Stock Market In Crash Mode! What Now?
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The Dow Jones had one of its biggest point drops in history today. The stock market crash is quite something else the past 3 days. We have lost about 1400 points off the dow jones in just the past 3 trading days! What is next for the stock market and why is this happening all of a sudden?
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Whoa Holy smokes cowboys and cowgirls. We are getting absolutely tore up in the market today. Oh my word look at that stock market today. The Dow is down well over 800 points again. By the way, after I took the screenshot I actually saw the market was going down even more was down about 850 points.
Okay. This is one of the biggest drops in the history of the Dow Jones when it comes to a point drop Okay, here today, NASDAQ is down 3.73%. And once again, that one was getting even worse as I was taking the screenshots, I think it approached a 4% downward move their s&p 500 down over 3% Russell 2000, down about 3.3%, massive, massive downward moves.
I want to talk about what is coming What is next. Okay, and what is really going on in the stock market right now. Okay? The volatility index, okay. the VIX is up over 30% here today, okay. the VIX kind of tracks like what how much volatility there is in a market in a particular time. And when you get one of the biggest point drops in the history of the Dow, needless to say, there’s a lot of volatility going on the stock market.
Okay, this shows you a chart of the largest daily point losses in the history of the Dow 30. Okay, and what we’re gonna see here is today should be either the fourth or maybe even the third biggest point drop day in the history of the Dow and who knows, maybe it could even worse in in the last hour of trading and maybe we go down 1000 points, we’ll have to see what happens with that.
But regardless, it should be for sure. One of the worst days in the history of the Dow in terms of how many points this drops today, okay. Now in terms of the largest daily percentage losses, it’s actually not that bad of a day, okay? But if you look like a lot of those days were way back the basically the stock market used to be way more volatile way back in the day back in the 20s and 30s and whatnot.
If we look at the largest daily percentage losses, you know, basically since like the year 2000 there’s only been four years in the top 20 Okay, so needless to say this is a crazy last day in the market in general and especially if you look at as far as a point drop, it’s like okay, look at some of these moves down in some of these stocks here today.
Okay, we have Neo Neo Corp down 12 and a half percent right. They’re trying to be the Tesla of China holy smokers. is a no joke. It looked at square stock down another 8%. Today it made a massive downward move on Friday. I remember we talked about it okay, we talked about that on financial education too on that video called.
Five stocks that are crashing and that stock I think was down over 15% on Friday, another eight plus percent here today jd.com when the biggest e commerce players in China down nearly 8% here today, Baidu is under 100 bucks a share now down 7.6% today Stitch Fix down about seven and a half percent today.
Winning resorts winning resorts is down seven and a half percent today okay winning resorts can’t even win today. You know, that’s when you know it’s bad groupons down over 7% has go Corp down over 7% look at Nvidia. Nvidia is under $150 a share it’s approaching where it was back in November and December when the market got really ugly when everybody was flooding out of stocks Nvidia is starting to reach those levels once again.
Okay. It is down almost $12 a share today down 7.33% for Nvidia today Okay, so get some more at home down another 7% today, Activision Blizzard, one of the biggest video game companies in the entire world down 6.8% today united natural foods, making another massive downward move here today.
Almost 7% Okay, tweeter Twitter’s down. 6.4% today, big downward move for Twitter. Okay, let’s sell this text down over 6% Align Technology though the ones that make invisible braces have a ton of patents around that. That’s approaching a 52 week low here today okay down 5.88% massive downward move there that might be one I have to buy soon.
Capri holdings they own several different luxury brands. Okay, when it comes to purses and shoes, high heels, all those sorts of things. Okay, that’s down to 31 bucks a share here today down 5.8% AMC the movie theater company down over 6% today, AMD down 5.8%. Today, Arista networks down nearly 6%.
Today, massive moves down in the stock market today. And even bigger moves for a lot of these stocks, like sometimes usually the market down 3% or 4%. And that’s a really, really down day for the market in general. But sometimes you get some opportunities in some of these stocks, and they dropped 510 sometimes even more than 10% on one of these massively bad days.
Okay, now we got to ask ourselves, why is this happening? Like why is the market all of a sudden getting super volatile? Why all of a sudden within the past like few trading days have things gotten so ugly and whatnot? What is going on? Okay, let’s talk about what Wall Street hates.
And this will explain a lot of why the stock market is dropping so much because we saw a huge drop basically on Thursday, then Friday, and then Today’s the worst of them all. So what is Wall Street hate? Okay, Wall Street really hates four different things. Number one thing they hate is uncertainty Wall Street, the business community investors, they don’t like uncertainty.
And what we have right now with the tariff situation getting worse, the trade war kind of seeing no progress there is what we’re seeing there is just more uncertainty. The market is looking at this and the like, are these tariffs ever going to get cleaned up?
We see company earnings going down, we see company earnings missing, we see all these sorts of things. And we’re like, when are we going to get some certainty? When are we going to get some clarity in the economy, and Wall Street looks at this and Wall Street doesn’t like this.
And this is why you see the volatility in the stock market go insane. And you see this massive downward move here in the markets like basically, in the past three trading days, the Dow has lost something like 1500 points, maybe even more than that, in three trading days.
That’s a lot of points to lose in three trading days. Okay? The market absolutely hates uncertainty with a passion. And we have a lot of uncertainty around the stock market right now. The number two thing the stock market hates is it hates it when company earnings are downtrending.
And what we’re seeing is year over year numbers, most companies are down for their APS and are especially down for their net income. I’m talking big companies, mid sized companies, small companies, Wall Street does not like it when companies have downtrending earnings.
And we have that right now, guys. And that’s that’s not a good thing. Okay. Number three, Wall Street hates it, when situations are getting worse, meaning you can either see progress, and there could be hope that oh, this is going to get better. Okay, whether you let’s imagine you’re in a recession, right?
There’s, there’s two ways things can go Wall Street can either be viewing that recession, as Oh, things are gonna get even worse and worse, as the market continues to downtrend, or you know, what I think we’re about at the bottom, I think things are gonna get better and better and better.
So the market starts to recover, right. And if we’re thinking about the trade war situation, that tariff situation, Wall Street’s looking at this right now, and they’re saying, we think things are going to get worse, and worse, there’s been talk for nearly a year now, if not more than a year that this would get cleared up.
And like we’d get a deal done, and all these sorts of things, and no deal has come. And if anything, it looks like we’re going the wrong way. And things are gonna get worse and worse. What’s that mean for the global economy? Is that going to make the global economy getting even weaker?
Is that going to make the US economy get even weaker, and when you have the market taking all those things into consideration, and the market saying, well, things might get even a little worse, Wall Street hates that, okay? And you’re gonna see more and more selling in number four thing that the market hates is political uncertainty.
And right now we’re getting ready to kind of go into the next election, right? We see democratic debates going on, we see one of the front runners there being someone named Bernie Sanders, what would he do to corporate tax? Would someone like him take corporate taxes up to a 50%? rate? 60% rate 70% rate?
People are wondering that what would happen for personal income taxes? What would that do to the overall economy? What would that do to the investing community? And a lot of people see something like that, and it scares them. And on the flip side, you have people wondering, Well, what if Trump gets elected for another four years, is the tariff situation is a trade war going to get even worse, it’s going to bring down the entire economy.
So you have Wall Street in a very uncertain moment, where they’re scared on both sides, they could be really scared of someone like Bernie Sanders coming in, but they could also be really scared of someone like Trump, where basically the tariffs keep rising, the trade wars getting worse, and Wall Street’s very scared that that could actually boil into the real economy.
Okay. And we’ve seen massive amounts of companies report down year over year net incomes, okay. And so you see all this political uncertainty and Wall Street absolutely hates that mostly hate election time, because you don’t know which way things are gonna go.
And you don’t know really how bad that or how good that will affect the economy. Okay. And so if you think about it, this is a four things that wall street hates. And what do we have going on? Right now? All four, we have all four of these going on. Right now.
All four of the things that wall street really hates we have going on right now. Okay, uncertain, do we have massive amounts of uncertainty with the tariffs and the trade war and all these sorts of things, we have down earnings, like we talked about most companies that have reported earnings year over year are down on their net income.
Okay, that is obviously not a good thing for the stock market in general. Number three, like things are looking like they’re getting worse and worse, and people are getting more and more scared of what this can end up meaning for the stock market in general in the global economy.
And number four, we have more and more political uncertainty as we get closer and closer to election season, and the debates and all these sorts of things. And so if you see the market down huge, and you see a lot of volatility, I’m just kind of looking at this and I’m saying this is probably not ending anytime soon.
In terms of the volatility at least in the stock market. It doesn’t mean necessarily the market Got to drop to the 15,000 or something like that and the Dow, although that could happen, but it doesn’t mean that I’m just looking at this and I’m looking at it, I’m saying, there’s probably going to be a lot more volatility in the market, at least at least over the coming months.
Because unless these four things clear up, why would the market just start off and be even Steven and start going up and up and up, it just doesn’t make sense, right, companies are probably going to continue to report down earnings for at least the next quarter or two.
And then uncertainty, once again, it doesn’t look like there’s any certainty coming with anything anytime soon, in the political uncertainty is going to get even worse and worse as we get closer and closer to election. And especially if it’s a situation where it could be someone like Bernie Sanders against.
Trump, because the market might not like either one of those choices, Wall Street might be looking at both those choices and be like, we don’t want either one of those guys, okay, because on the Trump side, you have the trade war, you have the tariffs, you have everything that’s been hurting company earnings year over year, and you have just the wildcard effect there.
And then with a Bernie Sanders, you have the possible tax implications that could make you know, net incomes drop even more dramatically for a ton of these companies out there. So if you’re looking at it from a wall street perspective, it’s not a good situation here in the short term, it’s a situation that’s going to breed a lot of volatility, a lot of massive moves in the market.
However, if you’re a long term owner of companies, there’s going to be a lot of prices and a lot of deals that get thrown your way over the next coming weeks and even months, and maybe even over the coming year that are going to make for some very, very interesting long term buying opportunities.
However, you know, if you’re cashing out of your accounts tomorrow, or next week, or next month, and you’re about to retire, this is not going to be the most fun time for you to for all this volatility. However, if you’re young, you’re in your 20s 30s 40s, or even younger than that, like this is obviously a situation that breeds some great buying opportunities and should continue to in future weeks and future months.
Because if you just look at all this, it kind of doesn’t make sense for the market to be in a position where it just starts to go up. Or it’s just like a chill market environment. Like we should see a lot of volatility return over the coming months. And that’s just what we’re gonna have to deal with.
Like I said, if you’re a long term buyer, it makes for some phenomenal deals. So I’m excited from a long term buyer perspective, this is why I always keep cash on the sidelines. For moments like this, when we start to get all this volatility, it always happens there’s always a reason for it, the market almost never just goes up and up and up.
There’s always some huge buying opportunities. And this is why I love to keep some cash on the sidelines and I hope you guys are keeping some cash on the sidelines as well. And we’ll start taking advantage of some of these buying opportunities because.
These don’t just come around all the time but usually at least once a year you can get some big buying opportunities out there and just some major volatility in the market and if I’m looking at it shouldn’t end anytime soon guys. So anyways, hope you enjoy this as always make sure to smash that thumbs up button if you did and let me know what stocks you are buying down there in that comment section.
I would love to hear from you guys. As always, thank you for watching and have a great day.