Whoa! Whoa. Whoa. What an absolutely crazy day in the stock market today. Wednesday October 18th We have so much to talk about.

First of all, the overall: Market just taken an absolute nose dive and so did the tech sector. But now that the bell went dingy, ding ding ding and we have the earnings report from both Tesla and Netflix things are turning around at least a little bit at least as I'm filming this because the market as volle as could possibly be, but that's what I want to talk about? I'm going to talk about the overall Market I'm going to talk about Tesla's numbers, Nflix numbers, and basically everything else that's crazy going on in the world right now. Obviously, if you like these type of updates, don't forget to the like button. Don't forget to subscribe.

With that being said, let's rock. By the time the stock market officially closed for the day, this was the official headline: Dow drops nearly 300 points as 10year treasury yield knots is another 16-year high. Of course we're going to be getting into that, but you're probably watching watching this to know what's going on with Tesla and Netflix So let's hop right into it. But first here you go.

this is the scene. This is a little bit of the red Bloodshed Carnage that we saw today when the bell officially closed. Just so you know, the market down 1.33% and then if we switch it over to the tech sector, it was down 1.31% So pretty equal. But here's what's going on in pre-market and in all reality as I'm filming this in real time Tesla all over the place.

At first it dropped, now it's popping and Netflix just rocketing higher and higher and higher. So let's talk about everything that's going on. Tesla's earnings are out. Here are the numbers.

here are the headline numbers and then I Want to break it down a little bit more for you. So the EPS the earnings per share was 66 cents when the expectation was 73. so that was a miss and the revenue was 23.35% Numbers: If you look at the free cash flow, it was 848 million when the expectation was 2. About 6 billion was depending on who you ask.

so that was a miss. And then if you look at the gross margin, the expectation was 18% coming in at 17.9% also a miss. And then if we look at the operating margin, they were expecting roughly the range of just below 10% somewhere between 9 and 10% and it came in at 7.6% So let's talk all about that and then also talk about how why is the stock currently going up when I just listed a bunch of Misses Well, the operating margins. That's kind of an easy one.

This is what happens when you continue to lower lower, lower, lower the price. Well, okay, yeah, but we are expecting sales to go up and up and up. and it is worthwhile to note that they did reiterate their goal of 1.8 million by the end of this year in terms of delivery. so it's going to I still think that's going to hit? Still talking about just those numbers.

Um, so obviously sales up when the margin is going down cuz you're dropping price. But let's see how it all equals out in Revenue slightly taking a hit now. But once again, that's what happens when you're hitting your delivery targets. but you're dropping your price I Don't think that's like the most absurd math.

So let's talk about why the price is currently going up even though I just listed a bunch of Misses Well, we got some good news: Cyber trucks expected to start being delivered by the end of this year by the end of 2023, so that's really good. And also just to add into it a couple other things that I saw if you listen to: Kathy Wood Ark invest and just talking about FSD it does seem like and I know this has been promised so many times before, but it does seem as if we're getting closer to the end as we were at the beginning. so I'm in no way going to be holding my breath and like, yeah, FSD fully functional right now. Everyone turn it on, but it does seem like meaningful steps are me being made forward so that's obviously very, very good.

Also, Little side note, but in the last quarter Q3 Uh, Tesla has about 300 million just north of $300 million worth of Bitcoin on its books. And it sold. No, none of it. So if you are in support of Elon Tesla and Crypto, well, that should obviously also make you happy.

So very quickly before we move on to Netflix, Here's a look at the daily chart of Tesla. For the longest time, it was in this Bullish pennant. it was trending upwards and then all of a sudden we got this sideways triangle. lower highs, higher lows.

Today, it actually broke below that barrier obviously in postmarket now at least, as at the point I'm filming it, it is slightly up. But I cannot overstate in the short term of how I want to pay attention to this. Obviously, if it recaptures this trend line, obviously, that's bullish. A failed breakdown is inherently bullish.

It has to be. That's just math. that's just science. I didn't make up the rules.

it just is. However, the longer it stays below this, especially if it breaks today's low tomorrow or in future training days. Well, in the short term, that could be bearish. now.

I'm bringing up some short-term stuff, but I do want to reiterate in the long term: I am a big big fan of Tesla Seeing where things are going with the FSD Seeing where things are going with the cybertruck, seeing where things are going with AI In general. that's another thing that they talked about is how they are training their robots on low-l tasks right now I See a ton of potential in the future. And right now, yeah, it's fun to degenerately trade Tesla in the short term? up or down. but in the long term I'm more than happy to hold on to it, so just want to give you a chart breakdown: What's going on by the time you're watching this, whatever day it is, there's a good chance that the price is going to be very different just because this stock is so volatile in the shortterm.

So just want to give you the breakdown of what's going on right now. with Tesla shortterm, it's bouncing a little bit back in postmarket, but overall, that was a big daily breakdown. It's below its EMA So uh, there's probably people in the short term with the short-term mindset that are feeling the downward pressure feeling a bit of the bearish pressure. clearly some losses.

obviously reviewing these numbers numbers. but the cybertruck news, the crypto news, the margins. I Honestly thought they could be worse. So in my book.

Okay, that's a little bit interesting to see what's going on, but across the board they are reiterating their overall mission and the fact that they are progressing towards that mission. So take it with what you want in the short term. I Don't know if you're an active Trader or long-term investor, but as a long-term investor personally, I am still bullish on Tesla With that being said, let's talk about Netflix NF LX It is crushing it in post market right now. Today it closed out the day at 34619 currently trading at almost 383.

This thing is ripping. To the upside, let's check out the numbers. the EPS 373 when they were expecting 349 Revenue 8.54 billion and the expectation was 8.54 billion. So beating in line you might be wondering why in the world is that causing the stock to absolutely rocket higher I Mean look at this thing and it's once again when you dive into the numbers.

When you were looking at the new subscribers ated The Line in the Sand what Wall Street was telling you to look for was 6.2 million subscribers. If you ask me, that's a high expectation, but maybe they could pull it off because recently they've been cracking down on the password sharing so people are going to be forced to make the decision if you're not allowed to basically use your parents account anymore. are you going to sign up for your own? And once again, the Line in the Sand was 6.2 million new subscribers? You know what? It came in at 8.7 so the bar was set high and it was cleared even more. That's exactly why Netflix is ripping higher is because it added so many new subscribers way above the already very high expectations.

So Revenue in line EPS A beat and then the new subscribers miles high. Now just the one little flying the ointment here that obviously the stock doesn't care about right now. They did have some future guidance for the EPS for next quarter. The expectation was $217 but it came in at 215 so that's a slight Miss But once again, that's the EPS guidance for next quarter.

But obviously the market appears to not be caring about that because at the time that I'm filming this in postmarket training, Netflix is up in excess of 10% So congratulations to you if you did generally got into some Netflix calls right before the market get close. I Hope you enjoy your spoils now that we rip through the brief overview of what's going on with Tesla and Netflix I Want to give you a quick recap of all the other crazy stuff going on in the world right now. Biden's Whirlwind Israel trip fails to calm fears of wider Middle East conflict Arab leaders pulled out of planed meeting after Gaza blast Iran and allies threaten attack as Israel prepares for invasion of Gaza So this news probably a good reason why the Spy vomited and actually bounced right off of the trend line we've been talking about for a bit now, right at $29 and this trend line is basically what we saw from October a year ago connected to the Low in mid-march of this year. Support found exactly at that level.

Will it hold well? There's going to be a lot of things that have to be considered and that's what we're going to cover for the rest of the video: Biden To seek unprecedented Israel Aid package pledges 100 million for humanitarian relief in Gaza and West Bank So the skinny on the situation is Biden did the whole Willie Wy type of thing when he was going to visit. they didn't know because we obviously knew the onlookers who are not so supportive of Israel did not want Biden there. So when he did finally decide to go, obviously tension shot up through the roof in the market, we saw volatility spiking as stocks ended up falling. The President announced 100 million in humanitarian assistance to war victims in Gaza and the West Bank and reaffirmed America's commitments to its longtime.

Ally Israel Biden The first US President to visit Israel during wartime arrived in Tel Aviv hours after an explosion killed hundreds of people in a hospital in Gaza Biden said Israel was not behind the attack, citing data provided by the Pentagon so obviously something to pay attention to. It's heartbreaking I know a lot of innocent people I'm both sides are losing their lives like I said heartbreaking, but important to pay attention to not only just to be a good, informed Global citizen, but especially if you're in the market. You want to pay attention to this because it can have clearly an impact the overall Market individual Equity such as defense contractors pay attention to Commodities gold oil everything in between. this can have lasting impacts.

The political turmoil doesn't stop there though. Jim Jordan loses second house Speaker vote. As GOP weighs dwindling options, it is getting a little bit. Wild Jim Jordan Remember, we currently only have an interm speaker of the house because McCarthy was Ed by Matt gate.

Well, Jim Jordan is kind of running unopposed right now, but he still doesn't have the votes to actually be the speaker of the house. and on the second vote, he actually lost votes. So this is clearly not trending in the right direction. Want to keep you apprised of the situation? and it is important because for anything meaningful to get past in the house, we need an elected speaker of the house.

Obviously, we don't have that right now. With the conflict in Israel everything's just getting a bit more convoluted, complicated, and I would argue worthwhile to pay attention to. But what you should be paying attention to does stop there. Obviously, we talked about Tesla we talked about Netflix But remember, we're still at the start of earning season.

After this, we still have three weeks of stuff to go before the Market opens tomorrow AT&T American Airlines and Tsmc at the end of this week SLB American Express and then next week a lot of other big Tech names. Speaking of other big Tech names, I'm curious what Apple's going to say iPhone 15 sales look like they're starting off slow in China ahead of critical holiday season relative to the iPhone 14. The iPhone 15 at this point in time in China is down by 4.5% Now remember when I say 4.5% That might seem like nothing to you or to me. but when you're talking about a product that sells billions and billions and billions of dollars, 4.5% is a lot.

So that's actually why Tim Cook AKA Tim Apple is actually in China to try to figure out what's going on. But when you add in the fact that Apple's so big and so influential and right now, there's always like this back door fighting between China and us. I Wouldn't be surprised if there's stuff going on behind the scenes that we have no clue about. So just another thing to pay attention to.

Speaking of tech names and the fact that Apple's earnings is still coming up. But wait, the fund doesn't stop there Noon o00 Fed chare pal will be speaking very important. Obviously I will be streaming this so I hope you're watching this video in time that Jer pal to deliver key speech. Thursday Here's what to expect: Well, it's basically what in the heck is going on with monetary policy: Are rates actually going to stay higher For longer? How much is higher? How much is longer? How? What are you seeing? Is the consumer strong? Is it not strong? Because I don't know about you? But when I go buy things, Inflation is obviously there.

I'm seeing a lot of people with credit card debt with super high interest rates student loan repayments are starting. There's now a global conflict. There's a lot going down. It would be nice for a little bit of clarity in the situation opposed to just the Treasury Secretary yelling that Gremlin of a creature saying hey, no, everything's fine and we could totally afford a to front Roar which is ridiculous that she actually said that.

But anyway, here are maybe some of the Nuance things to pay attention to with Pal and his speech tomorrow at noon o00 Yes, I will be streaming it. The top monetary policy maker will speak at noon ET to the economic Club of New York At the critical time for the US economy, inflation numbers have been improving lately yes, trending in the right direction. But remember, we're in the mid3 and we should should be at two, but treasury yields have been surging, sending conflicting messages about where monetary policy might be headed. The US 10year is above 4.8% as yields are going up, bonds are plummeting and the dollar is popping, definitely putting downward pressure on the stock market markets.

Largely expect the FED to stay on hold with rates, but they will be looking to Pal for confirmation and clarification on how officials view both current conditions and longer term. Trends Pal is always tacking back to whatever helps Feed The Narrative that they need to stay vigilant and for understandable reasons I Just expect him to keep talking about the strength of the economy and the surprising strength of the consumer in the third quarter as a risk for inflation. That is enough ammunition to keep talking about staying Vigilant Arguably a little bit more concise, pay attention to these three parts: The FED needed to get rates High quickly, which it did that it had to find a peak level which is part of the current debate and that it needs to figure out how long rates need to stay this High to get inflation back to the 2% Target As of now, the estimation for that is 2025. so really, no one's expecting it anytime soon.

But the real question is, how much painful medicine does the economy and the people within the economy have to take for us to actually get to that goal? And if you don't think that there are clear, long lasting impacts or very real impacts, check this out. The 30-year fixed mortgage rate just hit 8% for the first time since 20 000 as treasury yields sword 8% Not long ago, a year and a half ago, this was below 3% It's very, very real now moving forward. Even though I've already given you a million things to pay attention to, these are probably the other things you should be paying attention to. So here's the newsletter: Mac.

Locals.com I Give it out every single weekend for free. Sign up: I give a breakdown of the previous week What? I'm looking forward to this upcoming week, all the major macroeconomic events, all the upcoming earnings I think you're going to care about and I just want to give you a better idea of what seasonality to expect for the remainder of the week. So Thursday October 19th Leaning Bull. Not the most bullish day, but over the past 25 years the Bulls have won 50% of the time, but when they do win, it's larger than when the Bears win.

so that's why I said leaning bullish. And then to conclude the week Friday October 20th Definitely bullish. The Bulls have won 61.5% of the time and when they win, it is obviously bigger than when the Bears wom. So just want to give you a little bit of the seasonality if you are a generate zero.

DTE Trader I Highly recommend you check out Locals because thus far this week I've posted six, not one, not two, not three, not four, not five, but six different zero DTE trades and thus far batting a th000 seeing if I can conclude the week on a positive note, so feel free to check that out on the description below. Hey I Hope you enjoy the video. If You like this type of update of what's going on in the world, the economy, politics, and the stock market? This is the place for you. So don't forget to like.

Don't forget to subscribe! I'll catch you in the next one. Have a beautiful day.