 What is up everybody it's Toss here welcome back to another video 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 did in the markets today as well as some stocks and ETFs that I'm watching right now and looking to trade in the month of October in 2019 and I also want to discuss with you guys the main catalyst that did shift the markets downwards today and another catalyst that could continue this volatility in the market so if you enjoy this video if you do find value in this video feel free to go down below hit that like button consider subscribing if you do want to see further content about the stock market both investing and trading and personal finance this is the channel for you and don't forget to join our StriveSmart discord group chat and StriveSmart Facebook group both of those are linked down below if you haven't joined them already so guys let's get right into it starting off here with the SPX the S&P 500 the 500 largest publicly traded US companies we had a pretty pretty bad day you can say this was an abysmal day in the markets the S&P down $45 down 1.56 nearly 1.6 percent you guys can see we smashed through that 29-20 level of support we were holding above it yesterday it was looking all dandy but we gapped down aggressively today we broke that and now it seems like we're heading down to the support at around 2880 and if we zoom in a bit here guys on the 20 day one hour you can see we're in a straight down trend right now right lower highs we're in the process of making a lower low if we get below 2855 that lower low will be made the down trend will be continuing at that point right we're seeing a bearish cross here the 50 SMA crossing below the 180 SMA if we go to the one day one minute you guys can see the drastic gap down that we had today from the close yesterday which was at around 2937 2938 we gap down all the way to about 2919 at the market open which was a gap down of around 20 points and you guys can see we ran down from there saw a bit of recovery in the middle of the day and then power hour we dumped aggressively losing about 30 to 35 points on the S&P so overall right now guys I'm watching this four-hour chart and I'm watching to see if this right shoulder and the head and shoulder overall pattern that I'm seeing here plays out right we've been talking about this over the past couple of videos and I'm seeing this head and shoulder pattern on all the markets the S&P the Dow and the NASDAQ included right we have the left shoulder here we have the head here and now we're in the formation or in the process rather of making that right shoulder and overall I think if we break this little uptrend that you guys see here based off this trend line which I personally think will happen you know we're going to be further in the stages of completion right we get to that lower low if we eventually get down a 2800 and even into the 2700 dollar level you know this is going to be really what I think could potentially happen if this does end up playing out so if we go to the Dow Jones industrial average you can see overall you're seeing the similar pattern head and shoulder left shoulder head the right shoulder is in the process right now of being formed we had a red day of about 313 points down around 1.2% not as bad as the S&P but still it's a pretty bad day in the markets for the Dow Jones industrial average you guys can see we failed to break above 26.6 which was a level of resistance that we've been watching from back in the beginning of May towards the end of April right around that time period back in 2019 a couple of months ago right last time we got rejected there we sold all the way down to about 24,700 so now that we got rejected there we also broke below 26.2 hence why really you can see that because we closed below it you guys can see we closed that 26.160 so now we may be going down to 25.930 which is this next level of support if we break that we may be going down to 25.6 then 25.3 and so on right the lowest level that we can see here on this chart is going to be around 24.7 like I said a couple of seconds ago and if we do get all the way down here guys and especially if we break below that level that's going to be the completion here of this right shoulder on the Dow Jones if we go to the 20-day one hour just like the S&P guys straight up downtrend right we're on the process or we're in the process rather of making this lower low we already got rejected we closed below the 50 S&P here lower high this is a straight up downtrend right if we go to the one day one minute you guys can see massive gap down right 26.470s where we closed yesterday roughly we gap down all the way to 26.250 bottomed out a little bit below that resistance at around 26.1 or rather 26.2 we broke above 26.2 holding it as a support again we failed to hold it as a support literally within the last 20 minutes of the market hence why we closed below it going to the NASDAQ guys right now it's up $4.75 but that is the future it did not close green today that is a fact I'm pulling up my Yahoo finance that very quickly guys the NASDAQ did the worst today in terms of a percentage basis down 1.7% down 132 points here on the day pretty pretty bad day in terms of the NASDAQ you guys can see on the one day one minute straight downtrend right 77.80s where we peak 2am Eastern Standard Time in terms of the future we downtrended all the way to the market open we had that little rally in the middle of the day right really didn't do much because we dumped from there breaking below moving average support levels and closing at a lower low at around 76.13 here if we zoom it out a bit 20 day one hour you guys can see we're trending under moving averages as well in the process of making this lower low especially if we break the support of 75.80 which if we zoom out a bit to the one eighty four hour chart you can see that is a very prominent level of support where we held multiple times over the past couple of weeks and over the past couple of months as you guys can see back during this time period right here in the April to May month so I think you know if we do end up breaking below 75.80 74.50s the next target as well as 72.50 is the lowest target that we are seeing here well actually the lowest target would be around $7,000 if we do get this low in the NASDAQ and if that does end up happening that's going to be pretty ugly and I talked about this in my previous video one of my previous videos that my trend line prediction on the NQ here came out came to life pretty much right this these are trend lines that I drew out a couple of weeks ago and I always talk about on this channel how it's super important to draw trend lines in your charts right draw supports draw resistances draw up trends down trends channels whatever it may be right predict what the markets could potentially do this helps you in identifying patterns and thus trading in the stock market so I drew this out to kind of give myself a visual visualization of what could potentially happen and it came to life we went down to about 75.80 we held that level of support we got very oversold at that point we popped up we got rejected right around 77.20 to around 77.70 which you can see is what I drew out based on this trend line we needed that that breather a little bit and now we're starting to dump again as I have drawn by this trend line so this is looking like it's playing out guys and again if we dump that's going to be the right shoulder of the Nasdaq being completed so let me know down below in the comments what are your thoughts on the markets right now what are your thoughts on this trade meeting that is going down on Thursday in Washington this is going to be massive in my opinion it's going to either rock the markets to the downside which I think is more likely or let's say things go well which again I don't think that's the likely option but let's say things go well this can also bring the markets up a lot right so I'm pulling up some notes I have here on my phone as to why these markets aggressively dumped so let me pull this up concerns over US China trade tensions have re escalated throughout the week before the State Department's travel ban announcement which if you don't know I'm actually going to read this to you now there was a travel ban announcement on Chinese officials tied to alleged human rights abuses in China's I'm not even going to try and pronounce this but it's Xi'an Yang let's just put it like that I don't know how to say that word but if you guys know what I'm talking about you guys know what I'm talking about stocks immediately fell following the news from the State Department just prior stocks had part some losses after Federal Reserve Chairman Jerome Powell said in a speech the central bank was set to resume growth of its balance sheet soon having recent volatility and overnight repurchase market rates again the travel ban we just talked about that the Trump administration added eight Chinese companies and 20 Chinese public security bureaus to the US blacklist over allegations that the organizations were involved in human rights abuses again in that China and China's that word that I can't pronounce region so this is what dropped the markets today we got some tensions and you know between the US and China like we have been over the past couple of weeks over the past couple of months and at this point it's been around a year or two since things have been really escalating right so keep an eye on this this is something huge that is going to be a massive catalyst in the market Thursday again they are meeting in Washington negotiations just keep an eye on the markets that day that day and Friday could be an absolute roller coaster if things get out of control so what did I do personally today guys and again let me know down below in the comments what are your thoughts on China trade US the meeting on Thursday the markets let me know your thoughts I love talking to you guys down below in the comments section but what did I do today guys I played sqqq sqqq it's kind of a tie between TV IX and sqqq at this point as to what I like trading more I like to lean over to TV IX because it's pretty volatile and there's a lot a lot of margin to be made but I feel like sqqq is a bit more stable it's not as volatile although it is a 3x leverage GTF but it's not as volatile as TV IX but today was one of those days that I sided with sqqq because I saw the pattern playing out on the NQ that I talked about and I have illustrated here on these trend lines that I talked about a couple of minutes ago and then yesterday's video right so we popped up to this one EDS may here and like I have illustrated by this trend line we dumped and at this point it was 5am the markets are actually was it 5am let me zoom in so I can show you guys exactly here no it was not 5am that's completely wrong this was yesterday actually it was about midnight eastern standard and into the night when the NQ got rejected at that spot on the 4 hour chart and started to go to that lower low spot which is what I need to see to trade sqqq because sqqq goes up whenever the NASDAQ is selling off so the fact that the NASDAQ was selling off and into the market open again that ended up bringing up sqqq because the NASDAQ was selling off right and you can see it here again 2am 3am 4am into the market open this was selling off aggressively right so pretty much guys I hopped into this once the market opened not NQ sqqq guys sqqqq you guys know this one it's a 3x leverage ETF I talk about this a lot on the channel right so I pretty much got in on this initial run this morning I got in off of this little pop on the 50 SMA this was kind of a little scalp trade here you know we saw how it was holding roughly the 50 SMA you know yesterday into the close pre market and all night the NQ was down trending and although you can't really see sqqqq what it's doing until about 4am yep you can see it here at 4am the fact that NQ was down trending from 2am 3am 4am that gave me the notion that sqqq would be up trending on top of that 50 SMA we got that right and once we got the pullback it was like a launching pad especially as the NASDAQ started to sell aggressively so that was what I did today nothing crazy right I'll talk I'll talk to you guys about a swing that I actually took a loss on here in a second but got in on this pullback right 50 SMA pop here 3340 I think I got in 3343 rode it past the resistance not too crazy of a game it was around a 0.5 0.6 gain on sqqq and honestly today was one of those days guys that I left a lot on the table if I were to just simply hold relax on that initial position this morning you know out of around 3340 whatever it was you know I could have made a killing if I were to hold it for the rest of the day but the thing is hindsight is 2020 of course I'm saying that now that the charts have played out right I'm obviously saying that now that the charts played out but during this you know it was over but we were getting to a point where you know this was reaching a resistance from a couple of hours ago and it was a wise idea to just sell out and take the profits right I trade on principles I trade on a set of rules that I'm not going to break just because I think there's a lot more upside and sure I leave a lot of profit on the table that way but I'm okay with that so let's go to PG this is one that I took a little loss on today I got into this one Friday and honestly this was a mistake on my part I feel like I got in a bit too late on Friday I jumped the gun on this one if you guys can see I think this is the Friday session yet because this is Monday this is Tuesday I got in at a pretty dumb spot right I didn't get in like on on the bottom here on that 180 SMA hold on the four hour chart that would have been wise right that would have been wise I didn't get in there again I got in as it got a bit more overextended so I kind of got caught in a bull trap this is this is me being honest I got caught in a bull trap here now we're starting to see a dump and a retest on the 180 SMA so the fact that we saw that guys you know the fact that we're seeing this dump we didn't get the high or high I decided to just cut my losses I think it was around um it was more than a 1% loss I think it was like a close to a 1.2 1.3% loss on PG here my stop was initially 2% but I figured just play it safe here the the talks are coming on Thursday this can rock the markets I'm just going to take a little loss so PG didn't pan out if we go to the 20 day one hour you can see it's kind of a head and shoulder here right left shoulder head right shoulder now we may be dumping and again if we get that dump guys that's going to be pretty negative on this four hour chart because over the past couple of months this 180 SMA has been a strong level of support and that would be a key technical break if we did break that in terms of Procter and Gamble so that's what I did today took a loss on PG it's okay I made up for it kind of with SQQQ and I'm looking forward to these markets getting more rocky so I can trade SQQQ and TVIX for the rest of this week so that is what I did let me know down below in the comments what did you guys do in terms of trading and now let's talk about some stocks and ETFs that I'm watching right now NIO being one of them NIO ticker symbol NIO this is deemed the Tesla of China I don't know who made that up but that's what people call it it's a Chinese company Chinese electric vehicle company obviously out in China and this stock has been getting thrashed you guys can see from ten dollars down to about a dollar now that's an insane drop in NIO and pretty much it's because they're burning through cash like it's nobody's business right they had an earnings report a couple of weeks ago a couple of days ago I forget when it was you guys can see here it was towards the end of September so it was about two three weeks ago at this point two weeks ago and they reported terrible earnings massive loss and the stock went from three bucks down to a dollar sixteen that is insane but now we got a positive catalyst right if we go to the live news you guys can see and by the way this is a very awesome thing about thinkorswim just go down here live news on whatever chart you're pulled up you have pulled up whatever stock and it'll tell you news regarding that stock or ETF or whatever you're looking at so you can see here NIO delivered forty eight hundred vehicles forty seven ninety nine to be exact in the third quarter which is up thirty five versus quarter two so that is actually a very good piece of news a good catalyst amid all of this craziness and negative stuff that's been going on with NIO so this could give it some room to run here at least in the short term I think today it was up fifteen percent at one point now it's up ten percent it was up fifteen cents ten percent at the close we're getting above that fifty SMA on the four-hour chart you know this could end up filling up maybe not the two sixty that's a bit of a stretch here but who knows right it can maybe start to break up here especially as we're slowly making higher highs you know you guys can see here we made a higher low here at one fifty that's a higher low from one sixteen so you can see this one's trying to start reversing now to the upside we hit a higher high today all we need to see now is that full-on break and if we just pop out here a bit get this support resistance tool out if we draw out some levels here guys you know if we look at those okay two dollars two dollars and fifty cents these are some spots that NIO could be going up to in terms of old resistance levels which let's say from where we are now 170 roughly up to two bucks that is a nice fourteen fifteen percent right if you're into these penny stocks that are volatile that do have a lot of margin but also a lot of risk this is one to consider now because this nice positive catalyst that could end up pushing it up so NIO I'm liking this one you guys and D gas guys the old the good old you guys and D gas combo this is ones or rather these are ones that I watch all the time right natural gas is right here slash NG and we trade you guys and D gas because they trade based on natural gas right when natural gas is selling off D gas is going up but when natural gas is going up you guys is going up so right now we're seeing natural gas isn't a clear downtrend right the 50 SMAs acting as a resistance we actually failed to break above 230 so 230s acting as a resistance now and you guys are rather natural gas is in the process of making that lower low at this point especially if it makes the break downwards here to 220 which is that next support which again if we do get there that would be that lower low so right now D gas is favorable in my opinion because again it goes up whenever natural gas is going down and natural gas is showing the potential to absolutely dump here and the beautiful thing about this is sure we could play D gas on this dump the potential dump and natural gas but then let's say natural gas dumps and then starts to recover a bit back up let's say from 220 maybe back up to 230 we could then play you gas which goes up whenever natural gas is going up so that's kind of what I'm preparing for at this point you guys can notice here that you know last time you guys got to this level it doubled in price and I don't recommend swing trading these leverage ETFs there's a lot that goes behind that there's decay there's really the decay is massive right this you can see over the long term guys this has been trending down this is not an asset and you can read it on the website this is not an asset that's meant to be swing traded this is mostly for day-to-day volatility but then again people are going to swing trade it regardless of what the website says and regardless of what I'm saying right so let's just be real at this point if you're looking to buy you guys at these levels it's a real possibility that you can double your money right from ten dollars we saw a couple of weeks ago we got all the way up to 24 dollars and that was because natural gas rallied aggressively so the next time natural gas rallies and trust me guys it will it's only a matter of time this one could double this one could make you 50 40 percent but again it's not meant to be swing traded there's a lot of risk behind that and if you are looking to swing trade this I would treat it like a spec investment that you throw in money that you're willing to lose a lot of right let's say you're willing to lose a thousand bucks throw one thousand bucks in you guys right now right go ahead right you you can potentially make 40 50 60 percent on that money but you can also lose 10 percent 50 percent 30 percent if natural gas never does end up recovering again right but hey guys what do I know right I'm just some guy on YouTube making videos right but anyway it's worth watching but trade at your own risk right so let me pull up some stocks on my phone right now very quickly before I do end off this video we'll go panic not panic mode that's what the title is I'm reading the title that's why I said panic mode but stocks here we talked about Neo we talked about TV IX SQQQ we talk about those all the time those are obviously two market ETFs that I'm watching because I think volatility is coming to these markets SQQQ goes up whenever the NASDAQ is going down TV IX goes up when the VIX is going up and when the overall markets are selling off right so those are two that I'm watching in terms of stocks right now I'm being very very careful because I think there's some more downside to come I think there's more selling to come which is why I'm focusing on inverse ETFs you guys D gas these market ETFs and gold right gold is 100 percent something that I'm watching here right we saw gold did pretty decent today up half a percent up eight dollars but gold it's on the verge of a breakout here right if it breaks above this 180 SMA GDX is going to do quite well which in turn will pop up Jnug which goes up whenever GDX is going up at a 3x rate right this is a 3x leverage ETF that I think is due for a huge rally if these markets dump and if people start flocking to gold pushing the price of gold up so that's just my honest thoughts here guys right I'm not going to come on here saying that I'm swing trading stocks saying that I think the markets are going to fly up at this point because the truth is I'm not sure I was in a swing trade I got burned so now not really burned I lost a little bit of money it happens right but now I'm just focusing on these day trades as this week starts to unfold as we start to get more insight on what's going on here on Thursday in terms of trade and then next week hey maybe we could end up hopping into some swing trades and speaking about swing trading guys I actually made a video earlier today it's linked down below and I'll pin it in the comment section about three tips that you should be doing three tips that you should be taking advantage of practical tips when it comes to swing trading so go check that out if you guys do have time I promise if you're into swing trading you will find value in that and again it's pinned down below in the comments and it's linked down below in the description box so with that guys I'll wrap up the video here if you enjoyed the video feel free to go down below hit that like button consider subscribing if you do want to see further content for me and don't be shy join our StrifeSmart Discord group chat join our StrifeSmart Facebook group follow me on Instagram I'm doing a giveaway there in a couple of weeks and you don't want to miss out on that all of the links are down below so I'll catch you all in the next video thanks again for watching especially if you stuck till the end why not drop a comment down below stuck till the end if you did stick to the end I do appreciate you and yep I'll catch you all in the next video peace out