🚨 Urgent Update: GET READY TO BUY! Tech Sell OFF Begins! #marketcrash #marketupdate #techstocks

Summary

In this market update, Car with Money Vest discusses the over $400 billion selloff leading with the NASDAQ, focusing on the 'Magnificent 7' stocks which lost over $300 billion. With the Jackson Hole Economic Symposium approaching and Jerome Powell's anticipated speech, the video unpacks market anticipations for a decisive end to an indecisive week. Car also shares his personal trading plans, including selling more puts on Nvidia ahead of its earnings, while providing a broader analysis of market trends and potential impacts on various tech stocks.

Takeaways

• 📉 The NASDAQ experienced a significant selloff with over $400 billion shed, leading a flat week for the markets.
• 👤 Jerome Powell's speech at the Jackson Hole economic Symposium is a pivotal event that could impact the market's direction.
• 📈 Despite the selloff, the S&P 500, Dow Jones, and NASDAQ are still within 2% of their all-time highs.
• 🔢 The 'Magnificent 7' stocks (Nvidia, Microsoft, Apple, Tesla, Alphabet, Meta, and Amazon) accounted for over $300 billion of the market's losses.
• 🗓️ Market anticipation is high for potential rate cuts, especially after the significant downward revision in job numbers reported by the BLS.
• 🤔 There's uncertainty regarding the market's reaction to Powell's speech, with historical data showing mixed outcomes.
• 📊 The VIX index, a measure of market volatility, has moved back to sub-20 levels, indicating lower perceived risk.
• 📉 Nvidia led the losses among the 'Magnificent 7' with a drop of over 3.7%, shedding over $17 billion.
• 📝 The speaker plans to sell more puts on Nvidia, anticipating earnings and a significant trade worth almost $70,000.
• 📅 The upcoming month of September is historically known for market pullbacks and higher volatility, with an average loss and median loss in the S&P 500 over the past years.
• 💡 The speaker emphasizes the importance of having cash reserves ('dry powder') for potential buying opportunities in the market.

Q & A

What significant event is happening at the Jackson Hole economic Symposium?

Federal Reserve Chairman Jerome Powell is delivering a speech, which is expected to be a decisive factor for the markets.

What is the expected impact of Jerome Powell's speech on the market?

The market anticipates potential volatility and clarity on the direction of interest rates, possibly signaling the start of rate cuts.

What was the market's performance like leading up to the NASDAQ's selloff?

The market was flat for the week with strong performances on Monday and Tuesday, followed by a more subdued Wednesday and Thursday.

Which stocks were referred to as the 'Magnificent 7' and how did they perform?

The 'Magnificent 7' refers to Nvidia, Microsoft, Apple, Tesla, Alphabet, Meta, and Amazon, all of which experienced significant selloffs.

What is the speaker's plan regarding Nvidia's stock?

The speaker plans to sell more puts on Nvidia, with a significant trade worth almost $70,000, in anticipation of the company's earnings report.

What is the VIX index indicating about market sentiment?

The VIX index moving back to sub-5 suggests that the market is less fearful and more complacent, which might indicate potential profit-taking.

What does the speaker suggest about the market's valuation?

The speaker suggests that the market is on the expensive side, with the S&P 500's valuation at 22.73, which is in the 90th percentile.

What is the speaker's view on the upcoming market seasonality in September?

The speaker expects market seasonality to play a role in September, which historically has been a month of higher volatility and potential market pullbacks.

What is the current state of the market in terms of the S&P 500 and NASDAQ?

The S&P 500 and NASDAQ are both near their all-time highs, with the NASDAQ experiencing a dip after a strong rally.

What is the speaker's strategy for the next two weeks in the market?

The speaker's strategy involves raising more cash to have a 20-25% cash level for buying power, anticipating potential opportunities due to market seasonality.

What is the significance of the put-call ratio mentioned in the script?

The put-call ratio is an indicator of market sentiment. A rising ratio suggests that more investors are buying puts as a hedge against potential market downturns, indicating bearish sentiment.

What does the speaker expect from the Federal Reserve's interest rate policy?

The speaker expects the Federal Reserve to be open to the idea of beginning rate cuts in September, influenced by recent economic data and revisions.

What is the current concentration of the market in terms of the top stocks?

The top three stocks—Apple, Microsoft, and Nvidia—make up almost 20% of the S&P 500's weight, indicating a high concentration of market influence.

What is the speaker's view on the potential direction of technology and semiconductor stocks?

The speaker suggests a defensive positioning in the market, with significant selloffs in technology and semiconductor stocks, indicating a potential shift to more stable sectors.

What is the speaker's outlook for the market after the Jackson Hole economic Symposium?

The speaker anticipates that the market's direction will heavily depend on the outcomes of Jerome Powell's speech and the Federal Reserve's stance on interest rates.