We have the sky falling in many asset classes from stocks to China to crypto and we need to discuss that fear. We also have some big catalysts and reports coming this week, both good and bad, and we have to prepare for those as well. And the only thing that I ask in return for all of this is that you hit that ravishing like button and also don't forget to subscribe either. Also, quick plug zip trader used prices will be going up this week, so if you do want to lock in lifetime access at the current price point, make sure to check out the link below.

Right now, we are in this environment where fear has been steadily increasing for weeks. The Uvxy Fear Index is on an overall uptrend, the Spy is on an overall downtrend risk appetite is decreasing fast. Arc has continued to plummet, pretty much every growth stock is heading into a consistent downtrend, getting more and more oversold, whereas a lot of the bigger major cap stocks are also starting to see sell-offs In terms of reasons, Well, we have about three weeks left of tax loss harvesting for folks trying to harvest some losses For 2021, we have, of course the variant spooking People tapering has of course begun, and people are anticipating future selloffs because of interest rate hikes. People right now that are just looking at all the variables and they're saying okay, well hey, fund manager pull out all my money from the market because there's a lot of uncertainty right now.

I want to lock in these capital gains rates. I'm worried about all of the negative catalysts. Let's just go ahead and take the profits off the table and then rebuy back in when things become more stable. whatever that means.

Of course, on the flip side, we could see that 2019 post tapering fear rally that we had after the huge sell-off towards the end of 2018. But this time around, of course, there are a lot more points of uncertainty. and no two time periods within the stock market are alike. At least not completely alike.

We're in a market that has a lot of margin in it, and quite frankly, when there's a lot of margin in the market, it doesn't really matter if the catalysts have legs or not. What matters is if people are selling the catalyst, because that's all it takes for people who are heavily leveraged to get what margin. Cult may not think the variant's a big issue. It may never end up being a huge issue, but if enough people sell on it, well, it becomes an issue.

That's the same thing to whatever flood catalyst you're seeing right now, whether they pan out or not, whether inflation is out of control, whether interest rates do spike a lot faster than anticipated, well, if enough people think they will. Well, all of a sudden, you got massive, massive, destabilizing pressure. Futures right now are looking fairly strong, but I'd be lying if I said that. You couldn't see more downside because of all these Catalysts.

I don't want to sound like I'm pushing Fudd or favor, but the fact of the matter is that a lot of people are used to dips that recover immediately. Sometimes you get dips that don't recover immediately, but those are the ones that you actually want because they have a lot more profit potential. A Big Dip is very, very good for us as traders, and very very good for the market to take a damn breath. But when you're looking at the overall trend, we're in a downtrend right now.

So when it comes down to it, you have to make sure that you're being very, very strategic on what you buy the dip on, and what your outlook and time horizon is. Sometimes having a time horizon of, well, this needs to go up by lunchtime, just doesn't work because the market's not rewarding it like that. When it comes down to Catalyst plays, you may find stocks that run up by lunchtime, but a lot of times you won't find that in the Conviction markets. You won't find that on anything that has to do with fundamentals.

But anyways, Moving on to the crypto market, Bitcoin broke into the mid 40s for the first time in months which has led to the El Salvador President tweeting that they are buying the dip. He said El Salvador just bought the dip 150 coins at an average Usd price of 48 000 and he added missed the effing bottom by seven minutes someone asked, do you think he just trades for the country on his laptop and he responded no the phone. This is the literal verified Twitter of the President of El Salvador. He actually calls himself in his Twitter bio the Ceo of El Salvador.

So correction there. and at the end of the day, the more people and especially countries that buy bitcoin at Dips, the more resiliency it has in both a reputation standpoint. From both a reputation standpoint and as an actual price and demand standpoint. Bitcoin and the overall cryptocurrency market need to 100 absolutely have periods of extreme sell-offs To prove to people who are looking at this and analyzing it that hey, wait a second, this has resiliency.

This isn't going anywhere. This is on an overall uptrend. If you get into the situation where it just goes up dramatically over and over and over again, it never takes a breath. Well, the breath that it's going to take is going to be very, very very very rough.

It's going to knock a lot of people out and people aren't going to want to rebuy the Dip. But overall, the crypto sector has a whole lost tons of capital over the weekend and last week, and a lot of that can be linked to the Sec's recent rhetoric. Crypto Exchanges thought they could throw a fastball according to a former Sec chairman, but they warned that enforcement is coming. Current Chairman Gensler said, platforms, whether they're trading platforms, lending platforms, whether they call themselves centralized or they call themselves decentralized, are an important place for public policy and investor protection he added.

and this is the threatening part. He added that when the Sec and trading platforms cannot come to an understanding, we're going to use the enforcement tool of suing entities that fail to register with the agency. But I think that a better approach for these platforms is to work to get them registered within the law. Of course, many crypto companies would argue that they don't have much clarity in terms of what needs to be and what shouldn't be registered.

There's not much concrete regulation or guidelines in the crypto space right now. It's a very, very big gray area and a lot of crypto companies that are trying to play by the rules aren't really sure what the rules are, and the Sec has been very, very slow at providing any sort of clear guidelines or clarity as to what fits their criteria and what is going to lead them to getting. well, the hammer if they do something wrong. And obviously a lot of players in the crypto game are complete scumbags.

But there's also a lot of good players in the crypto game that are trying to trying to build honest relationships and real transactional value with their clients. And unfortunately, when you have very, very bold and big statements like this that are threatening and don't have a lot of clarity, Well, it screws the entire industry. Both the good and the bad. Regulation can certainly help build trust in an industry, but over-regulation and unclear guidelines can definitely stifle growth.

You look at a lot of the random actions that the Sec has taken. It's creating this picture a very, very strong uncertainty for the entire industry. and you're seeing that ripple through everywhere when it comes down to exchanges. When it comes down to the actual tokens and coins.

When it comes down to even miners, I don't need to bring up more lovely Maura. But at the end of the day, I don't think that the Sec is trying to screw the industry. I think that it's more so. they're just struggling to figure out how to regulate it, and in the future we're going to get more clarity and then a lot of that fud will wipe away.

But right now it's looking a little bit murky because of this step up in rhetoric. Of course, though, when it rains, it pours and we have some more fear in China. Cnn recently reported that Dd's delisting could spell the end of Chinese stocks on Wall Street. It goes on.

Shortly after its 4.4 billion dollar initial public offering in the Us. in late June, Chinese regulators banned Dd from app stores in China, saying it broke data privacy laws and posed cyber security risks. The decision to target Didi was widely seen as punishment for its decision to go public overseas, and the company became a prime example of China's efforts to curb the power of big tech firms. And here's an important part.

Chinese founders previously looked to New York aka listing in the Us for a number of reasons, including looser listing standards, often higher multiples, and a domicile beyond Beijing's financial and regulatory grasp. That calculus has rapidly changed and today's companies especially established market leaders or those in certain tech sectors will face increasing pressure to list on China-controlled exchanges as opposed to say U.s exchanges. Now where it gets freaking you have a little bit of overlap of regulatory fund is. On Thursday, the Sec finalized rules that would allow it to delist foreign firms that refused to open their books.

whereas China at the same time as this legislation already rejects us from what well, auditing their open books. which means that you have a clashing of two authorities here. Now, it's worth noting that U.s listed Chinese stocks are still subject too big for accounting audits. It's just that the details from those audits aren't all set to Us regulators open book style.

But anyways, this is the latest escalation and a trend of uncertainty for Chinese stocks that we've seen all year. If you look at the Bktcn index which tracks Chinese stocks listed in the Us, we are trading at loves that we haven't hit since the Covet drop, and then before that during the interest rate scares in late 2018. regardless of the underlying stock, whether it was a company that made tons and tons of money and dramatically increased its market share or didn't it's more likely than not plummeted. This year, people are selling out in anticipation of more regulatory fear and blowback.

and obviously China has always been a place of regulatory uncertainty and rolling fear and rolling euphoria. We've seen this so many different times, on so many different levels, but each time you never really know if this is going to be the time where China decides to put down the hammer or the sickle. So what are the chances that China decides to say D-list something like a Neo and Expeva Baba and what happens if they do? well? First of all, obviously one can't really predict what they're gonna do next, but if one is going to analyze their trajectory, their first and foremost requirement is to target big data and big tech companies, so we have not seen them try to curtail electric vehicle manufacturing. There has been some rhetoric on some of the more sketchy companies, but we haven't seen much negativity in terms of Neo, Expeve and Lee other than the general association.

The Chinese Securities Regulatory Commission was asked about the structure that Neo Xpev and Lee hold the Vie structure and they said that they are not considering barring that structure. You could speculate all You want on that, but I'd argue the bigger threat for something like a Neo and Xpeverally is really our regulatory authorities the Sec coming in and getting them because if China has the rule of not letting them be completely audited by Us authorities, well, it's possible that they'd be delisted based on not fitting our criteria. But in that case, if you actually read what the Sec's new guidelines say, well, it says they actually have quite a bit of leeway. They have three years to comply to the standards or B to list it.

And of course I'm sure the Sec would be willing to work with them after that as well because we've seen that happen with other companies that didn't comply with other regulations. But in terms of Baba specifically, I'd argue the ball is really in China's court. The company itself is excellent. It has legs everywhere.

The business model is insane, but the problem is, the Ccp doesn't like it. It doesn't want it to flourish so it's not flourishing. You know people ask me all the time. Do you like Alibaba? I'm like, yeah, I like Alibaba a lot.

but if the Chinese Communist Party doesn't want it to work, it's not going to work. Do I think this is an insane deal and it's probably oversold? Yes, But you can't say for certain just because again, you have that regulatory risk. I think that there's more regulatory risks still remaining with Baba than there are with the Ev companies because China wants the Eevee companies to see tons and tons of capital flow into them so that they can be the leader in Evs, whereas China wants to kill the power of big tech firms like Alibaba. But in terms of delusion, of course, the fear of de-listing is going to tank stocks even if they don't get de-listed There's been so many times where the listing threats have really, really freaked out Chinese stock valuations and they've just gone on to rebound afterwards.

But there's also that threat that, hey, maybe this time's different So I would say make sure that you're playing the game with risk controlled bets instead of saying oh, I know that it's not going to get you listed Or oh, I know that it's going to get de-listed because truth be told, nobody really knows in terms of what happens during the listing. Sometimes the stock goes on to trade on the Otc market, Sometimes U.s investors get exchanged shares of equal to similar value from, say, the Hong Kong market, or in some cases, your shares get bought back by said company. Okay, earning so slow start to the week. On Monday we got software as a service company, Koopa reporting.

On Tuesday we have Autozone reporting don't really care about that, but most notably, we have Chargepoint. the point of charging. Right now, we aren't really in a conviction market that rewards fundamentals, especially for some up-and-coming companies. but that's the best time for you to say hey.

I'm going to look at their earnings report, I'm going to see if they're fulfilling my expectations on a company-wide level, and then I'm going to build conviction whether up or down. If a company's doing really, really well during bad conditions in the market, that's like, hey, well, now I have more conviction as they did buy with Chargepoint. We want to see hardware sales increasing, and of course, subscription sales increasing as well because the more hardware they sell, the more people need to pay for subscriptions in order to have the software on said hardware. You also have Renee Solar representing the solar sector.

This week on Wednesday we have Uipath, which is a very early stage Arc automation play for increasing productivity in the workplace. I do like this company a lot. I'm a little bit worried about it when it comes down to interest rate spikes and inflationary concerns, but hey, long term. I like Uipath a lot.

I think this is going to be something we talked about for years. You have Gamestop now. Gamestop, of course, is one of the leaders of the meme movement. Could Jimmy's earnings spike interest in the overall meme stocks that have been beaten down a lot over the last couple of weeks and saw short sellers increase shorting pressure? Well, certainly we've seen that in the past, Keeping an eye on that on Thursday we have Lulu, Oracle, Broadcom, and more importantly, Chewy.

Chewy as a pet supply delivery company, is kind of in the sweet spot between a regular tech company, e-commerce company and a stay-at-home pump company. It'll be very, very interesting to see how Chewy reacts to earnings and what the earnings actually are. Of course, these days, though it seems like people don't even read their earnings, they're just like, is it bad sell? is it good sell And then lastly, on Friday we have the next big inflation report being released: the infamous Cpi Index. Last month.

Cpi Index was the last draw before the Fed conversation really changed from inflation being transitory to it needing a tone shift. Very, very strong focus on the top line Overall average pricing pressures. We can't have many more point nines overall than a month before the market really starts freaking out. On the bright side, with oil and most energy prices cooling off some in November, it's certainly possible that that has resulted in some slowing down from the energy segment, which likely would start reducing transportation costs in many of the other segments and help apply downward pressure, but at the same time burdens with variant supply chain and overall new regulations on an international level could screw some other sectors anyways.

That caps off the video. If you have any questions, feel free to reach out to us below or join us on Ziptrader Circle. Of course we do have our Black Friday 100 coupon code, which is still active on Ziptraderu. if you'd like to sign up for lifetime access to our step-by-step lessons, our private chat, our daily morning briefings, and of course our price targets.

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