Folks Red Alert Right now China and Powerful Chinese Business interests are dumping billions upon billions of dollars worth of us equities, treasuries and US Dollars We're going to break down exactly what you need to know in this video and why they might be doing this. All of a sudden, Number Two Markets went back into fear and panic mode today and we're going to go deep into the data and show what is really going on behind the scenes and what we can learn. And then Number Three I Want to go over the latest trade ideas to help you hopefully make some money in today's market environment. We're going to recap a play idea from last week that did very, very well.

and then I'm also going to remind you that tomorrow we have yet another new trade idea and Report coming out with that first link down below at 9:30 A.m. Eastern. So right at Market open, come back to the video at or after market open and you'll see our latest trade idea I Think you're going to like tomorrow's idea quite a lot. Okay folks, so what you were looking at here is the Csi300 China's Benchmark Blue Chip Index This is essentially their Dow Jones Well, as of about a day ago, it hit its lowest point.

since February 2019, you look at the major Chinese Tech index versus the NASDAQ Well, massive, massive Divergence Why? Well, it is because foreigners are selling it at a rapid clip. Those with big money on Wall Street are anticipating a much larger deterioration of us and China relations and they are getting the hell out. And this is not a one-way Trend This is happening in both directions: American Elites are investing from China and Chinese Elites are divesting from America from the daily Hotel China sees biggest Capital flight in 7 years from the South China Morning Post China's stock market fund outflows add to the biggest flight since 2016, Foreign funds have taken 5.1 billion out of China stock market this month, pacing the exits in the region which by the way, the vast majority of this about 3.3 billion of it was sold in this last week alone. some Us $75 billion float out from China's capital in current accounts and September the most since the end of 2016 amid the Yuan's slump.

Okay, so you could see that Americans and westerners in general are pulling their Capital out of the region in Mass. But again, the feeling is mutual. You're seeing Chinese people and people with power and Connections in China sell their assets that are based in the US as well from Business Insider Chinese investors sold 21.2 billion in US equities and treasuries. The US Treasury said Wednesday this was the most in four years.

Now You can pin this on a lot of things higher for longer interest rates dve risk out of all markets Chinese Economy: The Chinese economy has been lagging, but when you see the speed at which this is happening and you tie it together with global events, it paints a much bigger picture. As you know, in the last couple of videos, we've been talking a lot about how China is using the current global conflict in the Middle East to push their own political interests and namely, a future likely invasion of Taiwan. And one keyway that those with power and money on both sides are preparing for this is by withdrawing exposure to each's counterpart. if you are on Wall Street Right now, well, holding Chinese assets during a trade War could mean having to sell them at distressed prices or even getting them seized completely right.

And likewise, for Chinese investors holding Us assets during a trade war outbreak could mean getting your assets completely seized like with what happened with the Russian oligarchs when the US started putting sanctions against them. So I don't know, folks. let me know down below. Do you think that China is preparing for something? Do you think that those at the top with all the power and connections and the top analysts and so on and so forth know something that we don't? Well, you can let us know in that comment section down below, we love hearing from you.

Let's move on to the overall market. So like we've been talking about, we have lost yet another another floor in the S&P 5 hunda. We just hit yet another new low in the selloff and another new low for the year. We are now back at levels that were first hit in April 2021 and markets are continuing to consolidate as Wall Street prepares for this continued escalation of this Middle East conflict and perhaps again, other conflicts.

And if you look at this from a purely technical standpoint, we just keep getting lower and lower highs and lower and lower lows with very little in terms of push back. This is not a market that is confident enough to push back or is even willing to be pushing back. We are in a market where the highs and lows are consistently and aggressively getting lower and lower and lower. If you're in a market where you get big sell-offs and then you have some periods of push back above resistance at least, then you could say there's uncertain Direction But right now you're not in a market with uncertain Direction You're in a market with a downward Direction.

It would take a 5% upward rally at least just to try to break back above previous resistance. and even then we know previous attempts at breaking previously form resistance levels have been failing since. Midsummer. Right now, markets are in Falling knife mode, which means we just keep hitting lower and lower and lower lows and there seems to be no support to be found in order to reverse that Trend and actually bring confidence back.

To actually go and break a previous resistance level, you would need to Rally about 10 to 12% That's a very, very difficult amount to Rally in this market environment and markets know that. So they keep dumping and dumping and dumping. and the short sellers are making tons of money. People are trying to reallocate into other areas and it's getting Messier and Messier and Messier.

And meanwhile, you got to remember that every bottom you break, the more people that convert into Bears and the more that pessimism catches on, right? Remember, there's a lot of people that are quite frankly agnostic about the direction of the market. They just trade with the trend. But the thing is that the trend is only your friend until the trend bends and then it's no longer your friend and you have a lot of people. Once you've gone down to the level where you've broken four or five clear bottoms, that all of a sudden switch to the short side of the trade.

and I think that's been happening for a few weeks at minimum, but certainly it's happening now. The next thing that you should look at is VX TLT What exactly is this? Well, it's the 20-year Treasury Bond Volatility Index ETF When Future Uncertainty about Fed rates and overall demand for bonds and the associated risk changes rapidly while big money goes and buys Hedges to protect against that volatility. and this index goes up. and you saw that in the winter and spring due to the Silicone Valley Bank and other bank collapse contagion worries.

However, what you were seeing now is on a whole other level. I Mean, look at how much more consistent this uptrend is as compared to the Svb collapse uptrend and we are on our way to yet another breakout. And when you have an uptrend that has a gap up like this like we had with that Svb collapse, Well, that's not often a sustained rally, right? And it wasn't in that case that was just a panic and liquidity crunch on hedging for that crisis that happened really really quickly and then quiet it down. But when you're in a situation where you have a steady and consistent climb o you better hold on to your butts.

If you have multiple butts, hold all of them. And the other insightful way to look at it here is that Vix is on an overall uptrend, fear and uncertainty and doubt, and Dread are on a breakout that could easily end up being the biggest breakout since the beginning of the 2020 pandemic. And when you have hedging against uncertainty going up, Vix is going up. What does that mean? Well, guess what, If you look at history, Vix going up tends to correlate with asset prices that haven't bottomed yet.

When asset prices bottom, Vix tends to have topped. right now, it looks like Vix is at the beginning of its uptrend. Now in terms of trade ideas on this, if you're playing Vix trackers right now, like Uvxy, watch for a breakout above previous resistance at 2077. I Would be shocked if it doesn't break that within the next couple of days or by Monday You know the way that this thing moves is when Middle East Conflict New cycle is quiet.

When that new cycle is quiet, well, it sells off. and then when something new comes out, which it inevitably and unfortunately does, then Uvxy pumps up huge. And besides that, I also want to highlight Ovx, which we've been highlighting a lot over the last couple of weeks and this is a key idea in today's environment because it's pretty clear that this Middle East conflict is going to motivate prices of oil to the upside, and thus a lot of people are going to be buying Hedges to hedge against that oil uncertainty And likewise, the dip from yesterday just started getting bought up again today and I expect to see new breakouts and an overall push and pull uptrend through the end of the year. Again, my view on this, my view on Ovx, and really, to the same extent Uvxy is that if you don't believe that world peace is going to be achieved tomorrow or really by the end of the year, then you got to be looking at these.

Your eyes need to be glued to these screens because these are some of the easiest and clearest trade setups in the market right now now. I Expect again to see new breakouts and an overall push and pull uptrend throughout the year on Ovx and Uvxy as well. Well, what about other trade ideas? Charlie Charlito. Well, we've had some serious success with trade ideas as of the last couple of weeks.

Obviously, we've talked a lot about Tpst, the morning briefing idea that went on to run pretty massively. We also talked a lot about SEO another morning briefing idea which was another insane runner from the last couple of weeks, and of course Wheeler as well, which was both a morning briefing idea and a Top Idea title holder. Now, these were some of our best ideas from the last couple of weeks. However, we've also had some success with a recent sponsored stock.

as well. As you know, we only take sponsored stocks for stocks that we believe are worth your time to look at and do your due diligence on. and we presented Inm to our free email subscribers. Monday Night slightly after 5:00 P P.m.

which is when after hours closes. it opened pre-market at roughly 66 cents a share and proceeded to run to 208, which was a run of approximately 214% Open to highs. Now, of course, past performance performance never equals future returns. and just because we found some winners doesn't mean that all of our ideas are winners or that our future ideas are going to be winners.

Our goal is to present you with ideas and then let you be the judge after you do your own due diligence. Remember, if you're the one taking the risk, you got to be the one doing the Frisk But anyways, with that being said, at 9:30 A.m. Eastern tomorrow morning, that first link down below is going to turn into a report that presents our newest idea. If you want to be one of the first to see it, make sure to come back to the channel and click that link right at 9:30 A.m.

or after if you want. But if you want to be one of the first to see it I Would recommend getting here right at 9:30 a.m. Anyways, that caps off today's video. Make sure to hit that ravishing like button and subscribe and we will see you in the next one.

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