 joined by Melissa Armosh is the owner of educational firm the stock swoosh great to have you on thanks so much for joining us so let's talk about this we're now down almost 900 points now at this particular point what's your first reaction to this and what do you think is part of the reason we're seeing this sell-off right now 998 that was down a thousand points that was down a thousand points listen i would not panic at this point you have to remember the market had over 40 percent move since the election we're only at this is only about a five percent drop down so when you look at it in the hole in the bigger picture it's really not that terrible people are panicking right now because we had a big sell-off day friday and we're selling off hard today on monday but it's really only two days i think the government shutdowns having something to do with that the possibility that they're running up into that thursday night deadline we don't know what's gonna happen and also we had not that great of a week last week for some of the big names in the market that reported earnings google missed huge name of the market amazon gap up and kind of fell into the close totally missed on their earnings i mean those are the big market movers and they really didn't do it last week and that didn't help that that that was part of the reason for the sunday because there were earnings misses thursday night so that started to sell off friday it continued and now it's continuing today yeah exactly um so we talked to a lot of uh you know analysts and industry watchers here about this uh this downturn this reversal most of them have said to us this is a fear of the inflation the monetary policies that will hopefully maybe curb inflation and and also change bond yields here is is that what you're thinking here as well i think i think you have to again look at long term the bottom line is that the market has been power trending up all of 2017 things are going to change they have increased interest rates the bond market looks different now that it did even three months ago you have profit taking people were in the market and they were up a lot i mean there's nothing wrong with the fact of people want to take profits but it doesn't mean that the market's changing trends the market's still extremely strong people want to put their money in bonds then that's up to them i still think that there's great risk in the market as far as reward to risk goes because there's nothing but you know good signs ahead technically even with the sell-off in the last two days and fundamentally because of the tax reform so people want to put their money in bonds that's fine but honestly i think there's still a huge upside in the market so risk to reward to get it you say i still you know can make more money in the market if i stick with some of these strong names right now is not a time to buy people are profit taking but i'm sure in the next you know one to two weeks there's going to be another good setup in the market where we see it holding a set area and then it's time to get back in again today is not that day the dow is down almost 1300 points at the moment down five percent melissa we did see a slight uptake across the board earlier in the day around uh late morning uh do you have any indication as to why there was a slight reversal there and now again this tremendous flight and the dow just crossed 1300 points in terms of declines because i think you had people when the market opened this morning it was down and so right into the open people were trying to figure out what to do and when the market opened down after 10 10 a.m the market didn't hold it started to sell off because people saw the market down this morning and as you know you guys are on tv everyone's out there people are talking about the market any amount of scariness people just say boop and remember people are up so they're taking profits out they're up this isn't this isn't a sign of losses people are up so think about it just just think about it for a minute people are taking money out that they're up people are not selling because they're down there's a big difference in that as far as the mental state that people are in so this is panic means oh my gosh we're down money we're losing this is profit taking people are up now of course if they got out friday they got out with more profit than they did today or some of the tech stocks that didn't report well like i said thursday night google for one with another one but this is not people selling they're selling because they're down people are up and they're taking profits see the difference like mentally there's a big big difference in that looking at as a trader as a technical person it's a huge difference in the chart we're still in an uptrend even we could fall we could fall 10 more and still be in an uptrend to be honest with you technically really interesting and it's interesting we've lost about 30 percent of our gains that president trump had over the course of the last year just in the last two days i want to go through some of these tech stocks in particular navidia is down almost 12 percent today google down almost six percent today netflix down almost seven percent today that seems to be some of the big bread and butter when it comes to what really helped that nasdaq in particular but they're really ones the ones that are really falling is that kind of an indicative what we're going to see in 2018 with we with these tech stocks i don't think show i think part of the reason is that there are people like last week with some of the misses but netflix to be honest with you wasn't an earnings miss netflix was the week before and netflix actually just hit it right out of the park again if you had been long netflix into the earnings it had a run up after the earnings that was massive why wouldn't you get out you're up so much the stock had a huge jump so again people are profit taking the thing is that when you're looking at the bigger picture for 2018 there's a lot out there where people are saying we want to see these tech stocks continue to grow and if they miss on the earnings then people are going to panic netflix wasn't one of them it's just that netflix had such a big run up that if the market sells off net people are going to take profits it doesn't matter what you're in right now today there's rent all over the board here because the markets down so people are getting out when they're up and netflix is one of them this this week there's some big names they could turn things around tesla's out this week disney's tomorrow night the markets i do not think the markets going to fall for the next five days today through friday i don't think that's going to happen could it yes low odds that's going to happen eventually we're going to find an area here we're going to situate ourselves and to be honest with you it could be tomorrow morning the market could close strong i know it's 3 3 12 here about now in the eastern time zone in new york but the market could close up a little bit from where it was at the low unless we close at the low which we did unfortunately on friday i think we could hold somewhere in here in the next couple of days and then you might see buying come in as fast as the market can sell off and this is very interesting let me just say this quickly as fast as the market can sell off it can also get bought and it's a beautiful thing about the market and the reason why i'm so bullish on the market overall despite the sellout for the last two days and even tech and bullish at two is because all the tax savings that these companies are going to have are going to somewhere happen this year that they're going to reflect in their earnings it did not happen this quarter but it's early on my gosh the law just passed so sometime between now and the end of the year you're going to see it you're going to see it in tech the expectations for there that didn't meet them last week but netflix was not one of them they did they did a great job on the earnings Melissa i just want to push pause for a quick second so we can catch our viewers up on uh how the indices are tracking right now uh i was watching the board here the dow is down more than 1500 points uh just a couple of moments ago that's they've since retreated the losses have since retreated when we're down now just about 1100 points on the dow the s and p 500 all gains and now negative for the year the s and p 500 down about 100 points at the moment about three and a half percentage points at 2662 the russell 2000 um also seeing losses continuing to accelerate now down three percent and the nasdaq as well now has uh losses of 220 points down about three percent as well so i just want to Melissa just catch our viewers up you're clearly uh thinking here that this is um something that the markets can recover from you know we're very close to a correction here for the dow uh 10 percent will be you know basically a correction where about 9 percent 9.9 percent or so um so at what stage though should investors panic and what percentage of the sales here do you think are coming from institutional investors and which ones are coming you think from retail investors panicking getting out of the market i think it's a combination of both i think it's a combination of both what i'll tell you people have been predicting that we would have a correction people were saying that in october of 2017 and then guess what the market started up with a bang in 2018 and continued to make new highs almost every day we were doing it so what we could have done what people would have liked to have seen happen is a nice slow pullback of a series and to support with some red days instead the market didn't do it we had two big down days now friday and saturday and i'm saying i mean friday and monday and that could this could be it the buying opportunity could set up very quickly after this now whether or not people will you know take advantage of it that are retail people or not i don't know but i definitely think institutions will when it happens so i think today's selling and friday's selling is a combination of institutional selling and retail selling but again i don't see huge panic because i look at gaps and that's what i look at as a trader person and i'm telling the market did gap down friday and it did gap down monday but not in some massive way for the market to do a gap down where i would say wow this is panicky it would have to happen in the gap itself overnight not on a selling day so it like for example if we open tomorrow morning and i'm just throwing a number out there like a 250 in the spiders i'd say whoo that would be panic all over the place if we would open there a down open it just a small down open and even a sell-off day that's not striking as panicky because institutions do look at stuff overnight they do take positions post market and pre-market a lot of institutions do that and that's how gaps are created and although we gap down like i said friday and monday they weren't big gap downs or anything that i would say for the panic so you had a lot of retail people in here selling off in the day and of course everyone's covering it everyone's talking about it because you were right we did lose the gains that we had since the beginning of 2018 but it's only february 5th you know i mean it's so it's you know we're it's only you know month into the year and no one said we had to go up every day in january we did it was great well lasted if people took profits they had those gains but this again is setting up where smart people when the time is right which is not today we'll get back into this market because i still see more records being set for the market in 2018 and it's just a fact that the the tax reform is going to end up enhancing some of these companies earnings it didn't happen for first quarter but it was really last quarter that you saw when the reports came out you know this quarter well i said what uh stay tuned i say with us for one second we'll keep stand by we're going to come back to you here in just a second again we're we're monitoring what's happening with the dow right now it's the largest interdage point drop in the history for the dow we're now under a thousand in terms of losses it's now an 817 but we're going to continue to monitor that and we're going to get back to alissa armo here in just a few moments guys as we continue to look at this right back