 What's up trade hackers welcome to today's update today's Tuesday, May 12th starting with the trade hacker question of the day Will the new proposed relief bill get passed by the Senate if you don't know what I'm talking about I'm talking about the new proposed bill by the House of Democrats Three trillion dollars. That's trillion with a T. So what's included with that? Nearly a trillion dollars in relief for state and local governments a second round of $1,200 per person up to $6,000 per household About 200 billion for hazardous pay for essential workers 75 billion for coronavirus testing an extension of the $600 per week federal unemployment insurance So we talked about in a previous video the the market being up right now over the last several weeks Significantly, you know, what what's causing that a lot of that is that just the massive amounts of money that are being pumped into the system You know even in just talking to and this is kind of anecdotal information But just talking to friends who own local businesses restaurants retail places, you know We're getting ready to reopen here pretty soon at least at least to a certain capacity And you know one of my buddies who owns a restaurant is basically saying hey all of my employees Who who were working for me previously? I don't know if they're gonna come back to work because with unemployment and this extra 600 bucks per week They're actually making more or the same as what they were making when they were working for me So why would they come back? And so that was set to expire in July and now they're talking about extending this to January So now keep in mind that doesn't mean that in January when this or when the stimulus money kind of starts to run out That doesn't mean the that's when the market's gonna go down. It's gonna go down It's gonna go down before that the market is not the economy the market is going to lead the information Anticipate what's going to happen. So it'll be interesting to see $175 billion in rent mortgage utility assistance and on and on and on The question is when does this stop? I mean the government cannot fund Everybody and every business until things just get better. It's just I mean a we're just going into more Our deficit we're to go into more and more debt crazy stuff now This is just a proposal and it doesn't you know There's talk about whether the the Senate will actually even pass this so sure There's gonna be a lot of lobbying and different things put in the bill and who knows what'll happen But just crazy crazy amounts of money being pumped into the system right now So what's going on in the market looking at the S&P's down 70 down 547 Nasdaq down over 200 rustle down over 48. We're about 30 minutes after the cash close I've got a trading buddy of mine who We talk a lot and he was saying you know every time the market's down I feel like the market's crashing again and it kind of felt like that today, right? I mean S&P's down 70. That's a big move down almost two and a half percent on the day But the reality is looking at a daily chart for the last three months. I mean that's just a tiny little blip, right? I mean for all you technical analysts out there, which I am not but you know If you put a trend line here at these two points right here I mean that's not even coming down to the trend line again. That doesn't mean anything to me I mean the trend lines work about 50% of the time anyway So in my mind there there's no real advantage to using them But just looking at that from a from a visual perspective It's a tiny little blip now if we get some continuation obviously that's another story But for right now that's that's just a nothing nothing move So What did we do today added a couple pieces to our current positions and just kind of made some adjustments but the rest of the market if you look at Oil up six percent and again think six percent. That's pretty big move in one day oil Just a little blip if we look at Natty gas Natty gas down over seven percent now compared to the last few months that's pretty sizable move That's actually just getting us back into center of our current position So that's a that was a helpful move for us some of the other stocks I mean look at look at all the red on the screen I mean you've got beyond meat which is up almost five percent was up over ten percent but came off the highs But most things red here get some other tiny little winners Ubers up a little bit Walmart's up a tiny bit yelps up a little bit if you look at the kind of the Advanceers I'm looking at the largest 100 stocks. See these little green lines here I mean that was the high of the day I mean the market was up a good portion of the day and then just fell out of bed later in the day you can see of the 102 actually declining 92 only six Advanceers on the day so a pretty solid correlated sell-off and if this thing's really going to make a move lower You know, that's what we're going to see is it is a very highly correlated where everything's moving down So interesting to look at that Some of these other stocks the other thing I was going to point out AMC theaters and the only reason I am looking at this is because I actually set up an account for For my kids to start buying some stocks in and one of my kids loves going the movies. So He wanted AMC theaters that I said I said, okay now What's interesting is Amazon has actually come out and there's talks about Amazon buying AMC theaters I think is a very interesting thing. I mean, obviously Amazon has their prime They could tie that into, you know free passes for prime members going to the movies They could release movies into the AMC theaters that are Amazon only type movies So there's there's a lot of interesting things that could happen there But if you look at if you look at AMC theaters, I mean it's trading at just five dollars a share Even just a year ago is at 13 if we look at even further back It was at let's just go to a five-year chart. I mean we're talking it was over $16 a share that was just back in 2019 middle of 2019 so interesting stuff starting to see some Potential bargain buyers come out of the woodworks and so it'll be interesting to see what happens on some things like that You know, you've still got your stocks like, you know, Netflix was down 2% today But still up if we look at a year-to-day chart, you know Still up 33% year-to-date and along with a lot of the other companies that are benefiting from stay at home So again, we've got to we've got to see these tech stocks really roll over Before we're gonna see any downside. I talked about the financials yesterday Obviously, they're getting hit again today. They're down about 31% But they've really got to make a push lower for this thing so financials and tech Are the two things that we're really looking at to potentially Get this broad market to really roll over if in fact it does another thing bonds You know bonds have been in a very very tight range over the last several weeks You know, you would think that if if the market's gonna roll over we're gonna see a really sizeable pop higher in bonds as well if we do get that flight to quality But I would not be surprised if we see both go down if we see stocks go down as well as bonds go down And there's just a you know a full liquidation of assets from that perspective You know you if you look at gold which a lot of things a lot of people think gold has a an inverse relationship to stocks But the reality is if you look at an actual correlation table of stocks versus gold It really doesn't have much correlation at all. So it's not inversely correlated. It's not positively correlated It just really has it's just and one of the reasons we trade it is because it's actually very Uncorrelated altogether to stocks. So a lot of people think it's kind of that flight to quality of stocks go down Gold's gonna go up. But look what happened in in March even I mean when stocks were going down Gold was getting hammered too and then all of a sudden it revered and started spiking up So you can't really look at it as a flight to quality or a safe haven or an inverse correlation to stocks over all so Everybody have a good evening and we will talk to you again tomorrow