Why People Making $500,000 Are Broke!

The S & P is 19 for 19 after the midterms. It finished higher 12 months following every midterm election. So from 1950 through 2022. So for everyone worrying about this big pullback that's supposed to happen, fake news, it's not here and it's not coming anytime soon.

We can have a conversation about valuation.

Evaluations are too high if some companies could default on their loans.

But as far as the market, the market is going to be fine. Nearly 37%.

Of household incomes above $ 500, 000 are living paycheck to paycheck.

Yeah. Stupid. Cut back, respectfully, cut back on your spendings. Please.

You can't give all your money away to brands and even people who are asking for money at this time, you got to tell them no. And last week, Coca-Cola, Visa, MasterCard hit record highs while chips, stocks were falling apart. I don't believe in diversification, but pick a company or two that you believe in and hold it for the long term.

You'll be fine. That was crazy.

The two points that you ended with was actually where I was going to start. I think the Coca-Cola thing is really important. It had a great week and it actually took a few of Pepsi's clients.

Yes, it did.

So we looked at that KFC brand that has predominantly been inside of the Pepsi-Cola family. It has now switched over to Coca-Cola. Will we see more companies in that family leave? That's an interesting one. But I think my investment fact was that the Semiconductor Index was just had its longest losing streak since 2008.

So nearly 20 years.

And what that means is the SOSX index, that ETF, was down eight trading days in a row. We obviously saw it change around today. But the interesting part, and this is the part where I'm like, listen, guys, trust your fundamentals, trust your research, trust the technicals. On Friday, the SOXL, the leverage ETF, had its largest influx in its history.

So as it was having its longest losing.

Streak on Friday, $ 3. 6 billion got poured into that ETF, which tells you that somebody, institutions, smart money is saying, okay, this is potentially a floor.

Here's where we're going to add some leverage here. So that's interesting. You got to start watching the ebbs and flows of how institutions are moving money. The fact that $ 3.

6 billion got poured in Friday, I guess we didn't know at the time, but the the tail end of a losing streak that we haven't seen in over 18 years, that usually is a sign that was there something fundamental that happened inside the semiconductor story? There was some talk about CoreWeave. We'll get into that. There's some talk about Oracle.

We'll get into that. But TSM reported all signs point to the same amount of demand, if not more. ASML reported even more demand. So those key clogs we said were inside of the AI story were going to report last week, and everything looked like it was all steam ahead still.

When they have those days like that, when it's like eight days down in a row, 15 days down in a row, the market's down 15%, that's the time to buy.

Know your levels in advance.

But even for the Black Monday thing that was being pushed this weekend, that was a buy sign to me. Because anytime a big collapse happens, they're not announcing it beforehand. You're going to see all the billionaires and hedge fund managers get quiet like they did in COVID.

Don't panic. Hold for the long term. But stop gambling.

Yeah.

A lot of you are getting smacked because you, and I said this in Stock Club, like a futures only portfolio or options only portfolio is not an investment portfolio.

Right.

You're gambling.

So you might as well go to Prospects or Calchi and play that parlay game.

But if you're holding for long term, you have nothing to worry about.

I think that that's what people need to understand too is that when you over leverage your portfolio with any type of trades, you're going to start to panic. Because you're going to be losing the large majority of what you have liquid. And no matter how good that you think the trade is, short-term trades, maybe not so much.

This is actually the time when maybe day trading is actually more beneficial. Because you can day trade based off of technicals.

You can't. If they have discipline, that's the other part. They don't have the discipline.

And the volume and volatility that's happening inside right now, it makes the conditions viable for them.

You are rotating out of chips. And the chip sector is the only thing that's keeping America out of a recession.

Yeah.

The world.

Now is not the time to go to even oil.

The oil trade is too late because the prices are too high in heat and oil and in crude. So have your plan. But yeah, if you can trade well, you can make a lot of money in this market, but most don't have the discipline to do so.

But if you swing trading or if you, you know, leap, things can go.

All right.

That's out of your control. The economy could fall apart. Trump could start a war. Iran could have some missiles headed towards Saudi Arabia, the Houthi rebels, the Ukraine and Vladimir Putin situation. And, in the midterm elections there's a variety of different things that can actually go that you that doesn't mean the company's not a good company yeah but it's things that can actually go wrong in that trade so if you over leverage yourself if you have too much money in just trades then that's not advisable yeah yeah.

And i think what you're saying is important Because as you're saying it, those things are actually happening.

There is a conflict between UK and Russia.

And we saw what happened with diesel and potentially reneging on some obligations in terms of diesel and working with Russia and China going in the future. We see what's happening with Iran and Saudi Arabia. There is a midterm election that is going to come to a conclusion in two weeks. Those things are actually happening. And that fight is getting nasty.

And we're down 2%. Well, on Friday, we were down 2%.

So you would think with all of that happening, it should have been a greater pullback, which is why I said the most valuable asset, especially if you're in options or if you're in, well, futures.

Time.

Because what you've done by having the time, and we did some in a class last month where we went out to 2029, is that we've priced in this volatility.

Yeah.

Right?

The data isn't going to be as volatile because we understand that we have 900 days to expirations. So you want to make sure that you put that as a barrier inside of your plan if you're going to do that. But definitely, I think the foundation part is important. That part gets missed.

And for all you debt is good people, not working for Corweave and Oracle, Apple has underspent on AI, but with the one thing they did do tremendously well, they managed that money well.

Did you get the new phone? Not yet.

All right.

You got it?

I did not do it. I was going to preorder it on Friday. Okay.

The duo. Sold out, yeah. And it was sold out.

And then my daughter's like, Dad, I don't know.

That looks kind of cheesy for you. You should just get a regular phone. Leave that up to the kids. I'm like, damn. You don't really need it.

Detroit, Michigan.

Salute to Detroit, one of my favorite cities in America. We will be in your area Friday. Friday, we will be in Detroit. We're doing a free event in Detroit.

Okay.

So, you know, that's always love. Friday, 7 o'clock. Get there early. I tell you that much. Um, and it is a downtown is that the, uh, the one campus that elevate, elevate at one campus. Um, and you can get your tickets at Horatio Williams foundations, Instagram page. So go to Horatio Williams, Instagram page, foundations, Instagram page, get your ticket. It's a free event. It says seven o'clock, but it's first come first serve RSVP. You must RSVP.

You must get your ticket today. And I think we're going to be doing some other stuff. Some cool things in Detroit while we out there, too. So, you know, Detroit's always been one of my favorite places.

For sure. So much love out there.

Man, Ken, what's the deal?

Ken, what's up, y'all?

Chill.

What's going on?

Man, we got a Bravo. What's the deal? We got a, you know, what's going on? Shout out to the D.

What up, though?

Yeah.

I will have my Buffalo frames.

Okay.

Got to do it.

Perhaps.

It's only right.

Perhaps.

But man, shout out to Detroit. So pull up on us.

If you're in Detroit or surrounding areas, pull up on us on Friday at 7 o'clock.

Thank you for reminding me because I forgot to do this.

I will be at Volume Up Summit Friday at the Maroon Culture Club. Me, Cortez Bryant, and a few others will be speaking. Of course, I'll be telling you how to navigate this upcoming recession if they announce it, how to get rich from the market, and what companies I think are going to fall apart post-2027. I'm linking my bio on Instagram, so I'll see you in Columbus. When you see us both out on the road the same weekend, indication.

Increase the frequency of activity. That's the perfect edge. That's the perfect edge.

Perfect. Okay, what's the trading tip of the week?

For all my traders, focus more on the weekly chart. A lot of people was in such a disarray, and I'm sure your phone was blown up on Friday. And I'm like, zoom out. You're looking at the intraday timeframes, and I get it. But if you go high to low, and if you're looking at the weekly for, let's take Oracle, Microsoft, AMD, Nebius, IBM, you can see a clearer picture. And also look at the weekly open. I've never talked about this publicly. I have in Stock Club. But a lot of times you need to see where the week is open at to see if we're underneath the equator or above.

Visa was above. Coca-Cola was above.

And even for the ones that slid under, it's usually a good opportunity to get in. So when there's a bad week cycle that can be a great indication for falls five or ten percent to get in and look forward to rebound and.

Go back above the open yeah i think that's why that that moving average uh is so important if you looked at i'm glad it's crazy you said nibius so nibius was a company we were looking at it hit its 200 day uh bloom energy we we did a whole case study on it and watched it run to 300 and understood like hey if it gets to 300 great but we really like it in the 240 to 220 range it actually got down to 216 we did some calls on it but just having those metrics before it gets there yes yeah you actually gave us a a price on uh broadcom yes it got to that price so i saw some people activating that but Having that plan prior to it getting to these points are so critical because you know that, hey, it's in the range.

It's in my zone. This is what I said I was waiting for. Am I going to execute?

And a lot of times we're seeing more than not people are executing because they have drawn those lines where there is the 200.

We haven't seen too many get to the 400. Thank God.

We did see Microsoft there in June, but now, I mean, nearly all-time high. And so it's important. Watch those moving averages. Set the price points for them. And when they get there, Look for opportune time. I think the other part, and this is key, this is key. Not only watch to see if it gets to that EMA, but let's see if it falls below it. Because that might even be a better time, right? I said 220, but it got to 216. It fell below it. Within an hour, it reclaimed it. So that tells me that there's some positive momentum going back up on the upside.

And now, you know, we've seen Bloom kind of rebound here to the 230, 240 range. Having a good price is like having good insurance on your home.

Like a lot of people that are trading, They're trying to get fire insurance after the house is up in flames.

It's too late at that point.

If you're already down or you don't know where to get in, you got at the top of the market or 1% off the high, when we pull back, your portfolio is going to explode. So plan in advance to know where could this stock that I really love fall to.

Buy at that price. Turn off your phone. Turn off your laptop. Give it a week. Let it run. You'll be okay. But quit panicking the day of because you got in at an all-time high. Did you go shopping Friday? Yeah, of course.

Why People Making $500,000 Are Broke!

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