All right guys, two boy trey from trace trades coming back again for another youtube. Video i'd like to prove this by saying, i'm gon na find five financial advice. What you got ta do right uh. Today the market is in a tough, tough pinch spy.

The s p 500 etf, which is made up of the top 500ish companies and the u.s stock market, had a pretty tough day. It was down about 1.11 and that's coming off of it being green early in the day uh, and i'm going to talk about this. As we go on, but there's a few topics, i'd like to discuss the spy, the broad market and amc, how are these things all tied together right? I'm gon na give you the details on why. I think this is important uh, but we're going to discuss why the market's in the situation that it's in uh the desire for people to make money right.

How? How do you manage long positions while you're in a bearish trending market, i'd like to discuss sort of the stakes that we have right now right because there's real money on the line and uh? The amc at some extent to some extent obviously reflects the broad market. Uh and perhaps some sort of solution to the problems that we're facing right now right so starting off here well stocks die. This is obviously an over exaggeration. I said that just kind of out of uh out of a chuckle but uh the spy and iwm are the two etfs i'd like to talk about today.

The spy broke two really major levels of support. This first white line was the first oh line. This red line was the secondary, oh line, and it absolutely knife through this, this white box right here is a gap, fill a gap, value essentially meaning the pre-market and after hours, when you see a gap in price action, movement to the up or down side, you Get a gap and typically those end up getting filled. You can usually expect a bounce from a gap fill you do not get that and that's actually a little bit alarming for the spy which could indicate some more downside.

You also look at iwm right this uh. This is having some really solid selling pressure right now, coming off of very long period of consolidation. Since february of 2021, iwm has been rocking back and forth back and forth between this channel sideways for a very long time, and now we are, we are faced with a hard truth, which is that the market is turning a little bit bearish. You look at iwm.

The current short interest of this etf is 42, which is very high. You've seen it higher before right. It's been as high as uh 55 estimated short interest of free flow. This is based off of 85 percent of the exchange reported data uh, but this is still astronomical.

This is an etf. This is made up of lots and lots and lots of companies which brings me to a very important point. Amc is directly tied with iwm. It was added to this etf because it has become a mid-cap company, the market capitalization or in other words, how much money is uh comprised of amc based on all of the shares combined, it's currently 9.28 billion dollars.

This makes it about a mid cap company. A lot of people are excited about this right. They thought to themselves this could at least back in the day when it happened, maybe not now right uh, but a lot of people were excited about it. Thinking this could move the stock up right.

Maybe this will make it move with other etfs and stuff, but it doesn't help when the etf is turning bearish or you may be entering into a short-term bearish market which brings us to a reality right. I've talked about this before i'll, say it again. Amc in the short term is, is bearish right. There's there's a real possibility that this stock touches down to this uh.

This gap fill point at this white line, which is about 16 and 55 cents. That's painful right and i've said this always always always uh. Take care of yourself don't lose money. You can't afford to lose.

Keep the roof over your head feed your family, do what you got to do right, but this is all because of a couple different factors from an economic perspective, not from i'm not not, including the technical perspective. If you want to look at why the broad market is doing, this, you've got massive inflation from the the the trillions of dollars that was printed by the fed. You've got omnicron which is being uh, i wouldn't quite say fear-mongered right, but it's it's definitely hotly talked about. It affects the way that the market trades rates are definitely going to be going up right, which is going to increase the cost to borrow money, and you had a fed squeeze.

This is actually not information that i found myself. I want to give credit where credit's due there's a really smart person in my discord named emily, who studied economics and uh, put me on to this and it's i found this article right so july, 5th of 2020. You can see that the u.s federal reserve was ready to buy stocks. Yes, really, this was uh kind of facilitated by blackrock, they managed to supervise it, whatever they bought a lot of stocks, and if you combine uh sort of a couple, different factors which is the fed buying stocks along with inflation.

You have this sort of goofy situation where the market was squeezed by the federal reserve. You saw gains like you've, never seen before on the spy look at the yearly candle and what do you see absolutely nasty? You had 27 returns on the spy and you're supposed to get seven eight percent a year right. Where did that money come from? Well, it came from printed cash and it came from the fed buying stocks and there's ramifications of these sort of things, and you are sort of witnessing these in real time right now, when you look at the spy when you look at iwm - and that brings me To how does this relate to amc, trey trey? Why do i care? Why does any of this stuff matter? Well, because if you take a heavily manipulated, a corrupted stock, you take a you. Take a game where real people's money are on the line where, where it's in some way, shape or form rigged - and you apply some bearish pressure - that's going to affect the way that amc trades and we can see that right now.

We've talked about negative beta before and i think there was a point in which amc had a very strong negative beta case. You look back in january to june when this was not really a mid-cap company. There was not a lot of dollars flowing into this thing. It didn't the inverse of what the broad market did, but, regardless of what the data says, regardless of what uh mainstream media says, we have to look at the chart and take it from an objective standpoint.

The objective standpoint is that iwm, the last three days has played right red red red. You look at amc, which is a big piece of iwm. It's a contributing security within that etf, the russell 2000, which is the top 2 000 mid cap companies within the us stock market three red days in a row. It reflects the movements of iwm and i'd actually argue it's holding up a little bit better than the broad market itself.

We had a 1.36 percent red day short interest on amc still in that 19-inch percent range. But it's it's very obvious that negative beta is not playing as large of a role in this stock right. Did it in the past, of course. Did i talk about it in the past, of course? So why does this all matter right? We've talked about a lot of portfolios, probably being read: we've talked about obstacles that we're facing right now: inflation omnicron rates fed squeezing and sort of easing up trying to tighten down the economy, so they can, they can get things back to a normal pace and how That affects amc.

So what can you do to protect yourself right? First and foremost, as i mentioned before, do what you got to do. Please do not lose money that you can't afford to lose. That's where people are going to run into problems right margin is, is very risky, be careful with margin. Uh keep the roof over your head to carry families.

Please please, please, please, please, please right! You can actually counteract these things. Hedging is a way that you essentially are trying to negate a long position that may be turning red in a bearish condition or, if you're short right, which we're not short here. So that's not very important if you're short, you you, hedge, with a long position, so being a bull in a bear market right. What do you do? Well, if you're entering sort of a bearish trend - as you can see here with the spy, is a very likely possibility.

Uh, you have to be able to hedge against those long positions while you're waiting. Unless you want to watch your portfolio just bleed now. What does that mean? Well, there's a lot of different trading strategies out there and, if you'd like to see uh sort of a video talking about that, i can definitely do it. Let me know in the comment section down below uh, but you can play covered calls you can play uh cash secured puts.

You can do a lot of different things. You can trade long calls along puts whatever you want to do right, but you have to be able to take advantage of the bearish market, an example right. The spy today you could have traded uh long puts, which is essentially a buy, to open, sell to close position in order to hedge against the downside that you saw on amc. This is the one of the easiest sort of downside.

Long put plays that you could have possibly had it had a neckline break right here right. You look at this neckline, this overarching, u uh and once it broke beneath this sort of pre-market low, it was really game over. I mean the spy just absolutely crushed today. It it went to rock bottom bikini, rock bottom man and uh that's an opportunity to hedge against a long position such as amc.

I want you guys to take care of yourselves right and, ultimately, what that means sometimes is that you need to protect your long investment which, in the short term, may look bad right. But in the long term it's going to be worth money. And if you want to negate the bleeding effect that you're, seeing in the short term, you have to think outside the box, because this is an uncontrollable factor, we can't control what the market's doing right. Now we can't control amc stock price, but what we can control is our actions and our education and the things that we do to negate the uncontrollable factors and that's what i'm ultimately trying to bring to the light right now.

Right is what can you do in the short term, and this is much different than chasing squeeze plays. Please do not do not chase squeeze plays, because that's how you cause a distraction for yourself. Don't distract yourself, that's different if you're doing homework, you know what you're doing you have a game plan, an entry plan, an exit plan for all of your different trades that you want to take right. That's just fine, but just have a plan.

I don't want you guys, i don't want to see people suffer, i i don't want people to uh to be in a bad spot. While we wait, because that's ultimately what it is right now, an uncontrollable factor that we are facing is that the market, the broad market, the spy iwm is, is an incoming tidal wave. There's been two years worth of really decisions made by the fed made by the economy made by our politicians, our congressmen, and we have to deal with the ramifications right now. Uh - and i just want you guys to have a game plan for when that tsunami wave hits the broad market because it could, it could affect amc right.

I don't know if it will. I can't tell you anything with certainty, because i've never faced a bear market. I'm a 24 year old kid right, but what i will tell you is that from what i can see from the way that charts interact with charts it's possible and i just want you guys to protect yourself. So that's what i've got for this video, my friends.

Hopefully pulled some value from that go, get yourself a burger, go, get yourself a coffee or a tea, i'm not a tea guy. I like coffee and uh and diet coke that coke's decent too so i'll catch you on the next one, much lovely taps, as always: peace.