Well well volatility was promised and volatility was delivered. This is your market wrap up up with me. Matt for tuesday july 26th. And i'm here to tell you think that we're about to see even more volatility as i'm filming this both microsoft and google aka alphabet are about to report their earnings and that's going to be crazy.

But then we have other ones coming later on in this week. Such as amazon and apple and meta aka facebook. But beyond that we also have some very important macroeconomic developments and decisions. Such as the fed with the fomc the gdp report.

We have another inflation report so in this video. I want to break down everything that's going on that you should be paying attention to we'll be looking at those earnings as they come out in real time and on top of that i'll be letting you know some of my personal positions and also the key technical levels that i'm looking for at least as of right now. But before we get into all that don't forget to hit the like button. If you enjoy this type of content.

And don't forget to join up with the moon game by hitting the subscribe button and now that we got that out of the way let's get rockin as you can see here. The market is about to go ding. Any ding ding ding and all eyes are on the reports from microsoft. Google and visa as you can see not the best day in fact.

It was a sea of red and it might get more red. There you go the market just closed. It might get more red. If these reports come out and they all missed or it could completely pull u.

Turn and get very very green. If they all end up beating. We are about to find out microsoft google visa and some other things as we're waiting for those reports to come out just so you know the spy ended up losing 112. The tech sector got hit even worse almost dropping two percent and the small cap sector did actually not as bad drop 06.

Percent. The first reaction. I'm seeing out of microsoft is down the first reaction. I'm seeing out of google is down.

But let's let this settle a little bit let's dive into the numbers and we'll see how much they beat or miss. Buy so some interesting things going on there today at 9 00. Am we had the home national price index that came out 197. The consumer confidence index so this was interesting.

They were expecting a number of 97. It came in less as in consumer confidence is less than expected and at first the result was interesting the market went up. But think about what that means. If there's less demand that should theoretically help us with battling.

Inflation and then also at 10 am. Today. They got new home sales. Which dramatically dropped over eight percent.

They were expecting a drop in the range of five percent. So that one was a little bit of a surprise at the 10. Am result. We got a little bit of a push and then it kind of went sideways.

And then we continued to sell off now for wednesday. Just so you know 8 30. We have some important things going on in the morning durable good orders core capital equipment. So basically like high level trade stuff.

But it all gets crazy at 2 pm. When we get the fomc results speaking of the fomc results 75 chance of a 70 bips rate increase at least as i'm filming this and a 25 chance of a 100 bibs. If we go 100 bits. That's going to be a bit more hawkish so we'll put more downward pressure on stocks.

But it's a bit more aggressive in fighting. Inflation which is currently at a scorching high value of 91. Most people as you can see 75 chance of a 75 bips of like okay prices are coming down consumer sentiment is down so demand's down commodity prices are coming down. I think.

There's actually a pretty fair chance that we actually ended up peaking recently with inflation at that 91. Value so anyway. We'll get the decision at 2 pm. And then.

Jerome powell will be doing a live press conference of it at 2 30. Yes. I will be doing a specialty stream. So if you want to hang out beyond the normal 9 12.

Show. We're going to be doing the specialty. One at two and uh. We'll continue it through 2 30.

Then on thursday. We get the gdp report. They're expecting a positive number. I don't see how that's going to be possible.

But we'll find out if we're in a recession. That our government is now telling us that's not the actual definition of a recession. Which is crazy. But hey that's what's going on then we have another inflation report on friday and it was also just announced that yellen the treasury secretary will hold a news conference on the economy on july 28th.

So make sure you mark your calendars for that but beyond all of that we have a lot of earnings obviously we're right now waiting for google aka alphabet microsoft and visa to come out in real time earlier this morning we actually had coca cola ge and mcdonald's they all reported and they all did really well so we're in a scenario where we're getting in mixed bag uh snapchat completely missed tesla did fine netflix did fine coca cola ge mcdonald's all day good and we're about to find out some other mega reports but right here coca cola earnings. Top expectation that sales volume recovers from pandemic. We also have ge post higher earnings on recovery in aviation industry and mcdonald's has higher prices value items help boost us. Sales so once again they're not all bad they're not all good mixed bag scenario and it looks like the microsoft earnings are out here are the numbers let's look at it in real time the estimate for microsoft was in earnings per share of 229 and the revenue of 5244 billion.

So i'm seeing a complete. Miss actually yes so missed on earnings and miss on revenue. That's not good so microsoft missed on top and bottom. Lines how is it doing oh got clobbered another 273.

But google must have beat. But i don't believe google has come out yet because that would be all over the news. So right now people are buying up google. But i don't think the results are actually there the microsoft results are there and that's not a good one and i visa we're seeing it pop there so i'm waiting for the google and the visa news.

But hang on one second as we're waiting for that to come out uh just so you know here with the s p 500. As we're waiting for that i just want to talk about some technical things because i think the developments we're seeing in the spy in the queue are kind of important right now so from the tune of july 14th. All the way up to july. 22nd we had a nice.

Push we had a 785 push at the maximum low to the maximum high that's nice. It also involved a technical breakout. We kind of started to change the trend. We're now seeing higher highs.

We're seeing a continuation of higher lows at least relative to mid june so right here. Even though. If you zoom out to the start of january clearly lower highs lower lows. That's a bearish trend.

But even in larger bearish trends. You can still have smaller shorter period time frames. Bullish trends. So right here and a lot of people.

When you have a bear market or at least just bearish trend. It's referred to as a bear market rally. So this almost eight percent pop. Very well could be a clear bull market rally or really a bear market rally you're in a bear market.

But you're rallying in a bullish favor and sometimes. The bearish trade the shorts get a little too overcrowded. So that could be part of what's actually going on there and they end up getting squeezed out and it just pushes and pushes. We saw something similar to this in terms of a bear market rally in the second half of march.

It was a beautiful push. But we ended up not holding and it sold so sold so right here. The question is is this going to be the high now. The reason.

I'm bringing this up is because i don't think we've seen. The actual low in the market yet which would technically be 360 to 17. I think within the year 2022. We will continue to go lower.

I think there's going to be one more big push to the downside and in my own personal opinion. Not a financial advisor not a fortune teller and for as much as i know i'm pretty sure i'm not clairvoyant. My opinion is that we see one more push to the downside. And i think that will be it because we are seeing certain signs that inflation is maybe not completely simmering down.

But ideally at least plateauing and no longer getting worse and worse. And worse. So obviously time will tell to see if this prediction is even close to being right who knows maybe i'm horrifically wrong. But at least in terms of the short term.

I see this push and then all of a sudden we broke below the low of the 25th of the 22nd of the 21st and now we're dancing around the low of the 20s. This is clearly a change of trend in pattern. We have higher highs. We have higher lows and then something started to change almost like when you throw a ball in the air.

It starts to arc back over and the question is how far is it going to come down is it going to catch it's here at. 391 which is totally possible or my next target is 38850 are we going to come down and reevaluate this trend line maybe bounce off of that overall. I don't know where it's going to bounce. I believe if you give in enough time there's going to be a very evident bounce.

The question is where is that bounce level and similar to where we started breaking below the lows. Well. I think the bounce might be in when we start breaking above the previous day's high. But right now in the short term.

My bias is to the downside simply because of this we broke to the downside and the queues actually started representing that even earlier higher highs higher lows. And then all of a sudden something started changing between july 22 july. 25th you see the macd crossover. The rsi started to cool.

But you started breaking down and look at this we're now making lower highs lower lows. Short term. That is clearly a bearish trend. And honestly.

This sell off let's see how it's doing right now uh visa. Doing well google's still up. But i think this one can actually change microsoft down so kind of an interesting split scenario. I want to look into the visa and google numbers now while we are waiting a little bit for google here.

I do want to remind you of like my positions right now in terms of the futures market more my djn account. I have one nq runner. I got in hundreds of points higher than this so i'm just seeing how this all plays out i had five short i locked in four so i had just one runner and in terms of the challenge account against martin shkreli. I'm short one es contract from 3952 and i also have five spx puts not for this friday.

But next friday august 5th. And i'm targeting basically that 3800 level the premium that i paid per. One is in the realm of 21. Just over 21 and when the market.

Closed they were trading a little bit closer to 235. So in there right now all these runner positions are up. But it's obviously a little bit of a gamble to see how things are actually going to play out with google and the overall market visa looks to be doing pretty good microsoft still clearly in the red as people are choosing to see what's going on with these numbers digesting and google's numbers should be out momentarily alphabet misses on earnings and revenue for the second quarter so right here whether you're using whatever earnings per share 121 that obviously misses on 128 and also this other number. I had of 138 and if you look at the revenue.

That was clearly also a miss but not as big in terms of youtube. That was also an additional miss if you're starting to look into how it's all split up uh google cloud revenue 628 versus. So it's clear misses across the board the eps the revenues and youtube advertising and the google cloud misses misses misses across the board that is not good honestly i have no clue why this is up right now. I'm pretty sure that vis a vis and that's why it's up like it was an official beat.

But google uh i'm a little surprised i don't think this is gonna last just judging by the numbers. I don't know what people are finding in this report that are i guess redeemable right now because even where wall street drew the lines in the sand. It looks like it missed on all that so i am a little bit confused about this reaction. But uh.

I think when we give this a little time to do jess i mean all these visa microsoft google. They're all about to have their earnings calls. So maybe we're going to get a little bit more insight. There but right now more so from a technical perspective and also paying attention to what's going on in the macroeconomics situation.

I'm seeing technicals of lower lows in the queues in the spies. I understand that inflation is very very dangerous. I know that the fed is still being forced to be hawkish yellen's going to say whatever. She says and we're in the situation where the gdp is going to come in negative and then our government's going to say yeah.

But that's not really what we call a recession. So overall expect high volatility. I wanted to give you this live reaction. Everything that's playing out right now.

But man oh man. I think we are about to go on a roller coaster that's what i have for you i hope you enjoyed the video. I'll catch you in the stream tomorrow. And if not i'll catch you in the next video have a beautiful day.