the lookout for more and more of these catalysts. We're going to do our best in the daily morning briefings to bring you more of these, but be on the lookout yourself as well.

And I've been saying this all year and I'm going to continue to say this: I Think we're going to see a lot more massive Catalyst runs in the coming weeks, but also remember, these stocks come as fast as they go. Hpco ran massively, but the very next day it sold off Huge. so if you didn't have any form of risk management, you'd be left holding Snoops bags. Next, the lovely Gns.

So obviously Gns has been one of our most talked about and successful plays this year. We originally briefed on it at about 70 cents on the 19th of January and it ran to 871, which was about a 1144 percent increase briefing price to highs. Obviously, this has been one of our best morning briefing picks this year and you can't expect this every single time. But it does show the insane value of following Trends and ripe setups, especially in this kind of Market that we're in right now.

but at the same time I mean since the overall Market topped out on February 2nd, it's been selling off alongside it and now it's fighting a break below the red directional SMA But Market Willing I Believe this stock has some more breakouts left. It's just a question of when it bottoms and when the overall Market starts supporting it. To the upside, and when you get some good catalysts and one of the things that I really like to see is that the CEO here is doing everything he can to gain the trust of these squeeze speculators that are buying this. He even went and canceled an at the market financing agreement which could have raised 7.5 million.

He said our growth strategy continues to combine organic growth and growth by acquisition with financing for Acquisitions being raised when timely and beneficial for our shareholders. However, after careful consideration, we do not believe this. ATM financing commitment is suitable for the company at this time. so this is a big contrast to other squeeze stocks.

He's sending a very, very clear message. He's saying, hey, we appreciate the fact that our stock has gone up. so we're not here to exploit the retail traders that are buying this. No, we're here to fight against the naked short sellers.

First and foremost, we're not going to exploit our new share price and enrich the short sellers by diluting or by leveraging the increased share price to raise more. Capital No, No, no, We're going to commit to squeezing out these damn short sellers to do everything in our power to investigate them and to hurt them. Now this is the message that I think he's sending and to be fair, look, he could just be using this as a gimmick to get the price up even further which then he can use to then go and dilute. We've seen crazier happen, but so far when you compare him to the other CEOs he has gone a lot farther at committing to actually fighting short Sellers and actually bringing some justice in the stock market which as far as I'm concerned is a very very useful thing to get the stock price up.

They've also started a trend of companies who are fighting back against Naked Shorts and hiring share Intel to investigate irregular trading. The CEO tweeted wow, Seven companies have hired share Intel in the last week Vrssf, Vikuv Co-ip Bsfc blank Jag X verb this movement now has one new company taking action every day and growing hashtag Naked Journey Naked Shorts War So in my view, this is a very very good look for him and a very very good look for Gns and their relevancy. And if he continues on this attention-grabbing naked short war and you get a little bit of backing from the broader Market continuing to go up, then I would expect this to break out a lot more. No guarantees, obviously.

do your own due diligence, but this is just my thought process. Based on the overall Catalyst that we've seen and how the stock has developed so far this year and so far I think we've done a pretty good job at culling the stock correctly. It's definitely exceeded our expectations now. Finally, you also have to know about that AI hype Trend If you're looking for practical trading opportunities now, it's cooling off a little bit right now.

It might cool off a little bit into the beginning of this week, but I believe you're going to see some more rolling opportunities now on Thursday's video I highlighted six AI stocks that you absolutely need to know about because I believe they're going to push upward when the AI Trend pushes upward again and they're going to be some of the biggest gainers. but the ones that I would pay that closes attention to from that list are G Faye which just had its pushback towards the end of the week Sound Hound ticker symbol s-o-u-n which also had a nice pushback from all-time highs right after just barely failing to break out which I think means it's going to break out soon and then AI which I see selling off another 20 to 30 percent and then bouncing up to a new high. But always remember folks, play The Narrative But don't let the narrative play you. I See people in the comment section saying Charlie says don't invest in these dogs for the long term What A Obviously AI is going to be a big Trend over the next 20 30 years, you should just blindly buy all of these stocks and I'm like wait a second.

Just because they're running Now, because of some loose correlation with the AI hype. Trend does not mean that they're going to be the biggest winners in the AI battle. In fact, probably the biggest winners are going to be companies like Microsoft. You're probably not going to have that many of these small caps really be the massive winners.

Some of them will, most of them won't So I would say play the high Trends But don't let the high Trends play you. The Reaper will come for AI stocks just like it came for Nft and Metaverse hype stocks in the past. Doesn't mean that Nfts or the Metaverse won't be a thing at some point in the future. It just means that a lot of the stocks that ran up because of that hype won't be around and profit 10 years from now.

now. Let's go ahead and talk catalysts now. I Touched on this a bit earlier, but Tuesday you have the Consumer Poverty Index I mean the Consumer Price Index out Expectations are for it to accelerate to 0.5 percent up month over month. If it's hotter, expect markets to panic, then you have the PPI coming out on Thursday Expectations are for an acceleration to 0.4 percent.

My guess is that expectations are probably going to be met, if not slightly hotter, which could spook markets. But I think that they'll bounce back pretty quickly afterwards, because again, I think that markets want to be bought right now. Markets want to be melted up right now. there's money in the Melt up.

Plus, the evidence doesn't really suggest that we're in an inflationary spiral right now. Goods Prices have just completely gotten destroyed. Services are pretty stagnant. I Mean they're really elevated, but they're pretty stagnant in terms of inflationary pressures going up just a little bit.

So again, I think that we're probably fine on inflation for at least the next couple of months. But what I really care about this week is the earnings report. and I care mostly about the companies that have the most to gain or lose on earnings and have historically moved the most on their earnings reports. For example, Palantir upstart roadblocks, The Trade Desk Shopify Roku Twilio Sun Power Datadog certainly DraftKings maybe maybe Applied Materials And then Redfin the biggest movers from this list are probably going to be upstart.

and DraftKings there's a massive, massive short battle going on in both of their floats, and historically, if you look back the past two years, almost every single earnings has had a massive reaction in both of their stock prices. So massive war with a massive earnings reaction and upset is something that can cause these to move a lot. Probably going to move at minimum 10 to 20 percent on their earnings reaction. And then in terms of economic data and some economic Trends What we want to hear from is Coca-Cola which updates us on consumer defensive and the overall consumer diabetes trade.

and then John Deere which updates us on manufacturing. Now if you look at the list, I mean there are some in terms of hospitality in restaurants and oil and overall energy. but the main ones that I'm concerned about in terms of economic updates are Coca-Cola and John Deere and maybe Shopify for some more e-commerce data, but mostly Coca-Cola and John Deere. Anyways, that caps off today's video.

Have a great rest of your day. Make sure to sign up for the free ZIP Creator research reports which I'll put a link to down below. Make sure to hit that ravishing like button and subscribe. And if you'd like to check out Zip Trader you and our daily morning briefings which the next one's coming out tomorrow morning 30 minutes prior to Market open well then make sure to check out Zip Trade review Down Below Have a good one folks and I will see you in the next video.