The US government almost passes two trillion dollars in a stimulus package. The Fed promises unlimited cash to support the markets Airlines spike and weave. The people are still stuck in our homes without toilet paper in this video. I'm going to be explaining to you how all of this impacts the market, how it should be impacting your trading, and some of the opportunities that you should be avoiding.

But charlie, it is immoral to make money when the stock market is going down. This is not kindergarten. We as traders make money off the fluctuations of the market. Take your emotions out of this folks.

This is about making money. But of course, with all of that being said, the one thing that you can do that is moral is morally hitting that ravishing like button. Make sure to do that if you haven't already. Okay, so quick recap.

Now the Fed just promised unlimited funds to support markets through asset purchases. This is what is called quantitative Easing. which essentially means the Federal Reserve starts buying securities and bonds in order to prop up and strengthen a sick, sick economy. So the first show of this was when the Fed injected about 1.5 trillion dollars into the market amongst some of the first signs of economic chaos before this crisis.

But now the Fed is saying that they will give unlimited money. They will do whatever it takes to prop up the market. no matter what it takes. they will offer unlimited supplies of cash and you may be wondering where the hell all this cash comes from.

While it comes from printing more money, you see the US dollar is but a figment of our imagination. and because it is not real, the US government can decide how much it wants to create at any given point. It's like if I started my own currency and called it Charlie bucks and then I said Oh everyone's out of Charlie bucks. Well, I can just make more Charlie bucks to pay off my expenses.

But what happens when you have an increase in dollars in an economy? Well, each dollar becomes worth less. So how does this actually impact us as traders? What should we be doing? Well when markets are expecting inflation, people are looking to rush into asset classes that do well. When the dollar is being inflated, they don't what their capital to implode and value, so they're looking for a safe haven. That means that while many people may have been pouring out of the markets and just sticking to cash in the last couple weeks, they're now more likely to pile into gold and precious metals.

Some are even more likely to pile back into the market since existing dollars are being used to prop up the market by the Fed. So they figure it'd be safer in the market than in cash because with cash, you're guaranteed a rate of loss. But the worry for increased inflation is one of the reasons that after this announcement, we saw a massive amount of increase in gold prices. And understanding how these fundamentals work can mean that you the trader can trade off gold prices and make a profit when the price action moves into elevating territory.

but during times of economic uncertainty, people understandably rush to either the US dollar or to, well, gold and precious metals things that always hold value. The US dollar is considered to be one of the safest currencies in the world, and that's why banks all over the world stockpile it as one of their safe haven assets, But in many ways, gold and the US dollars. they sort of compete with each other in terms of safe haven assets. The reason is because people tend to prefer one over the other, and then when one goes up, there tends to be some correlation with the other going down.

And during the first few weeks of this beer bug crisis, people piled into the US dollar and that resulted in gold going down. But this week, upon speculation of future inflation, people piled out of the US dollar and into gold and so the US dollar has been mellowing out. But again, we don't know exactly how the trends are going to go with this speculation. Change week per week, news changes very quickly, but it doesn't really matter because we're traders.

That means we trade price action. All we need is fluctuation. But Charlie Why are people getting so scared about the US dollar? Well, because they know that we could have quite high inflation numbers like we've had during previous recoveries. Check out this one.

Check out this one and check out this one. People know that heightened government spending, low interest rates, and unlimited cash supplied by the Fed are huge risk factors for the economy and huge risk factors for inflation. But Charlie I Thought the US government pays their bills with well debt. Is that debt deflationary? Well, sort of.

You see when the US government decides to pay their bills by issuing debt. What they're doing is they're paying bills by taking money out of the economy Because if you buy their debt, you're giving them cash and they're paying off debt with, well, you cash. What it is doing is essentially taking money out of the economy to pay it with money that doesn't currently exist if you take money out of the economy in exchange for government debt. That means that there's less dollars in the economy.

and that means that each dollar that's left is worth more. Whereas of course, with printing money, you're literally just creating more money and adding more money to the money supply. And that means that each dollar is well worth less. And of course, these are the two primary ways that the US government is going to meet its expenses in this crisis.

But Charlie if we use these policies, won't the stock market get back on track and none of this will really matter? Well, no, why would it? Like I said in the previous stock market video, you can give people as much money as you want, but if large sectors of our economy are still shuttered, we aren't going to turn a profit. Until this beer bug issue is over. we're still going to be deep in the waters. We are backed into a corner and all we have is the ability to issue debt and the ability to print more money.

So that's probably what we're going to be doing okay. But before we move on from inflation, one last point: I Want to make massive amounts of government spending such as this two trillion dollar stimulus package is what we call increasing demand and what happens when you increase demand? Well, if you have a low amount of supply because of the beer bug and you increase demand all of a sudden, the supply is, well, they raise their prices and that creates price inflation. And if you combine this together with the printing of more money and all of the other actions that government all of a sudden, you're in this area where you have the perfect storm for inflation. Okay next.

so in this current market condition, we've had two days of increasing price action after one of the most unprecedented sell offs. so is now the timer we have finished. Interactive Bottom: Depending on who you ask, you're going to get some people that say you're an idiot for thinking that the stock market won't continue dropping and others would say you're an idiot if you think the stock market hasn't already factored in the economic damage into the price of the stock market. But the true answer is that since we don't yet know the full extent of this beer bug crisis, we can't possibly know for certain whether or not more sell-offs are imminent.

But of course, from our perspective, it's pretty clear the economic effects of this disaster are pretty devastating and they don't show any signs of clearing up. So if you're going to keep this in mind, how do you actually go and plant a price action? How do we make money off this? Well, First, it's by taking advantage of news with catalysts. For example, tomorrow the unemployment rate comes out or the unemployment report comes out and we can find out how many people have lost their jobs. This is interesting because instead of just speculation, we'll have actual numbers.

And while everyone is of course expecting massive job losses, especially to correspond with massive amounts of unemployment applications, if we do get a job loss reports that is well higher or lower than estimates, then we're going to have some sort of reaction in the market. But what instrument should you actually play the market with? Well, the first is to play the literal market. One way of doing this is with Spxl. Spxl leverages the movement of the S&P 500.

So when we have up swings like today, it multiplies by a factor of three. On the other hand, you could play the inverse wheel of inverse parents. That's because it's so easy to just trade one side of the swing and then drink the other side of the swing. What the hoop-dee-doo And the instrument that we use to do this is with SPX U.s.

Pxu is the inverse of the market, so it's essentially like shorting the market. but you're really just buying as Pxu, so it's a great instrument. But for example, when you're playing this with Spxl and any opportunity we want to focus on, you need to be buying into the periods of the highest elevating factors. For example, if you're smart enough to wait for confirmation, you not only have your priced ranks to buy into, but you can also quickly sell out at validation if the price actually turns against you.

This is why I talk so often about waiting for confirmation and selling out at validation. Because again, at the end of the day, confirmation isn't the reason that you should enter a position, but it confirms an already good setup. And if your confirming a good setup, that means that hey, if the setup goes wrong, you can just sell out ad validation. It's a perfect scenario.

But there's also of course other factors such as previous patterns, news events, different catalysts. They can contract the price, action, and of course in this case, a Jobs report or something of that nature. But one of the things that a lot of people hate about me is that I'm not a huge fan of predicting the market I make tons of videos on the stock market and I never really talked about like, oh, you know the stock market has to go this way or this stock has to go this way rather what I talk about are high probability setups I'm a huge believer in high probability setups because why would you spend so much time and so much analysis just trying to figure out hey, is we going to go up or down? Who knows, folks, and who cares? It's totally irrelevant to us. Instead of deciding which way it's going to go, why don't you just say hey, I'm going to trade whatever it gives me and if it gives me something I don't like, then I'll be a spoiled brat and I won't trade it I Just don't understand the mindset of trying to guess where something's going to go.

That's for novices. That's for people who have insider trading knowledge. That's for people who are. You know they have crystal balls.

It's not for us as traders. Our job as traders is to execute on high probability setups. If you're not interested in doing that, maybe you shouldn't be trading. But anyways, enough with the ranting.

Let's go back to some of the best opportunities to trade with the stock market activity. Okay, so let's say you want to trade gold because we know inflation and gothe have quite a correlation. One of my favorite ways to trade gold is with Jane ugh and with Jane ugh we have another inverse peril. You have Jane ugh and Jade est.

I've talked about them before, but with Jane ugh, you trade up swings and Goldman with Jade est you trade down swings and gold. For example, if you notice that the overall market opens in a upward direction or there's an increase in uncertainty based on inflation, Jaehnig is a great place to take advantage of everybody who's actually going and rushing to safe havens because again, people don't invest into Jane ugh. Because of it being a safe haven, they invest in the gold and Jane Oak leverages the movements of gold. Remember, as traders, we trade off other people's emotions, right? So people make decisions, not based on their logic, not based on the chart, not based on anything except for how they feel.

When they feel bad, they rush to things that are illogical. and then we trade off that, right? We make money because they were illogical and buying in at high probability setups is taking advantage of these people. So you need to be able to pair these together and you need to be able to pair it with price action. for example, One of the things that I think a lot of people mess up is just this fact that so many people choose the wrong aggregation.

period. If you choose the right one, you're going to get a clean run up which allows you to ride the best moves from confirmation to validation. But again, I Think that if you're a new viewer and you're hearing me talk about confirmation to validation, you're going to be very confused. You're going to say oh well, wait a second.

If I buy in a confirmation, not every time it goes from confirmation, is it going to run up afterwards? So how does that actually work? Well, The thing is that a confirmation, what it does is it confirms an already good set up. So if you have that first green cattle stick holding above the SMA line confirming move, Great and everything. But that's only one elevating factor. Where are your other elevating factors? Are you oversold and increasing? Do you have a catalyst such as an increase in inflation when it comes to gold, so on, and so forth.

And these are things that you need to track. You need to learn how to trade with concrete strategies before you can actually go and treat these opportunities. and the best way to do that is to simply understand where your elevating factors lie. Are you oversold? Where are the previous pattern confirmations, so on, and so forth? But of course, with any of these opportunities, if you decide to just randomly buy, these will leave you begging outside 7-eleven And you don't want to be doing that because you'll catch the beer bug if you're hanging outside 7-eleven.

But another tip that I do have for you is focus on Trading Tickers that Work Charlie Tickers that work Do you think I'm stupid? No tickers Network Just mean tickers that have a previous pattern of running up right? So previous pattern in terms of pre market or after-hours If you see something that's going so strong after hours, it's running up massively after hours and then it opens massively pre market and then it continues into the day. Hey, you have opportunities to write the momentum. For example, for those of you who are in our free Zip trader circle Facebook group and you've seen our nightly watchlist, you've likely caught a lot of these pics like with an Ke and K he was a big one. There's a few other ones from earlier in the week, but NK E is Nike and they were an after-hours gainer a few days ago.

And this after-hours gainers of course. one of our biggest criteria for zip trader. but um, but but they were an after-hours Gator and that provided a run up day after day over the SMA line. We love clean pry strength because again to beat the horse into the ground.

confirmation validation. Very clean. but also understand that you can't just buy in because it's showing price strength. You have to buy in with a plan.

If you had bought into TT o o for example, just because it was showing Prai strength, you would have had a rough ride. You need to buy in with a discipline to sell out. When you're elevating, factors turn into deprecating ones and at the very least, you need to make sure that you're selling out at validation. anyways.

folks, I do appreciate you taking the time to watch this video. I Hope that I was able to provide some insane value for you. If you have any questions, make sure to reach out to me in the comment section below or join us on Zip Trader Circle. And of course, if you need some extra guidance in growing your account from the ground up and would like to work with me each and every single day we do offers Traitor You and I'll put a link to Zip Traitor You in the description below.

But anyways, folks, have a great day and I'll see you in the next video.