• Current read is 33 on the fear greed index vs 27 last week.

• Market has some short term fear baked in.

• Volatility from Trump/China, labor market weakening, Q3 earnings, & inflation is spooking investors.

• Keep in mind! The market climbs a wall of worry… Always.

• I do feel this is over blown and the market is closer to 60 on this scale.

• Market Fearful = Potential Opportunity/Deals. (consider buy calls/sell puts/buy shares)

• Market Greedy = Potential Over Valuation. (consider buy puts/sell calls/sell shares)

• I like to be bullish when there is extreme fear

• I like to be bearish when extreme greed.

• Opportunity is out there, just gotta find it!

• 30 year fixed mortgage rate falls to 6.07% Today, vs 6.08% last Sunday.

• 10 year treasury bond yield falls to 4.00% Today, vs 4.01% last Sunday.

• 2 year treasury bond yield climbs to 3.48% Today, vs 3.46% last Sunday.

• Interest rates didn't do much this week.

• We will see what happens this week with the fed & interest rate cuts.

• As I always say, interest rates are gravity!

• Remember, as interest rates/bond yields DECREASE, stocks become MORE attractive because bond yields go DOWN which makes the risk free bond look LESS attractive.

What’s up everyone!
Hope you’re having a great weekend & did something productive!
Here is what we got going on right now.

Let’s Break It Down:

• Market’s been RIPPING higher for 6 months straight.

• Lot’s of newly minted geniuses out there!!!

• I’m sure you are likely one of them lol!

• But as I always say, everyone is a genius in a bull market.

• My main Schwab account is up about 64% in the last 6 months…

• Is this sustainable forever? Negative!

• Could I have done better than 64%? Of course!

• I prob coulda did 500% if I wanted to.

• But think about how much risk I would have to take on to do that.

• I made 64% in a VERY VERY low risk way.

• I sleep good at night.

• I will NOT be wiped out when the next crash comes.

• But most of the herd will.

• While we all love to make money, we gotta be realistic & we gotta keep our emotions in check.

• Now is NOT the time to over leverage and go crazy with margin.

• The overall market is roughly 15–20% overvalued right now so don’t be surprised if the volatility continues and the market takes some time for earnings to catch up.

• I am currently positioned to win either way!

• The key thing to look for on X to know who’s going to be wiped out is this: Look for the ppl that send out their account screenshots every day. Take note of the red days. If the SP500 falls 1% and they fell 3% or more, thats how you know they have A LOT of leverage & options.

• We could assume that if the market falls 15%, they will fall 45% ish and likely get a call from their broker forcing them to liquidate the positions or send money to the account to support the trades.

• Happens every time and humans just do not learn.

• But don’t get me wrong, options are great, but you gotta do it right!

• Ok let hit on Tesla super quick cause they just reported earnings.

• Tesla’s earnings were decent, but this is cause of the $7,500 tax credit ending in Q3.

• So the herd FOMOed in to get their cars before it ended.

• I expect Q4 to be bad since everyone has their cars now.

• I do have about 450 shares at a basis of about $149/share, but I realize this is a long game with the company and it’s going to be VERY bumpy.

• Valuation is rich, but everyone gotta understand Tesla is not being priced in as an auto company.

• It’s all about RoboTaxi & Optimus.

• If they execute, the company will do well.

• If they don’t, the company will get destroyed.

• Time will tell but you gotta be patient.

• We did get some inflation data this week too.

• CPI came in at 3.0% YoY, slightly under expectations.

• Fed still on track for a 25bps cut next week and likely another 25bps before year end.

• Powell may bring back “data-dependent” talk, which could spook markets short term cause we are above the 2% target and trending higher.

• But overall, Inflation isn’t the main threat anymore in my opinion, it’s the labor market weakness.

• I know it’s the “cool” thing to say, but I do think it’s right.

• Ai is a MAJOR deflationary factor & this is causing CEOs to not need to hire as many employees.

• You might be seeing this in your jobs right now.

• So in order to not be “too late Powell” They will be cutting rates this upcoming week to they and save the labor market /economy.

• Cause if we get a recession right now, it’s going to be hard to dig our way out of it on the labor market front cause there just simply is not that many new nob postings.

• We will see what happens, but as always, I am prepared for all situations!

• Side note, Quantum stocks spiked 15% ish on rumors of U.S. investment but I’m not touching them since I think they are mostly all garbage.

• Government involvement doesn’t mean good investment… think of the Post Office.

• Trump–Xi meeting is Oct 30th, just 48 hours before tariffs go live.

• Expect volatility but it’s likely something positive comes out of it.

• So overall, the market ran up a lot and honestly the market does not seem to care about anything…

• This is when we see the herd going crazy & getting euphoric.

• That’s a time where I start to get very cautious.

• There still are some diamonds in the rough out there for bullish plays, but it’s for sure harder right now since everything went up so much.

• As always, keep ratios in check

• Keep emotions in check

• Know what you own and why

• Have a plan for a 40% market crash at all times

• If you can’t survive that, you are guaranteed to be reset at zero at some point in the future.

• Don’t forget! Masterclass is on Tuesday. I think you will get A LOT of value if you come. Click the button at the top to RSVP.

I’ll TEACH YOU EXACTLY HOW TO SCALE TO MILLIONS WITH STOCKS & OPTIONS

Join the 1,000+ other people just like you that went through this training and completely changed how they look at stocks & options forever.