Oof has the fear. Come back with a vengeance. You've got the dow getting destroyed down like 2.5 midday. you have the S P 500 down 2.

You got the Nasdaq. less hammered, but still fairly hammered down 1.18 In fact, pretty much the only thing that held out today was the quote. Speculative, worthless growth plays. the Arc Invest place.

I for one, am so damn thankful to the financial media for three months ago, warning us to make sure that we're getting out of growth plays because they're too unstable and won't survive through the summer. And make sure that we're getting into the safer Dow plays that were at all-time highs. Those were the safe bets. They're called value stocks for a reason.

Would they be called value stocks if they weren't of value? Why did we even question them? It says value in the name. Obviously, it's a good play. Obviously, don't question it. These are recovery plays.

So not just value, but also recovery in the name Recovery. That implies they have a lot more to recover. Who cares? How do you recover to a value you've never been to before? I don't know. Just don't question it.

Shut up. Sell your Tesla, Sell your Evs, Sell the Internet. The Internet is a fad. Sell it because guess what? Mcdonald's is the future.

But teasing aside, Doomy the Doomster is back and he's angry while some stocks were spared today. Let's just say that Doomy doesn't take prisoners. So we gotta talk about what the heck is going on, what you need to know, and how to trade. This and the only thing that I ask in return is that you hit that ravishing like button.

And also don't forget to subscribe either. I got to tell you, the one thing that do me the Doomster hates is when you become a subscriber, the subscribe stir. So if you want to piss off doomy, you know what to do. Okay, quick update on play.

So today, you saw some strength in some of the more obvious growth plays like Chargepoint, Neo, Xpev, Draftkings. If you haven't heard, Draft Kings is actually the king of drafts, which is why I'm bullish on it. Charlie does terrible. Dd, Draftkings has a proven business model in an expanding market with a ton of proof of concept and great leadership.

Although a sketchy subsidiary in my opinion that we've talked about in the past, but that can just totally be shut off whenever they want. you. Saw Elf Wake Up again today out of nowhere. that's the Uber and Lyft advertising platform.

It was up like 30 today at Highs continues to have these random bursts of retail euphoria. Pretty damn hard to figure out when it's going to come and when it's not. But keep an eye on it in the pre-market because sometimes you're going to see some of that bullishness in the pre-market We missed it this morning. pretty murky day for many other sectors.

you saw some concentrated sell-offs in Crypto wasn't so concentrated. Actually, it was broad. Everything in crypto pretty much sold off. There's probably some shite coins that went up.

Charlie coin isn't on the market yet, or that would be going up. The viral and dramatic video of Malaysia literally smashing bitcoin mining rigs hasn't helped much. Pretty funny to watch, but it's very, very ironic when you consider how incompetent a lot of these governments are when it comes to handling cryptocurrencies. Cciv has slid down a bit ahead of their vote on Thursday to vote on the actual merger with Lucid.

I would keep an eye on this as we approach that vote. In terms of what worked today, we had some strength with our fear index Uv Xy. We pretty much like clockwork almost always prioritize Uv Xy every single time. There's increased fear in the market, because that tends to do very well on those days.

And when fear dies off, you also have that Svxy inverse. that's why we love inverse pairs. But anyways, Uvxy did rally into open and throughout most the day. In terms of other catalysts aehr, we got a lucky win on.

We briefed on it 30 minutes prior to market open due to receiving a 10 million dollar order. It went from 450ish to 767, which was a substantial run for such a funny day. This was the morning where I was looking at the mark and I was like, you know what, beggars can't be choosers. We gotta work with what we got.

But why did I like this one in the first place? Well, a couple of reasons. Number one, the contract was quite big relative to the market cap of the company. On Friday, a E was sitting at a market cap of 80 million and this contract was worth 10 million and companies traded multiples of their revenues and eventually earnings. So a 10 million contract has a huge impact in terms of both actual value add to the company as well as euphoria around that, and I was banking on that.

The second reason I liked it was because the press release that came out said that the customer identified itself as a leading Fortune 500 supplier of semiconductor devices with a significant customer base in the automotive semiconductor market and that these were follow on orders. So they already had a good experience with Aehr. and they're going and having a follow-on order. So when you go and you put a 10 million dollar follow on order and you're a supplier for a Fortune 500 company that's a massive endorsement of Aehr, and in the context of the global chip shortage, this is a semiconductor supplier that's a big stinking deal.

Thus, it set it up for a nice run. Did it have to run? Absolutely not. But it did run in this situation and the probabilities worked in our favor. Keep in mind, with capitals being pulled from the market, you're simply gonna have a lot less strength in Momentum Place, but putting in the work and showing up every single day is gonna make you more likely to find the ones that do end up running.

And also, of course, you want to always make sure that you're diversified in your approach to the stock market. You have some buy and hold conviction plays. You have some catalyst plays, maybe you have some, uh, short squeeze plays. Whatever disappointment for me this morning was Nrxp.

It surged in the pre-market as their coveted candidate showed promising evidence in preventing factors associated with death, and it had taken a brutal sell-off with the market panic, which led me to believe that this catalyst was being oversold far too quickly and led me to briefing on it. Shortly after that sell-off had reversed, which was of course, the usual 30 minutes prior to market open. It was at 12 10-ish and it went to just a few pennies under 15 bucks a share before marking out later on. But this was something that I think would have bounced to 17 or 18 on this catalyst had it been the right market environment.

and it just wasn't today. so I was disappointed in it. and it is what it is. Okay, let's get to the main entree now.

So context Last week we started by talking about some of the pricing issues in many sectors of the market, and we talked about how the market is walking a fine rope in terms of not just inflation, but also in terms of a healthy recovery. You don't want to have too healthy of a recovery that you push over to inflation. And by inflation, I mean massive, out of control inflation. Obviously, we're having inflation.

There's no talking out of that. but you want to have transitory and in control inflation and you want to have a solid recovery. But if the recovery doesn't go very well, that also causes a massive problem, obviously. And then on Thursday we started hammering this idea that hey, a lot of these value stocks, a lot of the biggest stocks in the stock market.

Well, not only have they recovered, but their companies aren't doing what they used to be doing and they're trading way way above all-time highs and some of the ones that actually did pretty decent in the pandemic and recovered a lot sooner than the others. They're actually starting to see their growth rates cool off, And since they've pre-factored in a strong recovery, what happens now? Well, the euphoria that we had is starting to say hey, wait a second, we're getting actual numbers. I don't want to be euphoric anymore. Future's starting to look a little bit slower.

Let's get out, there is not as much upside for a lot of these companies that are pricing in the moon, because growth rates are going down, because there's a lot of issues that we didn't see coming, and because overall we've already gotten a lot of the data that we were trying to hype before and it's behind us. What are the amazing catalysts that are ahead of us in the future? Now this week, the situation, as you know, has gotten even more complicated with this Delta variant situation starting to get louder. Look at how bad this is impacting some of the recovery plays. Ccl is obviously down like 40 in the last couple of weeks, airlines continuing to tumble.

you. Look at the overall S P 500 and it's looking like a typical day in the early days of the Coronavirus crash of 2020.. you have the deepest red in a lot of the consumer cyclical stocks. Quite simply, this isn't another inflation scare.

In an inflation scare, you'd see consumer cyclicals pick up and you'd see bond yields going up. We're not seeing either of those consumer cyclicals have been cooling off and bond yields are basically plummeting. Over the last three months, yields have done nothing but go down. We are basically flat with the beginning of the year in terms of bond yields.

which is crazy because remember the big media narrative from February, March, April, and May was that hey, in the summer you're going to see bond yields continue to get out of control. The whole idea was that the numbers involved in a lot of these value stocks didn't matter. Number one, because they're value stocks so it's in the name value and number two because inflation was just going to be so crazy and out of control that all numbers would be beat. But now we're hearing these companies aren't reporting those numbers and the situation is getting a little worse because now we have the Delta variant.

But I think that's missing the bigger picture here. The Delta was just the straw that broke the camel's back. Yes, the Delta variant is very real, but it's really just woken up the weaknesses in a lot of the valuations of the market. Right now, I myself am dealing with increased restrictions in Los Angeles.

I think we were the first county that brought back the mask mandate and you're seeing a lot of upping of the bar in terms of restriction recommendations, but you haven't seen any mass scale increases yet. and obviously there's some realistic fun in terms of the situation and how out of hand it can or will get. But at the end of the day, I strongly believe that only the biggest pessimist right now in the market thinks that this is going to be a dramatic increase in restriction that this is going to have a huge impact on the economy. I'm not a doctor, I'm just talking about what the market's looking at.

as an investor and as a trader, I see that the market's not saying hey, there's massive, massive restrictions and lockdowns coming again 2.0 or 3.0 4.0 Delta is certainly a threat in terms of our short-term recovery prospects, and it certainly threatens a lot of our trading partners and creates a bad situation for the travel industry. But I don't think that this is more than a short to term problem. I think the market just needed a little push to realize that it was overvalued in many, many sectors, the most atrocious being those recovery sectors. You can't have recovery stocks that are trading at valuations that are just so ridiculous given the growth rates that are projected to slow down as we edge out of this recovery.

For example, we were just talking about Delta Airlines on Thursday not to be confused with the Delta variant, obviously, but it's like, hey, great, Delta Airlines has recovered to the lower average of 2019 prices. But in my opinion, those revenues aren't going to come back to 2019 levels until like 2023. And we're not talking earnings. we're talking revenues.

So it's like, hey, wait a second. Where's the damn return on my money? You've put it up to evaluation that's factoring in where we were just two years ago, before the crisis and now we're in a much worse situation and all of a sudden we're trained at the same price. How much more up can this go? Has this already factored in? Like three years of growth? Could this go up another 10? 15 bucks? Sure. But where's the risk versus reward? Where's that value from my dollar? And that's just one example.

But I think that in totality, what you're seeing is yes, the Delta variant spooking the markets, but you're also seeing the market try to get rid of some of that euphoria. You're seeing some of those euphoric speculators and a lot of these big companies start pulling back a little bit. The market's also starting to acknowledge China fud. it's acknowledging tax rate increases that are coming down the line, It's acknowledging the chip shortage, and it's just coming to terms with more reasonable valuations for a lot of companies.

And I would say, hey, that's a good thing. Let's get some corrections. Let's get some sell-offs. Why do we need things that keep going up and up and up where you can't find any damn deals? Let's see where this uncertainty takes us.

and if we can get some really strong discounts and recovery plays, I might flip and be like, hey, I like recovery plays now because it's cheap again. just like we talked about in 2020. After the drop, we started loving recovery plays. We talked about Delta, We talked about American Airlines, We talked about Boeing.

We talked about all these companies that had a lot of room to bounce after those early March dips. The timer value plays are actually of value is when they've been discounted, so just something to keep in mind. I think that we're in a very, very interesting situation right now and there's going to be a ton of opportunities for us in the future. We just have to keep our eyes open and stop listening so much to the stupid headlines.

Whether like Expert says, 20 years of negative returns, Expert says the stock market is over. Go Buy Rocks! Rocks have been around since before the dinosaur age. They hold their value, folks. sell your tech companies.

Go Buy some rocks. Anyways, That caps off the video, folks. If you have any questions, feel free to reach out to us below or join us on Ziptrader's circle. If you'd like to learn how to trade with our step-by-step lessons, our private chat, and of course our daily morning briefings, I'll go ahead and put a link to Zip trader you below, but make sure to only join us if you're willing to dedicate yourself to the process.

The program was thoughtfully created to give you a process to learn and grow, but if you don't complete the structure and dedicate yourself to doing every single lesson and doing it as and completing it as designed, then you're not going to get anywhere. When I buy something, I make sure that I'm going to get my money's worth out of it, so I expect you to do the same. And if you're wondering what broker to trade these stocks and we always like to send new traders over to Weeble, I'll put a link to them below as well and sign it up and deposit in with the link below. We'll also get you some free stocks anyways.

Have a great day and I'll see you in the next video.