Okay, we need to talk violently about what the Fed just did, what that means for us and our money, as well as what the latest updates are on plays. And the only thing that I ask of you in return for all of this is that you hit that ravishing like button and also don't forget to subscribe. So pretty flat start to the day as people were awaiting the Fed announcement. Then when we got some certainty and some clarification, some of the growth stocks just really took off.

Which is really saying something because the rest of the market was down or flat or clover play another squeeze today up over 14 percent at highs. Clove historically has been one of our most contentious plays because we started liking it right after it got beat down on a short seller report. I was like nope, these claims are baseless. This company has a lot more value than they're giving it.

Then after that the overall tech crunch hit which beat down Clove even more. And then near March lows I made the case that this was still a very very strong dip buy opportunity. I asked you guys to read the article why your stock is always read an article talking about how short sellers manipulate stock prices on certain stocks in order to screw the little guy. Then we said we'd start seeing some short squeezes because it was being pushed too far too quickly.

And then after the first short squeeze we said you're gonna start seeing more and more of these short squeezes And so far we've had one, two, and three short squeezes We used publicly available information to talk about how this was very, very likely to short squeeze. and I want to make sure that when you come to this channel, this channel is a war on you, thinking that the stock market is all random. Sure, a lot of it is random in the short term, no doubt. But over the long run, if you put the work in and you're more right than you are wrong, you're gonna come out ahead.

That being said, we're still in short squeezed territory and I expect to continue to see these little short squeeze pops and similar to Clove Skills has also been having that similar trading pattern. It pumps and dumps over and over again as it gets squeezed. And that's what happens when you have a lot of short sellers piling onto stocks that have gotten beaten down and they've gotten greedy. They're going to start opening themselves up to short squeezes.

But that doesn't mean that you're going to have an immediate uptrend back to where the true value is. Okay, Mara, Lovely Mara up 10 and riot. Righty Riot up 8.4 Nothing too surprising. I would say don't take too seriously the ups or the downs in Mara, because it's a cycle.

The key is looking. Bigger picture. One of the concepts that Ziptrader was most known for in the early days of 2019 was my over buying and overselling swing trading strategy. And actually that's still the most viewed video of all time on this channel, even though that was years ago.

And of course, there's no strategy that works a hundred percent of the time and that video is probably a little bit oversimplified, but still to this day, that concept that we talked about in that video remains a foundational concept, and I think that Mara is the perfect example of that. How many stocks on an uptrend overheat and under heat repeatedly during that uptrend, causing a lot of opportunities to play off those inefficiencies and that's twice as powerful to exploit if you're doing it on high conviction place in other Crypto news. Elon Musk today named himself the Doge Father. That's all I want to say about that.

Okay, next Adma weekday for Catalyst Drop plays overall, but Adma did pretty good. It surged on an Fda approval for its manufacturing process that will enable faster manufacturing for their Ivg, Ivgs help people with autoimmune diseases fight infections. We briefed on this one about 30 minutes prior to market open, and when volume came at Open, it ran to 263. When you get a very important Catalyst Drop in the pre-market there's not as many shares being traded.

so often times when volume flows in, you'll see people executing the orders at Open, especially if they have very large ones. But of course you still want to have that concrete entry and exit plan or else you're going to get scruggled. These are short-term trades. You take advantage, You get in and you get out.

Last update: Neo, so just want to give a big reminder: Do not forget tomorrow is Neos earnings day. We are looking to see how they are responding to the chip shortage, whether they are able to pivot effectively like Tesla and what their guidance is for future quarters. I have low expectations, so hopefully they can beat those, but we'll see what happens. Okay, it's time to talk about the Fed and what they did today.

Well, yesterday we were talking about how the Fed was going to say something along the lines of yes, the Us economy is growing stronger and it's getting healthier, but it's not exactly where we want it to be yet, so we're going to maintain the course with our Federal intervention. That is no shocker to anybody. Exactly what he said today. They're going to keep interest rates steady and they're going to be continuing with their asset purchases, so they're not going to be trimming that at all right now and they don't have any plans to taper either.

Big deal here is that the market didn't panic afterwards. The last couple times he said this, the market panicked. They didn't trust him. They called him a kook head and look, we are in untreaded waters folks.

Almost 20 of Us dollars in circulation today were printed in the last like year and the Us dollar has been around for more than 200 years, and 20 percent of the Us dollars in circulation were printed in the last year. Let's be real, it's totally understandable and probably stupid if you're not scared about these numbers. they're freaky. And so the market's understandably like, hey, we just want some clear guidance from the Fed, and I think that what we're seeing is that hey, the market is starting to trust the Fed Again, They're already factoring in rising inflation, but people are starting to agree with the Fed that, hey, we're going to see higher levels of inflation, but it's not going to be persistent.

It's going to be temporary again, back in the day when the Fed would say that the market would panic and bond yields would go through the roof. Now today, we know that the reason that yields climbed so high back then wasn't necessarily because people didn't trust the Fed, but because big money was short selling bonds in mass, causing them to disproportionately rise all at once, even though the worst of inflation expectations weren't even going to take place over the next six months. Of course, in hindsight, this set off another chain of events. It caused Tech to sell off massively causing margin calls In mass margin calls led to a huge amount of deleveraging all across the board, especially in growth sectors.

Growth sectors made huge lows, and then short sellers started pouncing on them. Short sellers got greedy, too. And then in the last couple of weeks we started seeing them get screwed and now we see other funds going and buying back in. But still, right now, we're in a different game.

People are trusting the Fed. You don't see that same level of scared sellers that you saw a couple months back when this happened. Now yesterday's video, a lot of people were like Charlie You don't like Jerome Powell because I called him Jerome Unlimited Money Powell But actually that's just my name for him because he is Jerome Unlimited Money Powell. I think that he did a good job in 2020.

We covered him pretty much the whole time and I was following him pretty much every step of the way and I think he did a pretty good job. I don't think it's a good idea to print tons of money, but that was better than the alternative. He came with the perspective that we didn't do enough in 2008 and 2009 to stop that crisis or get that crisis to bounce. So with 2020 from the beginning he was like, nope, we're not going to under do it this time folks and he basically threw money at it.

But throughout 2020, he also said that hey, well, while we're doing our part, federal and state governments aren't doing enough now. As a result, he's saying hey, there's a lot of industries that have uneven recoveries ahead of them And today he was keeping that message consistent. Charlie, wait a second. The Fed literally thinks that we're only going to have a little bit higher inflation after this pandemic where we printed so much money.

I thought you said that 20 was printed. Welcome to Fiat Currency. We gave up the right to have some actual value to our money back in the 1970s when we dropped the Gold Standard, But since we were working with Fiat currency, it's important to understand Fiat context and what has happened when we've done this before. In 2008 and 2009, we printed tons and tons of money for very, very expensive stimulus packages.

Probably not enough, but still, we printed tons of money. At the time, that was the biggest increase in the money supply ever. But despite hysteria at the time that we would turn into Ymr Germany, inflation actually was very stubborn for years. Why is that? Well, obviously, during a crisis, inflation is very low.

You're actually in a very deflationary environment because nobody wants to spend and then in a slow recovery. Well, private debt levels are very high. Debt levels Being high is also deflationary because when you have a lot of debt, you don't want to go and spend tons of money. You're much more risk averse because you want to make sure that you can pay off that debt.

you don't get choked by the debt. and because crisis has caused staggering unemployment and or at least the lowering of income, people are more likely to save money. and they're more likely to remember how they felt during that crisis. And thus, they're less likely to go and throw money and waste it on different things that could help the economy start really turning around and booming and circulating around to cause that inflation.

Another deflationary aspect is wealth concentration. In the United States, there's a lot of wealth concentration, but when you have a lot of wealth concentration, a lot of that money doesn't circulate. And of course, for the Arc followers, technological innovation also causes deflation. And similar to the post 2007-2008 crisis recovery, there's also a lot of sectors and people that have a lot more debt.

There's a lot more concentration of wealth, there is technological innovation, and there's people whose lives are destroyed during the crisis who are going to have whiplash. They're going to remember that they're going to save money and be less risk averse. So, yes, definitely higher inflation. But there's definitely good reason for the Fed to take the stance that, hey, inflation is going to be increasing temporarily, but it's not going to be persistently high and over time, it's going to hit our benchmark.

And we're already starting to see some inflation in certain asset prices largely caused by supply chain issues. And we haven't even really seen a lot of that money that's on the sidelines. Go back into the market or go back into the economy and bounce around. So definitely we're gonna see some higher inflation and nobody's debating that, but optimistically, it won't be persistent.

Okay folks, so to finish off this video, I want to answer one question: Charlie, I bought a lot of Recovery plays after news and media websites recommended rotating out of growth stocks during the lows in March. Now, in the last couple weeks, recovery stocks have greatly underperformed growth stocks, and those same media websites are pushing the narrative that recovery value stocks are way overvalued and that there is a value bubble and we should avoid them. Meanwhile, many of the growth stocks that I sold are up 20 to 30 percent. Since I sold them, I sold growth stocks at a loss because they said that I'd be safer in recovery Value stocks.

Now, they are saying that recovery value stocks are overvalued, but they recommended buying them at all-time highs so I'm so confused. Wtf do I do? Okay, interesting question. And first of all, and I say this completely respectfully, but you have to put yourself in the process here. It sounds like you're just bouncing around on what you're hearing, but you're not allowing yourself to take some time to learn about why it is that you're doing things and like what the outlook is.

Understand that the media acts as an amplifier for any concern that's going on. If everybody's scared about growth stocks, they're going to start pumping fear content on growth stocks, because people are going to click it. If people are hyped on recovery stocks, they're going to start making articles that cater to that audience because that's where the demand is. The biggest piece of advice I can give you is that when you're consuming content, don't assume the content is true.

Don't let it change your perspective, but hear out the perspective on this channel. I give my own opinions on many different opportunities, but let's be real when Fudd sets in. Doesn't matter how much you like me or you like the way that I presented the information or my points, when Fud sets in, you're going to panic. But if you put yourself in the process ahead of time before you ever buy the stock in the first place, you just built up a whole wall because you did the research and you learned you know why you're in that position so that infection of media fear isn't going to be as easily affecting you.

Quick story time Before I end this video. So my mom passed away when I was young and when you have a parent that dies young, if any of you had that, you know that the words that they said to you when they were around mean about 10x as much. So one of the things that I remember her saying and pretty much yelling at me is you got to use your head She'd say is there a brain in there? Where is the brain? Why aren't you using your brain, Use your damn head. When you're making decisions, What the heck happened to your brain, Charlie? I'm sure many of your parents said that as well.

She knew that if my brain wasn't in the process, that I would never learn from my mistakes and I would just keep repeating them. Of course I thought it was dumb advice at the time, but I don't think it's dumb advice anymore. And there's no deflecting blame either. If you think that the financial media is wrong on a report, or even if you think that Ziptrader my analysis is wrong in a video, that's totally fine, but you wouldn't know that in the first place if you weren't already using your brain.

That caps off the video. If you have any questions, feel free to reach out to us below or join us on Zip Trader Circle. If you're looking to learn how to trade with like access to our private chat and daily morning briefings, I'll put the link to Zip Trader you below. If you're wondering what broker to trade these stocks on, Well, we like to send new traders over to Weeble.

put the link below, but they are a great platform and I think they're worth checking out. Have a great day and I'll see you in the next video.