$6.15 Trillion Problem... DO THIS NOW!

Summary

The video discusses the current bullish market sentiment with new record highs and the return of greed among investors. It highlights the significant amount of money in Money Market funds and questions whether this is 'scared' or 'smart' money. The script touches on the potential for a 'FOMO' (Fear of Missing Out) effect as the S&P and NASDAQ hit Fibonacci extension levels. It also covers Jerome Powell's testimony, Apple's rise as the world's most valuable company, and the upcoming earnings reports from major tech companies like Tesla and Meta, suggesting a positive outlook for the market.

Takeaways

• 📈 The stock market is experiencing new record highs, indicating a continued bull market with strong investor confidence.
• 🤑 Greed is returning to the market, with investors potentially shifting from money market funds to stocks, especially if they offer higher returns.
• 💰 There is approximately $6.15 trillion sitting in money market funds, which could potentially flow into the stock market if investors feel the current returns are insufficient compared to the S&P's gains.
• 📊 The S&P has risen significantly, with nearly a 20% increase in the last year and 28% in the past year, prompting investors to consider re-allocating their funds.
• 🔢 The market has reached a Fibonacci extension level, a technical analysis tool that suggests potential resistance or reversal points, but the market continues to rise.
• 📊 Every industry group is up, indicating a broad market rally, and major ETFs are also showing gains, suggesting a widespread bullish sentiment.
• 📉 Jerome Powell's testimony did not lead to any significant market reactions, maintaining the bullish trend.
• 🏆 Apple has become the most valuable company in the world and aims to ship 10% more phones this year, which could positively impact its revenue.
• 📊 Historical data suggests that if the market is up significantly by mid-year, there is a high probability of continued growth, especially if accompanied by multiple record closes.
• 📈 Market breadth is narrowing, with the top companies in the S&P driving the market's rise, which could indicate a potential concentration of investment in fewer stocks.
• 📅 Upcoming earnings reports from major tech companies like Netflix and Tesla could act as catalysts for further market movements, with expectations of positive results.

Q & A

What is the current sentiment in the stock market according to the script?

The current sentiment in the stock market is bullish, with record highs being reached and greed returning among investors.

Why might investors be upset with the S&P's performance?

Investors might be upset because, despite the S&P's significant gains over the last year, they could be earning more (5% a year or about 2.5% year to date) from Money Market funds.

What does the script suggest about the amount of money in Money Market funds?

The script suggests that there is a record amount of $6.15 trillion sitting in Money Market funds, indicating a potential shift in investment strategy.

What is the significance of the Fibonacci extension being hit on the S&P and NASDAQ?

Hitting the Fibonacci extension indicates a potential turning point or reversal in the market trend, which could be a sign for investors to pay attention to market movements.

What is the script's opinion on Jerome Powell's testimony?

The script views Jerome Powell's testimony as bullish, as he remained composed and did not create any major negative headlines that could affect the market.

How does the script describe the performance of the top companies in the S&P?

The script describes the performance of the top companies in the S&P as booming, with the largest companies driving the market's upward trend.

What is the script's view on the potential for a 'FOMO' (Fear of Missing Out) effect in the market?

The script suggests that with the current market highs and greed returning, there is a possibility that the record amount of money on the sidelines could lead to a FOMO effect, prompting more investments.

What historical pattern is the script referring to regarding the market's performance after the first 15 days of the year?

The script refers to a historical pattern that if the market is more than 10% green year to date at the midpoint, there is an 80% to 82% chance that it will continue to be higher.

What upcoming events are mentioned in the script that could act as market catalysts?

The script mentions upcoming earnings reports from companies like Netflix and Tesla, which could act as catalysts for the market, especially if they report beats.

How does the script suggest the market's direction after July 17th?

The script suggests that the market's direction after July 17th will be influenced by historical patterns and upcoming catalysts such as earnings reports from big tech companies.

What is the script's final target for the S&P, and why was it adjusted?

The script's final target for the S&P was initially 6200, but it was adjusted higher due to the market's continued bullish trend and the return of greed among investors.