Folks Well, today we got the dumpster fire back. We had a pretty bad catalyst today that just dropped and tanked the market with it. Pretty much every major index across the board was down big, especially Growth and Tech. and that's despite Tech reporting record earnings last week.

and so of course, I want to make sure we talk about exactly what's going on and what we need to know. That being said, short-term traders are continuing to be rewarded in this environment. So we're going to talk about the short-term trades that are working. and we're also going to be giving some updates on the growth place and the only thing that I ask in return is that you hit that ravishing like button and also don't forget to subscribe.

Okay, let's start with updates. So if you are a growth holder, we're pretty much seeing the same teasing that we've seen since March. I think that Pltr's chart really sums it up. Since the original drop, it's basically been trading sideways.

It'll have periods where it's like oh, oh look, it's breaking out and then all of a sudden just no. Simply put, we haven't been able to maintain direction over that red directional Sma line in months. In the case of Cciv and other S-pacs you're seeing worse because people are worried about cranking down on S-pacs and we could talk all day about their value there, their manufacturing process, the infrastructure they have built, as well as their battery technology, and we could talk about demand and compare them to their competitors all we want. But at the end of the day, it doesn't matter how good a company is because the equity market isn't rewarding fundamentals right now.

But if you're finding yourself stuck in that slow or down trend with Grove stocks, maybe you bought Tesla on a dip, Maybe you bought Neo on a dip, Maybe you bought Pltr or whatever other growth place, Well, if you're struggling and you've put in the work to build your conviction, I would say tone back on the temptation. Here's the thing. I have an ice cream and cookies problem and since I work here at home, I know that if I keep those types of sweets in the kitchen, I'm going to keep going back upstairs and grabbing more into that gem. I'm going to feel sick.

Sure, I have some discipline, but discipline only goes so far when you're constantly tempted. If I was to sit here all day and think oh, there's some cookies upstairs, I'm gonna go eat a little bit and I'm just gonna have a little bit and then before you know it, the whole box is gone then obviously I'd have a problem so I just don't keep them in the house similar. If you found yourself already put in the working grill stocks that you see as being undervalued, sometimes you just have to resist the temptation to sell them. and if that means not looking at the chart every day or if that means just having a separate account for your short term and your long term trades, then that's what you got to do.

And of course, let me be clear, that's for plays that you really, really believe in. You have high conviction, you put the work in and you want to hold. That's those are for plays that logically you know you want to hold, but emotionally you don't. And honestly folks, I don't like being tested over and over again.

It sucks. But if you look at history, it's just the reality of the stock market that happens. and then it doesn't happen. and then it happens.

and then it doesn't happen. And it's just. you know, if you decide that you're trying to fight the market, it's going to make it a lot harder. Instead of fighting the market, why not just play what the market gives us and then wait out when the market is just not given any rewards to certain sectors that we believe in.

At the same time, if you're finding yourself oversaturated in long-term plays, well, there's an easy solution to that. Start scaling out into some short-term plans. Get your short-term game in handy. Maybe this is a useful opportunity.

For example, Cocp was a very big short-term trade winner from today. We briefed on it at the 170s range. During the pre-market it ran up to 344 and the reason was because of its plan to launch another covet 19 anti-viral candidate. How did we know this was an eligible candidate for a catalyst Run? Well, Obviously, anything positive for Covet is still a catalyst today.

But just yesterday, Prpo went from one to seven dollars on coveted related news. So we had several factors indicating that this market condition was rewarding coveted positive news. Or I shouldn't say coveted positive news. but you know, coveted related news.

Speaking of Prpo, this was another trade from this morning and an important learning lesson. We briefed on it. At six bucks ish in the pre-market it ran up to 918 it opened, There was a lot of opportunity, but if you decided not to have a clear exit plan, you'd have gotten bludgeoned after the initial pop after open. The majority of catalysts don't just run, so you have to first find catalysts that are likely to run, and then you have to make sure you're controlling your risk because a certain percentage of those catalysts aren't going to run either, and they're never going to run forever.

Remember the Rhe play yesterday? we called it out in the nine-ish range and it went to 1609. Well, today, it almost wiped all of that away. And that's why emphasizing having a clear entry and exit plan is so important, folks. In terms of Kryptos, Dogecoin continues rallying, This is likely to continue as Elon Musk is going on Snl soon, and he's likely to bring some extra attention to the currency since he is the self-proclaimed doge father.

We also saw Ethereum hit new highs. Meanwhile, Bitcoin has been on another bludgeon downward. We'll see if it can find some resilience. We did have some good news for Lyft we were talking about over the weekend how Lyft was likely to have very strong guidance for the next quarter because of course, more and more drivers and riders are going to be coming into the picture as we scale out of the pandemic.

That's what we already saw with Lyft feeding on revenue today and what they're going to be doing in the upcoming quarters. And as a result, we did see some strength into the after hours, but that's unlikely to sustain itself because of the overall bludgeon skills. We did have a beat on revenue and they raised guidance. Revenue is up 92 year-over-year paying monthly users is up 81.

Year-over-year They've raised their 2021 revenue guidance to 375 million. They reported a ton of cash on balance sheets and no debt to end first quarter of 2021. funny because two months ago, we were hearing that skills would be dwindling rapidly and you wouldn't see a quarter like this. And what? We saw.

a quarter like this, and people don't care. You saw some funds use that as an opportunity to lock in profits almost immediately after earnings, and sure, it bounced back as people realized this was a killer earnings report. But still. the short argument that largely helped Skills get to the level that it's at now, which is far down from all-time highs, was basically completely proven wrong by the earnings report today.

But the market doesn't care because it's not going to reward it during fluttery. And that's okay because we're patient folks. Okay, let's get to the entree. So what tanked the market today? Well, Treasury Secretary Janet Yellen decided to weigh in on interest rates and seemingly broke from the Fed's position.

Fed Chairman Jerome Powell has said that hey, we're not going to have to raise interest rates until 2023. We can keep it near zero, but Janet Yellen today shifted up the tone dramatically. Freaking investors out there don't want to see interest rates increase at all. Janet Yellen coming out and blasting national headlines with the possibility of overheating and the possibility of raising interest rates is spooking everyone.

What happens when you get interest rate scares while everything gets killed, but tech really gets killed because it's more high multiple. So people are like, okay, well, money's going to get more expensive Of course. Yesterday we were talking about hey, at the end of the day, if interest rates don't get to these extreme levels, you're gonna start seeing people cycle back in. But when you have Janet Yellen throwing this opinion into the mix, you have a lot of panicking.

People are like, wait a second. Actually, is it really gonna get bad? And if you look at the media coverage for example, it says Yellen says rates may rise to prevent overheating. That lead you to the conclusion that hey, this is really bad. This is Huge overheating.

But if you actually read what she said, she said it may be that interest rates will have to rise somewhat. To make sure that our economy doesn't overheat, it could cause some very modest increases in interest rates. She also said that she is largely not concerned about inflation becoming a problem, but nonetheless, What do you see from titles, headlines and headlines and headlines acting like we're overheating right now and that interest rates need to go to like 500 percent? And don't get me wrong, she's definitely escalating the conversation and she knows very well what she's doing. Pretty obvious that she disagrees with the way that Jerome Powell has been handling inflation.

Powell's approach is that hey, we're going to have increased inflation, but it's going to be transitory and then over the long run, it's going to go back to the benchmark in a situation where it overheats before 2023. Well, Powell is like, okay, well, that's fine. Well, now we see that there's a problem. Now we see that it's overheating.

Let's go ahead and raise the interest rates, so it's sort of more reactionary. With Janet Yellen, It seems like her interpretation is saying okay, well, you know we're not seeing overheating yet, but maybe we should start raising interest rates to preempt that. That way we can make sure it doesn't happen. Of course, both of those have their pros and cons.

With the Powwow method, the risk is overheating too quickly. With the Yellen method, the risk is killing economic growth too quickly. If you hike interest rates way before inflation even became a problem, well, you risk killing a lot of job growth that didn't need to be killed, basically causing a problem that didn't need to be there. But I think that what's unfortunate here is that she really didn't have to weigh in.

She doesn't set interest rates herself. She used to be the Fed chairwoman, but now indeed, she's the Treasury Secretary. As Treasury Secretary, she has no ability to raise or drop interest rates. And by publicly making this headline, she's basically undermining the Fed Chairman and all of the people at the Fed, basically making their job harder and putting some fun into what they're doing.

Maybe that wasn't her intention and the media just blindsided her. But that was the result. And again, it's not like Jerome Powell wasn't already willing to use interest rate increases if he was wrong and it got out of control. So it's not like she was really warning anybody.

No doubt, we printed tons of money. We're going to have an economic boom. Obviously, inflation is going to go up, but the question is, is that going to be transitory? Like it's going to happen for like a couple quarters? Or is that going to be like we're going to have rapid runaway inflation for years? If you believe in rapid runaway inflation, then obviously you're going to have to have those rapidly increasing interest rates. But the Fed has taken the stance that hey, we have a lot longer to go for this economic recovery, and they've taken the calculated risk that we're not going to have that out of control inflation so we can keep that interest level down.

But if we do, hey, they're going to raise it again. But the problem is that Janet Yellen coming out and undermining the Fed is basically creating a ton of fun and especially in the market and especially in tech and growth stocks. And you can check out my video from yesterday on what the data is showing, on what actually is happening with inflation, how bad it's going to get, what the historical context is, and more if you want to learn more about this issue. But anyways, folks, we'll continue to keep you updated on this market and everything that's going on, as well as the short term, long term and medium term trades.

And as always, we'll be here with you every step of the way. Anyways, that caps off the video and of course, Quick plug. This video is sponsored by Ziptraderu. Let's be real, a lot of folks struggle with growing their account because they don't have a clear process.

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