 What's going on everybody it's Toss here welcome back some other videos so in this video We're going to be doing an overall market update taking a look at the Dow Jones the S&P 500 and the Nasdaq We're also going to be doing a trading update talking about what I personally did today in the markets as well as some stocks Need TFs that I'm watching and looking to trade here in the month of October in 2019 and you guys saw in the title of today's video How low do I think the markets are going to go? How low can these markets go? I'm going to be sharing with you guys my thoughts on that and giving you a brief history lesson on what happened about a year ago in the month of October in 2019 or rather 18 through December of 2018 and I'm sure a lot of you guys know what happened But for those of you guys that don't stay tuned here in a couple of minutes We'll get into that so if you enjoy this video if you find value in this video Feel free to go down below hit that like button and consider subscribing if you do want to see further content about the stock market Investing and trading this is the channel for you and let's get right into a guy starting off with the SPX The S&P 500 the 500 largest publicly traded US companies with around 22 minutes left in the trading session today This one is down $46 down 1.6% Absolutely abysmal day today in the S&P 500 and it was actually much worse a couple of hours ago If we look on the one day one minute you guys can see we actually hit a support at around 28 75 Which is around 20 points lower from where we are right now So that means at the lowest of the day the S&P was down around 66 to around 68 points, which is insane right and taking a look at where the price was yesterday We were almost at three thousand dollars in the S&P yesterday guys the high was at around 2992 and from the high yesterday to the low today at 28 74 That is a swing of nearly 4% in the S&P 500 and Under 48 hours, which is insane right if we zoom out a bit more to that four-hour chart Which is the six-month chart? I have a bunch of support levels here and a bunch of resistance levels drawn out so we can see where the S&P could Potentially be going next if we continue to downtrend right we clearly broke 2950 no problem whatsoever the the market plowed right through that right and After 2950 I've been saying the next support is roughly around 28 75 29 ish hundred right we clearly broke 2900 as well And now we're holding that 28 75 level very nicely as you guys saw from the one day one minute chart And you may be asking yourself what makes 29 or rather 28 75 a Support level well if we look a couple months back here in the beginning of May in the middle of May actually May 15 To be exact we peaked at this level at around 28 75 and we got Rejected right that made it a resistance But once we broke out of that level out of that resistance it became a support So the fact that we're trending above it is why it is a support right now And let's say we do break 28 75 on this weak catalyst this market catalyst of weak Manufacturing data which is blowing the market down right now Let's say we blow past 28 75 the next level. We may be going to is 28 50 This is about not much low lower on a percentage basis from where we are now probably around Half a percent to point seven five percent. That's how far that levels away. Let's say we break that You know, we may be going down to twenty eight hundred oh five roughly Which is around two point four percent away and a lot of people have a target on the S&P at around 2730 which would be another five percent gap down from where we are now and the crazy thing is guys that Five percent it may seem a lot, but we literally fell four percent in the matter of two days And I know a lot of you guys have heard this before the market drops a lot quicker than it goes up It's insane. Right. Just take a look at the data. It's right in front of our eyes right here We went from 28 60 up to around let's say, you know 2970 which is around a four percent move that took us about a couple of weeks to do and we literally lost that same value In two days, that's insane, right? So based off of that year ago performance this little history lesson Actually, if we zoom to the three-year week chart, you guys will be able to see it back in October Literally on the first day of October last year. This is like deja vu. This is nostalgia right here a year ago Literally guys the markets were at similar levels to where they are now or where they were yesterday a little bit lower from where They were yesterday and they dumped from 2932 if we zoom in a bit on this time time period from 2930 roughly all the way down to around 2395 that is that was a drop of nearly 20% in the matter of two months And this is when trade war began to escalate heavily right the tensions Everything was going wrong at this point in time and that was a massive catalyst in why the markets tanked if we look in the Performance at the performance of the S&P in the month of October last year It went from 2930 all the way down to I'd say around at a low at about 2635 so it lost about 300 points in the matter of that month and then things got a lot worse in the month of December so it's interesting to see that this is literally I'm not saying history is repeating itself But this could be the beginning of history repeating itself from last year's performance So if we do go lower than this level guys Expect 2850 if we break 2850 expect 2800 and that major level here is 2735 and it does seem like the head and shoulder pattern that I literally called out last week whenever that was you guys saw The video I was saying this could be the formation of a head and shoulder pattern It's literally playing out here in real time right before our eyes the left shoulders here The heads here and now the right shoulder is completing and as we get deeper and deeper Breaking below these support levels. It's going to be forming it really all the way up till we get to this level Where it'll be fully formed probably when we break this level to go down into the 2600s if that happens right hypothetically speaking now that would be a fully formed right shoulder So going to the Dow Jones industrial average here guys down nearly 500 points right now down 1.7% This one's getting hit very hard a lot of the Dow stocks a lot of industrial stocks are getting hit very very hard right now It seems like we broke 26 6 very strong support. We broke that no problem We broke 26 to today, which was the next support from it really This was a support due to it being an old resistance that we broke above a couple of months ago And now it seems like we are going to make our shot to 25,600 that's the next level I have right now on the Dow Jones the next price target that I am seeing Actually, that's false because if we look at this level here if we're really Looking at the nitty-gritty charts here. It's actually holding a support right now in The middle of this channel between 25 6 and around 26 to at the level of around 25 9 to around 26,000 and you guys can see if we go to the one day one minute It actually held that level of support in the middle of the day today And we've been seeing a bit of a breather in the markets Since the middle of the day, which again is holding that level of support from that four-hour chart that we just saw And if you guys see the performance of two days 48 hours of the Dow it hit a peak 27,000 yesterday now hit a low it hit a low earlier a couple of hours ago at 25 9 Putting that at a $1,000 difference guys that is insane a $1,000 difference in the matter of 48 hours Putting that drop from peak to bottom at 4% for the Dow Jones if we're zooming to the 20 day one hour It's showing a treacherous drop. That's no question, right? If we go back to the 180 some targets coming up again If we break this it's going to be 25 6 if we break 25 6 a lot of people have been talking about this target here target area It's going to be 25 4 and then ultimately guys if we do end up getting to 24 7 here, which was the level we bottomed that at the end of May in the end of May of 2019 If we do get there that's going to be pretty much the completion of the right shoulder here on the four-hour chart for the Dow Jones and of course if we do break that guys It's going to be very ugly needless to say but there will be a lot of deals in that particular Situation going to the Nasdaq now guys down 1.65 percent down 128 points hook 7700 that was no problem for the bearish to get us below that no problem whatsoever the next level of support We were looking at very prominent level was at around 75 90 to around 7600 This was a level we held a couple of weeks ago back towards the end of August This was actually an old resistance from back in the May to the June month So this was needless to say a very very strong level of support So the fact that we did break that we may be going down now to 74 50 7400 ish, which is the next major level of support that I'm seeing and if we do complete that guys and especially if we Break below it to maybe test 73 Which is one of the next levels that I'm seeing here That's going to be the completion of the right shoulder and the head and shoulder theory on the Nasdaq and honestly all the other Major Marcus that I had a week ago would be fully true at that point in time if that does end up Happening and if you guys look on the one day one min you can see we were at 77 Yesterday roughly 7700 now we're down to around 75 25 in terms of that low, right? We're seeing some bullish action here But overall the trend is still down making it a drop of around 150 to 200 points in the matter of 48 hours Which is pretty pretty massive so that is really the overall market update right now I see a lot of more blood in the water especially with this negative Manufacturing data we have the jobs report coming out on Friday if that's negative guys You know the market could definitely tank even more because that would just be another negative catalyst Throwing into the fire that is the last thing that the market needs right now And yeah, those are just levels of how low the market can go based off my analysis Based off the trend lines that I have drawn so let me know down below in the comments What are your thoughts on that? I'd love to know and let's get into what I personally did today And I'm sure a lot of you guys know you probably just just know at this point We have that connection that you know that I traded TV IX today and a little bit of sqqq These are two that I love trading whenever the markets are volatile and whenever the markets are going down, right? TV IX in a nutshell is a Volatility etn it goes up whenever the VIX is going up and whenever the markets are going down the VIX had a 10 percent day Today ton of volatility in the markets again. We saw the SPX down nearly 70 points at one point That's obviously going to pump up volatility thus pumping up TV IX So TV IX was an easy trade for me today Honestly when I saw the markets being aggressive to the downside more panic selling again You guys can see on the one day one minute not as bad as this dump yesterday Honestly, it kind of was pretty similarly bad because we gapped down which gave me the initial Okay, this morning. It gave me the okay that or rather than the signal that the markets We're not looking to recover up because if they were looking to recover up They might have gapped up a little bit They might have started to do something like this right maybe shoot up But we gapped down and we aggressively sold off right out of the gate which gave me the get go To go TV IX and typically whenever I'm trading TV IX guys I know a lot of you guys ask me this on DM on discord or whatever it may be I'm watching TV IX on one side of the screen for the most part and then SPX on the other side of the screen And I'm watching the 50 SMA Resistance for entry points on the SPX right if I'm watching the SPX and we're seeing a Resistance under that 50 SMA if it's getting rejected. It's not breaking out Which would be bad for TV IX, but it's getting rejected looking to dump That is the signal that I typically look for before I get into TV IX and you guys can see You know when the markets were dumping out of the gate. We saw a bit of a breather. We were testing that 50 SMA We didn't break out we dumped at this point in time 10 10 10 20 if we go to TV IX to see how it correlates You can see this was when we were pulling down then when the market got rejected by that 50 SMA We got that pop and this is where I made my money on T or on TV IX, right? And if we go to the little trend line tool here, you know, I ended up getting in I believe it was at like 16 oh seven Something like that wrote it up till we broke the resistance at about 16 30 ended up getting a 1.3 percent on TV IX SQQ Q very similar right did not get in on this because this is where I was trading TV IX But I ended up getting in on another little dip a little bit after the TV IX trade because I noticed how the markets We're still getting crushed right SQQ Q goes up when the Nasdaq's going down So the Nasdaq was getting hit tech was getting hit. So I figured why not? I'm feeling the negative downside here on these markets right now if I take a little loss It's okay because my TV IX gains from yesterday Which were around 4% and the ones from the previous trade which were at the 10 o'clock time period We're around 1.3% so I figured okay if I take a little loss I'm still cushioned nicely due to my profits from the previous trade and the previous day So I figured why not just take a little trade that I did end up doing well with that Again similar strategy right waiting for that 50 SMA Rejection but this time not on the SPX on the NQ right if we see the NQ You know pretty much the whole day up until 1 o'clock PM Eastern Standard The NQ was getting rejected by the 50 SMA and each time it relaxed a bit saw a breather to go retest it This was an entry point or possible entry point on SQQ Q Q if it were to get rejected it got rejected Right we clearly see that which opened up the SQQ Q trade where I ended up profiting right in this area I believe this was around like a 0.8% trade Nothing crazy whatsoever, but total on the day guys roughly 2% I've been on a pretty pretty good streak here Over these past couple of days. I'm really happy with how things have been going in terms of my trading So let me know down below in the comment section. What are your thoughts on everything? It seems like the markets are actually getting lower as we speak Let me just look at this very quickly up It seems like the bears are trying to take over here in the last five minutes of trading Let's see if we do get that full-on dump, you know into the last couple of minutes here But anyway, some stocks that I'm watching that are looking interesting are Chipotle Mexican Grill This is the number one stock in terms of stocks here guys Not ETFs not ETNs in terms of stocks Chipotle Mexican Grill is looking fantastic right now Right take a look at this consolidation on the one day one minute Then we'll zoom out a bit to the four-hour chart so you can see where it's consolidating on that time frame So look one day one minute. It's clear that 800 805 is a strong strong Support right that's no question if we go to the 184 hour You can see that support is actually on top of the 180 SMA Which has proven to be a support over the past couple of months So I'm liking this right although the markets are getting crushed sure that is a bit of a deterring factor here That might be something that might scare you away from taking a swing trade in Chipotle But think about it guys This could be a day trade opportunity tomorrow if we see some gap up in Chipotle Mexican Grill in the morning literally if it's gapping up to let's say 810 815 Well, it's already at 810 at this point if it goes to 815 This could be some momentum to the upside for CMG and a lot of the times guys This stock does well even when the markets are going down. Well today. It's down 20 bucks. Obviously That's probably because of the market in a sense, but it's consolidating very nicely here guys Right it's consolidating very nicely And it's worth just watching to see if we do get that little move tomorrow, right? If we get that little move tomorrow, especially let's say the markets Maybe see a bit of a breather here because the R side is oversold Maybe the market see a bit of a breather. Maybe they've run up 20 points tomorrow Whatever, maybe a lot of the large caps see breathers This could be a perfect setup for Chipotle in the morning out of the gate I'm just watching that as a potential day trade right Roku. This is another one That's showing some very nice Consolidation if you guys look at this support level here at 99 to 100 bucks We'll just call it a hundred bucks for simplicity. That's very very strong, right? That's very very strong You know the next resistance that I'm seeing is around I'd say maybe 108 right 108 And then we have another one at around 112. So this one guys with the consolidation on 100. We're trending up here We're actually up 30 cents today, right? That's pretty good This one could be setting up for a potential fill up to 108 Right, if we zoom into the 20 day one hour, you can see how prominent even more prominent that level of support is and the fact that We're slowly breaking above the 50 SMA and the EMA that's pretty attractive here, right? So watch Roku This one could run up to 108 and again if it breaks 108 maybe a hundred and twelve dollars on some momentum here It's already gotten crushed Maybe it sees a bit of a run up here before either dumping again for ultimately ahead and shoulders because take a look guys The left shoulder the head here. Let's say we see a little run up again Maybe up to 119 120 whatever it may be if we break these levels then ultimately dump even further That would be a left shoulder head and then again That would be the right shoulder forming if we run up and then dump from there So that's something that Roku could definitely be setting up for right now Let me just pull up my phone very quickly to see what other stocks I have written down here Obviously TV IX SQQQ those are ones that I'm watching obviously I talk about those in every single video So there's no really need to go over those even more especially because I just broke them down in the trading update Some other ones guys. Let's take a look at gold Good old gold here was up $15 or rather is up $15 right now up nearly 1.1% but it's still technically speaking here guys Excuse me down trending right now because we're still trending below moving average resistances both the 50 and the 180 SMA So ultimately before trading either GDX or Jnug which trade based upon gold You know, I'd like to see a breakout here on gold for it to get back into at least 1510 to 1515 at that point GDX is going to be recovering and breaking out as well Which whenever GDX goes up guys, we know this at this point 95% of this of us know this at this point Whenever GDX is going up Jnug is going up as well at a 3x rate So Jnug here guys could be a decent play. It hasn't really been doing really well over the past couple of days But maybe we can see another run-up like this like we saw towards the latter half of September in 2019 literally one week ago. So natural gas I know a lot of you guys want me to talk about this haven't talked about it in a couple of videos here because honestly I haven't been watching it. I'll be completely honest with you guys. I traded you guys You guys know that a couple of weeks ago. I was trading in and out of you guys But since then I haven't really been watching it Haven't really been trading D gas which is probably stupid on my part because it's been doing very well But overall I'm seeing this point This trend here just being a falling knife with no true support quite yet, right? The next level that I'm seeing that could be a support is going to be around 220 to around 223 that's the general area that I'm seeing right here that we could bottom out at at that point The our size going to be very very oversold And we might see a little run on you guys from there either to fill back up to 230 Or maybe break out and continue or start rather a rally at that point So until we see some more action On natural gas to recover. I'm not really going to be watching it Maybe further down side D gas play but to play D gas at this point. I'd need to see natural gas below 220 That's personally what I'm looking at and let's just take a look quickly at what the markets closed at S&P down 52. Okay, Nasdaq down 130. Oh my goodness guys today was very very bad Dow Jones down almost 500 points and some stocks guys The that that are affecting the Dow here Let's take a look at some of these caterpillar Down 2% today. Let's see some other ones here honey. Well, not necessarily that these are all in the Dow But this is just the these are just the stocks that are affected by the manufacturing data, right? We got honey. Well down 2% today 3m got squashed again. I'm an owner of 3m down 2% Let's see. Did Boeing do bad today? Probably. Yep down 2% Some financials that we were looking at Bank of America 2% Wells Fargo 1.2% not too bad there JP Morgan Let's see 2% in the red Goldman Sachs down about 2% So all these major institutions guys down about 2 3% today and again These are some that got affected by the manufacturing data the negative data that came out Yesterday so I'm going to end off the video here guys. Let me know what you thought about this What do you think about the markets? I'd love to know what you guys have to think if you found value in this video Feel free to go down below hit that like button consider subscribing if you do want to see further content for me and follow Me on Instagram join our discord group chat join our Facebook group all of those are linked down below So I'll catch you all in the next video. Thanks again for watching if you stuck till the end You are the real MVP peace out What's going on everybody