Speaker 1: 0:00

Felix here and good morning to you. Pre-market from somewhere in sort of the general well, you can, you can guess from the background. I think we're meeting dates as well. I want to walk you through here what I think is the most important set of information that most people and wall street's doing something very different from what retail is doing. And once you connect the dots and once you understand the patterns, well, I think everything gets a lot brighter and a lot clearer. Because what I've learned when I was a banker and now I've been trading for myself for the last 12 years or something, it's all about connecting these pieces, and in moments like these, where the market seems to be panicking, it's really important to get your house in order and know you're doing the right thing. So my intention is to give you that. I will share my screen with you so you can see what I'm talking about here, and that is yes. First of all, what are the bears missing? Because they're missing out a big picture story. Here. I want to walk you through the NVIDIA earnings, because that's what saved our bacon yesterday and it's very, very important to understand that. I'll also put out a full, in-depth video on that, so I don't talk about 20 minutes about NVIDIA today. Then I'm going to show you what WallSuite's actually doing and hint, hint, it isn't panicking. Is that something you want to understand? You want to learn all three steps here, right three in the chat. I know that you're alive and keen to understand it, and I'll put out more videos and content like this. You traveling, so let me.

Speaker 1: 1:38

Let me show you some of the the bear stuff out. I'm gonna see this one. Us credit card loan defaults jump to the highest level. Us credit card is at the highest levels in dollar terms. Now, loan defaults compared to consumer savings are actually at pretty low rates, so you can make a chart that shows pretty much anything. And thanks for all the threes there, guys.

Speaker 1: 2:07

And one thing I learned is that when I was a hedge fund strategist, I sat in the middle of a trading floor. All these people around me, all these screens, everyone's screaming and shouting at each other. This is Matt Pitt and me and my boss. We were in charge of coming up with trading ideas and then we packaged the idea so we could convince the funds to buy that idea from us. We would make charts. I would make charts. I was the guy making charts. I'd stretch them and pull them and change the colors, and charts are incredibly forgiving, especially if you exclude half the information, like the FT is done here. So, yeah, not that important that US credit card loan defaults are jumping, to be honest with you, not that important. Now, if you are in a stock that has a very low-end income user dollar stores or something like that then this might matter to you, but for most stocks, certainly for tech this is fairly irrelevant right now.

Speaker 1: 3:02

What else we got? Well, the bears are saying this there is something called the AAII bear indicator. It's a very useful piece of data and it's that ziggedy red line here that I've got on the screen and let me get a pen and explain it to you. So, basically, it says to you how bearish, as in, how negative is the market and as, being a bit funky, does that when I travel? For some reason, negative? This man can barely write. He must be a banker. So we are at an insanely high level here, which we haven't seen since the peak of the 2021 or whenever.

Speaker 1: 3:45

That was crisis 2008,. We were there. We were there in what was that early 90s Gulf War kind of type territory. It's really really, really rare, and normally this happens when there is a global catastrophe, a global financial crisis. Everything is ending. The S&P is down 3%, on all-time highs. Guys, I mean really like relax, 3% down, that really is like the tiniest of blips on a chart. So it's kind of funny because I think we've had such a glorious run for so long now People have forgotten that these pullbacks are normal.

Speaker 1: 4:32

And we did have a pullback in August, but again, that was so long ago. People don't remember. People have about a six-week memory. Generally speaking, if your memory is longer than six weeks, you'll do tremendously well because you can beat them all to it. So why is that, then?

Speaker 1: 4:46

A bearish thing? It says bearish on the face of it, but what does it also mean? What happens every single time when we hit this all-time high? Well, what happened in? Was that Bill Clinton era, or George Bush, I right? Well, it came down afterwards, didn't it? What happened in 2008? Did the world collapse? Well, did, for some, but then came back down. Right, what happened after the covid bubble? Well, guess what? It came back down.

Speaker 1: 5:16

So the likelihood is that am I again? Indeed, that when you are at an all-time high in terms of negativeness, bearishness, that that's actually the most brilliant time in the world to buy stocks. You have to come to your own conclusion on that, but it's a good thing. I like extremes, because then we know what we're doing right. And to be panicking here when everyone's panicking is kind of like, what if everyone freaked out and everybody sold? What worse can this get? Isn't this a time where the smarter investors, the ones who've been in the market for a little bit longer, or the ones who've got a mentor or something, are actually going to start nibbling again? That's the way I'm looking at it. So what about NVIDIA then? This is the big story. We were all on the edge of our seat all night long. I was actually on a plane, so I didn't know what was going on, but it didn't really matter.

Speaker 1: 6:08

Nvidia has come in pretty impressive earnings. One fly in the ointment, only one, not that many flies, which is pretty good. They brought in 22 billion in profits. Profit margins actually up. Revenue is up 12% to almost 40 billion. Data center revenue year over year is something like what. Was it up? 100% or something? 78% of all revenues up by. So extraordinary, extraordinary growth.

Speaker 1: 6:38

And if you, this is a really nice visual. Maybe you can take a screenshot of this if you like and if you find this useful, by the way, again let me know. Just write like. I'm taking a screenshot, I'm taking notes. Just write it in the chat so I can see it and it tells you, like, what they've been building. Now, the key part to NVIDIA that most people are missing is this here it's called CUDA. That is essentially the software ecosystem that everything is built on. They started that in 2000. Isn't like an overnight success story. They've been doing this for a really, really, really long time and, yeah, it's up six times revenue in the last eight quarters, isn't it Very, very? And if you want to know a lot more detail about that, if you watch the video I'm going to put it on a little bit later, but I think this is kind of like, ultimately, what it's all about.

Speaker 1: 7:34

Net income it's a fancy word for profit and we've got 22 billion. It's an 80% increase in profit the last year 80% more profit. So why is the stock flat? Tell me that. Well, the reason it's flat is because people have songs around growth of AI. Maybe they think we've hit a bottom in sort of AI expenditure. Now Jensen says it's going to go up another 100 times. Compute amount that is, and I think he's probably right. But what it means is that stock market is flat. The stock price is flat, profits have gone through the roof. We've lowered our expectations. We've already baked in a lot of bad news here on nvidia, which is why the stock, I think, is looking looking pretty decent and pre-market. Here, let me show you it's up two percent, pretty good, right. Tesla also up 1.6%. Big tech is breathing a sigh of relief, with the exception of CRM, and we get onto that in a second and it's looking a lot better today.

Speaker 1: 8:36

Now, this is what most companies look like, and let me just for a second, let me just go back and put these next to each other so you can see what the extraordinary difference is between these. Same type of chart, very pretty way of displaying it. By the way, whoever makes these is very clever. And what have you got? Well, the green thing is the profit thing. That's what we ultimately care about. Look how fat that is for Nvidia 56% net profit margin. That's real profit.

Speaker 1: 9:12

What about Salesforce? Now? Salesforce is a software company. Software companies normally have much, much higher margins than hardware companies, which is what Nvidia is, because they've got to make shit, they've got to ship it around the world, they've got to have inventory. Some of that will break all that kind of stuff. If you go and buy a Salesforce license today, it'll cost them basically zero to serve you as a customer. They have a 17 17 net profit margin 17 for a software company. And then you have nvidia just one more time 56. It is an extraordinary business like we have never seen before.

Speaker 1: 9:51

Salesforce earnings, by the way, were terrible, missed on pretty much everything, always beat it up bloody. So what are you going to buy? You're going to ask yourself. Well, I offered this yesterday and I offered it for one more time because so many of you are emailing me and you're concerned about your portfolio and your money, which is fine and you should be concerned. But we can use that concern as an incentive to actually learn the rules so that next time this happens and this will happen again in the next six months, probably a dip like this you will become as a cucumber and you'll be making money and you will have set up in advance certain trades and certain setups that'll protect you, that'll help you make money. Right, that VIX trade I mentioned profits on that, but up in the other direction. Already it's making us money, and that's really the key thing here is to think a little bit ahead. Other direction already it's making us money and that's really the key thing here is to think a little bit ahead.

Speaker 1: 10:39

We're also doing one more thing which I pushed um a partner of ours to do. We have a financing partner, and I'm not a fan of debt, by the way, or consumer debt or any of that. But some of you guys are saying, hey, I'd actually love some mentoring, I'd love to talk to my mentors all investment bankers and hedge fund managers but I don't want to sell anything to pay for it. Good financial position, I've got a good income, I can pay for this easily, but I just don't want to sell stocks to now learn, because it's a really bad time to sell stocks right now. A lot of people are thinking that and that's a good, good, good thing. So what we're actually doing is we have a, a, a way that you can actually pay nothing up front and you can fangirl it out with potentially, potentially zero interest.

Speaker 1: 11:21

Depends a little bit on your credit score. Your credit score, I think, is about 650 or better. Something like that is possible. So, again, you can discuss that with my guys if you like. I don't really get involved in that sort of thing. I focus on on education and delivering value for you guys. Um so, but how do you, how do you talk to us? You go to phoenixrentalockcom and you book an appointment completely free and you can chat with us for like 45 minutes and ask us all the questions you wanted to ask, everything you wanted to know about what we do and how we do and our mentors and our system and all that. And I think if you do that, a, you will no longer think about whether this is something you should be doing, so your mind will be clearer and that's always it. And b you will be in a position to really benefit from this the next time this happens, because that's how predictable the markets are. Once you understand the patterns, it's tremendous. So go, go, book a, book yourself a call so that it's completely risk-free. We don't push you, we don't have, so we don't do any of that. It's not my style. We just give you value if you want it and if you don't, that's also cool. We'll give you some free resources on top just to keep you motivated and encouraged and help you find the thing that you actually want to find.

Speaker 1: 12:27

Now. This is another chart that I just saw and I thought I'd share this. Dnn is a fair ingredient index for stocks, right. There's also one for crypto, and as crypto is getting bigger and bigger and more and more retail investors own crypto. Crypto goes down. People feel poorer, right, they panic, and they do well. They make decisions that are maybe not ideal because they're doing it in a moment of stress. But how fearful can you get in crypto? Well, right now, the chart's a little pale. We are down here, which means very, very, very fearful, right, lots of fear. And have we ever been lower? Well, very briefly, in 2022 and in 2019. Very briefly, we are basically at the bottom end of the barrel for crypto as well, which is pretty good. You guys are talking about ArtShop. We'll get to that in a second as well, because that's looking quite interesting, isn't it? It must be rebounding quite nicely. So, again, when everyone is in a bad mood, what's likely? That they're going to get into a worse mood or that their mood might lighten. This is sort of the way the market works. It's a game of emotion, and it's therefore a relatively predictable pattern that once you understand how it works and you see it, you can really really benefit from it.

Speaker 1: 13:43

Now here is one for my options notes and this basically shows you that people have been buying. This is literally yesterday. People are buying a lot of call options and that's maybe for non-options people. It's a little complex, it's a buying. This is literally yesterday. People are buying a lot of call options and that's maybe for non-options people. It's a little complex, it's a bit complex for anybody, quite frankly. But basically, the black bit here says to you yesterday bought a lot of call options. A lot of people called the dip yesterday, the bottom of it. Now, who buys options? Is it you and me? Well, maybe, but the vast majority of options is bought by whom? Well, it is, of course, the lovely people on Wall Street, the institution people Please spell institution, institution or people who should be in institutions. Perhaps Options is largely institutions. So that means institutions were thinking yesterday it's a really cheap day to load up on some bullish setups. And again, that says to me this is a positive. We're kind of turning a corner here. I'm feeling quite good about that.