What's going on my Internet friends? Welcome back to another daily update of what the heck is going on in the world with me. Matt In this particular video, we're going to be talking about the most recent news in the world of politics here in the US and also obviously globally if you've been sleeping under. Rock There's been a lot going on I have some important economic updates and on top of that I have some pretty exciting stock market updates. We were this close to some major major bullish breakouts today.

Unfortunately, it didn't happen. So I want to be going over all that why didn't happen? But most importantly, what I'm looking forward to in the short term I Really think you're going to enjoy the video? but before we get all to that, don't forget to hit the like button. Don't forget to subscribe. And now that we got that out of the way, let's rock.

By the time the dust settled today, not too much had changed from yesterday, at least in the world of Stons. S&P 500 closes. Little change Tuesday as treasury yields pop on hot retail sales data, so of course I'll be covering that. and this might sound a little bit weird if you were watching the intraday action.

It was a lot more volatile, but if you're looking at the opening and close, it's going to seem a bit more mutant. So here's a look at the S&P 500 heat map. So some of the tech sector really suffered particularly Nvidia that's why it's blood red, but then other sectors such as finance and energy actually perform pretty decently. Here's a look at how it all kind of ended up.

Uh, we opened up down today and that's mainly because of the re sales report that came out an hour before the market opened is actually a good report, but then because it was a good report that suggested that the economy is too hot and maybe our monetary policy isn't doing the best job at fighting inflation. so the stock market went down. I Know that's a bit confusing, but just don't forget that we live in the upside down. Good economic reports are currently sending the market down while bad economic reports are sending the market up.

look I Know that sounds absolutely ridiculous, but it is the current phase we're dealing with, so it's important to be paying attention if you looked at it. Intraday things were a bit more wild, so because of that report, we opened up very low and then about 45 minutes into the day, half hour into the day Bulls took control and the market started to pop, pop, pop in the spy, and then Qes sold off a little bit midday actually more serious than a little bit and then we just coasted. Ever since 2: P.m. the stock market just went sideways.

By the time the market actually closed, the Spy was literally up 0.0% Didn't make any, didn't lose any. That's where we're at. The cues were a little bit weaker down . 33% and that's because of a new update from the Biden Administration on semiconductors.

Think of those fancy smancy processing chips that we have in a lot of forms of por technology data centers AI All that good stuff. Well, new restrictions there and obviously I'll be covering it. But before we get to that and some of the individual equities that we need to be talking about namely Tesla Nvidia and Netflix I will be getting into those I want to give you an update of what's going on globally with respect to politics because we have some big big big updates related to the Middle East and then from there some updates in the US and just other important things that I think you should at least be a prize to the current situation. Israel Hamas War Live updates Hamas says it will release civilian hostages if Israel stops Gaza strikes the hospital death toll reaches 500 Israel latest Gaza officials say Hospital strike kills hundreds It pains me to go through all this, but it is important to go through it to know what's going on in the world and not everything in the world is always so.

Rosy Biden heads to Israel Middle East on edge after Hamas attack. The fact that he has decided to go has clearly added to political tensions. It was kind of the willly Wy and as a couple days ago he wasn't going to but now he made the decision to do it to, try to bring some cist to the area. But obviously there are some political strategists who are thinking this actually might add to the tension and the volatility of the current conflict.

Speaking of current updates: Israel calls all its citizens to immediately leave turkey which is to the North Northeast of Israel senior Hamas leader willing to release all civilian hostages, foreigners and Israel if strikes on Gaza stop. So that was reported by NBC it was actually reported just before I started filming this. So piece of good news there. Palestinian Hamas leader says us holds the responsibility of the hospital attack because of the cover it gives to the Israeli aggression.

So a little bit of the blame game here. Kind of strange that it's going this way, but once again just reporting on the major news coming through the interwebs. Palestinian Hamas leader calls on all Arabs Muslims to Stage protest against Israel So kind of strange saying hey, we kind of want tensions to boil down and let's just stop. but then to Stage protests anyway which will obviously bring tensions back up the way things are currently going.

It does seem as if unfortunately we are trending in the direction of more tension, more chaos, more volatility. It seems like right now we're at a stage where things are still going to get get worse before they get better, especially with the current meeting. I Hope in the very short term I have some positive updates for you, but right now they're all a little bit sad when you consider all the innocent lives actually involved in this so chaos. Now, speaking of volatility and Chaos bringing it back to the US Jim Jordan lose his first house Speaker vote by a wider margin than expected, so maybe you kind of forgot about this.

It might seem like a long, long time ago, but it really wasn't that long ago that we did have the previous Speaker of the House Kevin McCarthy. Obviously he got kicked out by Matt Gates and his cohort because of the spending Bill and compromising with the Democrats which apparently you can't do that anymore. Apparently the way Us politics works is you have to be 100% gridlocked, but whatever. So right now we have an interm Speaker of the House.

That's a little bit problematic because they don't really have the full powers of a elected speaker of the house, at least selected by their obvious colleagues there. So with this going on in Israel and needing to pass some important bills for funding, it seems like all of that is styed. And not only is that styed, it seems like it's going to be styed for longer than expected because Jim Jordan Who people thought? maybe he had a chance of getting through relatively quickly? Apparently that is not going to be happening. Speaking of stying regulations and all that good jazz, this is why the tech sector particularly took a hit today.

The US has just restricted sales of Nvidia chips to China The Commerce Department said exports of AI chips would be significantly restricted. red. The goal is to limit China's access to Advanced semiconductors that could fuel breakthroughs in AI. So let me give you the skinny on the situation in October of last year.

in 2022, the administration and not too many people fought against this basically made rules saying hey, our most advanced Tech Related to the world of semiconductors, we're talking about Gpus these processing chips don't sell them to China There were a lot of loopholes and fast forward a year to now this: October The administration is trying to cover up those loopholes and it was very very stringent in terms of you can't export it to a country that would then send it to China And on top of it, the specialty chips that Nvidia was making that it thought would be above board and it could sell to China The US government just said uh-uh no way Jose And that's exactly why on that Teat map when I showed you Nvidia it particularly looked red. Because of this, it's very inherently just a major hit to its bottom line. So I just want to let you know what's going on there. Obviously, in the long term I'm still absurd bullish on Nvidia But I wouldn't be surprised if in the short term these developments do cause it to go a little bit lower now just talking about the economy and why.

The market at first was negative today, but really volatility across the board. Early this morning, an hour before the market opened, we got a retail sales report came in higher than expected as I alluded to before. Even though this is a quote unquote good economic report, the market went down because it's suggesting that maybe demand's a bit higher. And don't forget that the current phase of monetary policy is to fight higher demand.

Because our inflation is too high, we're still above that 2% Target So when we're getting these good reports, it actually sends the market down because people become fearful that our Fed and monetary policy will become more restrictive. So basically higher rates for longer is the fear. Now looking forward to the remainder of this week. On Wednesday October 18th, we're going to get the CPI an inflation report out of the Euro Zone and then on Thursday Fed Chair pal will be speaking and he's obviously the chairman of the Federal Reserve But I Just want to bring up the fact that every single day this week we have a whole host of different Fed members speaking so at any point one of them could pop off and say something crazy that causes the market to go up or down in a very volatile manner.

So please be a paying attention to that on that note, another thing that can send the market in a Haywire direction is earnings. So thus far things have been pretty good. Earnings season officially got underway last week on Friday When we heard from a bunch of big Banks, it was JP Morgan City Wells Fargo. All did pretty well in fact, at at that point PNC was the only one that really missed.

Fast forwarding to what's going on now. Early this morning, we heard from Bank of America and Goldman Sacks. In fact, they also both beat looking pretty good. but this isn't the biggest surprise because yields are Skyhigh We had the 10year yield today rip above 4.8% And just for those of you who don't know if that's high or low, that's extraordinarily high and it seems to be showing a lot of strength in the upside momentum to the upside.

so that's not good for bonds yields up bonds down most likely equities down. But but hey, it's Haywire you got to pay attention. But really, let me rewind a little bit. The fact that yields are continuing to go up.

There's a lot of major banks that are going to stand to benefit off of higher yields, such as all the major ones we listed, so it's not really much of a surprise that some of these major banking institutions ended up beating. But speaking of that, I Want to focus in a little bit on Goldman Sachs cuz there was a wild update with the CEO today. Goldman Sach CEO David Solomon to give up high-profile DJ events. So this this is a well-known thing.

It wasn't a big secret, but I maybe just not discussed that often that the CEO of Goldman Sachs loved to Moonlight as a DJ he was super into it. He did all these events. He definitely built a name for himself. but if you listen to him, his reason was like the publicity and just kind of the media tension that comes with it.

didn't really. Jive if you will with his job as the CEO of Goldman Sachs so he is giving it up I Kind of feel bad for him just because like it is obviously his passion. but hey I guess sometimes you got do what you got to do. Which leads me to what else to expect.

So Wednesday of this week is going to be the big day of earnings because it's the first two major Tech names after the market closes on Wednesday we hear from Tesla and we hear from Netflix. Here is what you should be expecting: Tesla earnings come out tomorrow Wednesday October 18th at 4:05 p.m. 5 minutes after that Bell goes dingy ding- dingding. The revenue expectation is just over 24 billion and the earnings per share expectation is 74.

74. and also people are going to be looking at the gross margins. They're looking at 19% Once again, these are all the expected numbers. so if you do better than that, the company does better than that.

you're beating. and then obviously if you do worse, you are missing. So that's for Tesla And then with Netflix the expected revenue is 8.53 billion, the EPS expectation is $356 and the new paid subscribers is 6.2 million. This number is higher than previous just because of the whole password Crackdown thing.

They think it's going to prompt a lot of people to actually sign up for their own account. So like I said, very excited for this to get rocking cuz this not only is earning season officially underway, it'll be lasting for about three more weeks after this. but this is the first batch of like big Tech names. So very excited! Let me know your thoughts below.

Do you think they're going to beat? Are you a Tesla bow? Are you a Netflix Bll What are you looking at? Are you excited In the long term? I Do believe in the success of both Tesla and Netflix. In the short term, it'll be interesting to see what these numbers actually are. I'm hesitant to put out a guess because a lot of the times with earnings and more importantly, the Market's reaction to earnings is pretty much flipping a coin. I Mean, there's been times where a company beats on earnings and it goes down.

There's been times where a company misses on earnings and it goes up. So to me, it's honestly just a crapshoot. But obviously those are my thoughts and I would love to get yours. In a comment below, are you playing them? Are you not playing them? And if you are playing them, are you bullish bearish? I would love to get your thoughts.

The final thing that I want to leave you with right here is just tomorrow. And for the remainder of the week, some of the major things to pay attention to. And right here. This is all for Free Mc.

Locals.com You can get this newsletter every single weekend. It's free. You don't have to pay for it, but I give you all the macro economic events I give you all the major earnings I give you all the seasonality. Speaking of which, for Wednesday historically, over the past 25 years, if you look at this Equity curve it.

It's neutral. Some bullish years, some bearish years, it kind of is net net. then for the remainder of the week Thursday I would argue leaning a bit bullish. It's been very bullish over the past couple years, slightly favoring the Bears and then on Friday I would argue very much favoring the Bulls.

So this is the seasonality. Once again, Mac. Locals.com you can get it for free. and then the final thing I Just want to talk about is how we were so close to a major breakout today.

So I Get it. When we opened up today, we opened up below yesterday's low. We had a gap down. Just side note: if you watch my live stream which I do Monday to Friday 9: to 11 feel free to stop by.

It's always a great time. We talk a lot about how if you're gapping up or gapping down opening above the previous day's High a gap up or opening below the previous day's low a gap down. The odds of a gap fill are very high. Now Are they guaranteed? No.

Nothing in the market is ever guaranteed. but the odds of playing this is very good. And today if you played it, you definitely got that and then some because not only did it gap down and get the upside Gap fill to yesterday's low. In fact, it pushed all the way above yesterday's high.

but it didn't close there. 1 2, 3, 4, 5 Day number six, Day number six of attempting to get above the 48 EMA and it just got smacked smacked smacked smack smack smacked smacked. Obviously this is frustrating. If you're bullish and you're waiting for this breakout, it might be coming.

It might not be I Don't know. my crystal Ball's not working right now, but if you're playing for it and it looked like all we're going, we're going just to see it intraday on an intraday trading basis. I Totally understand how this could be Beyond Frustrating. Don't forget that it's options expiration week, so that could be adding to some volatility.

That could be. a playing to some of the pinning on Wednesday Tomorrow that's going to be the expiration for a lot of volatility contracts, so maybe the pinning will be done after that. But please don't forget that this Friday is the actual options expiration right now. For the overall: Market It does feel like the Bulls are knocking on the door of a breakout they're attempting.

they're attempting, but it needs some sort of legitimate Catalyst This today the market did well and Nvidia got rocked. Imagine where we would be if Nvidia had good news if Netflix had good news if Tesla had good news. So pay attention to some of these major names. pay attention to the Chart.

As always, you got to respect your downside risk because hey, maybe it is rejected here. and if you start snapping the previous day lows, if we clear this shelf down here and it starts to sell, obviously the sell that could also present a very nice opportunity. I'm not necessarily married to the bullish L I'm not necessarily married to the bearish side I'm trying to play the current price action I'm trying to play the current Trend Obviously those are my own thoughts, my own opinions. I'm not a financial adviser, so I would love to get your thoughts and your opinions in a comment below.

Do you think the Market's going to break out to the upside and rip to the next level? Or do you think that they're currently Hanging On by The Skin of Their Teeth and everything is about to fall out from underneath the bottom? Let me know in a comment below, that's what I have for you now. I Appreciate your time. I'll catch you in the next video. Peace Out.