We got some bad bad news today, but on a positive note, I know a lot of you guys have been saying charlie be a little bit more positive in your videos. So on a positive note, the sun did come out today. Of course I didn't go outside, but it did come out. That's positive.

I hope you didn't want something positive about the stock market because there wasn't any of that. Today was another day of the Dow being down the S P down the Nasdaq getting obliterated. Over the last couple of weeks, you've increasingly seen money get pulled out of the stock market out of all sectors and then not rotate. just stay in cash on the sidelines.

We're not seeing that same rotation that we saw the last couple of weeks where tech gets a pull out and then that goes into recovery plays and today's sell-off accelerated that trend because of the massive spike in inflation data. And of course, we have to talk about what this means and how long this is going to go on and what the hidden story with this Consumer Price Index report is. And of course, in this video, we're also going to be talking about how to play this challenging market and the only thing I ask in return for all of this is that you hit that ravishing like button and also don't forget to subscribe either. Okay, so I want to start with some quick ideas on how to play this market.

So one of my go-to's during fear conditions is Uvxy Svxy Fear Indexes. For the last few mornings we've been talking a lot about that pair. This has been one of our attack tools for a long time. Back in early 2020, during the beginning of the pandemic, we said okay.

well, lots and lots of really good long-term plays are going downhill. they're falling off a cliff. But in the meantime, let's go ahead and play off that fear. And the fun that we recommended to do that at the time was Schwix and it had gone parabolic in the span of a few weeks on that sell-off and 2021 fix is Uvxy.

While right now isn't as extreme of a time as we had last year, so you're probably not going to see that same rally. hopefully not. Well, nonetheless, you're already starting to see that fear index pick up over 20. I think it's now at what was it at.

Yeah, it went up to 30. to now it's at 26, but in the last few days it's almost doubled. Leveraged Etfs allow you to bet for or against the overall market, so it provides a lot of opportunities every single day. Because today was such a strong day for Uvxy, Svxy is looking a little bit more likely for tomorrow.

It's looking a little bit more on the oversold side, but Uvxy will have another rally in the next few trading sessions as we continue to deal with these come and go Fudd rallies. Now, of course, Leverage Etfs aren't easy. It's not like you could just yolo a direction and then just make tons of money. This isn't dogecoin.

You have to understand how they work and the risks involved. And you have to practice with paper trading. This is trading the chart. If you're somebody who's of the buy and hold style of trading, well, this isn't the same thing.

This is. you trade the chart. You have clear entries and exit points. You have ways to cut losses quickly intraday and so I'm going to go ahead and put a link below to a Youtube tutorial that I did a couple years ago.

I think it was in May exactly May Exactly two years ago I made a video breaking down leveraged Etfs how valuable they are in any market condition, as well as areas where they have extra risk, and areas where they're actually more beneficial than just buying a regular stock. Okay, now moving over to the long-term high conviction holders. This market has quite frankly turned into a short-term nightmare for long-term holders. But the pro of that is that.

hey, well, long-term holders weren't planning on selling anyways. And certainly one of the cons of being a long-term investor is that whatever asset class you have, you have to deal with these cycles where the asset class sells off. That's a con. If you're holding, it's not so much of a con if you're buying or adding.

but I do want to take a moment to mention that while a lot of growth stocks, I think every grill stock is in a bear market, a lot of the companies that are attached to these stocks. they aren't in a bear market. they're growing. They're reporting better and better earnings.

Look no further than the massive small caps and big cat companies that over the last couple of weeks reported blowout earnings have had a trend of quarter over quarter over quarter growth. But still, the market ate their rallies, beat them down like they were going into a recession, and you're definitely getting weekly reminders of the truth. weekly peeks into what's going to happen in the future. Just today, you had a very popular retail stock Chris up on some updated data from the progress on one of their phase trials.

What about Ddd from yesterday? What about Upst or Plug? What about Skills from a couple weeks ago? Why is it that we keep seeing all these random growth stocks have these parabolic rallies out of nowhere when the whole market is selling off? Well, number one, the companies attached to these stocks are still growing companies. Just because their stock is down, doesn't mean that the company is down. In some cases, the companies aren't actually very good and you want to make sure you avoid those like the plague. But in terms of some of the best growth stocks, a lot of them are down like 50 percent and a lot of them are heavily shorted.

So when you have a peak of good earnings, undeniably good earnings are an undeniably good catalyst. What happens. Well, the shorts get squeezed, but then all of a sudden the fud sets in and the people sell. And what we're increasingly seeing is that on every short squeeze, you have hedge funds going and doubling down on their short positions because they know they can crush the squeeze.

Not only is the overall market in a legitimate panic right now, but hedge funds are ganging up on literally every single uptrend that we see in the Grill sector. How many companies do you see that are reporting better earnings quarter over quarter, but getting beat down as a result, many, many, many many companies on every scale of the stock market right now. My advice to you, if you're a long-term holder, is: do not confuse your stock with the company behind the stock, because in the long run, they converge. Never forget, folks, we are living in.

Groundhog Day Market gives us the same story over and over again. It just has a different author and a different timeline. and when the story is playing out, people always react in the same way. Oh no, this is it.

This is the big one. This one. This time it's going to be different. This time.

hey, it's not going to come back. And then when it turns out that it comes back, people are like, oh well. Obviously, in hindsight, you know the Fed pumped money. Oh well.

Obviously you know the housing. It was going to come back. People needed housing tech companies after the dot-com bubble. Oh, of course, you know if tech was the future, of course it was going to come back.

Truth be told, when we hear the story right in front of us and we don't know how it ends, it always sounds worse than it is. I know that a lot of people bought last year's dip about halfway through the downtrend and people were like, oh my god, you're so stupid. You just bought a falling knife. I remember very specifically on the zip trader circle Facebook group People were like, oh my god, you're such an idiot.

You just bought a falling knife. These companies are not going to recover for years. Covet is screwing all of these companies and this was way after the Fed announced their easy money policies. If you're a long-term conviction trader, sometimes you have to be willing to feel real stupid in the short term in order to actually be smart over the long run.

In the long run. if you did your due diligence and you actually believe in the conviction play that you bought well, what is the difference that it makes? And I think that's the mindset because you can't have a crystal ball when it comes to the stock market. but what you can do is buy when people are panicking and then be patient. I would let yourself off the hook and getting the best entry price.

Just make sure that you're confident in your position. And then, oh, truth be told, every single crash in history was the same story. it just had a different author. A different reason to crash.

Also out that we're in a much better position than we were when we had a crash last year. People who bought the dip last year, we're dealing with the fud of perhaps having a pandemic that lasts years. Well, it probably will last years, but you know what I mean last in the United States, where everything's locked down for years, That's what the media was pushing there, and we were all on the battlegrounds of those early days in, you know, 2020.. Okay, anyways, enough with the small talk.

Okay, so what the heck happened today with this inflation report Or the Cpi Price report? And what does that say about how long the sell-off is going to last? Well, honestly folks, the report is not pretty. We've been talking for months that we'd start seeing inflation creep up towards the summer, but that it would be transitory. and while the support is certainly an acceleration, a creeping up of inflation more so than anybody had thought. Truth be told that it's still just one single data point.

It doesn't tell us anything about whether this inflation is going to be transitory or whether the Fed's going to have to step in if they're wrong. But I have to go over the data with you because this isn't pretty. So year over year, all items combined up 4.2 percent. Food is up 2.4 Energy has a hole up 25 with gasoline up 49.6 We have used vehicles of 21, Transportation Services up 5.6 and these are year-over-year numbers.

So from April 2021, April 2020, and keep in mind the reason that the prices are so high is because April 2020 was a very deflationary time period. But the devil is in the month to month numbers in this April 2021 column represent the percentage change over the previous months. For example, this .8 means consumer prices are up 0.8 percent over the last month. Okay, so let's go through the list.

Food prices accelerating rapidly up 0.4 month over month. Let's skip down for a second to: used cars and trucks up 10 month over month. Car and truck prices are going through the roof. Why? Because of the manufacturing problems, there's a huge supply chain issue with the chips.

huge chip shortage. we know about that. some other raw material shortages. There's some labor shortages in the Us.

Half of the year-over-year growth in that is just in the last month alone. Okay, transportation services up a decent amount. That's definitely been accelerating if you look at the previous months up 2.9 But look at all the other numbers. What increase is missing from this month? What big thing is missing here? Well, energy prices.

folks. Gasoline and oil may be up almost 50 year-over-year but they are down 1.4 over the prior months. Why is that something to be alarmed about? Well, because inflation jumped up before we had gasoline jump up. We know in May, gasoline is going up massively So April the report that we just had.

even though everything's up, gas hasn't even been factored in yet, and that's why people are really, really scared of this. This was recorded before gasoline even went up. It was a deflationary pressure on this report. What is the next report going to look like when we have a huge gasoline shortage? Pipeline hack may be over shortly, but the impact is going to weigh heavily on the month of May and it's probably gonna have ripple effects over the rest of the summer.

Gas demand is already expected to go up substantially towards the summer, and then think bigger picture. If gas is more expensive, what else becomes more expensive? Well, pretty much every category in consumer spending. Gas becomes really expensive, transportation gets really expensive, and then food prices get really expensive than goods and then entertainment and travel. everything becomes more expensive.

Your neighbor Susan's attitude gets more expensive because she has to drive her hummer. and hummers get really low gas mileage. Okay, so what am I saying? I'm saying that this report that we got today was bad, but it didn't factor in one of the biggest bad inflationary catalysts that we have right now that's going to push everything up, so I'm very worried to see what's going to happen in May. I think that this trend of inflation is going to be greatly accelerated, But on the plus side, the more of an overreaction this inflation is, the more it all comes in at once, the more opportunity we have for it to stable out.

If it does indeed become transitory and I'm still of the opinion I'm siding with the Fed that this is going to be transitory. But boy folks, is this story getting complicated. If we can get through just a couple bad months and we get towards July and August and we start seeing a little bit of good signs of inflation starting to stable out and not becoming exponential or at least the growth rate isn't becoming exponential, then you're gonna start seeing the market settle in. But folks, we are really, really deep in the mud right now and we're gonna keep trudging along.

But of course, as traders, we are always dedicated to the process. We show up every day, rain or shine, even if we got umbrellas and the rain is pouring on our heads and the umbrella is flying away because the wind's so powerful. But we show up, we take advantage. We keep dedicated, take advantage of short-term trends, we take advantage of long-term trades, We just keep working.

Hopefully we can use this time to keep our head on straight, take advantage of the good deals while they're here, and then on the other side we come out leading the pack. Anyways, folks that caps off the video. If you have any questions, feel free to reach out to us below or join us in Zip Trader Circle and of course Quick Plug. This video is sponsored by Zip Ziptraderu.

Let's be real. a lot of folks struggle with growing their account because they don't have a clear process. They just kind of hop from one strategy or one headline to the other, but similar to an exercise program. Oftentimes if you don't have a clear structure, you're going to be very, very demotivated.

You're going to quit quickly, and you're definitely not going to have the confidence to stick it out. You're going to feel lost. So the goal of Zip Trader You is of course to provide you with a step-by-step structure and also allow you to work with our private chat and be briefed every morning on what is happening and where the stock battlefields lie. Anyways, folks, if you are interested, I'll go ahead and put the link below and you can watch the intro video where this charming gentleman will explain everything you need to know if you want to take the leap and join us.

Spawn Code: Battlefield 75 if you want to get 75 off before checkout if you're wondering what broker to trade these stocks and Kryptos on, Well, we like to send new traders over to Weeble and they are offering two free stocks and they have tons of great resources on the broker for you to become the excellent stock and doge trader that you'd ever want to be. That sounded really awkward, but it's true. I'll put the link below folks. Anyways, folks that caps off the video have a great day and I'll see you in the next one.