What's up, oh man kachiga! What is up everybody welcome to trace trades. We have technical analysis on different stocks in the stock market, as well as potential buy, hold or sell opinions on these given stocks. I, like your purpose by saying that i'm not a financial advisor nor expert so take what i say: the green assault. Let's get into the video today my friends we're giving you an update on the current market correction, not crash correction, that is taking place uh with nasdaq and a bunch of different obvious markets here, and we're also going to talk about sos, which is a stock that I have picked up as a swing trade, definitely not as a long-term long-term investment, but as a swing trading opportunity, because i did take this on one of my live streams earlier today, and i do want to talk about that.

But the main topic that i want to talk about, if you want to check out the sos segment that is going to be at the end of the video it'll, be time stamp for you. If you like to do so, i want to talk about the market correction and what i see as potential here in regards to what's happening, based on a technical setup alone, so we're going to try to save as much time as we possibly can. Uh, obviously take it with a grain of salt. Nobody can predict the future right, but this is an opportunity for us to buy into our long-term stocks for a great price.

I do think down the road. You are likely to see a market crash happen right. They inevitably do happen, but i don't think it is. It is happening now right and i don't think that arkhamvest does either neither does kathy wood right.

I suppose that's one of the same, but let's just get into the video we've got quite a bit to talk about here. So what are we seeing right in terms of you know, uh trends. What have we seen in terms of market corrections? This is what i'm basing my my thought process off of now. If you look at the last little correction or crash that we had outside of you, know the the colbit era back in march, when everything took a huge, huge, take uh, we can actually back this up and look at.

You know a macroscopic scale of this crash, which was pretty severe right. We retraced about 78.6 percent that doesn't crash right. We're seeing right now is more of a correction right. We saw correction happen back here in uh.

What would have been september - and you know, november, and we're seeing something pretty similar now? Let me clear my throat, quick all right so back to it. What did we see? Well, we saw the reach race. What would have been about a little less than 38.2 percent? In fact, if we take it, you know, and just look at this with a grain of salt that would come out to about 30 or so now. If you were to take that same sort of premise - and you can see that already have it drawn up here - and you retrace somewhere between 23.6 and 38, what would you have right? Well worst case scenario: we're looking at a 50 retracement here, a 38 percent retracement here and a 23 retracement.

Here we already broke the 38. We already broke the 23. Now we're looking at about 50 right that 50 retracement, which is what we have a line drawn up on here now. Why do i have that secondary line drawn up for a worst case scenario? Obviously, if we had a worst case scenario, retracement that would come out to about what would be you know.

Actually, as i was i i didn't quite give you a good number here. Let me just drop this down a hair, all right. What we're looking at would be about a 38.2 retracement right here and then a 50 retracement right here, so anything over 50 shows a lot of strength in a stock right. So that's a 38.2 percent retracement at twelve thousand eight hundred twenty one dollars a fifty percent retracement would be about twelve thousand five hundred.

Ninety eight. If you check out my previous video, i talk about this in more depth, but with with this retracement that we saw, we saw the nasdaq pull back a pretty fair amount right. That was about uh. What would have been about four and a half five percent total and that dropped a lot of stocks right some of the stocks that we've been rocking for a while? You know 15.

20. 25. So if you were to do some quick math, let's just say that it drops another two percent, which is what you're probably looking at about right here and where i'm getting this number from, is if we just drop a little bit of a comparison, this red candle. Remember off the top of my head was a four percent drop or three and a half percent drop on the nasdaq, so if you're gon na take half of that right, what does that come out to here? We're just gon na measure up to make sure that's about half.

So, if you're gon na take this exact line up here, that's about half which would come out to about one point: seven: five percent, two percent max. If you were to cut the, they know the losses on the other half of things right since we dropped about. You know ten fifteen percent on that given day that would be about five percent on all of our investments right. So i think at the lowest end here we're looking at a drop down to about twelve thousand five hundred.

Ninety eight dollars worst case scenario right. This might not even come to fruition. Market corrections are not long lasting. They typically last between one week to two weeks.

Maybe a month at best right, if you look right here, these are one-day candles. So you can see this pullback for one two, three, four, five, six, seven, eight nine! Ten eleven twelve days before we start going green again, we had a little micro pullback, another little micro correction. We could see that same thing happen here right now, there's nothing guaranteed you're gon na be looking for a break above this level of resistance, which will end up popping. We saw that here right breaking over, that neckline was what we're watching for so we're gon na watch another break over the neckline, which is gon na, be right around here at about thirteen thousand seven hundred seventy seven dollars.

That's gon na tell us a lot about whether or not we're going back into our bullet trajectory or whether we might get a second. You know minor correction or dip opportunity which i will present to you guys right so that you can know hey. Maybe i should take a little bit of profits off the table and reinvest in my long-term stocks after it pulls back right. We can talk about that afterwards, but, as it sits right now we're looking at maybe this 38.2 percent retracement was the bottom, and why do i say that right? Well, if we look at this, we can see that there's levels of supports and resistance that have drawn up right.

We have this ascending level of support. We broke it with a candle that closed and opened below that descending level of support. That's what i watch for to signify on a daily candle that we have in fact broken a level of support or resistance. So here we have broken out of that that upward trend right.

We have broken out of that ascending level channel. We began a decent level of resistance. What do we have here if you draw up a descending level of resistance? You've got a green candle here today that opened and closed above that descending level of resistance, which means we've broken out of that downward moving channel. That now signifies we've begun an upward moving channel, which i have drawn here right.

So if we were to connect, you know all the touch points that we have. This is a pretty harsh you're, not gon na get three percent gains. I think that's what we had today. We had almost a three percent gain on the nasdaq you're, not gon na get that every single day right.

It's not always going to happen, so i don't expect to keep up with this trajectory. In fact, i would expect tomorrow, maybe to be a little bit flat. I wouldn't expect all these stocks to be up 20. 25.

15. I mean, if you look at all the stocks we had covered here. A lot of them are up a lot: ooh annuals up 14 and a half percent in the after hours. Jesus christ, that's insane that is real gnarly, but anyways.

You guys get my point. I would anticipate that you're going to see a test of this descending level of support, and until we break that right, we we retest this level of resistance up here. I would say that we are done with this correction right and how are we gon na know? If we're not done, i will keep updating as much as i can, but you're gon na see that we break below this uh. This ascending level of support with a candle that closes and opens both right, opens and closes below this level of support.

What would that look like right? I'll drop a quick picture, let's say that tomorrow, for whatever reason we've got a disgusting gap down, we opened the pre-market, just bad bad red, and it opens right here at about thirteen thousand. Seventy dollars closes here at about twelve thousand eight hundred and seventy one dollars to me. That's going to signify that we're not done with the correction yet right, but as we're sitting now, we've got one candle that open and closed with a lot of strong buying pressure. It's i mean this is an engulfing candlestick pattern and you can actually go like this and you can draw up this this gap right here right.

You could fill this gap right here. Just assume that's an engulfing candlestick pattern based on that gap up and say, hey, you know, based on what we're seeing right now, that shows a lot of strong buying pressure. Now gulping candlestick pattern usually is a sign of an upcoming reversal, which in this case, would be a bullish reversal, which we do have right so based on what we're seeing right now right, we had a 38.2 percent retracement 50 retracement worst case scenario, be looking at 12. 598: where am i getting that right? So if we look at some other some other trends, some other minor corrections that we've had.

Let's just take a peek at right here, so we can drop a quick fibonacci retracement from the floor to the to the to the roof, and you see that we've got a picture-perfect 50 retracement correction. So if we have that exact same scenario play out, you would have a 50 retracement right here. This 38.2 percent retracement is strong. That shows you a lot of strength in the buyers, we're getting some people to step back into this, and that's to me in the case that we're not going to see a crash right, we're going to see a crash.

I think you'd see a lot worse selling pressure than this. You know it does kind of look similar to this setup right here, but there's there's a different little set up here right. So if we just look at this downward trend, we look at this downtrend line. We got that opening close.

You know uh above this descending level of resistance, but we didn't quite break above that previous level of ascending support, which is now acting as resistance right. We didn't get a candle to open and close above that ascending level of support. So now fast forwarding to the future right where we are right now, that's you're gon na be watching for you're gon na be watching for a push and a retest of that ascending level of support, which is then gon na act as a level of resistance right. So we're gon na be watching for that.

I don't think you're gon na see you know a major correction or rejection until it tests that essential resistance right. So i would anticipate that you're gon na see a couple more. You know slow inch ups until we test that out or we break above or below. I should say this ascending level of support, so we're gon na have this little squeeze down price action.

If we just extend these two trend lines here a little bit, i would anticipate sometime in the next one or two days. You're gon na see it test. You're gon na see a test. It's either gon na break below this uh descending level of support, or it's going to break above this ascending level of resistance, this little pen and triangle formation here right and if it breaks above that's the end of the correction.

That's the end, we're moving forward unless it's a false break, but if we can open and close above this either of these trend lines right over the next couple of days, that would be the end of the market correction. If we don't worst case scenario, i will, i will tell you guys, i will say hey: this is what we're seeing you guys can do this too. This is super easy, there's, a reason i'm walking it through step by step is because this is not rocket. Science right people try to make these market corrections and market crashes the biggest deal in the world, but it's really not it's really not right.

This just gives us an opportunity for the long-term stocks to to double down on the stocks that we love right. The ones that we know are going to do well over the future, buy them at a discount right and reassess the stocks that maybe we shouldn't have in our portfolio right. I'm a strong, strong believer in innovation right and investing in technology in the future and disruptor plays, which is why i'm in you know sos i'm going to talk about not so much but microvision exxon, sensonics, whammy, amc, whatever that's a recovery play, but you get the Picture here is: maybe it's the time to reassess. If maybe your portfolio might not recover from this market correction uh.

I am going to stay with technology and innovation right, that's where i'm going moving forward, because that's where i think the market is going moving forward, but that's uh! That's what i wanted to update you guys on in terms of where the market is sitting right. Now we have broken out of this downward channel right. We've begun an ascending level of support. We're gon na have a re-test likely of this previous ascending level of support, which will now act as resistance and if it doesn't break that, i would anticipate we're gon na see a re-test of this 38.2 percent retracement.

If we break that we've got this 50 retracement has a level of support that we will likely test. Then i will update you day by day, as i see that there have been changes to how the market is reacting, but as we're sitting right now, we've begun a nice little channel. Here we begin to move very, very cleanly, so that's we're gon na be watching for now we're not quite out of the we're not quite out of the hay right, not quite out of the weeds, but this is a step in the right direction and we're gon Na get ready to see a re-test of this ascending level of resistance. Next now i'm gon na talk about sos limited and i've been talking about.

You know. I've been asked about this quite a bit because i did get blasted for pumping zeken, which i didn't. Do you can check out that video? If you want to uh it's it's uh, my we need to talk video, which i just posted here recently, but sos is another company which has been kind of flagged for fraudulent and they put out a news article this morning, which really started pushing the price action. Essentially, man look at all these news articles that came out sos limited response to misleading short and distort allegations.

They responded to that. You saw a nice amount of buying pressure. Come from that right. They ran crazy.

I think they're up 40. Today, you can see they went from 4.77 up to what would have been. You know about 677 at a height of 705.. If you look at them on a one-month chart, you can see that they touched 16.46.

So for me, i don't quite feel comfortable enough saying that this is a long-term play. Yet i would err on the side of caution. I always try to hear on the side of caution and assume the worst hope for the best right so until improved. Otherwise, i'm gon na err on the side of caution and treat this as a swing trade opportunity and ride the sentiment.

The trader sentiment right because, in the short term, traders and investors play based off of emotions, you want to read psychology of charts. The psychology here is very positive. It's bullish right. We see a huge reversal.

If we look at this on the one month's chart, what are we going to see right? Well, if we look at something one more chart, you can see, we had a crazy dip, followed by a huge engulfing, candlestick pattern. You can see this is bottomed out. This is a sign of an upcoming reversal. We've got the 15 mm, that's starting to hook in towards the 200 ema right now.

The rsi is starting to build up momentum. It's starting to consolidate a little bit here now and when i see a stock runs up this much and it doesn't pull back immediately right. It consolidates. Instead that shows me that a lot of buyers are still holding their positions.

Look at all the green volume that came into sos compared to the red volume, not a ton of red volume coming into this right. That is significant thing to pay attention to. So what do i want to show you guys right now? I want to show you this sos short interest and i'm just going to show you a quick peek at what this is. Looking like we're going to pull this off of fintel so fintel, we have 40.9 million total short volume coming in uh.

What would have been yesterday, not yesterday but friday, compared to the overall market volume, 136 million total shares 30 of the total short volume ratio. Short shares, availability, 3.1 million right. What is the borrow fee rate 37.56 percent very, very high. Now? Why does this matter? I want to show you the ortex data as well, because i think there is short-term potential for a squeeze.

I think that a lot of people saw sos, get dinged right and, as is probably the right thing to do, for most investors or traders. If a stock is getting dinged, you know if you want to ride on the way down, that's a way to make money right. You can short a stock. Well, i do think there are likely a lot of people are still holding their position in uh in sos and riding this as a short position which would then cause you guessed it the opportunity for a squeeze.

I don't know why this isn't loading here, i'm just gon na see. If i can pull this up again, get a little better luck. So i'm gon na pull up or text. I'm gon na take a quick peek at the utilization rate.

So give me one sec. Dude, just as i suspected that's disgusting, 100 percent utilization - guys, that's nasty, it even has a higher cost. To borrow right here has 48.7 percent compared to fintel. So in the short term, guys sos has the nastiest opportunity for a squeeze possible.

You know what i uh. I don't think i would. I would hold this stock for a long-term investment at the time being, but you know what down the road. I think it's got some pretty solid potential in the after hours here it is starting a little bit of a run up here.

Up to about six dollars and 80 cents up about 1.2 percent - and i plan on playing this as a swing trading opportunity, that's my two cents! That's how i plan on playing it off right now, right down the road i might uh. You know change my mind, but based on what i'm seeing right now, based on the information, i know please please please double down. Do your own research, your dd, you might come to a different conclusion than i did, but just based on what i know, i'm gon na earn the side of caution place as a swing trade. I will hold this for one day two days, maybe three days you know i did hold through the regular day today my dollar cost average on this is six dollars and seventy one cents and uh i will be looking for you know.

20 30 gain walk away. Very happy if it ends up running up to 15 bucks i'll, be very happy to take my profits at that point too, but you got to take what's given you on the table, which is an opportunity for a learning point right, so we can't keep a specific Price target in our heads at all times, because what are you gon na do if the stock doesn't hit that price target? What if your price target is 10 bucks and it hits 980.? Are you really not going to take the gains? You know you got to take. You got to take what the table's giving you right. So an example for me would be my play with sypr.

I played sypr as a swing trade opportunity. I was looking if we just you know, come back to the stock. I play that off in the morning as uh as a pretty solid. You know scalping opportunity and i'm going to show you the exact day that i did this we'll come back five days here.

It was here right. I bought it at about uh. What would have been five dollars and some change and it hit 789 and i ended up selling for about 650 or something, and you got to take what the profits give you on the table right if i was, if i had eight bucks. In my mind, nine bucks in my mind i wanted to lock in those profits you got to take what the game is giving you so with sos.

Whatever ends up running to you, guys, you guys pull the trigger right. You decide when is the right time to get out of the play, i'm not holding this for the long term. You guys need to make the decisions for yourself, but i do think there's a solid swing trade opportunity here and please don't invest in this or trade this if you're not comfortable with swing trading at all right, because i may not make a follow-up video to this Right, it's gon na be up to you guys to decide when to pull the trigger, because uh, based on the time that i've got the sustainability of my channel, i'm not always gon na, be able to update so just to be completely transparent. I'm playing this as a swing trade, i'm not holding this for the long term.

If i change my mind, i will decide to tell you guys i always always will stay transparent i'll, let you know what i'm rocking with, but for now i'm playing this as a recovery plane, and i will be rocking this until i get a nice return. I'll be cashing out and reinvesting that into some of my long-term stocks, keeping some of my capital around for the swing trading opportunities that i find come available to me at that given time. So what are we looking at right now, like i said, you know a solid swing trade opportunity if you're looking for an entry point, i would watch for a retracement down to about here. This looks like a pretty solid level of support.

We're going to check this on the one month chart for extra validation uh, but in the short term you know if it continues to run this you're gon na be looking at is an entry point around 646.. My stop loss personally is gon na be 620.. That's my personal preference. You guys make your own decisions, but if it ends up breaking beneath that which i find very likely, i i'm not very likely very unlikely right, because the floor is four dollars and 21 cents with the high the ceiling 16 bucks.

So the upside here is a lot higher than the downside right, but the floor is 421. So worst case scenario here you could be down. Maybe you know 50 50 on your investment, which is bad. That's bad right, but it's a lot less.

You know downside than if you'd invested at 1646, so let's keep that in the back of your mind, i i double down on my convictions here. I think a solid entry point is gon na be around that 645. 650. Entry point we do see it end up retracing a little bit: uh solid, solid swing opportunities, and that is what i've got for the video here today.

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