Folks insanity And coming in this video, we have three violent things to discuss. Number one, the top three trades heading into this week. and really, tomorrow's Market opened three trades that you absolutely need to know about. Number Two: we're going to talk about what major companies are reporting earnings this week.

As you know, earnings season is in full swing and this will be the most watched earnings season that we've seen in quite a while. And then finally, we are going to end with the catalysts and important dates of events that are going to be occurring this week. Things that you absolutely have to prepare for. Let's get right to work.

I will put all the time stamps down below. Okay first, so I want to go ahead and start with trades and we will start with Madame Lays. So on this past Tuesday October 11th we briefed on Lays because it was showing unusually active pre-market activity. It had a deal with the US Navy and it was showing substantial proof of concept.

We briefed On It originally at about 261 Isha share and it ran up to Highs at 5 35 on Friday That concluded a run that took it up 104 percent at highs. Shout out if you played this correctly but this was helped by a lot of different catalysts. Not just the deal with the US Navy but also Coca-Cola is going to be using their laser cleaning system, which is a pretty cool technology, but that's besides the point when you have a relatively small no-name company micro Cap that is partnering with the US Navy and Coca-Cola What does that mean? It means that's a lot of proof of concept for the business model and a lot of people go and they buy in and it rallies up the price sometimes. Why? a lot Like we saw this time and this has been such a big deal that this company was virtually transformed overnight into a company that nobody had heard of, to a company that now people are trying to break out to new all-time highs in a market environment where quite frankly very few companies at this caliber are running at all.

So my thought process now that we have a lot of Proof of momentum, but at the same time it's run quite a bit is wait to see where this poops out if it sells off into Monday and Tuesday. Watch to see where it bottom. something like like a 430 or a 450 bottom and bounce would prove ample shooting grounds to new all-time Highs. But if it can't manage to do that, I would stay on the sidelines as it's already run quite a lot and the momentum needs to stay consistent to justify any sort of late position after it's already run this much.

But on the bright side, if this dips back to two or three and then gets a new Catalyst Hey, that's fair game, right? Coca-Cola could be a revolving Catalyst for it, so could the Navy. but I think Coca-Cola tends to have a lot more umph to it just because the Navy partners with a lot of companies next. Madame Agfy! This one was quite fun this previous week. The first day we briefed on it as a morning Catalyst play was Wednesday the 12th.

It was showing day over day proof of concept and unusually high pre-market activity which is one of the first things I look for It Had some recent news that insiders were buying all the things that set it up for a nice run and the briefing price was roughly 56 cents a share and two days later it ran up to 154 at highs which is 174 or so increase now. Part of the reason for this massive Massey Vito run was that it really blew up on retail forms over the last few trading periods and it got a lot of foam mowers which is a fun Dynamic if you're not one of the people that are fomoing in. So here's the way this usually works when you get Brewing momentum and then a breakout wave. The breakout wave usually adds a pre-market pump, especially if you give it two days a whole weekend to reflect on itself and then it has a huge take profit period.

The take profit period like I always say is the time period where you want to analyze whether or not the momentum is going to be able to continue. AKA is it able to hold itself and break out into a higher high? If this can hold support at 115-ish the previous resistance levels, that's a solid ground to bounce to a higher high if you go over to the options chain. There's admittedly not a lot going on here, but the relevant strike price seems to be at about 250-ish with open interest at about 1 225 contracts for that contract expiring October 21st. So it's reasonable to assume that if this does show staying power this week, you easily see an attempt to break those levels.

But remember, do Not hold and hope Trades or trades. They say in a rebellion, hope dies lost. But here at Ziptrader Hope Dies First, you want to make sure that you don't have hope that your stock is going to run, but rather that it shows proof of concept. It shows technical indications that support the thesis that it has a run in the near future or a high probability of that and the minute that turns around, you're out next.

Peggy Our dear Peggy has been downtrending. The context on this is: we originally briefed on her at about 206. We talked about her in a public video on the channel at about four, and then she ended up running in totality to Highs at 754, which was a total run of about 266 percent, briefing price to highs. One of the best runs that we could wish for in this kind of Market condition.

But now she is selling off. So the question is, is she dead? Has the Run already been had? or will there be a new momentum cycle and I think it really depends. No. Shocker on the early trading that we see this week, we already experienced a fade that looked very similar to what we are experiencing.

Now if this Fades into tomorrow and finds any kind of support, it would be so easy to see this new another upward attempt. Folks, there are very very few small cap momentum battlefields in this market condition that are able to hold their own week over week. Yet this one is doing that. and I think the fact that there are so few means that a lot of people aren't willing to let these go as fast as they might have a few months ago because it's like hey, there's nothing else showing any kind of proof of concept anything similar to this.

So people like, okay, this is on the top of my radar and I'm going to keep it here. and I think that's a big reason that Peggy continues to be relevant even though she's selling off. So hey, let herself off, let her give back some gains. And then if you want to plot a new entry point, if you want to plot a new momentum wave, look for that proof of concept that she's found support and she's bouncing now.

Building on that. One of the things that I have to admit that I've greatly underestimated in this market condition is the ability of small caps and really even micro caps, the ability of them to hold relevancy. I'm actually fairly shocked that this is happening because the market condition is just so bad. But like I've said with Peggy, it seems like people are recognizing stocks that are able to hold their own and they're just kind of like, okay, this is the run that I want to play I don't want to move on as fast as I otherwise would have just because there's no other alternatives.

For example, one of the stocks that I misjudged a lot if you go back to our top three squeeze stock video from October 3rd I Reflected on a successful briefing on the stock that had run from 30 to 69 Fnhc, but I said it's likely finished because it had already started seeing a massive dumping and likely to break its directional strength. and that was right. For the time being, it did sell off, but look what happened after In the aftermath, it started new rounds of breaking out and now it's on a third attempt to a new higher high. So the point is, if you see a catalyst run or die, don't just discard the take her name and assume it'll never show another run again.

Keep it on your radar. keep it on your top tier watch list because oftentimes when you've seen one massive momentum run in the coming weeks after that, you're going to see it do another massive momentum run. That doesn't mean blindly buy the ticker because it's down, obviously not to wait for it to show proof of concept and have tight risk management. But if you're looking for some trades to trade off massive Pipe on, keep these on your radar.

Now a quick word from the ever capitalist: Charlie If you are wondering how to get access to our daily morning bravings where we Brave on all the biggest catalysts and really battlefields that we see each and every Market Open morning, well I will put a link to Ziptrader you down below our programming Compass is not just the morning briefings but also our step-by-step lessons, our private chat, or a full price Target list and some other trading resources that you can learn fully about with the link down below. And keep in mind that our Flash 40 40 off sale on this program will be expiring at the end of this coming week October 21st which is Friday So if you want to take advantage of the program, make sure to do it soon. Okay, let's move on to earnings. So we started hearing from many of the banks on Friday but early this week you have the rest of the important ones reporting you've got Bank of America Charles Schwa Bny Mellon First Bank Tuesday Before open you got the sacks of Goldman We know the investment banking segment across the industry is down something like 67 percent and we know mortgage demand is dumping.

We know that a lot of different loan segments are getting destroyed. although people are earning more money on interest, thanks for earning more money on interest. A lot of people are like, hey, if it's discretionary purchases, we don't want to take out loans. You're starting to see an increase in people being subprime borrowers who are kind of just borrowing for necessity don't have the means or the stable means to really make the payments in the future.

So the question is, how much are banks Shoring up their reserves? We saw on Friday's reports banks are showing up their reserves quite a lot. Is that continuing with all these other banks in Goldman, Sachs and Bank of America and so on and so forth. Tuesday you also have Johnson and Johnson Lockheed Martin Silvergate Hasbro Albert it sends then after close Netflix Obviously Netflix has been a complete disaster the last few earnings reports and they've come up with a few new ways to monetize, including a ad supported plan. What are their projections on how well that will do? Seems to me that the ad business overall is doing pretty bad with a lot of the major social media companies that are focused primarily on ads and do it the best.

So so how much is Netflix actually going to get with this United is reporting. It seems That domestic flights are still pretty hot for the time being, but international travel seems to be cooling down. You have JB Hunt interactive brokers and some smaller Banks Wednesday You have Proctor and Gamble When you have these big value companies reporting, you want to pay very, very close attention to their profit margins and whether they are effectively passing increased input costs onto consumers, you have Ally Abbott Winnebago and Lithia Lithia is a big National Auto Dealer What numbers are we seeing as Auto demand dumps with higher interest rates Tesla Reporting after close. of course, this is going to be one of the most closely watched stocks.

Tesla is in this fascinating Middle Ground Where it takes technically is a high growth High Multiple stock that is very much sensitive to interest rate spikes, both on a business level because interest rates cause cars to become more expensive, the car payments and people can't afford as much car, but also on the stock perspective because it creates this Dynamic where people don't want to pay as much in terms of a multiple for a stock. But with these two things being true, guess what? The stock is held up very, very well against other NASDAQ stocks. But at the end of the day I Think this is a very, very interesting case scenario because logic says that when interest rates go up, people aren't going to be able to buy as much car. and I think a lot of people are going to be doing really really bad around the world to the extent that Tesla should have a short-term hiccup short to medium term Hiccup and getting people to buy their cars because people aren't going to have money for it I Think that people want the cars I think they're cool and they do have a few little problems that I've had with mine.

but hey, overall, they're great cars. But I think that as the economy is gutted and as they continue to work through their backlog, it's going to be very, very interesting to see how fast they're able to replenish that backlog, especially considering how bad people are doing in Europe how bad the economy is doing in China and how bad I think the U.S is going to be doing as we head into 2023. I think a lot of people make the mistake with certain stocks and they think oh, if my company is really good and I like the technology and I like the leadership, then they can overpower a bad macro environment and that is just not always the case. They can survive a bad macro environment, but oftentimes they are also hit very very hard in a macro environment that is bad, so you have to be aware that there is a situation there.

Where the environment that your company is in is also very important for how successful it is. You also have IBM Chip Equipment Firm Lam Research Reporting Certainly an interesting segment right now considering geopolitical politics. you have Las Vegas Sands Kendra Morgan Thursday you have a T American Airlines the Blackstone Group I'm very interested in Blackstone They are essentially one of the biggest, one of the world's biggest landlords, both in a residential sense and a commercial sense. I Want to hear what their projections are on this current environment? Are they going to shore up more? Capital to continue buying tons and tons of property or have the they decided to hold off a little bit more to see if things crash further, then you have Philip Morris Big Tobacco one of the best cancer stocks out there if you want to support people getting lung cancer Erickson and Alaska Airlines after close you have snap watch for that ads business and how they are doing this often foreshadows and it has foreshadowed in previous earnings reports what we're going to see from bigger companies in the ad space like Facebook slash Meta alphabet and so forth.

Apple has really done a number on social media companies that rely on ads because they make it really really difficult to track their users. But in any case, that's kind of besides the point. The point is I Want to see how the ads business on Snapchat is doing and then Friday you have Verizon American Express Schlumberger Verizon and ATT Obviously mainstream core telecommunication companies, but pay close attention to price hikes there or planned price hikes as well as profit margin crunches. These are companies that obviously tend to have a lot of pricing power because people are not willing to give up their phones or their internet connection.

So if they're reporting any sort of weakness at the ability to raise prices to keep up with input costs and keep customers, that's when alarms really start going off. I Don't think we're there yet, but hey, it's a possibility now. Catalysts: Monday You have a iRobot vote on the acquisition offer from Amazon Nile has a spin-off conference call slash discussion looking for volatility in both Tuesday you have LMAO Yes, great ticker name the S-pac vote they have on the deal to take C-star public Wednesday You have the Feds beige Book coming out. The beige book is a report on the current economic conditions and what key.

Business Leaders and Industry Professionals, industry professionals are reporting about the current conditions Thursday Thirsty Thursday We've got really nothing. and then Friday that's the last day for Fed members to make public comments and yield their soft power of controlling markets via speech ahead of the blackout period. And that blackout period leads up to the Fomc meeting on November 2nd. So because this is the last week for Fed members to really talk and tell markets what to expect I expect a lot of Fed mic drops this week.

Okay, finally thoughts on the short-term direction of this broader Market Well, well well. So if you look at the broader Market We have just this last week made several new lows year to date and in the overall bear. Trend Generally speaking, once you've established a new low, the trend to the downside very much has to continue fast or it ends up turning into another bear Market Relief rally in Q3, which is the quarter that is reported. We know that a lot of non-financial businesses still had some semblance of pricing power.

We know that because the CPI continued to be hot and the PPI continued to be hot, but the CPI was hotter in many cases. Which means that most businesses have been passing on the pricing pressures to Consumers. So that means that the earnings are probably going to be a lot more mixed. They're not going to be across the board.

Bad, they're going to be a lot more mixed than I Think that analysts have lowered their expectations somewhat. Which means the standards for earnings are going to be low anyways, which makes it easier to get to expectations. So my thought process is: there's a high chance that mixed data with markets that are near year-to-date lows. Well, that sounds like like something that could cause another bear Market rally.

Maybe not as much as we saw before, but certainly a sizable bear. Market Rally If I had to do an educated spitball, yes, I would say there's probably a 70 chance that within the next two to three weeks we see some sort of bear. Market Rally I Think that markets are under the impression that they've de-risked a lot I Don't think they've de-risked nearly as much as they should have, but I think that because they think they've de-essed because they think a lot of the bad news is behind us, and because the data from earnings should be a little bit more mixed than the worst case scenario I Think that could set it up for a bear Market Rally personally. I think that we're kind of in The Snowball Right now where things are getting consecutively worse and worse and the Snowballs getting bigger.

but it's not across the economy yet where you're seeing massive bludgeons. it's just starting. So when you are looking at these earnings, make sure that you understand. Hey, this right now is the best case scenario that we're likely going to see for many quarters until the FED pivots and until things get back out of whack.

So if you do see a sizable bear mask Market Rally: don't be one of those people That's like, okay, this is the end of the bear Market No I Don't think that's going to happen until the underlying issues. The fundamental issues of this economy are behind us. I Don't see any signs of the fundamental issues. Inflation: the FED uh, supply chain constraints.

the Ukraine war my neck pain that I had from sleeping on the wrong side of the bed this morning I Don't see any of those issues showing any sign. any convincing sign of letting off right now. So I think that it's going to be a while until they do and I think accordingly. you can expect the overall trend.

the overall trend month over month, quarter over quarter to be down for the markets and most asset prices, but eventually it'll go back up. It just depends on how many years left you have to live anyways. have a great rest of your day I Hope you had a great weekend. We are looking forward to making some more videos for you this week.

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