What's going on moon gang we're here to talk about what in the world happened in the old stonk market for today, tuesday april 5th, it was bad, it was bad, it was bad. Some would dare to say that it was unbearable. I don't know - maybe i'll save the jokes for later, but anyway not a good day, so i want to be diving into what happened in the overall market. I have some other interesting stories that i think will maybe give you a laugh, or maybe at least make you feel better about your own life and then we'll get into some vortex numbers.

We'll do some chart break sounds we'll be getting into all the things that you most likely care about, but overall it was a rough rough day, and it's times like this that you have to understand the best thing to do calm, cool collected and when in doubt, Zoom out so with all that being said, let's hop right into it. As you can see, it was absolutely a blood bath of a day, nothing but pure carnage, red red, red red red. In fact, you know you have a weird day when the only thing that's green on your watch list are your meme dog bass, crypto, sheeb and doge in the green. Actually do a nice amount at 11 other than that everything bloody, bloody red.

The overall market dropped 1.3 percent, the tech sector dropped 2.2. The small cap sector dropped, 2.4 percent, amc beat up, 9 gme beat up 10 twitter elon's new project just announced. It was a board member technically in the green. It gained two percent, but that's just because it ripped so much in pre-market and throughout the trading day, all it did was sell off and off and off like everything everything was, it was a brutal brutal mess if you're feeling some pain, i'm right there with you, But you might be wondering why, why does it seem like everything just got its teeth kicked in today? Well, you could thank the fed for that.

Fed's brain art sees balance sheet reduction soon and at a rapid pace. What does this mean well remember, to get through the pandemic area, the fed, the featheries of the people in charge of money, printing and our really monetary policy they're like we don't want unemployment to get so bad because the world is currently belly up, so what they Did was they kept pushing money into the economy to the tune of 8.9 trillion dollars? It's referred to as quantitative easing, and it happens to me one of the most ridiculous policies of quantitative easing that the world has ever seen. Well, anyway, 8.9 trillion later people are starting to say: huh inflation is pretty high, that's probably not good, and now people are saying fed. Maybe you shouldn't have done that much money into the system.

We get that you were stoked that your robin hood account was ripping from the bottom left to the top right and the side effect of helping with this was stonks rip and rip and rippin, but inflation's really bad and that probably shouldn't go unchecked and the fed's, Like whoa whoa whoa, it's transitory. Don't worry about that! Well, at least that's what they were trying to gaslight us into believing and now they're saying oh wow uh. No, no! No, we kind of messed up and some people are even floating around the two word term policy error, and it does seem like they made a bad policy or doing like keep in mind if you're watching this in real time in early april, it was not even A month ago that they stopped pushing new money in, they were purchasing assets, mortgage-backed securities and bonds all the way up until march of 2022. Just so, you know, the unemployment rate came in at a borderline record low with 3.6.

The economy is pretty good and that's actually what leads me to this right here. The fact that the economy is showing so much strength really gives them no reason to not be hawkish. They need to fight inflation, we're at 7.9 inflation, that's a four decade high and our unemployment is almost at a record low. This is why people are saying you got to do something you have the open range to run.

You just got ta run and that's why we're now getting these comments that okay um, maybe the point two five percent that we did last month wasn't enough: maybe we're going to do more and then they kind of like dropped the mic and said we're even thinking About balance sheet reduction, also known as quantitative, tightening the exact opposite of quantitative easing and to boil all this down, what does it mean? It means that they're gon na fight inflation and it seems like they might be, fighting it pretty hard, but a side effect of that when you battle inflation is a less accommodative market or less accommodative environment for the market, which means that stocks go down. Crypto goes down it's just it's less accommodative money is taken out of, what's typically considered to be high risk assets and that's really mean socks cryptos. That's what a lot of these big money players consider to be high risk. So that's where money leaves first fed governor brainerd said tuesday.

Today, the fifth, the central bank could start reducing its balance sheet as soon as may, and we be doing so at a rapid pace. That is very, very hawkish. She also indicated that interest rate hikes could come at a more aggressive pace than the typical increments of 0.25. People have been calling out 0.5.

The fed already has approved one interest rate hike of 0.25 at march and the one before that, the most recent one before that was late 2018. Just so, you know the first in more than three years and likely one of many to occur this year. Just you know we're most likely gon na get a rate hike for the next consecutive six or seven meetings. It's gon na be quite a bit.

The way you could use that is saying: oh okay, who's going to benefit off higher rates. Well, banks think about the big bangs jp morgan goldman sachs. The list goes on and on and on all right. So that's the rundown of why everything was crazy red today, and it was just because people know when you're more hawkish, it's less accommodative for the market, especially when you're talking about quantitative tightening, so money literally just left these investments today, quite a bit of selling.

Now, very quickly, before we go in on to these interesting stories, if we take a quick look at the overall market, i just want you know we're currently at a level of support. I care about around 450 and below that i care about 446.. In terms of the nasdaq i am watching 357 followed by 355 and in the small cap sector, we're at support, if that doesn't hold i'll, be watching 200. in terms of amc, i'm watching the support just below 20 around 1970 and in terms of gamestop aka gme.

I'm watching 149. in terms of the vortex numbers. Amc has still a short interest around 21 costs to borrow still oddly low utilization still max out in terms of jimmy. The short interest actually dropped today on a noteworthy amount of return shares relative to borrowed shares.

They returned 2 million, the short interest estimated to be at 19.9 cost to borrow eight utilization 100.. So now, with all that out of the way i do want to share some other interesting things. Politicians are at it again and don't forget thursday, the 6th they're actually having another congressional meeting about political insider trading, or maybe i shouldn't be saying that i don't know we'll find out if i get sued, a democratic lawmaker bought 31 stocks, including shares of defense, contractor Raytheon, the day russia invaded ukraine, his officials excuse me his office blamed a miscommunication with financial advisors. I hate when that happens.

We've all been there. Democratic representative, earl, blooming onion of oregon bought 31 different stocks. The day russia invaded ukraine, including up to 15 000 worth of shares in defense, contractor raytheon, but mr blooming onion's office said the purchase on february 24th, together valued at between 31 thousand four hundred. Sixty-Five thousand they were mistakes.

A classic 465 thousand dollar mistake due to a miscommunication. His financial advisors purchased some stock on his behalf. When this was reported to him, he immediately ordered it sold at a loss and gave unequivocal direction that he should not hold any individual stock. Well, as you're about to find out he's a pretty interesting definition of immediately, you know aka instantaneously, aka like right away, bro and also at a loss, and that's also up for debate.

Congressional disclosure records indicate that mr blooming onion on march 14th sold all of his socks that he purchased on february 24th. So more than like what three weeks after the fact interesting definition of immediately, but we also have an interesting definition of transitory words. Don't even matter anymore well, some of these stocks decline in value during the time mr blooming onion owned them. Others, including raytheon, actually rose so the whole at a lost thing, also up for debate.

So once again our crackerjack ace, pitcher politicians doing more and more sus stuff, so that'll probably make him mad and i'm sure today doesn't have you feeling the best with all that red. But i want to remind you that it could be worse. Your life could be exponentially worse, such as this rich new yorkers may have to take out own trash, as dorman strike, looms thoughts and prayers, rich new yorkers thoughts and prayers man, oh man, i can't imagine what it would like to have to take out my own Garbage these doormen these greedy gluttonous doormen. What do they want? Fair pay? Well, i have never that's that's just ridiculous of these doormen fair pay.

Livable wages like i said, thoughts and prayers with all the rich new yorkers who have to really contest with their own garbage right now, and i'm sure all of you watching at this moment feel the exact same. That's what i have for you today. I hope you enjoyed it if you didn't, if you want to help me, get this video in front of other people who might be interested help me out by smashing that, like button and don't forget to join up with the moving game by hitting that subscribe button. I'll catch you in the next video have a beautiful day and good luck, taking out your garbage.