Folks Insanity Incoming three things to discuss: Number one: the setup heading into this week after the rally rally till we got on Friday number two, the top three trades including our HKD play which went up 300 percent, briefing price to highs and lastly, number three, a big Catalyst that is coming this week that you need to know about because it is going to change everything. Let's Get Right to Work time stamps down below and today's video is brought to you by the MooMoo trading platform and broker. It's an excellent app to help you take your trading to the next level and they are offering up to 15 free stocks if you sign up and deposit using our link down below. Okay, so Friday closed out the week with the first solid up day of the New Year.

you had each of the major indices up over two percent, the S P 500 Rose for the first week in five. And if you analyze the other similar contractionary periods in the last year, most of them do tend to correlate with pretty aggressive bear Market rallies. But what's going on here? Well, we are in this unique period of time where we have a seemingly strong Jobs report and near Dead Silence on every other other metric of economic concern. Earnings season doesn't start until the end of this coming week.

The Fomc minutes from the last meeting revealed nothing new except for the fact that the FED is saying they're dedicated to keeping rates High throughout 2023, But the market doesn't believe that anyways, and the next Fomc meeting isn't until the end of the month and the main press day being February 1st. So Nets and in effect, the market has muted what the FED is saying and they're not going to listen to much until that next meeting. And of course, prices are trending down in most crucial Commodities and overall materials like we've been talking about. So you have a decent jobs report and an expectation that inflation is going to go down and a belief that the FED is bluffing and is going to go more dovish very very soon.

And all of these things are pointing to an increased and really sloppy belief that we are heading for a soft Charmin toilet paper. Landing To make an analogy, this is kind of like if you were in a plane and the pilot is consistently warning over the intercom system every five minutes that conditions are worsening and it's going to be a pretty rough Landing But when he stops reporting back for each stretch of time, you may take that as a sign that conditions have no longer worsened. But in reality, quietness doesn't indicate anything, it just indicates that we don't have any new news to judge. And thus we are left to our own assumptions.

If he's only updating us every five minutes, well, during that five minute time period. Okay, maybe there's not an emergency announcement, but but when you get the next update, it could be bad. It could be good. It could be bad.

but hey, you don't know because it's quiet so you're just kind of left with the other data points. Like what's happening on the outside of the plane, is the plane very turbulent, so on and so forth. You're left with those to make the assumptions and connect the dots. But the problem is only the pilot really knows what's going on and the pilot in this case is all of the different data that we don't have.

All the new fed announcements and so on and so forth to connect the analogy to reality. Right now, people are in the plane. We've had a lot of bad updates over the last year, but the pilot is quiet and all we're hearing is that the Jobs Report is good and leaning positive and leaning towards a soft Landing Which is ironic because because pretty much every other time we've had a so-called good Jobs report, the Jobs Report was actually a bad thing because it meant the Fed was going to have to be more hawkish. The Jobs report certainly shows some slowing down month over month in terms of jobs and hiring and wage gains, but still I mean if you're making the argument that because of this one report, all of a sudden, we're guaranteed to have a soft Landing or really, even any more likely to have a soft Landing I Think that's a stretch, but moving on.

I Think the bigger picture is that we've seen this quiet period situation play out at least a dozen times over the last year. It gets quiet, people buy back in, and then all of a sudden it gets loud and people start selling. And in this situation, as we head into the upcoming weeks, it's about to get real loud real quickly. we are heading rapidly into an earnings season and we are going to see over the coming weeks, the Q4 numbers and more importantly, the guidance for the coming periods.

And by the way, we know that a lot of the jobs growth that we're seeing is a little bit misleading because it's coming from small and medium establishments. But guess who is reporting earnings and who drives the stock market? Most large establishments, right? Large establishments are not only not hiring, but they are actively laying off massive amounts of people. You don't have to look far to see all the different corporations that are laying people off massive layoffs in Tech and finance and so on and so forth. These are the companies that are going to be reporting.

Do companies lay people off when they are going to be reporting beats or Healthy Growth numbers? No, No, No. So even if you are seeing some resilience and economic strength left in small and medium-sized establishments, those aren't the companies that the stock market is focused on at all. And if you really dig into the data, a lot of the hiring being done by small businesses is an understaffed restaurants hotels Transportation But a lot of the firing being done is in large Corp Finance and Tech and other Professional Services The latter segments are going to be a lot more devastating to the market, right? The broader Market has very, very little exposure to your small scale everyday restaurant, but it has a lot of exposure to Big tech companies like Apple, Microsoft Google and Meta. It has a lot of exposure to the financial segment, so on and so forth.

So if you want to really judge the current economy and how the market is going to react, you can't just look at this jobs report. you have to hear from the other metrics and we'll start hearing them at the end of this coming week. And I Don't think it's going to be positive folks. No matter how you look at it, it's not great news if this turns into a prolonged bear Market rally again, which I doubt it will because earnings season will almost certainly derail it.

But if it does, the FED won't be happy. The FED sees each and every rally and it cringes. It cringes and cringes and cringes. Why? Because each bear Market rally is part of and symbolizes broader Financial easing markets not trusting the fed, the FED losing their credibility and symbolizes a future of more and more persistent inflation.

Inflation is certainly going to cool down from these. Heights Because you're seeing a lot of the materials cool down. but that doesn't mean they're going to go down to two percent they could Plateau at five percent easily. Each sustained bear Market rally symbolizes the FED losing the battle to tighten Financial conditions and pushes them towards more and more hawkishness.

Okay, let's talk trade. so number one: HKD So we briefed on the lovely HKD on Thursday the 5th. At roughly 16.89 a share, it had gone up to 37.67 in the Thursday session and then ran to 68.95 which is a total of a 308 run briefing price to highs. This one was really mind-blowing and it's rare that we can find something that does this well in this short of a time period.

But it's actually ironic because on Thursday's video on the channel we talked about it and I was like these liquidity squeezes can run an insane amount can't they and then pre-market Friday morning it had already doubled. Again, folks, this is the power of tracking previous catalysts. Luck favors the prepared right. The harder you work, the luckier you get if you do your homework.

This is exactly what happened the last few times. HKD Liquidity crunched, which by the way, we also covered. Now, what's going to happen next with this play? Well, it's useful to look at the last few times this happened in October You had this random double that lasted like two days and then evaporated in September It ran really fast in the extended hours and after open and then died off. Really short-lived 24-hour turnaround time.

in August With the biggest run the famous Goliathron, you had four or five day days of insane momentum and then it died off and then you had a little fake out on the way down where it almost doubled. But bigger picture on this Goliath move. you had smaller periods before this where the liquidity just began to get crunched and you have to stop and go momentum test. That then culminated in the Goliath move where the stock went from forty dollars to twenty five hundred dollars, which was like a sixty two hundred percent run.

Now when I'm looking at this Goliath run and comparing it to the smaller runs in the coming months, the big difference is that the run up to the Goliath lasted multiple days and bounced back after momentum. Cycles Whereas none of the other runs were able to show that consistent proof of concept, right? So they're very, very short-lived in terms of momentum. If you want to see a really big liquidity crunch, you have to have sustaining momentum that see sell-offs and then tests with a breath and then all of a sudden bounces from that. That is how you get the biggest liquidity crunch.

So if you want to see more liquidity crunching this time around in this current cycle early this week is key. We need this to show proof of concept of being able to bounce back from this sell-off. If it can do that, who knows how far the liquidity crunch can take the stock. Last time, it took it to 2500 in a couple weeks from just 11.83 a share.

This time around, If you could get to just a tenth, just a tenth as much as you did that last time, that means that we still have a lot of upside potential. So my thoughts here. Well, Ultra Risky play obviously. but if you're going to play it, let it test into clear support and show proof of concept of momentum before you even mess with it.

Remember, we want proof and not promises. Proof in the stock market is showing that it has the ability to actually go up by breaking out over the SMA line by actually having some green candlesticks that show. Yes, you're not just buying in a falling knife, but you're buying in when it's rallying. Of course, a stock can show proof of concept one minute and then dive, but at least if you're buying in when there's proof of concept, you're eliminating ones that are just falling knives that can't relent at all.

Let's move on to the Tidy Tide ticker symbol. Tied. Saw some dirty Fun last week. For context, we briefed on this bad bad girl back on the fourth at 30 minutes prior to Market open and at the time it was trading at 25 cents and then it ran to 57 cents at highs and then we saw a nice take profit cycle going back down to 25 cents and then it woke up again on Friday session back up to 43 cents at some points.

So what is going on with the Tidy tied trade? well for Context? Tide spun off from Ppig and has been destroyed until this past week when they posted on SEC filing on the fourth that showed their corporate priorities for 2023, which was mostly fluff and we talked about them somewhat. But the big takeaway here was they are placing an emphasis on free cash flow and ebitda and scaling their business, particularly Forever Eight, which was a recent acquisition. Forever Eight is a cash flow management platform for E-commerce Sellers and according to the CEO quote, Forever Eight has clearly demonstrated its ability to generate Revenue in a very short period of time. We believe that positioned under our corporate guidance, we have a model that can grow into a world-class asset that offers beneficial differentiators compared to its competitors.

Now, in terms of concrete results, show us the numbers baby. They achieved over 1 000 unique skus being financed, skus being stock keeping units for clients. Number two, they achieved in excess of 32 million dollars of funded sales. Number three, they provided Capital to over 30.

Brands Number four, they supported products across multiple categories including Electronics, Home, Goods and apparel. And honestly, as far as I'm concerned, this Forever Eight situation can give speculators and hypesters something to stir up in their imaginations for a while because you have the Super small cap. Super speculative, small cap with something concrete attached to it. Most super small Caps or rather, micro caps have like nothing attached to them.

This at least has something to stand on, and that's in addition to some other parts of the entity. The question though, is, will this be enough to stay relevant? Well, probably not on its own, but the recent press release and extra coverage for the stock is keeping it relevant for now and it only needs a few more green days to really attract more attention. On top of that, it's showing some early signs of trying to start a new momentum wave, and if that builds early this coming week, we could easily see some higher highs, which should be quite juicy Juicy Mcjusters. So make sure folks to keep this top on your radar this week.

It is worth mentioning that you can go quite a ways down the rabbit hole in terms of the enthusiasm for tide. So yes, I get it. For the tide enthusiasts that watch this channel, there is certainly more DD behind the scenes that you can find on Reddit and other forms with varying degrees of accuracy. But for this channel, remember, our focus is on the trade right? The T, the R, the A, the D And the E.

It's not so much focused on the H to O with the D and the L finally number three Swvl. So this one is yet another example of rolling momentum. Cycles What is a rolling momentum cycle? Charlie Well, that's when a stock goes trending. One or two days on a catalyst sells off and then the price level drops low enough to Spur a new buying spree that inadvertently creates another hype cycle.

We briefed on this one for example, on the third at roughly 20 cents a share and it sold off to 13 cents before popping up to 46 cents on Friday. The lesson here: Do not sleep on catalysts that are quieting down. A fail or delayed reaction to a catalyst does not mean that that catalyst is dead. it just means that perhaps the market isn't enticed to buy at that price.

and when it starts going down low enough, or when the rest of the market finds out about it, they may end up buying later. We had a similar situation that we recapped last week with Atnf, where we briefed on it and then it went up a little bit, but then Dove until it hit a price level that helped spark the next rally. The point here is that you can identify the best trades in the world, but if the price just isn't at a level that is low enough to spike enough buyers that then transform the rally into a Fomo liquidity crunch, then you may have to wait until it does. Now these are all trades that you should continue to have on your radar heading into this week.

But if you'd like to join us for our daily morning briefings where we brief on the trade ideas and catalysts we see each and every Market open morning, step-by-step lessons on risk management and trading practices, private chat, and more Well I will put the link to join us in zipreader you down below coupon code hello 2023 will get you a very nice discount before checkout. Final part of this video. we have a big Catalyst coming this week and that is earning season in which really starts on Friday We have some smaller companies reporting earnings early this week like your till array and your WD-40 in Albertsons. But the main ones start with the banks and some healthcare and Airlines on Friday with your Bank of America your United Health Group Chase Delta City Wells Fargo BlackRock Bny Mellon First Republic Bank And then you really get thrown into the fire fast The week after we've got your goal menu Morgan Stanley your Schwab your PNC or your discover your Netflix, your PNG, your Fastenal, your JB Hunt Comerica Ally Erickson regions and the next week you have your Verizon, your GE, your Johnson and Johnson your Tesla your gas station companies more Airlines And then the final week of January you have your GM, your Spotify, your Pfizer, your Waste Management Sony and so forth and heading into February.

You start with your apples and Amazon and metas and then you have these small caps reporting. So if you are somebody that wants to judge what is coming for the market and the economy next, you really want to wait until you see these earnings and their guidance because they are going to be very, very indicative of where we are heading. They are a crucial data point that we just don't have yet and they will paint a clear Trend When comparing Q1, Q2 Q3 and Q4 from 2022 in the direction that we're heading in the coming quarters in 2023.. Anyways, that caps off today's video.

Make sure to comment down below with the stocks that you're watching. Make sure to hit that ravaging like button and subscribe and have a great rest of your day and we will see you next time.