Video summary
The video features a discussion with guest Melissa, a New Yorker who shares her personal resilience after experiencing the events of 9/11, before transitioning into an educational session on navigating today's volatile markets. The host emphasizes that market movements are often dictated not by official Federal Reserve announcements but by the subsequent reactions of traders, noting that while the market dipped significantly, certain sectors showed unexpected strength. This dynamic creates opportunities for those who remain in cash and observe how different stocks respond to macroeconomic shifts, rather than simply reacting to headlines or political narratives.
Specific examples are provided to illustrate successful trading strategies involving major technology companies like Tesla, SpaceX, and Oracle. The speaker highlights the importance of identifying support levels and resistance zones, such as exiting a position in Tesla before it corrected and re-entering near $310, while also capitalizing on the consolidation phase of SpaceX since August. A key lesson drawn from these examples is that traders should focus on making money rather than taking sides personally; for instance, negative sentiment toward Elon Musk can be leveraged to short his stocks, while buying beaten-down assets like Oracle at low prices allows investors to ride their recovery once they stabilize above critical support levels.
The conversation also explores the evolution of trading instruments, particularly the rise of inverse ETFs and complex option structures that allow traders to profit from market declines or specific stock movements without owning the underlying asset. The host notes that while exchanges have introduced new products like weekly expiring options with high yields to compete with traditional strategies, the fundamental principles of trading remain unchanged over decades. This continuity suggests that whether using modern platforms or older systems, the core skill set required to identify swings and manage risk has stayed consistent despite technological advancements.
Ultimately, the session concludes by reinforcing the value of staying adaptable and continuously learning from experienced traders who have weathered various market cycles. The host expresses appreciation for Melissa's insights, which bridge personal stories with practical trading advice, encouraging viewers to look beyond surface-level news and understand the true drivers of market behavior. By combining a disciplined approach to cash management with the ability to spot opportunities in crushed stocks or inverse plays, investors can navigate uncertainties effectively regardless of political events or interest rate changes.
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and uh she's also a fellow New Yorker.
She lived through it. She experienced
911 also and you know she's here today
to kind of give you her take on giving
you giving back a little bit of all the
success that she had. Thank you for all
those people the hard work of keeping us
safe and want to educate you all of you
on uh how to trade today's markets
because that's why we do it. All right.
So Melissa, welcome. Uh thank you very
much for being here again. Always a
pleasure and you know stage is all
yours.
I hear you perfectly fine.
Thanks Melissa for being here and uh you
know thanks for telling a little bit
about your story and your experience
with 911 and educating everyone a little
bit about you know what to expect and
you are right you know market down we're
down over 700 you know um I always tell
everyone regarding about the Fed it's
not when they announce the Fed it's what
happens after like 3:00 and then you
start seeing how people react to it
because we did get a little bit of a
slingshot and then all of a sudden
things start backing off. So, it's going
to be fun. I mean, uh, listen, cash is
see how people react. But the weird part
about it, there are some stocks that are
doing pretty well, you know, that were
long in our trading room. Just to share
with some of you,
>> um, SpaceX were doing really well. Tesla
did really well. Um, Oracle had a big
bounce, you know, it's had a huge
support. We'll talk a little bit about
that everybody uh but once the market is
over. But uh those are the stocks that
we basically were hovering right now you
know like right at that number.
>> No we're we own the ETF so we're trading
the SPCU.
>> Yeah.
Well, I just started I just started, you
know, watching watching the NFL. Um,
they just started marketing uh the, you
know, Starlink. So, I mean, obviously
that's a huge huge thing. Um,
yeah, the commercials. I always kind of
look at like, you know, where are they
spending their money? What what what are
they talking about? Um you know,
everybody takes things personal and you
know, like you're saying like some
people don't like uh like Musk. I'm
like, "Okay, good. Short the damn
thing." You know, you know, let me how
that works out for you. Like you can't
things personal. Like you know, you saw
what happened yesterday with the with
with the Clarity Act. You know, the only
reason why it didn't pass is a lot of
people didn't want Trump to get richer
because it that's the truth. I mean, if
he if they did pass it, he has a very
big big uh connection into the crypto
market and it will make him a ton of
money. So, I told him, we got to wait
after the election, see what's
happening. But, you know, we knew this
was coming with the interest rates.
Catastrophes like this make
opportunities and you just got to, you
know, you just got to be in cash. You
just got to trade it. You know, there
are some pretty good swings. We'll talk
a little about that for some of you here
when when Melissa's done. But I just
love to hear her feedback because she's
been around for a while and you know
her, you know, us traders, we we never
stop learning.
Well, the reason why the reason why I
like um well, we we we were trading
Tesla, you know, we got out when it
maxed out um started backing off and
started building a flag right around
July. Good thing we got out of it was
like under 400. I think dropped down to
300 and then we jumped in right above
like around 3 310 315 and we've been
riding it ever since. But it's got a lot
of resistance levels here on the Tesla
side. the SpaceX, the reason why we like
it, um, it's been consolidating here
since August. Um, a lot of resistance
levels there back in early July. They
did have some earnings that came out,
but it's been consolidating. So, I'm not
saying it's, you know, there's like,
well, why are you trading both of them?
Are you a Musk fan? I'm I'm I'm a making
money fan. That's what I am, [laughter]
you know. I don't know why people, you
know, um
Yeah. And you know what? But if you own
it, as long as you own it at a good
price, which some that's the issue with
some people don't understand, you know,
like I was talking about Oracle, um been
a big fan of that one. It back in June,
it was at almost 250. It dropped all the
way down to 120 and you know we jumped
in you know right right around 123 124
started going back up um little upset
when it tanked.
>> Yeah. Yeah. Yeah. I've been going long.
I'm trying to I'm I'm more of a bottom
fisher. I love stocks that get
Yeah. I love stocks that get crushed,
you know, and then they um Yeah. I love
socks that get crushed and then try to
try to bottom at the bottoms and stuff
cuz
I'm I'm going to I'm going to No, I'm
going to go short. I mean, you have the
you have the inverts. You have the
inverts. I mean, we did really well. Um
not as well as I would like that we
could have, but on Scandisk, you know,
there's the inverse uh the SNDQ. So, we
just trade inverts, you know, and and
you know, it did pretty well uh
decently. But, you know, the you know,
ever since they came out with the ETFs,
um it's incredible how many ETFs there
are now on individual stocks, but
they'll have like
Yeah.
Well, it's the same thing about options
too, you know. Same thing happens with
options, you know. So that that's, you
know, but I think the ETFs came in and
they they got a little jealous regarding
about the options and that's why now
you're getting all these different plays
on an ETF now because the the exchanges
wanted to get a little piece of the
action. Let's say
it looks like it.
No, they never had it. They never had
it. And now you're having these W's,
these uh ones and these these high
yields and they expire like every week
on the option. like you'll have, you
know, you have any, you know,
every every stock has a yield like uh
NVDY that pay these 40 50% dividends on
a week. You know, as long as they don't
go anywhere, you're doing great. You
know, they work off the options. So,
there there's been a there's been a lot
of great opportunities from when we
started, Melissa, to what's going on
today. Some people don't realize it. And
that's why we love hosting these events
because it's nice to hear how things
really haven't changed that much other
than technology. It's like, you know,
driving a car. Like the platform you're
using is the one I'm using. You know
what I mean? Like how how long you been
using that for? 20 years,
right?
Yep.
Right.
They don't they don't they don't. And
that's why we like to host these events
and love to have people like you to be
here, Melissa. and educate them.
No problem. No problem.