 Welcome to the last set of news. My name is Rob and today I want to do an update on a video We did in April of 2022 where it talks about What's going on with the markets and why things are chopping sideways? Taken precipitous falls and when even when people are saying that things are priced in they really aren't priced in Just kind of give a sense of what's going on and in actuality if you're if you're trading crypto or holding crypto What does it matter? It's just just something to wrap your head around. There's a great quote from John Mayer Keen's the Economist Royces markets can remain irrational longer than you can remain solvent So even though there's a lot of good Opportunities out there a lot of good projects. It just seems there's a lot of Irrationality for the market you have to remember that the markets are put together by people So I wanted to replay this video just to give people a sense of kind of what's going on And as far as the irrationality and really comes down to the bots and emotions and things that are going on So I'll make this quick. So this is the original video I want to talk to you about why I think Is one of the culprits for why the market seems to be the chop sideways or take enormous or small dips Throughout time Specifically when there's certain news that comes about and I'm gonna make this short and sweet So we're not gonna go over 20 30 minutes. That's gonna be about five So let's just jump into it. This is the reason or one of the reasons why I think there's a problem So if we take a look at the markets, I think you already know this today is a 22nd It's about 10 a.m. Here mountain time I'll pass with Texas time and we saw quite a bit of a drop-off yesterday Bitcoin down 6% in 24 hours 6 and of course our market cap was doing pretty well 2 trillion 2.1 trillion then all of a sudden just seems to drop off now. There's some winners around here I don't need to tell you that because you check your portfolio time. So the question is what the heck happened and Before I take a look at the correlation between S&P 500 and NASDAQ I want to play this video. This is from fast money CNBC and this first minute and a half or so they're gonna talk about exactly what happened So just take a listen and the next part is gonna be very pertinent to why I believe that This market will either chop sideways or continue to go down throughout 2022 not that there can't be a good rally But I think there's something that you need to know before you do any trading. So just take a listen Hey, I mean the picks was up 11% But if you look across sectors some of the some of the destruction was was awful In fact, I listened to those power comments and to me again evoking And in a glorious way Paul Volcker and talking about a guy who basically crushed and rubbed out Inflation in a way where actually there was a sense that you no longer had to worry about that It sounds like that that's his goal and I would go back to Van Halen again and say their next album I believe was called diver down and that the minute we heard this the myth of bond market got up to 295 you absolutely had a case here where the equity market sold off and again the destruction wasn't just in retail Wasn't just in in some of the high tech names. It was look at the resources space Look at these were demand destruction type reactions from a market that listened to Powell again a Fed that hasn't like 50 Bips since 2000 hasn't gone back to back on meetings since 2006. I know the Fed is telegraphing But people seem to be taking this for granted. This is not insignificant So, yeah, that's what happened yesterday and we had known about this everybody's talk about it drone Powell come out and said hey, we're gonna raise rates and He's gone from a little bit a little more hawkish. We would say right But the thing is that everybody said don't worry about it. Everything's priced in we already know it It doesn't matter if he does two hike rates six hike rates, which he was planning on doing I actually think it's even more than that now six seven or eight. It's all priced in it's all priced in The thing is if it was all priced in what happened to the market So the next person who's gonna talk this is Steve Grasso and before he talks I'm just gonna tell you this is who he is Steve Grasso Wall Street New York Stock Exchange pedigree He is also the CEO of Grasso global and if we take a look here begin his career career work on the floor New York Stock Exchange 1993 so he's been around and he's managed that some pretty big profile So the question is is he's gonna be asked is well Why did this happen? Why did the sell-off and I think it's really important to what he says So I'm gonna play this just take a listen and this is the crux of Why I think things are gonna just chop sideways for quite some time I think it's you know guy said fair fair warning. Maybe it's fame warning I don't know if they're really going to do what they say they're gonna do and I said they said this weeks ago to me It's almost as the more transparent. They become the more I second guess what they're actually saying. Why did we sell off? Because it's a knee-jerk reaction and most of this stuff is done by computers versus human beings because as soon as the Fed speaks You have tape reading algorithms these days that actually sell the stock ahead Based on words versus based on actions so I would expect the market to actually bounce back tomorrow, but I do think and general mills has said this Markets have been jumping in a weird fashion and it's not a real rally and guys said this I think Tim has said it as well It almost feels as if it's a synthetic bounce where people are looking to sell those pops versus buy those So yeah, a couple things to break down there and that was a great point Steve said now I knew about bots I understand there's a lot trading bots especially in crypto and even the traditional finance, but When I heard about this about the algorithm as far as tape reading just as soon as something comes out now It makes a lot of sense Even though there are some rational people in the market people potentially like you and me It's not about who is irrational who is irrational It really comes down to the bots and of course once the bots start to get in it's a cascade effect And you have more people who may be rational and see what's going on especially TA traders and go You know what? This is like that. I need to sell off I need to sell off 90 sell off and it just keeps happening and happening happening But what Steve said right there made a lot of sense and the second thing he said was I believe that the market will Actually rebound because it's just bots and there's a lot more rational people out there in the market Well, that's not so much the case if we take a look at S&P 500 right now it is 10 a.m. Here mountain that means it is a high noon over on eastern time So the market's been open for about three and a half hours So here's what we got S&P continues to decline and also NASDAQ also continues to decline So the question that remains how far are we going to go? Nobody knows So the thing is before you make those trades before you do those things this is not financial advice This is just financial opinion. I think you should really take a look at the trading that you are up against And the people that you were up against and the people that actually go I'm not a big trader and I think it makes a real good case for just dollar cost averaging I can't beat bots. It's very tough, especially the ones that do micro transactions millions per second However, market goes up, market goes down. I'm in here for the long time Time in the market. I think it's more important than timing the market and that's it I want to make this short and sweet because every time this comes out I will probably replay this video so people can actually see it and that is it for today So thanks so much for watching. I'll see you on the next one