 What is going on everybody is Stas here welcome back to another video so in this video We're gonna be doing an overall market update looking at the Dow Jones the S&P 500 and the Nasdaq And we're gonna be talking about two trades that I made today the 19th of December in 2018 in the stock market So for those of you guys that are new to my channel My name is Stas and I make videos dealing with swing trading day trading long-term investing and my personal Philosophies and strategies when it comes down to investing and trading in the stock market So for those of you guys who want to learn more about that investing and trading feel free to drop a like leave a comment Subscribe and join our discord group chat as well as our Facebook group and follow me on Instagram and Twitter All of those links are down below in the description box So let's get right into today's video and pretty much guys You know you all know that or you should know by now that the Fed increased the interest rate from two point two five percent Up to two point five percent This was an event that we've been looking forward to over the past couple of weeks because of the effect that it does have on The overall stock market and we saw this effect pretty much right when they reported the Increase of these interest rates at about 2 p.m. I believe or 2 30 p.m. Eastern Standard Time You know the markets were doing well up until that point and that's when we started to see some panic selling occur So let's get into this guys Let's look at these charts a little bit deeper and go over what I said yesterday Pretty much to just follow up on that so for those of you guys that watched my video yesterday I was talking about this channel like I have been over the past couple of weeks The channel that the Dow Jones has been in and the fact that we are at the bottom of this channel or the support range of This channel right down here and this pretty much occurred from the lower low that we made after we broke below the support at around 24,500 dollars and the fact that you know again the interest rates were raised which we all really You know kind of saw coming no one thought that the interest rates were gonna fall right? No one really thought that at all we all expected this increase in the rates And this really just ended up shooting the market down Out of this channel actually breaking out of this channel in terms of the Dow Jones And we're hovering above this support from a couple of months back and we're gonna look at that in a second But in yesterday's video I was talking about how the Dow today was either gonna have a green day a bounce back day or we were gonna see a Break under this channel and we pretty much saw both of those things occur like I said, you know the large caps We're doing very well up until 2 p.m. Eastern Standard Time And then the Fed you know said that we're raising our interest rates to 2.5 percent And then the Dow actually dropped down about 500 points I believe after that happened so yet again another 800-point swing in the Dow Jones today roughly I believe drop a comment Let me know if I'm wrong on this one But I think we were up 300 at one point and we were down 500 at one point which is giving us that 800-point Swing and we can see that right here guys take a look literally at 2 p.m. We went from $24,000 all the way down to $23,200 within one hour of trading that's an 100-point swing in one hour Absolutely unreal. So if we're looking back at this channel Like I said, we broke out of this channel now We made another lower low and now we're just waiting to see if we are able to hold above this Support that we do see from a couple months back and I'm gonna show you guys that right now Actually, this one is from three years one week right three years one week chart here This is literally a support from over a year ago. We see that it was back here at 116 17 so yeah about November 6 2017 about a year and a month ago We were at the same range same level that we are right now the 19th of December in 2018 of at the Dow Jones right really crazy really crazy that we've sold off literally about let's see how much percentage wise We've sold off nearly 17% from the peak Early October in the Dow Jones and remember guys if we get 20% or more of a sell-off That's considered a bear market. So we broke below this support We broke below this support we broke below this support literally plowing through those support levels And on a technical basis the next one that we do see is where we are Right now and if we do end up breaking below here guys, you know the next stop for the Dow Jones You know I'm not saying it's gonna get to 22,000 because that's deep into bear market territory But you know I do see another fall of about 500 points very possible for the Dow Jones And let's say it does completely sell off heavily. We do get into a bear market somehow a recession occurs Right, you know unemployment starts to raise all these different things You know in the economic growth starts to slow down companies earnings start to become very very weak We could potentially sell off to this twenty one thousand dollar level and obviously I don't really see that happening as of right now because again The economy is not really showing too much of signs of a recession as of quite yet And I was talking about this in the group chat But let's say we do see some of those you know signs start to come slow economic growth earnings start to become crappy Right, you know, we could end up selling off to this 180 S of May range and even under that guys If we do get into a bad deep deep recession, right? So as of now guys just keep an eye on this support for the Dow Jones super super important and In terms of tomorrow in again since we did break below this channel and we did hold above this support to close the market I believe right. Yeah, we did end up holding above this support from about a year and a month ago You know, we could end up having a pushback update tomorrow At least I hope so because you know again, like I said guys on a technical basis We really don't want to break below here because you know, this is a support level That's very very prominent in the Dow Jones and if we break below that guys It's gonna get real real ugly like I have been saying over the past couple of our trading weeks as we have been Breaking slowly below all of these support levels a break below this support level is just gonna be even uglier For the Dow Jones. So again guys just wait for a bounce back potentially tomorrow And if we break below there very very ugly things to come in my opinion the S&P 500 guys did very bad today as well closed the day at 1.5% of a loss $40 of a loss and this is an index that actually broke below the support Of about a couple of months back in February and March of 2018 this happened about a couple of days ago, right? We broke below that support and now if we're taking a look at the three-year one-week chart Really the next support we really could draw is at about 2,450 dollars and this is the next area that I think the S&P 500 could fall to and this is an area. That's gonna be very very critical because a this is a very solid support level at 2,450 and also notice the 180 simple moving average is going to be a support level at this point as well if we do end up getting To that's 2,400 to 2,450 dollar Level so just like the Dow Jones guys, you know once two o'clock hit today This fell like you're skydiving off of a cliff, right? You're skydiving off of a plane This is literally what the S&P showing right? You know you're flying up. You're flying up You're flying up. You're flying up and then it's ready to jump off the plane Look at that. It literally in one hour. We got slaughtered in the S&P 500 and again This is due to the rate hikes But one of the positive things over the rate hikes is that this next year in 2019 the Fed or I believe I don't think it was the Fed that said this bankers are you know bankers are what's the word guys? They're expecting it only two person two times They're gonna hike the interest rates in 2019 two times and before they believe I believe they thought They were going to do it four times. So that is a good. That's some good news from what happened today But you know again we all expected this interest rate hike to happen today and you know the fact that we are only getting two hikes next year Projected right expected that is a pretty good sign. So the NASDAQ. Let's take a look at what's going on here very similar Right 6600 once that news came out like that. We dived. We dove all the way down to 6300 guys. That's a 300 point loss. That's literally like a three four percent loss We can calculate it right now, but that is that's in a matter of a minute, right? Just take a look at that panic selling guys five percent loss in a matter of an hour That is panic at its finest when it comes to you know, the overall market, right? We see stocks fall five percent all the time, right? No big deal But when we see the index fall five percent in one and a half hours That's pretty big panic selling right there because that means a lot of stocks are selling off Dragging down that index a lot of fear a lot of panic in the overall markets bringing down the indexes and again You know the market that we're in right now, you know, since we finally got this interest rate stuff out of the way This is one thing that you know kind of can we can take off of our shoulders now because this is one thing that was weighing on the markets and you know Obviously the interest rates are very bad We also have Trump and China the trade war terrorists slowing economic growth You know the inversion of the what's it called the yield curve all these things are putting doubts in investors mind So that's why we're seeing the slippage happen like this in the indexes and just keep an eye tomorrow guys because On the Nasdaq and all the other indexes that we talked about they're all at critical levels right now Right, so just keep an eye We could potentially have a bounce back day tomorrow because at this point I believe three of the four last trading sessions have been pretty steep red days So just keep an eye tomorrow We could potentially have a bounce back day Especially since this interest rate news is out of the way Maybe we do maybe this bad news does roll over into tomorrow But we just got to wait again play it by ear see what's going on with the futures pre-market hours And that's really gonna help us now So let's take a look at what I personally traded today And these are all stocks that I talked about or ETFs rather that I talked about in yesterday's video So let's get into it guys So UWT was the first trade that I made today. I made about 2.5 percent on UWT and for those of you guys that recall in yesterday's video I literally called this one out right we literally sold off pretty heavily over the past two three days in Crude oil and for those of you guys that don't know whenever crude oil is selling off UWT is going down, but the fact that screwed oil sold off so heavily I was looking for that bounce back play on UWT because when crude oil goes up, right? UWT is going up. So go back and watch yesterday's video guys I talked about this literally right we sold off all the way to 46 dollars and we started to see some Consolidation and the fact that we sold off so heavily I was waiting to see if we were going to start to bounce back up for me to potentially trade UWT Right and that's exactly what ended up happening if we can take a look here on the one day one minute We can see time periods right here right the consolidation from yesterday's video was a little bit before this because this is 220 a.m But it pretty much carried all throughout the middle of the night here on the east coast And then once we got closer to the market. We start to see some bullish bullish moves on crude oil Right we notice here at 9 a.m. 8 a.m. It started to push back up and it started to push into the $47 range and this is what opened my eyes to UWT and we can see here on UWT Why you know obviously I traded it because we start to see some bullish moves and how it you know how it correlates over here to UWT we can see it perfectly right crude oil was starting to hike up You know early early in the morning heading closer to the market open and then we start to ride this 50s May and I pretty much guys just got in this one on the bounce off of the 50s May I believe you know I did not get in right here guys. We sold off bounced above here We broke out of this resistance. We pulled back and this is actually where I ended up taking an entry I believe at ten dollars and thirty five thirty six cents ten dollars and forty cents roughly and I ended up taking another little position As we started to break out of that other resistance at about ten fifty Because we noticed it popped up to ten fifty we pulled back So I took a little entry position here once we broke out of that next resistance I took another little position and my average at this point was at about ten I believe like forty four if if I'm being exact with you guys and I ended up just riding it up 2.5% ended up selling off You know once we peaked out here started to push down I ended up just taking my profits at that point because just take a look at this guys at this point in time We're making higher highs and higher lows So the fact that we pushed up to a higher high and we started to pull back I wanted to play it safe and take my profits and at this point in time guys I was up 2.5% on my position took my profits and my plan at this point in the day Was to wait until that 2 p.m. Or 2 30 p.m. I actually know it was 2 p.m Fed decision for me to see what other stocks to trade right because I knew guys I just had a gut feeling an intuition feeling that the market was either gonna go bananas in one direction up or Down after this interest rate or deal that came out And you know like I pretty much my intuition my gut told me that's exactly what ended up happening and when that happened, right? That's when I traded TV IX for I believe about a 3.2 Percent profit so we can see that here guys literally down trending all the way up to 2 p.m 2 p.m. Hit if you bought here guys you made like a crap ton of money 12 percent But that's beyond the point if you guys did do that congrats to you. I didn't do that Right, I'm not gonna BS you guys and tell you that I did that but I waited a little bit here We popped up to 59 we pulled back We started to break above again, and I took a little position here I believe at about $55 and 70 cents and I literally did not add any more money into this I know I always scale into my positions, but due to the speed Just take a look at the speed that this stock or ETF rather was moving at right the speed in this was crazy I took my position here and literally in the matter of a couple of minutes not really a couple minutes like 20 30 minutes I was already up like 3% on my initial position So I just took my profits at that point and called it a day right and we can see from about what did I say like 55? Let's say I believe it was like 5590 ish 85 ish up 3% at that point, right? That was up about about $57 and 50 cents is where I ended up taking my profit So that profit was 3.2% and my other UWT trade was 2.5% And that's about 5.7% profit on the day for my trading today the 19th of December in 2018 so that's pretty much it on what I did today guys drop a comment Let me know what you guys ended up trading today. Did you guys do well? Did you wait until the Fed announced the interest rate hike to trade because that's what I personally did You know, what did you guys do? What stocks? What ETFs are you watching? I would love to love to know so tomorrow guys what I'm gonna be doing at this point in time You know, I had a solid day today So I don't really want to force or rush anything tomorrow What I'm gonna be doing is being very patient pre-market hours looking at the futures Looking at large caps. How are they responding? Is this interest rate news rolling over into tomorrow's trading session? If so, we could potentially have a very bad red day tomorrow But I think we could potentially have a bounce back day today. Who know tomorrow, you know Who knows guys? It's all about playing it by ear keeping an eye on the futures Understanding the movement of large caps. Just take a look at the top 10 Companies by market capitalization look at those companies and see how they're doing pre-market hours, right? Let's say tomorrow Apple, which is one of the biggest companies by market capitalization is down to 3% at pre-market That's gonna tell us that okay The indexes are most likely down because Apple has a huge weight on all of the indexes And this could insinuate that we might have a red day to start out the day at least right and this could Help you plan out your trades for the first hour of the market say, you know We do end up selling off a little bit more before we have a bounce back day, right? It's all about just planning everything out Playing it by ear, right and just having a plan for every separate scenario that could potentially Happen because that is what I personally do, right? I've seen success in that I'm sure a bunch of you guys out there have been able to do this as well And it really really does help and of course be patient guys be be patient I cannot stress that enough a lot of beginners out here You know just hop into the stock market start trading and they're taking every single trade that they even can put their Hands on right they take any single trade no matter what without necessarily having a plan behind that It's super important to have a plan Be patient and wait for opportunities to open up to you do not force opportunities, right? Example today. I didn't force the opportunity on TV IX. I waited to see You know what the interest rate was going to be I waited to see what the mark or how the market was going to react to it and the fact that the Market was reacting very negatively That's an opportunity that opened up to me because I was patient all the way till 2 p.m That's literally like what four and a half hours into the market I was patient I waited and I made my 3% which technically is my daily goal, right? Although I did have a 2.5% gain on UWT so Patience guys. I can't stress it enough patience is very very important So I hope you guys enjoyed this video if you did feel free to drop a like leave a comment subscribe follow me on Instagram and Twitter Enjoy the discord group chat as well as the Facebook group. All those are linked down below. I'll catch you guys in the next video Thanks for all the love. Thanks for all the support. I really appreciate it guys. You don't understand how much I truly appreciate it I'll catch you in the next video. Peace out