What you are looking at right now is an actual literal picture of the stock market and I'd argue it's a more flattering angle. But in all seriousness folks, the market has been a dirty dirty dog and today it started decelerating in the wrong direction Again, the thing that I want to talk about in this video is why it's getting worse. What is the data showing us and how bad is this going to get? Despite a lot of stocks being 50 off their highs, you're starting to see certain short data pick up again and we're gonna be talking about why short sellers are pouncing now and sort of what that tells us about when this is going to stop. And of course we're also going to be starting with recapping our plays and giving some updates there.

And the only thing I ask for all of this is that you hit that ravishing like button And also don't forget to subscribe. Okay, first some updates. So so our club play. a little bit of consolation: continued, Its short squeeze today.

We were talking about this one yesterday and my heart wants this to continue. I want to see more more more squeezing, but unfortunately short squeezes tend to come in really fast and then leave just as fast. Maybe it's a catalyst that pops up and then people sell off after the news, but generally speaking, you don't see short squeezes setting a new trend towards the upside, but I would argue that with this play repeatedly getting that buying pressure when it hits the seven dollar range, it's becoming less and less profitable for Shorts to push this down further and eventually we're going to get more squeezes as well as a more consistent trend upward. Of course, we also have to consider the backdrop with the rest of the sector, but we're definitely seeing some support in that seven dollar range.

Okay, Clne, which was another one of our price target place, had a really big warning today on news that it signed an agreement with Amazon. Now, Clne is the largest provider of natural gas fuels in the transportation market in North America, and as part of the agreement, Amazon will take a stake in Clne, which basically makes them partners and will help Amazon become carbon neutral by 2040.. But let's be real: this is the sort of catalyst that if we saw this in January, this stock would have gone up like 30 40, 50 percent. But in today's market, what did we get? A little pansy run? A pansy run folks.

20? A little 20 run that got slowly eaten away at throughout the trading day. And this is the general attitude that we're seeing with a lot of these growth stocks. when the growth stocks run up on a catalyst. the buyers.

They don't stick around at all. they take their money and they run down the street. Contrary to popular beliefs, catalysts actually do have value for the company. If Clne actually gets to boost its revenue by having a partnership with, Amazon actually gets to boost its exposure, actually gets to boost its stability by having the backing of Amazon.

That means that it's more valuable today than it was before it partnered with Amazon. Yet in a market plagued by fear, uncertainty, and doubt, people treat Catalysts not as an opportunity to see more value in a stock. They treat it as a way to get out of a stock. But this Catalyst has value add to it and the market doesn't respect that.

Right now, we're gonna get into why that isn't a few minutes after we talk about the other recaps. Okay, we finally started seeing some strength in Sndl as the Mj banking votes take place this week, which will set some clear Federal directives for whether banks are going to be able to lend to Mj companies in states where Mj is legalized. But I think also this is up because April 20th is tomorrow and that is 4 20. And you're seeing some excitement in Sndl because that likes to pop up every time the Mj sector goes up.

Sndl has been a frequent day trade amongst our community. In our briefings, we always talk about Sndl as an opportunity to trade when you have some fluctuation and inflow into the Mj sector because this tends to outperform all the other ones. But definitely tomorrow, we should see some more volatility. Okay, Neo.

So Neo actually did pretty well today. We were just talking yesterday about how I think that one of the most resilient parts of the growth sector is going to be Evs because those are the most obviously undervalued. Those are the ones that have the most proof of concept at least the ones on the built end like Neo, Tesla, and Xpev and such. But if you look at Neo's underlying short interest, it's almost like the greed that we saw back in early 2021, late 2020 in terms of hedge funds going and margining out a lot of their positions, pouring in tons and tons of money into these plays so that they can take large chunks of moves very quickly and then jump out really fast on the other end.

While it's almost like that greed that we saw is now going to the other side, you're starting to see a lot of those same funds that went and bought in mass these companies just four months ago. Now turn the tables and go and short them. even though they're at way lower valuations than they were buying at just a couple months ago. You look at short interest despite Neo being cheaper than it's been for like six months.

you're starting to see shorts pile into it again, trying to take this down to zero. Just think about that, you have Wall Street going and buying Neo at twice the valuation now that it's already cut. Now they want to go in and say, okay, well this time we're gonna go and push it all the way down to zero. Let's go and short sell aka dump shares onto the market that's already struggling.

That seems like some easy moolah. If they think it's so overvalued at 36 bucks, why were these funds closing their short positions so much sooner than that? Why? Because there is no valuation reason for them to short it. They just saw a trend and they jumped on it. They saw.

Hey, everybody now is doubting the Ev market because of the chip shortage because of the overall fluttery because of everything's going bad. So let's go ahead and let's milk this trend for whatever it's worth. Just like we milked it on the upside, let's go ahead and flip the script. We're going to milk it.

On the downside, these folks don't look at value at all in these stocks. They just play the cycles against us. Does anybody really believe that Neo is worth substantially less than it's worth right now? No, Most people believe it's worth a lot more. In fact, the average analyst is ranking it at a price target of 62, which is almost 70 percent of Upside.

and most analysts don't like Neo. Us analysts hate Ev stocks because obviously it's the future. so it's high multiple. You can't have anything high multiple.

If it has promise in the future that can't be good. And number two, because it's Chinese, people, are sketched out by the Chinese market. That one, that one. makes sense to me.

I think that you should be sketched out by the Chinese market, but you also have to acknowledge that there is a market. If Neo was doing what it was in the Us and it had the confidence of being in the U.s it would be worth like three times what it was at all time highs. But don't give me the whole wool. In China, it was already trading way below what it would have been worth in the Us.

and that's despite China actually being a pretty unfair economy where they're going to be favoring Neo in a lot of different ways. But anyways, if you're a fund manager and you see Neo at 60 bucks, but you also see massive dysphoria in the market that you can take advantage of, why not go and short it? get it down to 20 bucks, profit on that downside, and then go ahead and pile back in and ride it back to the upside. Active managers don't make money by buying and holding. They make money by getting in, getting out, getting in, and getting out.

They make money by churning churning cycles, making sure to screw everybody along the way. They know that they could push things a little bit too far on the upside and make a killing. and they know that they could push things a little bit too far on the downside and make a killing. And look, here's the thing: Institutional investors also systematically hit companies that a lot of retail traders are holding.

They know that a lot of new traders went into the market for the first time in late 2020, early 2021 and bought stocks like Neo. without knowing much about the company. They heard a few good things and then they went and bought it. What does that mean? Well, it means that it's easy for them to force a panic sell, just short a stock that has a lot of retail traders in it.

If you push it down far enough, you're gonna get all of them selling out. In a panic, you're gonna make tons of money, and then you can buy back in at a lower price. And if you could do this at the same time or it's happening to all retail trader stocks, well, you're not going to get game stopped because there's not enough retail traders to short squeeze you on every single play. by the time that Neo comes back.

believe me, Wall Street will be long again, and retail traders will refuse to buy in because it's too unsafe until it's back at all-time highs. In which case, Wall Street will then go and screw them again. And this is kind of where we get into the Segway of the video and what this video is all about. We're seeing two separate issues here.

The big issue is something we've talked about a lot during December, January February funds over marginalized themselves into growth stocks. Then when we saw some weakness and some interest rate scares, all of a sudden people are like, okay, we gotta get out of growth stocks. Let's lock in our profits, closing out their margin, causing stocks to go down and as stocks went down, other funds started getting margin called. But here's the thing now what you're seeing and this is what's so sinister is all these funds that went and got margin called.

The ones that are already out. What are they doing? They're going in short in the same stocks that they are margining. To the upside: you look at any major popular retail stock, popular growth stock. Let's say you look at Pltr.

The short ratio started really high in September and October, at the same time that Pltr was stagnating. Then the Shorts started trading hands massively again in November and December. What happened there? Well, most of them got burned because Pltr kept rallying. Then they gave it another shot.

Most got blown out again on multiple short squeezes, on positive on positive catalyst for Pltr like partnerships. But then they finally got what they wanted and short volume completely dropped off. Now that Pltr is trading much lower and they've already made tons of money, what are they doing again? Well, the short volume ratio is picking up again. Why? Because they've identified that regardless of what the inherent value of Pltr is, there's so much fud and dysphoria in the market that it doesn't matter.

Why not just take advantage of the flood while it's here. They've managed to systematically convince millions of people that these stocks that were the most popular and everybody believed in three months ago are now the worst thing in the world. And they're winning. and they realize they could just ride this trend downward and there's nothing that we can do about it.

And then once it's cheap enough, they can snap it up at a good deal and then ride it back and reverse it all the way To the upside. How fantastic folks. At the end of the day, it does not matter if Pltr is worth five dollars or five hundred dollars. Wall Street knows they can bring it down, make a profit as it goes down, and then buy it back at a cheaper price.

They're also trying to bring down bigger tech stocks that have done well like Square and then Dm also has a clear up trend. You look at Virgin Galactic. This wasn't one of our plays, but I know that a lot of retail traders held this, but this is down more than 50 already. And what are Shorts doing? well? They're piling in on it Again, That wasn't enough for them.

They want this to go to zero if you're a hedge fund dog trying to please your owners. I mean, uh, clients. You have to bark up some damn returns. And the way to do it is to cycle in and out of these place stocks in the short term run on the emotions of the masses.

It's so much easier to play with the emotions of the masses than it is to actually care about what a company's worth. And it gets worse. Because if you're Wall Street, guess what? you have the power to do? You short it. You put out bad press releases, you call your buddies at the various government agencies, you tell them make a bogus investigation, Just put out some headlines say that you're going to investigate this company, but don't actually do anything to them.

Hire some disconnected lawyers, put out some bogus lawsuits, say that you're suing because you felt misled by the company. Boom stock price down no matter how much conviction a retail trader has, If they're completely in love with the stock and they see it go down day after day after day, and they see negative publicity, guess what? Eventually their conviction is going to be gone. It's going to be out the window. like yesterday's lunch.

And basically folks, they could do this to any stock that has a lot of retail traders in it and it'll automatically go down. They can't target stocks that have a lot of other institutional money in it because the institutional money doesn't need to look at the chart every day to feel good about their position. But they could do it to us because we need that. We shouldn't need that, But a lot of us do need that, and I'm not trying to sit on a high horse.

I have the same emotional problems that everybody else does. The humans respond to bleeding by stopping the bleeding and selling, even if that means cutting losses and stocks that you really believe in. Even if you know logically that something's not going to last forever, Emotions tell you. hey, why wait, why not just sell out now, lock in the losses, and then just forget the stock market? I wasn't made for the stock market anyways.

Anyways, folks, I just want to finish you off with a quick message. So the stock market has both day and night time. In the daytime, you could see great opportunities. Everything's illuminated.

You see, you see great business models, You see catalysts being rewarded. Everything's clear. Maybe there's a little bit of pollution. I live in La, so I'm used to that.

But generally in the daytime it's a lot easier to see. At night time, there's murkiness. There's dysphoria. People are saying that the stock market is never going to come back.

People are saying that you were screwed. In the daytime, it's dark, so people are trying to pull tricks. But much like day, always comes in tonight. tonight always comes in today.

You can't really complain about the night time because day is always around the corner. Now I hope I didn't lose you in the analogy. I know that a lot of new traders joined or got interested in the stock market right at the sunset. So right at the most beautiful part of the day, people joined right at the sunset, so they got to see a beautiful sunset.

But then what did they get? They got night time. They got a disaster. I really hope that a lot of traders that joined at the sunset or joined during the night time realized that there's also daytime, realize that things turn around and that putting in work and making sure that you're prepared, and that staying true to the process and finding good deals at good prices, taking some good day trades, taking some good, really short-term trades elsewhere, those are things that are going to hold you through. But anyways, folks, if you have any questions, feel free to reach out to us in the comment section below or join us on Zip Trader Circle if you'd like some free stocks when you deposit with Weeble.

They are an excellent broker for new traders, so check them out if you are broke or curious. Also, quick plug if you'd like to learn how to trade. With our step-by-step lessons, our private chat, and our daily morning briefings where we brief on all the latest catalysts in the market, Well, I'll go ahead and put a link to Ziptraderu below. Anyways, folks, have a great day and I'll see you in the next video.