After deciding that the crisis is over and that the Federal Reserve not profits is what dictates company valuation, the stock market continues to rise into Lala land as we continue to have more record days of market growth and this is capped off by a huge market jump in the after hours today, which is why I just had to make this video. But at the same time of this record stock market rally, we are also in a period of another record record levels of unemployment, an increasing spread of the beer book, and many industries teetering on the verge of bankruptcy. and of course that's just a name a few thinks. We also have scientists predicting that a vaccine may take up to several years to become available, and we have global governments predicting that some levels of social distancing will be required until then, which of course will be economically devastating no matter what way you look at it.

but the stock market these days ever yearning for good news and latching on to the little pieces of it, the stock market only sees good news, It has filters on it, can't see anything but good news. In fact, if you're looking at where we were trading at just a year ago and you're looking at the current valuation, we're at the same exact spot we have returned back to, literally the level we were at March 2019. But does that make sense because at this point we were in one of these strongest bull markets of US history, had record low unemployment and had a healthy population. but at this point here a plague is literally spreading across the world.

90 percent of the U.s. population is shuttered, most businesses are shut down, dying, or are being kept alive on life support by stimulus packages, and the Fed is practicing record levels of quantitative easing. So why why is the stock market doing so well? You may think this is all confusing, but it's not confusing because the market has never been rational and it never will be rational. So stop expecting it to be rational.

Always remember the quote. Markets can remain irrational a lot longer than you, and I can remain solvent. Just like that. Ravishing like Bun can remain ravishing longer than you and I can resist hitting it.

Make sure to do that if you haven't already. but you see the market well. it doesn't care about our feelings. so it is our job to look for opportunities and then exploit them.

But in order to find the opportunities, you also have to understand what's actually moving the market. So what caused this massive uproar After hours? Well, it was mostly spurred by the announcement of reopening, and perhaps partially spurred by the rising signs of treatment opportunities. But let's start with the reopening. So the President issued guidelines today to open up parts of the US where cases are in decline and of course, ultimately, the choice of whether or not to open up the states is going to be up to the governors and whether or not you like the President.

This announcement creates a huge effect in the markets because it is the first really strong signal that we are going to be moving at least somewhat out of this crisis and getting the economy working at least at some pace. even if that's a slow pace. Let me go ahead and make an analogy. Picture a car.

This is the US economy and the beer bug is a flat tire. or rather I Should say four flat tires and be locked down is the equivalent of trying to drive this four flat tire corn. Yes, you can get somewhere very slowly and uncomfortably, but you are messing up the wheels and the rims and eventually your car is going to be really screwed up and you won't be able to do anything with it. So this is only so sustainable.

but getting rid of the lockdowns and instead loosening it to just include strict social distancing is like taking these flat tires off and replacing them with the spares in your trunk. Sure, you still can't drive fast, you probably look stupid, but you are moving faster and more sustainably than you were when you had four flats. and the goal is to have the economy drive like this until we get the whole health crisis solved and this bike was symbolic of us getting closer to that goal. Now does coming out of the lockdown make this valuation as a whole makes sense? No, it doesn't because again, we are trading at the same price for trading at just over a year ago when the economy was essentially a fully stocked Ferrari with perfect tires.

And while we are starting to see some glimmer of hope with Boeing reopening and some other companies resuming operations, we still have a ways to go until we replace all of the flats with Well Spares You. I Personally think we're going to be returning to normal anytime soon. Well, now the markets are too optimistic If you look at this from a fundamental standpoint aka the actual profits and health of these companies. the balance sheets.

You know those things that actually matter for companies, not just speculation. But most part most American companies are being impaled. But if you look at the stock market, this doesn't reflect that. This reflects record profits and the ability to get back to record profits.

And this is why when people message me and they say price action does it matter? The charts don't matter. it's all about the balance sheets. These people are airheads and know nothing about the stock market or human psychology as a whole. You see, the stock market is not a reflection of how big companies are doing right now.

they're actually a reflection of an idea, an idea of how much money they can make into the future and how much money they can make. Shareholders and ideas are. they vary quite a lot, and people speculate on ideas and ideas change based on how the world is looking. and they change often.

That's why they're so prone to bouncing everywhere. But from our standpoint, who really knows we're traitors? It doesn't really matter. What we need to think about is how we can make money off these fluctuations. And sure, I do think it's inevitably going to sell off again, but we can use both the upside and the downside to make money.

Okay, but the second reason for the run-up today after hours was because of the advancements for treatment. There was a report released from Juliet that one of the major global drugs for the beer bug is showing early warning signs of being successful in terms of a treatment. Juliet Spiked over 15% after hours on days of this and this of course was one of the top stocks he released on Sunday night in my Top Stocks video. In that video, we talked about how Juliet has a pattern of over selling and over buying due to the fact that they dropped constant news and constant news catalysts and that every reaction is an overreaction.

so it goes from oversold to overbought and then oversold them and another piece of news comes out and then it goes to overbought and then it just kind of keeps continuing. When we talked about how this was going to be an important player because of the fact that they have so many different news catalysts. and I do know that there's always those people who are unfamiliar with my work and they're unfamiliar with this channel and they're like but Charlie you don't have a crystal ball. You can't tell us what the stock is going to do in the future.

Actually, no, I can't I don't have a crystal ball I Have no idea where stocks are going in the future, but what I do know is something that everybody can know. It's public knowledge. Guild has a pattern of over selling and over buying. Guild has a pattern of nice catalysts and most importantly, and perhaps the main thing that I should have mentioned: the fact that Yield is working on this drug is public knowledge and the fact that they're going to announce results is public knowledge.

That means that if you know it beforehand, you could say hey, well I'm going to be watching this because it has a clear opportunity if it shows good signs. hey, that's a great opportunity to ride priced ranked if it shows bad signs. hey, that's a great time to playoff the overreaction downward. But my point is that it's very important to follow Catalystz and to follow what's actually happening so that hey, when an opportunity like this comes up, you can just buy in a conformation and sell out of validation.

You could be the one riding this priced ranked instead of the one looking at it. In hindsight, did I know that this was going to be a huge catalyst today? Absolutely not. But was I aware that they are working on this drug? Absolutely. And this is your responsibility as a trader to be familiar with these sorts of catalysts so that you can then go and trade them.

And of course, if you do need a starting point for that, We do have a nightly watchlist with tons of other opportunities just like this on Zip Trader Circle which you can join with the link in the description below. It's a free Facebook group and one of the best trading circles. and not just because no one else calls their trading groups circles, but also because of that. Anyways, folks, I Just wanted to give you a quick update I Hope this was valuable.

Let me know what you think in the comments that can below. Do you think that we're going to keep running up? Do you think we're going to get beat down like rabid dogs? What do you think is going to happen to the overall market and where the economy is heading? Speculate down below I'd love to see what all of you think I Read all of the comments and I respond to a lot of them. so just you know comment below and as a quick reminder for folks who are looking to use this time to develop their skill set and forge growth in their account. As a trader, we do offer Zip Trader.

You and Zip Trader. you will be $50 off if you put in coupon code Easter 50 at checkout and you can go to Zip Trader. You calm or click the link below to see whether or not it is a good fit for you and your goals. Anyways, folks have a great day and I'll see you in the next video.