Okay folks, we've got a lot to talk about and we got to do it violently and quickly. So on an overall slightly bearish day, we did see some waking up of some Ev companies and we got to talk about what's going on. We need to talk about where they're going, as well as some short-term trading opportunities in them. I also want to talk about the cryptocurrency market, and let me just tell you, it smells very musky to say the least.

And then the main thing I want to talk about is this concept of a rolling correction that we're starting to see. A lot of people talk about. This concept of a correction that rolls around to different asset classes that are at peak valuations and then broadens out the rest of the bull market. This is opposed to of course, that other mindset.

That's sort of that doom and gloom mindset where everything's just gonna tank. Obviously it's only time that we'll tell which becomes true, but it's worth knowing each of the outlooks. and the only thing that I ask of you in return for this video is that you hit that ravishing like button, drink some tea, and then don't forget to subscribe either. Okay, so to start Evs now.

usually explosions and Evs are a bad thing, but today we saw some positive explosion in some of the smaller Ev companies. Today's balance of smaller Evs was largely led by Lordstown Motors ticker symbol. Ride Ride has just had an awful time. It's been short and distorted to basically the ground and the growth crash over the last few months didn't do it any favors.

and today we saw some squeezing. And the reason was because the company announced Lordstown Week. This is an event that's going to be happening next month and is going to give a lot of transparency into where Lordstown is with their operations as well as how fast they're going to be delivering on their goals. Sportstown has come under a lot of heat because of some allegations from short sellers, so this is going to give an opportunity for a lot more transparency.

Most people thought Lordstown would never do this because the guilty company isn't going to go and allow the press and all their shareholders to go in and look at their operations. so that's why you saw a massive pop. But at the same time as this announcement, they've also delayed their earnings so we don't actually get a peek into how the company's doing and how they're actually number to number, holding up how their balance sheets look and how much cash they have, what sort of interest they have in their vehicles. And I think that with all these allegations, we do need some more proof of concept.

Likely, we're going to see a lot more short-term chart plays going on, and I'm looking forward to that, but in terms of the long run, I'm a little bit worried about the competition from Fort Let's be real. There's a lot of Ford F-150 drivers in America, and I've heard a lot of them on this channel say, Charlie, The Lordstown Endurance just doesn't do it. doesn't have that long-term American heritage. It doesn't have that same power.

It doesn't have the same aggressive look. A lot of the F-150 drivers just don't want to drive an electric car yet, and I hear that. But I think that a lot of the reason for that is because of a lack of marketing for these Ev trucks. I mean, the standard Lordstown Endurance setup is more powerful than the standard F-150 but in a lot of the Us, electric cars still have their reputation as being slow and not as powerful as their gasoline engine alternatives.

Getting the word out that you don't have to sacrifice performance to go Ev is a big deal, especially as Evs get cheaper and cheaper. And while Lordstown has a great truck, the reason that I'm bringing this up is because I think that Ford specifically is greatly placed to be able to make this argument. People trust Ford. This is the biggest, most American brand there is, and people who buy F-150s they're going to be the most convinced by Ford.

This is relevant because Ford is going to be unveiling their electric F-150 this week and we're going to see where the interest is. With that. The regular F-150 is the best-selling vehicle of all time. Ford can now make the case to transfer over to the Ev F-150 We also have some capital flow into Chargepoint.

When the Ev sector is highlighted, Chargepoint always finds capital, and the reason is because Evs need places to charge. Chargepoint is the leader in that. A lot of people say the Chargepoint's a bad pick, because hey, you know Ev's That's just it. was a growing trend for 2020 and now it's all done.

Ev's what we've been using gas cars since the early 1900s. Why would we just all of a sudden switch to Evs? That's that's ridiculous. Charging stations. Why would you need a charging station for gasoline-powered cars? There's a lot more to trends than just the stock market trends, and Chargepoint is set to be that infrastructure provider for charging stations.

Still, I'd say the biggest argument for Chargepoint is that their company's growth has been directionally proportional to Ev penetration. As Ev sales have increased, so has Charge Points growth. And that makes sense. Okay, Idex.

Idex today was up a lot anticipating earnings 17 up at highs. Now in terms of acquisition, ideonomics or ticker symbol, Idex has done a very, very good job of steadily building a name for themselves in the Ev niche with a strategic acquisition of various different Ev companies in order to build their overall Ev ecosystem. And I see the latest acquisition as a step in the right direction. But in terms of earnings, the actual numbers? Well, Idex ended up with 32.7 million in revenue and a gross profit of 10.8 million.

For context, the previous quarter was at 11.1 million in revenue and 1 million in gross profit. dramatic difference to the current 32.7 million and 10.8 million and nearly three times what the Wall Street estimate was for revenue. But of course that's not enough because the market has to sell everything right now. good earnings is being met with people taking profits.

It's being met with people getting out of positions, and for what a lot of people consider a spat company just a few months ago, this is a pretty damn good report. But still. these catalysts still serve a purpose. They serve the purpose of number one building conviction for people who are trying to buy the dip and then just keep holding.

And number two, they serve a purpose for people who want a short-term trade. They want to trade off these anticipatory runs. They want to trade off The post reactions also saw some strength in Fisker and Frsx today. Electric Vehicle and Autonomous Vehicle plays.

Now in terms of crypto, it turns out the bull that accelerated the Crypto rally earlier this year ended up being the bear that accelerated its downtrend. In the last 72 hours, Elon Musk has become a bigger tease than even Mara acceleration downward. This weekend was started by Elon Musk, implying that Tesla has or will dump Bitcoin and then then later. Even though he clarified that Tesla hasn't sold it yet, Bitcoin hasn't recovered too much, but that Elon Musk has added pushed it below that previous resilience level at around the 45 mark, and it's also tanked.

A lot of the other mainstream cryptos along with it and crypto funds have been met by record redemptions. You're certainly seeing a lot of people just not wanting to take on risk in this market environment, and that's finally starting to take hold in the crypto market as well. I think the calculus is simple. the big money is making this judgment call that with all this new flood and the fact that a lot of people are saying that risk is going to cost a lot more to take out compared with the fact that you're going to be able to keep less money with the risk that you're taking because of higher taxes, Well, a lot of people are making a judgement call to lock in profits, and that locking into profits of course, accelerates downtrends because people get margin called and then all that margin has to come out as well.

Truth be told, though, every asset class is going to have these cycles and I think that Bitcoin and the crypto market was just looking for an opportunity to cool off. The Elon Musk was really just that straw that really broke the camel's back. But the faster we can get these sell-offs, the faster we can let a lot of these asset classes breathe. The faster we can get back into business when it goes back to the upside.

In terms of short term trading opportunities in Etfs, I do want to remind you of Uvxy and Svxy. Uvxy was a little bit spotty today, but up over seven percent of highs. And then of course, I want to remind you of Jnug and Jdst our gold miners indices. J nugg up over 10 at highest today.

I would make sure that if you are a day trader, you keep these on your watch list because these are really good opportunities to trade off both sides of the move. Okay, now for the main entree. I want to talk about this idea of a rolling correction. A correction that basically goes from sector to sector, cools off valuations, then provides a healthier uptrend in the overall market, that then eventually allows those sectors to return to the bull market trend.

instead of having everything just completely tank, you have sectors of the market that have been really, really highly priced, cool off, and then the other sectors that haven't had a chance to catch up. They get that chance to catch up. The last three months or even the year to date has looked very, very murky. Even in the S P 500, you have Apple at a year-to-date loss, Disney at a loss, Netflix at a loss, Amazon barely up, Tesla, Deep Red, and a lot of the tech.

Just overall in the S P is down here. to date. you know that you have consumer defensive like your Walmart, your Coca-cola even down here. To date and a lot of money has flown into the financial sector.

With banks and credit card companies, it's flown into Energy for sure. it's flown into somewhat healthcare. You look at the broader market, you still have a lot of tech slow, especially software companies, the tech side of consumer cyclical, very slow or red, especially auto manufacturers. You're definitely seeing some strength in those reopening place energy, industrials, basic materials, and the likes.

but this is the year to date switch to the year over year. Everything is starkly green, and I think that this gives you a really good idea of why the market does need to have some rolling corrections. What this year 2021 and this rotation has done is allowed a lot of the broader market to catch up to tech and allow tech take a good breath. You can't have Tesla, which at its height had a market cap that would very quickly swallow half of Europe if it kept growing at the same pace.

You can't have it go up 260 percent in a year and consistently get that kind of growth without cooling off. It needs to have a cycle. You have to have an outward cycle in order to keep having the inward cycles, but you still have a lot of these tech companies that are still up dramatically year over year. So it's not exactly like a very, very strong Bear market.

It certainly is a strong bear market for a lot of growth and no way to mitigate that. But at the end of the day, you have to allow some cool offs in a lot of these sectors. And it's not the end of the world, nor does it mean that we're in for this 10 year bear market. And here's the thing.

Allowing sectors that outperform to take a breath actually allows them to get onto a more sustainable uptrend in the future. You can't have companies that just keep going up to 300 percent year after year after year without having some pushback. You want to get this out of the way. You don't want to have to have this keep going on and up and up and up forever.

Because if you do, you're going to be set for a huge disappointment when it eventually does correct. But when you allow it to broaden out now instead of six months from now instead of two years from now, it allows it to push back so that you have a lot more upside to realize just to get back to those previous highs. and you have a lot more growth to realize. past those new highs, you have a lot more opportunity for these to continue to be momentum place, but you wouldn't get that unless you have this cool off that we've had.

Now, you combine that with the fact that this rotation is largely led by interest rate scares, a reopening rotation into more recovery place, as well as a massive flood around this chip shortage, and you have this opportunity for growth to actually have light at the end of the tunnel when all these things go away. Actually, these plates were going to cool off regardless of whether we had catalysts for them to or not. And giving them catalyst and actually giving them time to cool off while the rest of the market goes up is a very, very strong thing for the sector. And think about it this way: what a disaster would have been if you kept having Neo, Xpev, Tesla, All of these Ev companies and a lot of the other tech companies that are influenced by the supply chain issues and the chip shortage.

What a disaster that would have been if they kept going up and up and up. And then they had to keep reporting these terrible earnings reports because the ship shortage was having a huge impact on their bottom line and their growth. But instead the opposite is happening. Wall Street is punishing their stock prices because of the chip shortage.

They're going down. They're cooling off massively, but the companies are beating Wall Street's expectations on how they can perform during the chip shortage. So at the end of the day we're actually getting the flip side. We're getting a more healthy approach to it and it doesn't feel like that in the short term.

but I think you really look at it over a bigger picture, You start seeing where the value is here. Combine that with the fact that a lot of these deprecating factors are short-term we're not going to be in this chip shortage forever. We're not going to have these interest rate scares forever. Eventually, we're going to have some clear guidance on where inflation is.

All of a sudden, you're like, hey, maybe this isn't as bad as we think it is. The market right now is rewarding companies that are gonna do the best over the next year and maybe the next two years. But the clear choice over the next five years. The clear choice over the next upcoming periods.

Past this reopening, it's definitely not going to be an old, outdated oil and energy. It's definitely not going to be in travel and hospitality. A lot of these are going to return to their steady increase that they had before. But the companies that haven't gotten to their mature growth stage.

the companies that haven't actually matured to the level where they're going to have more average growth. Those are the tech companies and they're set to really increase. Most growth in the upcoming periods is going to be in the tech sector. However, tech is down right now because people don't take the risk when inflation picks up.

People don't want to be in tech and that's fine. Allow them to cycle out because on the flip side, we're gonna have great deals and we're gonna have a more healthy uptrend. I think that there's a strong argument to make that. The reality right now is that we're allowing Tech to rebound.

We're allowing Tech and the rest of the market to broaden out. Anyways, folks that caps off the video. If you have any questions, feel free to reach out to us below or join us on Ziptrader Circle and of course Quickplug. This video is sponsored by Ziptraderu.

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anyways. folks that caps off the video, have a great day and I'll see you in the next one.