 Hey everyone, this is Dan. The market hit an intraday low on October 13 and bounced right back on that day. Ever since that day, the market has been going up. Today is October 25. SPY closed at 384.92 which is above the resistance level of 380 established on October 5. After market closing today, Microsoft and Alphabet announced their third quarter earnings. After the earnings announcements, both SPY and QQQ went down by more than 1% each. I believe there is a high probability that the market will start dropping in the next 2-3 days. I will explain why in this video and I will also talk about my short-term investment strategies. First let's look at how the market has been trending since the beginning of the year. See SPY has been down 19% year today and QQQ has been down about 25%. The macro trend has certainly been very bearish. If you look at the last few days since October 13, the market has been rebounding. The question is how long will this upward trend last? Are we seeing a short-term bear rally which will roll over in the next few days? Today is Tuesday October 25. This is the minute-by-minute chart for SPY since market closing today. As you can see, after Microsoft and Google announced their Q3 earnings, SPY has dropped during aftermarket. The 5 big tech companies, Microsoft, Alphabet, Meta, Apple and Amazon are known as MAMA. They tend to be market movers. Today, two of the five big techs already announced their earnings and caused the market to drop during after hours. Meta, Apple and Amazon are due to announce their Q3 earnings in the next couple of days. If you look at their estimated EPS compared to the EPS a year ago, you can see this year's EPS numbers are 58%, 102% and 71% of last year's. The five big tech companies average 22% decrease in EPS year over year. If you think what you have seen is interesting, I'd like to suggest for you to click the like, subscribe and notification buttons. That'll enable you to receive notification when I post my next video. It'll also encourage me to make more videos like this in the future. Thank you very much. Let's continue. We have a lot of interesting stuff to cover. Michael Berry is the fund manager who famously made billions of dollars shorting the market before the 2008 market crash. Recently, he said that the 2022 market correction is probably only at the halfway point. He reminded us that a market crash is made up of two components or two phases. First, multiple compression, then earnings compression. Multiple compression means lower PE ratios. Earnings compression means lower corporate earnings. Up until the second quarter of this year, we have only seen multiple compression, which caused the stock market to drop about 20%. For Q3, however, as we have seen in the big tech stocks, earnings compression has started. That's why I believe Michael Berry is right. The market will drop more. What are the reasons for the market drop? They are, number one, the Ukraine war, which started on February 24th. The Ukraine war has caused the prices of oil, natural gas and many commodities to go up. And because the prices of the commodities are up, they have driven up the prices of other goods and services and caused worldwide inflation. The US Federal Reserve banks have started to increase interest rates and have started to implement quantitative tightening. The China COVID lockdown has disrupted the supply chains for many products. And then most recently, as of September of this year, there was a UK pension crisis, which could possibly spread to other countries. And then, of course, we have the ongoing multiple compression and earnings compression. The CEO of JPMorgan Chase, Jamie Dimon, mentioned on April 13th that he saw a storm cloud on the horizon. After he said that, SPY dropped 13%. Recently on October 10th, Mr. Dimon said the market can easily drop another 20% since he was so accurate in his prediction back in April. I am inclined to take him seriously about his latest prediction of further market drop. Today's market reaction to the Microsoft and Alphabet Q3 earnings and the Q3 earnings of the other big tech companies can very possibly lead to the next leg of market drop. Therefore, we need to be very careful with our investments. What are my strategies? I will continue to monitor Q3 earnings reports and the market reactions to those reports. If SPY drops below 380, that can lead to further drop and possibly a retest of the September 30th low and also the intraday low that happened on October 13th. And if SPY stays above 380, I will watch for the next resistance level at 390. I will monitor the month-to-month CPI changes because if we continue to have high CPI numbers, then the Fed will most likely continue to tighten and cause the market to drop even more. I analyzed the September CPI number in detail in my October 17th video, which you can find on my YouTube channel. If the market turns bearish in the next couple of days, I will continue to keep more cash on hand, and I might sell some long positions or selectively buy short positions such as SQQQ, SPXS and SOXS, actually I already bought SQQQ in the last few days. I will continue to swing trade oil and gas related ETFs such as UCO and UNG, which are influenced by geopolitical events and not so much by inflation rate. If you are interested in learning more about these ETFs, you can refer to the video that I published on July 27th. At this point, I would like to remind you to subscribe to my Twitter account in addition to subscribing to my YouTube video. But way of my Twitter account, I inform my subscribers almost on a daily basis of any important news developments and also some of my trades. For example, on October 7th, I tweeted that I saw UCO shares with an average gain of 5.8%, and on October 14th, I tweeted that I sold SQQQ shares at 4.1% gain. Thank you for watching all the way here. I'd like to remind you to click the like, subscribe and notification buttons. As usual, I will very much appreciate your comments, questions and suggestions. I'd like to remind you that I'm not a financial advisor. I share my stock trading strategies and analyses for educational and entertainment purposes only. If you want to buy or sell stocks, you should make your own decisions and you should definitely consult with your financial advisors before you do so. This wraps up my video for now. I will chat with you again in the next few days. In the meanwhile, I'd like to wish you the very best of luck with your financial investments.