Why the Market Is Still Crashing and How You Can Prepare

[00:00] Bitcoin is free falling and hit a low of $81,000.  Ethereum is also free falling and hit a low of   $2,600. Yesterday, the NASDAQ dropped 6% and  Nvidia had the largest single red candle that  

[00:13] I've seen in years. On Tuesday, I made a 2-minute  video on why I think the market is going to decay   over the next 2 years. And you guys wanted in  the comment section for me to do a 30 minute  

[00:25] full explanation of this. So, let's get into it.  And for those of you that don't want to stick   around for 30 minutes, here's the TLDDR. Nvidia  recently had their earnings report, and basically   the marketing lingo of it was that everything's  fine, but once the numbers actually came out, it  

[00:41] just looked horrible. It proved to everybody that  Nvidia and all of these AI tech stocks are crazy   overvalued compared to their earnings. So, it  just took a [ __ ] That was point number one. The  

[00:54] second point ties into the first one and it is the  fear that AI companies are overvalued just across   the board and they're basically siphoning money  through one another basically inflating their   numbers. So as a quick gist, Nvidia borrows 100  million from the bank based on the share prices,  

[01:10] then invests that 100 million into Amazon. Amazon  then invests that 100 million into Oracle. Oracle   then takes that 100 million and invests in Nvidia.  All of them show plus 100 million on their books,   but it's the same money. Point number three, the  Federal Reserve decided to do rate cuts. And after  

[01:26] they decided to do the rate cuts, then after the  Fed decided to do rate cuts, the jobs reports   came in and showed that there was over 100,000  new jobs. So people might think the Fed might   delay the rate cuts now. Massive uncertainty in  the Federal Reserve Bank and all of the reports.  

[01:42] Next point. Since everything dropped five, six,  7% in one single day, all of the high volatility,   higher risk assets like cryptocurrencies and  other things in that genre like collectibles and  

[01:55] high-end sports cars, everything else took a tank.  Not only that, the European and Asian markets also   sold off due to the economic downturn yesterday in  the United States. tech, crypto, global indices,  

[02:10] commodities, everything collapsed yesterday.  This is a classic sign of the global population   derisking, basically selling their assets because  they see high volatility and high risk. So,  

[02:23] they get out. The shitty thing about this is is  that that getting out of all of that capital from   the markets shows huge red candles. Then the  fear-mongering starts with all of the local  

[02:37] news channels, CNN, CNBC, they show the markets  are painted red, everything's terrible. Then   the general public who's invested in 401ks and  doesn't monitor the market on a daily basis see  

[02:50] that everything's going to [ __ ] and it creates  this like social panic. So the original sell-off   feeds the new sell-off of the general population  because that's what the news is pushing now,  

[03:02] creating a huge downturn. It's the domino effect.  And I started seeing it in January. Markets were   overleveraged, overbought. Everything to me was  flashing overbought. There was excitement and  

[03:16] euphoria in the general population. Taxi drivers  were talking about the next big crypto hit. My dad   was asking me if he should buy more Bitcoin and I  was just like, "Nope, getting out of everything."  

[03:28] And I started selling off everything starting  in January. Look back at my videos. You can see   all of the proof for all of the trades that I  made. So, let's dive deeper into these topics,   shall we? So, the number I gave you earlier was  hundred million. It's actually hundred billion. In  

[03:42] September, Nvidia agreed to invest up to hundred  billion into OpenAI to finance a huge data center.   In return for Nvidia's funding, OpenAI committed  to purchasing and deploying millions of NVIDIA   GPUs. So Nvidia gives a hundred billion dollars  to OpenAI. Then OpenAI gives a hundred billion  

[03:59] for GPUs to Nvidia. Yet they both show a profit  of hundred billion. And then just weeks after the   Nvidia pact, OpenAI struck another massive  agreement, a $300 billion deal with Oracle.  

[04:12] Then Oracle plans to spend around $40 billion  to acquire roughly 400,000 of Nvidia's top tier   chips. Do you see where I'm going with this?  It's it's money laundering. If you were to  

[04:25] actually break it down and see where the money's  going, it's hopping from a bank to one company to   another to another to another to another. All of  the top seven companies, the Magnificent Seven,   and they're all showing earnings report of massive  profits, but they're not. This should be [ __ ]  

[04:40] illegal, which is why all these fears about this  AI bubble popping are actually real. And I think   that we're going to see this significant downturn  based on this [ __ ] Now, in Tuesday's video,  

[04:53] I explained my early warning signs of why I  thought the markets were expecting a downturn. I   invest in high-end Pokémon cards. I saw a massive  spike in the prices of these things and a steady  

[05:08] downturn since that time. Now, let me explain  this in a way that you guys can understand. If   a rich person wants to get out of their high-risk  assets, which they got at a low price, mind you,  

[05:20] they take all of their Pokemon cards and they  release them onto the market. And because there's   so much hype at that time, everybody buys up all  that supply, which causes the price to spike up  

[05:33] rapidly because there are so many. When there's  hype in the market and limited supply and then   a huge chunk pops up, everybody grabs up what  they can because they couldn't find it anywhere   else before. So you get that spike and then  it slowly starts trickling off because nobody  

[05:50] wants to buy those cards anymore at that price.  They are overpriced. They are overbought. Now,   there's an indicator on Trading View called  the RSI, the relative strength index, and  

[06:02] it is basically a momentum indicator that shows  you the overbought range and the oversold range.   I'm going to show you some technical analysis  how you can determine this overbought oversold  

[06:14] range and when you think the markets should tend  to reverse from an overbought standpoint. Okay,   so this is a candlestick chart of Bitcoin on the  daily time frame, meaning that every single one   of these candles is one day long. This chart right  here shows bullish market structure where we make  

[06:31] higher highs and higher lows like a staircase  pattern. Now, the thing that you want to focus   on are these high points. Now, looking at all of  these high points, you see positive bullish market  

[06:43] structure. But if you look down on the RSI, the  relative strength index, it shows a weakening of   the momentum. We made higher highs and yet the RSI  is making lower highs. When it's above the 7030  

[06:58] range, the normal range, price tends to spike up  dramatically. But after that happens a few times,   the momentum gets lost. And once it starts trading  back within the 7030 range, specifically like it  

[07:11] did right here, we were making higher highs, but  the RSI was showing a lower low within the range.   That was my first early indication, and that's  when I sold all of my Bitcoin. I got out at like  

[07:24] 122,000. Since its all-time high, Bitcoin is now  down 35%. These were the early warning signs that   you should be able to find and spot and look for.  When there's euphoria in the markets and your taxi  

[07:38] drivers and your uncle Bill is telling you about  crypto and stocks that you should invest in,   you should get out as fast as you can. Moving on,  it just gets worse and worse and worse. You guys  

[07:51] are all aware that we had a government shutdown,  right? That government shutdown prevents specific   reports coming out at when they're supposed to.  For example, NFP, non-farm payroll. These numbers  

[08:04] always come out on the first Friday of every  month. It's a huge news event and the market   moves a lot during this news, but because of the  government shutdown, it was massively delayed.   And we just got the numbers. Now, CBS News says  because of the delayed report that was supposed  

[08:19] to come out in September, the US economy added  119,000 non-farm payroll jobs. Anything outside   of the farming industry. Economists had expected  50,000 jobs. More than double actually showed up.  

[08:33] Now, here's where the problem is. the Fed, the  ones that determine what to do with the monetary   supply in order to prevent crashes and panic and  just red all over the streets, they decided that  

[08:46] it's a good idea to cut interest rates because  they said that the labor market isn't tight enough   to sustain the inflation that we're having.  And because that report was delayed 43 days,   they didn't have the necessary information that  they needed. So, they already said that they were  

[09:01] going to do rate cuts and then they got the  non-farm payroll information of 120,000 new   jobs. Now, here's the mixed signals. Fed wants  to cut rates. Jobs look good because there's   indecision in the markets. Most major investors,  financial institutions, and banks are like, "Cool,  

[09:18] there's indecision. Let's GTFO." And so, that's  why there's this massive sell-off happening right   now. People don't like surprises. Banks don't  like surprises. So with the uncertainty comes   a monstrous sell-off and that's what leads to the  domino effect. The massive sell-off shows massive  

[09:34] red candles. Then the news starts reporting on  it. The general public starts seeing these crazy   downturns in the market. They start panicking.  They start selling off. And it just becomes this   cascading selloff that's nonstop red. And when  the waters are murky with blood, who comes out  

[09:50] to take advantage of it? those same banks, same  financial institutions, same hedge funds that have   an incredible amount of liquidity because they  sold at the top of the market while the general  

[10:03] populations and consumers get out mid crash.  The big boys wait for all the turmoil to stop,   all the panic and massive volatility and massive  volume spikes to stop and slow down. and they're  

[10:17] waiting at the bottom of the market, the bottom  of the crash with billions of dollars of liquid   assets that they can just buy up for way cheap.  And this isn't the end of it. This is just the  

[10:29] beginning. Once everybody starts freaking out, we  will see a monstrous sell-off over the next 100   to 200 days. And once people start saying that  we're in a great depression and we're expecting  

[10:42] the next great recession, when fear and panic  and mayhem is at an all-time high, that's when   you know the market bottom is in effect. That's  when you should be deploying your saved capital,  

[10:56] investing in the markets like the big boys  do to ride the swing back up because it will   rebound eventually. I don't know when it's going  to happen, but it will. This is not one of those   flash crashes that you normally see with big news  events like the COVID pandemic. This is going  

[11:11] to be a slow cascading downturn over the next  year. 2026 is going to suck for everyone's 401k,   their retirement funds. I feel sorry for anybody  that's coming into retirement in the next year or  

[11:25] two. I'm hoping that you guys took my advice  in January. And if not, I'm hoping that you   took my advice in June and July. If not, right now  we're in the middle of the [ __ ] storm. If you've  

[11:37] gotten in at around this price on any of the  assets that you have, you might just be smarter   to ride the wave out and then buy some more when  everybody's fear, panic, blood in the streets type  

[11:51] of situation. But right now to get out, I'd say  it's a little bit too late. You know, Bitcoin   went from $127,000 to $82,000. you kind of are in  the middle of the of the downturn and it's kind of  

[12:06] easy to see where price is going to go based on  volume that's happened in the past. There's this   indicator called the volume profile and on the  daily time frame the most volume was right here.  

[12:19] But if we go out to a higher time frame like the  weekly chart, the highest volume was down here at   19,000. So over the next 200 days we might return  down to this area. This is the area. This is like  

[12:33] a fat buy zone for me. I will dump I will take  a second mortgage on my house to buy in at this   area. Ethereum's price target is around 1,500.  The German 40, basically the equivalent of the  

[12:46] US indices in Europe. It's probably going to drop  down to 14. Maybe it might recover at 16. The NAS   will probably drop down to 20. US30 is probably  going to take a hit to like the 35 36 area. Gold  

[13:01] has been overhyped forever. So, a return down to  the mid 3000s is more than likely. And Nvidia and   all these tech stocks, I think they might hit the  biggest dump. And that's what I'm afraid of is  

[13:15] that if Nvidia drops down to the point of control  on the weekly time frame, which is around $20,   that's really going to suck because the entire US  market is propped up on these seven companies. So  

[13:29] if Nvidia falls, Oracle falls, Amazon falls,  Facebook falls, X falls, it all falls. By X,   I mean like Tesla and Elon Musk and everything  that he touches. 90% of the value of US indices  

[13:45] is in these seven companies. And if they all tank,  oh boy, oh boy. I'm liquid. I'm happy. I've been   liquid since June. Anyway, this is I know it's  a doom and gloom type of scenario, but that's  

[14:01] basically what everything's showing. I just hope  that the domino cascading downward effect isn't as   harsh or it's more slowgoing because if it starts  ramping up, it's not going to be pretty. A lot of  

[14:14] people are going to lose jobs because inflation  is causing manufacturers and job creators to   lay off their employees. Those employees get  laid off. Then defaults on loans increase.  

[14:28] The banking sector takes a hit. It's so bad. it  when it starts cascading, it's so bad, guys. So,   I have my fingers crossed that, you know, people  aren't hurting after all this is over. Uh,  

[14:42] prepare for the worst and hope for the best type  of scenario. You should be not spending money on   luxury cars. You should not be, you know, taking  trips to the mall dives or spending ridiculous  

[14:55] amounts of money. You should be preparing  for possible job losses, slowed economy,   have a safety net. And this is what safety nets  are for is for when things get bad, you have a  

[15:08] soft landing. Anyway, uh if you guys enjoyed this  video, drop a like. Let me know your thoughts or   what you anticipate in the comment section. Can't  wait to read them. I really I'm excited to see   what you guys have to say about this. Enjoy  your day. Hopefully it doesn't get any worse.