Okay folks, so what you are looking at is a picture of today's market. You may be thinking this looks damn similar to yesterday's market, but no, you can clearly see that there is indeed a flame on the garbage. Yesterday, it was just garbage. Today, there's a flame.

Oof. it just keeps burning folks. But in this video, we're going to be violently talking about when the dumpster fire is going to stop, how long we can expect this to go on, and how bad it's going to get. And of course, we'll also be giving our updates on some of our plays from today, as well as some recaps on Catalysts.

And the only thing that I ask of you in return is that you hit that ravishing like button and also don't forget to subscribe. Okay, let's start with some updates on plays. Okay, so Nndm finally had a pickup today. one of the only plays that found itself outside of the garbage fire.

This was, as they announced, a 70 million dollar deal for Deep Cube. Deep Cube is a machine learning company and in the context of Nano Dimension, which is a 3d printing company, the integration of appropriate artificial intelligence in 3d printing is a huge compounding factor in how effectively these companies can provide value to manufacturers. One of the things that we talked about in context of another 3d printing company, mark Forged is that their whole value ad is that as their printers print more and more items and get more and more experience, they become smarter and and information is admitted to cloud intelligence and the connected whole network becomes stronger and stronger as a result. Which means that over time the network keeps getting more and more competitive.

And with today's news with deep cube, Nndm is taking a big step in the right direction. But of course, that's nano dimension. The company nano dimension. The stock is a whole nother thing.

Every positive catalyst in today's market condition is met with a wave of sellers selling into it. And as stocks like Nndm retest those March lows, it is indeed grueling to be somebody who believes in these plays. I think you have to start thinking about it outside of the sector that it's in. Is this company trash right now because it's a trash company? Or is it trash because it's in the high growth sector.

And if you're of the opinion that it's falling in that second category, well, this could be the opportunity of a lifetime. So next I want to talk about Fisker Fisker. Oh, Feaster is one of our Price Target plays that popped up this morning on an analyst upgrade. Bfa made a pretty good case for a 31 dollar price Target which is right around the bearings of where my price Target is at 35.

I used to call all analyst monkeys, but these guys are doing pretty good. But anyways, they have strong estimates for Fisker's Suv sales and expect them to start production by the end of 2022. And they also like Fisker's least liked subscription plan which charged Fisker owners monthly, but include a certain level of miles per year, as well as maintenance and service included in the cost. Getting people into electric cars over the last 10 years is really more about convincing people that hey, this is a cool damn car.

This is a luxury. This is a status symbol. Go buy your Tesla Model S. Go buy your Tesla Roadster.

Go buy your exploding Fisker Karma. But these days it's all about making electric cars affordable, getting the mass market to buy them. How do they do that? Charlie well by making them an easy and obvious economical choice if it's cheaper in terms of cost of total ownership in order to get an Ev car versus the gas car, and more people are going to start choosing those Evs. and Bank of America makes the case that Fisker is going to be able to do that very efficiently.

Now in terms of Bitcoin news, I think we were all expecting a massive bludgeoning this week, but what we got was some pretty damn speedy resilience and a lot of support. We also got some positive news from China saying that they see Bitcoin as a legitimate investment asset, and we continue to see day by day more and more expansion of access for the average person to go and buy and transact and invest in Bitcoin. Just today, Venmo announced that users can buy and sell cryptocurrencies on their app. That means that now you can refuse your friends Venmo requests via both cash or Bitcoin.

Why pay them back for those nasty tacos? Bitcoin is a crowd perception asset class. The more access users have to it, the better the value it is. Meanwhile, Mara and Ryder in deep tease mode. almost masochist level teasing.

But that's okay. Nothing we can't take. There's no such thing as too good of an opportunity. Okay folks, so now I want to get to the crux of the video, which is: how bad is this going to get and how long is it going to last? What can actually turn this around? In order to really understand how bad something can get in the stock market, you really have to distinguish between what a stock is and what a company is because they're not the same thing.

Contrary to popular belief, a company is a business. It has employees, It has customers, it has expenses, it has products, services, revenue, profit, and a forward outlook as well as a history. A stock, on the other hand, is a function of equity markets. Yes, it's introduced as a way for the public to help fund some of these companies and their aspirations, but the goal of stocks is really just to make money for shareholders.

Not just any shareholders, but more specifically, Wall Street. But you see, Wall Street has two main ways of making money off of stock. Number one: they can do their research and value the company and then buy and hold it until it gets to their price target. or number two, they can cycle in and out of it, profiting off trends to the upside, and profiting off trends.

The downside: As the pendulum swings, they can be on both sides of the pendulum. So what does that mean in effect? Well, it means that in the short term, the stock market's valuation is based on the emotions of the masses, the trends, and Wall Street riding and profiting off those trends In the short term. Wall Street can make tons of money by riding current trends by using tons of margin like we were talking about yesterday. Wall Street likes to push things too far to the upside, and then they like to push them too far To the downside.

That way, they can take advantage of the most out of each trend. even if that means that some of them aren't getting it perfectly. It's still more profitable than just buying and holding for them. And this is even especially true when it comes to higher beta stocks that have more debatable value and are easier to swing back and forth and trend back and forth.

But going back to the stock versus company, I think that what confuses a lot of folks is they'll go and they'll look at. say talent Here They'll say, oh, this stock discounted 50 since February 10th. So does that mean that Palantir the company, their growth and their metrics as a company are down 50? No, No. In fact, I'd make the case that their metrics and growth have gone up.

as a company. It's looking more optimistic than it did in February. What about Tesla? In 2020 early January 2020, it was trading at about 90 bucks if we use split adjusted prices. By the end of 2020, Tesla, the stock was trading 10x that price 900.90 to 900 roughly.

Did Tesla improve 10x in 2020? Were they delivering 10x to cars? Were they 10x as good in terms of range? Were they 10x more in terms of consumer demand? Were customers 10xs happy and spending 10x amount of money? No Tesla. The company did have an impressive 2020 considering the overall situation they were in with Covid. The point is that from January 1st to December 31st of 2020, Tesla didn't 10x. It's just the stock did because it's a function of equity markets and that was what was profitable for Wall Street to do.

As a function of equity markets, it made sense for Wall Street to go in and go out of Tesla in 2019 and 2018 betting against it and then buying it back at the dip and then betting against it again at the high, then in 2020. All of a sudden they said okay, wait, now it makes more sense to go long. The trend is clear, the value is shining through, so let's get on top of the trend and make some moolah. A large percentage of the appreciation was because Tesla had been underappreciated for years.

Value was acknowledged and people poured on to that value. A lot of people think it's a coincidence that all the major institutions started buying Tesla in mass in 2020. Like, oh, they thought that it was a terrible company in 2019 And then all of a sudden a pandemic hits and people are like, okay, now I get it, I get Tesla. No, they got it in 2018 and 2019 too, but they saw more money and cycling in and out of it than just buying and pouring in.

Then they couldn't shut up the value anymore. So guess what happened? It all hit it once. probably overhead. If we're being honest, you can play off short-term cycles and convince people and screw the masses all you want.

But eventually time will tell and time will checkmate the value. But by that same token, Tesla, the stock can't keep going up infinitely. If Tesla, the company isn't meeting their expectations. Similarly, Palantir, the stock can't keep going down forever.

If Palantir, the company is meeting and exceeding their expectations, Wall Street will cycle in and out of stocks, pushing it too far up to the upside, and pushing them too far down to the downside. But at a certain point it becomes too high or too low and the company comes through and checkmates it Now, the reason that Wall Street tends to attack high beta high growth stocks the most, making them the biggest winners in bull markets, and making them the biggest losers in Bear Markets is because their company's value is more debatable. It's easy to short and distort futuristic high growth companies whose actual value can't checkmate that shortened distort campaign for years. Just like it's easy to pump up those same high growth stocks whose value isn't going to be checkmating the price for years.

So that way hedge funds can have their cake and eat it too convincing, either. The stocks are the best thing that ever happened. on the upside, and the worst thing that ever happened. On the downside, Cha-ching.

But here's the problem: if they push it too far to one side or too far to the other side, you create a lot of reverse pressure, much like the over leveraging in January and February resulted in huge margin calls because things were pushed up too high. If things get pushed down too low, you're going to see a lot of short squeezes if it gets pushed too far. To the downside, Wall Street's going to start getting incentivized to re-buy back at the lows. When that happens, The trend is going to reverse very quickly.

So the question is, how bad is this going to get and how long is it going to take? Well, I see one of two scenarios happening either. one, this just completely bottoms out and we get that flat market that we've basically had for the last couple of months. It dove really quickly and then we've kind of been hovering in this range for a while. Maybe we're testing new lows in some stocks, but generally stays in that overall trend.

Or number two, we get a massive drop that keeps tanking all of these stocks. Then you get this massive bounce because it becomes profitable for all these funds to go back and pour into these equities. and this is in the short term. Going back to my medium term to long term outlook, I think that inflation is actually going to be a good deal for high growth stocks.

I think that there's not going to be that many places for funds to put their money into. Are we expected to believe that they're going to be buying recovery plans at all-time highs that are acting like there was never a pandemic? Are we expected to believe that Macy's is going to be the next big stock of the future? Do you see all over the place you need to buy retail stocks? Macy's is the future. Macy's has been on a downtrend for like 10 15 years. You think that Wall Street believes that Macy's is going to be the best performer in the next 10 years? No, they're just gonna have an initial bounce after coven and people start walking around and going into retail.

But E-commerce has taken over Macy's big business and Macy's isn't going to be able to compete with some of the big winners in e-commerce by shifting into it themselves. Retail stocks and Macy's have been vomiting up value for years. Look at the chart of Macy's in the 1990s, not factoring in inflation. It's basically been flat.

so at a certain point Wall Street has the option of deciding to just take everything and put it into cash, which is going to be inflated and they're going to lose their power. or they could put it into undervalued stocks that actually have a future. There are some big blue chips and recovery plays that I do like, but they're trading very high. There's a few that I think are going to be huge momentum stocks like Visa, American Express, and such, but generally there's not that many good opportunities out there.

So look folks, Yes, we are certainly in a dumpster fire right now, but the more the garbage burns, the more Wall Street risks exposing the fact that within the trash cans are diamonds. And in fact, I'd even say the trash cans themselves are made of diamonds. When that comes out again, guess what? The cycle will all start over again. But anyways, folks, if you have any questions, feel free to reach out to us in the comment section below or join us on ziptrader circle if you'd like some free stocks when you deposit with Weeble.

They are an excellent broker for new traders, so check them out if you are broke or curious. Also, quick plug if you'd like to learn how to trade. With our step-by-step lessons, our private chat, and our daily morning briefings where we brief on all the latest catalysts in the market, well I'll go ahead and put a link to Ziptrader you below Anyways, folks, have a great day and I'll see you in the next video.