Well, as sure as the sky is blue as sure as Wall Street likes to steal, uh inflation in the United States is bad when our politicians make poor decisions, and that is not an exception here today. As an 8.6 year-over-year inflation growth just popped off for the month of May uh we're gon na discuss what this looks like for the state of the market house is going to affect small mid cap companies, specifically AMC and GameStop uh we're gon na keep it short. Sweden to the point guys welcome to Tracy's trades, where we can talk fast and don't skip classic by saying that I'm not a financial advisor expert, so here we say the granny assault, uh, let's get into it so uh today you can see 8.6 year-over-year inflation. Why uh? Why is this bad? Well, the Federal Reserve printed off a bunch of money.

We've talked about this a million times. A lot of people know uh, and because of that, you know you get bad inflation. The FED has to have some sort of action and follow through to combat inflation and their their sort of action towards that has been to raise rates. What does this do well by raising interest rates you uh, tighten the money.

Supply makes a little less easy to access money to borrow money at least cheaply, and this puts pressure on the economy and typically a byproduct of that is that you will see less overall spending well uh in the most simple way I can put it. I got two claims, two things that I think are going to happen number one. I think that the Federal Reserve coming off of this is going to say they have not made any progress and are likely going to reconvene to discuss uh. What is the best course of action moving forward to combat inflation? You have to ask me: I think it means that they have to be more aggressive.

Am I going to be right about that? Only time will tell. I think the FED is very flip floppy. I think that uh they make poor decisions at times and uh today could be no exception to that how they responded today May uh May improve again how sort of how useless they are. Second thing, I'd like to say is that I think there's going to be more downside for the market.

Now I'm going to keep this as simple as I can in the most short video possible uh, I watch FIB levels and especially during sort of bear markets. They seem to be respected, like you and I believe I've used the code. Flash crash example before I've used the 2008 crash before and both times you saw a bounce off of the three to a 382 up to the 236 and back down to ultimately test out the 0.5. Now I don't know if it's going to test the 0.5 yet right, but what I can say is: I think it is going to retest this 382, which is at about 380 bucks right now.

It's sort of at uh uh, a chop Zone. I'd consider this to be sort of like a demand uh and what it's doing today is getting a little bit of a bounce. If I change over the five minute coming down to about 390. uh having a tough time breaking this, however, I do think in the grand scheme of things it is going to come back down and retest this three two: six, not three, eight two! So how are you going to know if it's going to go down to lower lows? Well, if it breaks the 382, which is 379.94, I would be watching for this white circle right here, which is at about 349.16 uh, so I'm watching for this.

I really am. I think that you have ended the trap zone. You have ended sort of this uh state that we're in there is a gap film, I'm not quite sure. If it's going to fill, this Gap were ultimately coming down, uh to test that 380 again at the 382, but there is a gap up to approximately 401.60, wouldn't be surprised if coming in uh into Monday or maybe Tuesday.

Next week uh you see it test that and then continue on for lower lows, But ultimately I do think this is going to bleed off into the Spy. I do think it's going to get priced in. I don't think it's fully priced in uh and I do think that is going to affect a small and mid cap companies which does include AMC and GameStop. If you're looking at AMC today, uh what you will find is, it is read about point four uh down about 4.23, which isn't terrible.

Considering all things considered, you know uh, but I think it is going to affect them in the short term. Now, in the long term, I do think uh ten dollars is a very psychological level for Amy. I I really do. I think that it does not want to break underneath 10 bucks.

It is still holding this uptrend that you see here uh, but in the short term I think you you might see down to about 11 56. It might try and retest this small uptrend that uh has been formed over the previous couple of weeks. So uh, that's what I've got. You know, I'm not gon na waste.

Your time, I'm not gon na sit here and and make stuff up as I go. Uh inflation was bad going to affect things you're, not seeing progress like the FED wants, and that probably means there's going to be more pain ahead and that the FED might have to be more aggressive. So I've got for you guys appreciate you tuning in uh. As always, much lovely tips, peace,.