Dave and Jerremy Have Opposite Calls on the Market — Only One of Them Can Be Right
Jerremy Alexander Newsome and Dave Conley break down how Middle East tensions are impacting markets. They review the S&P 500 futures, energy sector breakout then stall, and gold and silver forming double tops while now tracking stocks. Dave bets the bottom isn't in and calls for lower lows next week. They cover the week ahead including the Iran deadline, CPI, and share hedging strategies for volatility.
Timestamps:
- (00:00) S&P 500 futures down 0.4% from war tensions – Jerremy calls bottom in but Dave bets silver dollar on lower lows next week
- (06:12) Gas prices now nearly $5/gallon in Vegas and Miami – energy ETF broke out hard in January then stalled on Middle East moves
- (08:54) Gold and silver formed clean double top – nation-state buying drove parabolic run but now tracks S&P 500 lower
- (14:39) Trump Iran deadline Tuesday plus CPI Thursday – boots on ground already happening and escalation likely this week
- (19:09) Markets volatile and everything expensive – hedge with bear calls, inverse ETFs or iron condors if you want to protect cash flow
Transcript
Jerremy Alexander Newsome: Ladies and
gentlemen, boys and girls, friends and
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:family from around the world, welcome to
the Solving America's Problems Edition of
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:The Financial Markets, the Reviews, where
we are sending this out to the world.
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:Hope you're doing awesome.
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:joining me of course is my cohost
of solving America's problems.
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:Dave DC Conley and we're gonna talk
and intersect both politics and the
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:stock market and trading charts today
for everyone who was, who was extremely
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:interested in how everything is being
impacted and how everything is moving.
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:So I'm gonna do a screen share and we are
gonna dive into some of that right now.
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:First and foremost, I'm gonna pull up
one of the things I like pulling up the
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:the most, which is the broader markets.
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:This right here that we're looking
at is the s and p 500 futures.
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:So the EINs also is this known and right
now what we're experiencing in general,
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:because of, again, a lot of the tension.
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:All of this right here
is really war related.
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:Now, as you always know, if I zoom out.
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:Every big market pullback always
generally occurs with some type of
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:news, but if we just come out here
February, had had an April of:
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:all the way to February 40% increase.
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:And Dave, you and I were saying
probably mostly the whole time, like I
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:don't know why we're going up so much.
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:Dave Conley: I think, I
think it was actually like,
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:wow, everything is going up.
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:That's crazy.
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:And you know, like you and I behind
the scenes were like, okay, nothing
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:is cheap, nothing is approachable.
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:And like when everything's going
up, that's always a red, you
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:know, like that's a, that's like
a red flag of red flags, you know?
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:Jerremy Alexander Newsome:
Always a red flag.
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:Yeah.
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:I mean, we're talking.
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:We're talking.
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:Gold, real
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:Dave Conley: estate.
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:Jerremy Alexander Newsome:
everything is the highest priced in
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:Dave Conley: Yeah.
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:Jerremy Alexander Newsome: So
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:Dave Conley: Yeah.
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:Jerremy Alexander Newsome:
really confusing to me for sure.
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:but anyway, looking at the s and p
500, what we're doing right now is we
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:are trading down presently and we're
not down a whole bunch, which is.
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:I don't know.
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:Kind of interesting right now, 0.4%.
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:So what that means is we're trading
down probably on the broader market,
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:SPY, which is the ETF, for how people
actually invest into the s and p 500.
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:Now this is gonna be a crazy statement,
but I do actually think the, the
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:bottom is in presently, because at
this stage, really, really massive,
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:big, big bull move came in, even
though we're still boots on the ground
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:throwing telephone poles at each other.
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:Any actual resolution to this
will cause the markets to, to go
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:up, pretty strongly, I believe.
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:And at this point I think we're, can kind
of pause around here and bounce worst case
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:trade back down to the 6 32 level and kind
of bounce if we start going lower than.
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:The move that we got on Thursday
and Tuesday and we get strong closes
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:below those candles this week.
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:That would be, in my opinion, a pretty
big nail in the coffin to expect the
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:overall markets to continue to drop.
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:however, it really just feels like there,
there is some se serious similarities
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:to me, just from a momentum standpoint
on the, you know, from like, like,
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:like a COVID perspective, but really.
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:Kinda like a right here timeframe too.
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:So we got the big market
turnaround, right?
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:The, the absolute bottom,
bottom bottom was March 23rd.
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:And then the huge, huge move
was April 6th on Monday up,
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:which we're coming in April 6th.
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:And are we actually gonna get
the bottom of the bottoms on
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:April 6th, which is tomorrow?
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:I don't believe so.
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:obviously anything's possible, but
it doesn't look that to be the case.
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:Here's the Q Qqs, which is the
Nasda, NASDAQ, ETF, and again.
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:Really, really strong buying.
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:In fact, Tuesday is technically
called a one white soldier.
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:So this is a reversal
pattern for everyone.
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:And I do know that everyone's
technical analysis is saying that
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:we should do something like this.
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:But the reality is we've already
had that selling event right there.
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:That was the break of the 200, the
retest of the 200, and the cataclysmic
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:failure, which produced really good,
you know, bearish returns for people.
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:So we'll see.
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:We'll see how big we do go down.
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:Dave, do you feel like
there was any actual.
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:Resolution of kind over the
weekend or am I reading it?
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:You're reading it and it seems like
Donald Trump is still fighting with
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:everyone and saying ridiculous.
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:Dave Conley: Well, two things.
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:One, one, you know, our listeners will
hear me repeating over and over again,
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:and I would, I will, I will put out a
challenge to the bottom is in, I will,
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:I will challenge you with one real
silver dollar that the bottom is not in.
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:And this time next week,
we are at lower lows.
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:This is, this is what
I saw over the weekend.
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:Over the weekend.
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:I am, I, I, I saw some good news.
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:One of them is that, Iran, reached
a deal with Iraq, in order to,
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:to do some transit of things.
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:And that's actually really interesting.
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:that's actually a bit of a thawing now.
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:A number of countries
already have deals in place.
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:Every time you hear somebody say, Hey.
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:Let's open up the Straits of Horror moves.
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:Like, oh, our president is
saying that, well, it is open.
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:it's been open the entire time.
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:I know it doesn't seem like it
because, but it's propaganda.
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:The issue there is that,
insurance companies can't
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:ensure things in a war zone.
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:They can't write it.
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:They, they can't, they can't underwrite
it because Israel and, and the United
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:States keeps on bombing things.
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:But a, a number of countries,
have deals already.
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:It's Greece and Turkey and
South Korea and, and, and now
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:Iraq, which, has a lot of oil.
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:And, that's, that's, that's a
significant thawing of things.
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:But look for what.
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:Iran says not what the president
says, not what, Israel says, you
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:know that that's gonna be noise.
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:As soon as you start seeing or
hearing something positive out
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:of, Iranian leadership, then
you can, you can bank on that.
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:Everything else is noise.
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:Jerremy Alexander Newsome: Yeah, that
I, that I totally agree with, and I'll
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:take that bet for the silver dollar.
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:That'll just be fun.
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:Dave Conley: Mm-hmm.
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:Jerremy Alexander Newsome: because,
for no particular reason, I just love,
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:I love trading and I love making bets.
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:It's pretty, pretty simple.
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:Dave Conley: One bet we will be
at lower lows next week this time.
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:Jerremy Alexander Newsome: Easy.
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:I love that.
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:So what we're gonna go look at,
since you mentioned it, let's go look
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:at, the energy stocks, A-K-X-L-E.
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:This is the energy ETF, where everything
is kind of blended into, right?
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:Chevron, ExxonMobil, ConocoPhillips.
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:we're gonna zoom out to a monthly chart.
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:So this is still that 2020, 2026
list that I've been just watching,
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:keeping track of with a lot of
people and for a lot of people.
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:But what you will notice is we did have a
really, really, really strong compression.
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:And then just a massive,
massive breakout with volume.
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:This happened back in January and,
not that it matters, but that was when
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:I did the analysis and the January
video that many people received.
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:when we broke above that bare hammer.
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:That bare volume right there,
you can actually see huge,
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:huge, huge amounts of selling.
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:Massive, massive institutional, 94
million shares of selling, which could
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:have been shorts or people set, you know,
selling to open or selling to close.
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:And then when we broke above there,
middle of January, we just, we took off
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:and it was a really, really big move.
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:But starting to see, again, some
potential little drops here.
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:the crazy thing with oil
that's taken over is.
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:At least in Vegas.
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:in January, oil was like 2 89, or
sorry, well, gas, right gas was 2
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:89 a gallon, which is where everyone
kind of bases oil prices off of.
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:Dave Conley: Yeah.
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:Jerremy Alexander Newsome: now
it's 4 97 a gallon in Vegas.
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:What is it in Miami,
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:Dave Conley: it is, I just saw it.
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:today it's, it's almost $5, and
diesel is streaking towards seven,
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:so it's like six and change that is.
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:Wow.
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:that's, those are wow numbers.
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:Those are, you know, like, like
a few years ago, people were like
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:putting stickers of like, I did this,
you know, Biden, you know, like on,
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:on all of the, well, yeah, we, we,
we need new stickers on this one.
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:Now I did read that, that OPEC is
said, Hey, we're gonna pump more.
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:I don't know if they can get
it out of the Middle East.
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:I, I don't know what that's gonna mean
for anything, but at least they're
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:saying, Hey, we wanna pump more.
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:Jerremy Alexander Newsome: Yeah.
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:Dave Conley: I don't think anything can
make up for this, other than, than Russia.
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:but you know, like these, the, the
oil markets, the energy markets,
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:all of it seems kind of disjointed
to me and manipulated and weird.
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:And, the rest of it, you know.
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:Jerremy Alexander Newsome:
manipulate is spot on.
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:That is spot on.
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:I mean, we we're, at least, I feel like,
especially with the tweets, some of
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:the back and forths and with the, the
updates and the adjustments that keep
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:happening and then keep seeing orders
come in to certain energy stocks and
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:energy sectors like crude oil or, or
you know, crude futures and it, it's a
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:purchase, a large purchase right before
a big announcement or a tweet is made.
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:It does seem very interesting.
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:Dave Conley: Yeah.
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:Jerremy Alexander Newsome:
so here's, go ahead.
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:Sorry.
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:I was gonna do gold real fast.
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:Gold and
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:Dave Conley: yeah, go ahead.
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:Jerremy Alexander Newsome: go.
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:Yeah.
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:Gold and silver.
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:We have a lower high that was formed,
which is also quite interesting.
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:gold had its massive, massive spike, and
then gold and silver has, has largest
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:down day in the end of January and.
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:I believe it was in history, as far
as a percentage drop in just one day.
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:I do like the fact that it's holding the
100 self moving average, so that's this
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:blue line, and that was the pullback that
it needed to get back into that spot.
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:However, the weekly chart, both gold.
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:And silver, to me personally, just
looked like a very, very compelling
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:double top, especially on silver.
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:You can see it almost perfectly
closed below the neckline.
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:You had three selling weeks in a row.
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:Perfect close.
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:We've had two retests weeks in a
row, and if I go in here on the
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:daily chart right, we are kind
of failing the 100 a little bit.
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:So if the spy drops a k,
the s and p market drops.
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:I actually have seen right now a a com, a
comparative move with silver and gold, so
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:the gold and silver markets, and this is
a surprise to a lot of people presently.
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:Gold and silver is actually tracking with
the s and p 500, meaning if the s and
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:p goes down gold and silver goes down,
which wasn't the case, you know, a couple
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:weeks ago, a couple months ago when we
really, really had that strong rally.
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:The equity markets were kind of
slowly curving down and being a
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:little bit flat-ish for the most
part, and gold silver's kind of kept
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:on going, and then they got too high.
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:They had a hyperbolic
extension of price action.
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:Dave Conley: Ooh.
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:Jerremy Alexander Newsome: out, and
then some giant selling came in.
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:Dave Conley: Hey, a question on this,
'cause I've listened to some gold,
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:gold folks and some analysts and,
and some, I think bond guys too.
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:and they were coming around to
saying that the, you know, that this
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:record, run up on gold was really not
institutional work, but it was really
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:nation state work, and that was nation
state saying, Hey, we're gonna use gold
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:as a, as a, as an actual commodity.
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:You know, like, we're gonna get out of.
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:Using, dollars or other kind
of things, and we're gonna use,
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:we're gonna go old school, cool.
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:And use gold.
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:And we're gonna, we're gonna make
sure that we have it and we're
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:gonna, and we're gonna use it.
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:and then the selloffs that
we've been seeing on gold lately
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:have been things like Turkey.
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:Turkey needed to like, dump a lot of gold
in order to like shore up their, their
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:currency because of all the war stuff.
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:And so, like the nation states are
actually, you know, going old school cool
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:and being like, Hey, we're gonna use gold.
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:That's.
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:That's where a lot of, a lot
of the runup has, has happened.
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:Is that, is that real?
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:Is that something, or
is it something else?
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:Jerremy Alexander Newsome: Yeah, no, it
feels, feels very real and very accurate.
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:Accurate to me.
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:and, you know, just looking at it from
a, which has no actual true, ridiculous
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:bearing of like, all right, here's the,
here's the technical analysis charts.
240
:But the thing is, you know, technical
analysis always eventually gets
241
:followed by what has really happened.
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:And if we just kind of look at this price,
what we did on gold is we traded sideways.
243
:Really from 2011 into
like five months ago.
244
:So we as bullish as everyone was on
gold, we really didn't do that much
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:for a very, very long TI timeframe.
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:Now, the cool part is if
you continue to zoom in.
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:What happened until, again,
pretty much like late:
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:So let's call it, let's call
it, two years ago, March,:
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:Exactly.
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:Two years ago, we had this really,
really beautiful, chart pattern
251
:called an ascending triangle.
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:And we had this ascending triangle
and we just like pressure, pressure,
253
:pressure, pressure, pressure, pressure,
built, built, built, built for
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:three or four years and then boom.
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:And so as we broke out, we broke
out of the ascending triangle.
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:We broke outta the prior all time highs.
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:we were coming into a politically.
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:Unstable environment.
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:We were coming into kind like Bitcoin
being at its highest price and all
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:kinds of things started happening,
so people did flood to gold and Yes,
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:institutional people bought retail,
people bought, you're absolutely right.
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:I think a lot of the, a lot
of it was the, the state play
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:as well from other countries.
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:So the drop that I see.
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:Here is very healthy,
very normal, very needed.
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:The, that would drop that essentially
from 5,000 an ounce, give or take,
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:you know, down pretty strongly.
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:So GLD, the ETF went from 500 to 400.
269
:So quite a large drop, just
in numerical terms, 20%.
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:So at this point there's gonna
be a lot of people that says,
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:Hey, we could do this, hang
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:Dave Conley: Yeah,
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:Jerremy Alexander Newsome:
actually go hire again.
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:Dave Conley: sure.
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:Jerremy Alexander Newsome:
That seems very reasonable.
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:but
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:Dave Conley: I I think that is too.
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:Yeah.
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:Jerremy Alexander Newsome: Yeah, but
if the overall markets break lower.
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:to your point, right?
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:Like we continue to make new lows.
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:Then actually gold and silver I
think will continue to drop just a
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:Dave Conley: Hmm.
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:Jerremy Alexander Newsome: and then we'll
start to stabilize and, I think GLD could
285
:come down to 3 50, 3 55, which would be,
you know, again, just a good pullback.
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:But people will actually start
freaking out a little bit.
287
:The, the people who bought it late
in late January during this runup.
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:'cause there were people who
were standing in line, right?
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:And like robbing pawn shops and
jewelry shops for, yeah, for
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:Dave Conley: Wow.
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:Yeah.
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:Oof.
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:Jerremy Alexander Newsome: So
that's gonna be interesting.
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:I'm not, I'm not entirely sure
how closely it is to hide to,
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:I'm not sure how closely it is tied
to oil slash tech stocks slash the
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:gold and silver markets and all
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:Dave Conley: Yeah.
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:Jerremy Alexander Newsome: that's
going on with Iran and Trump.
299
:But what is fun is if you are a
trader, which a lot of individuals
300
:are traders here, who might be
watching, from Quasar markets or
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:anywhere else, real life trading.
302
:My, my squad back home, I think.
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:There's gonna be some amazing
volatility both up and down over
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:the next two weeks for sure.
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:And let's go play with it and have fun.
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:Right.
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:Make some money going up,
make some money going down.
308
:But be quick and be nimble is kinda
like my feeling right now because
309
:Well, that's how much the headlines
are moving everything right now.
310
:Very, very, very quickly.
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:Dave Conley: So speaking about the week
ahead, we have some big things happening.
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:so.
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:Gimme your read on this Tuesday.
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:We have the, you know, the,
the Trump ous deadline.
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:He, he sent out a rather
ominous, open the fucking, he, I
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:think, did he say, Allah Akbar.
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:He said, praise to Allah on Easter.
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:And then he, he said,
open the fucking straight.
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:So I'm, I'm sure some poly market paid
off, you know, like huge on that one.
320
:so Tuesday is saying, Hey.
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:we're gonna completely annihilate you
and bomb bomb you back to the stone age.
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:We're gonna commit every single
war crime in the book Yay.
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:on Tuesday.
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:Yeah.
325
:Thanks.
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:Appreciate it.
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:You know,
328
:Jerremy Alexander Newsome: I'm kind
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:Dave Conley: alright, that's Tuesday.
330
:You know, like he's delayed it like
10 times, he's gonna delay it again.
331
:I don't, I don't know
what's going on there.
332
:Tuesday we have, Delta Airlines earnings.
333
:I'm gonna expect that, that's gonna have
some interesting chitchat around it.
334
:you know, there jet fuel being $200 a
barrel, in, in Asia and at Heathrow right
335
:now, I don't think you can even get fuel.
336
:They're like, ah, nope, we're not,
we're not, we're not juicing you up.
337
:You gotta go.
338
:Thursday we have March CPI and Core
CPI, I think that that's going to,
339
:you know, that could be really super
curious, particularly with energy
340
:spikes, consumer sentiment on April 10.
341
:man, you know, like if there's any
indication that, that, you know,
342
:this unpopular war is going to
completely go into, be like, man,
343
:you're not paying attention to me.
344
:So consumer sentiment, I can't
imagine that that's gonna be like.
345
:The wind beneath our wings.
346
:Friday we have the oil sanctions expiring.
347
:so let's watch that.
348
:Frankly, we need the oil outta
Russia, but, you know, the Europeans
349
:are freaking out about that, but the
Europeans need it too, so they're
350
:gonna have their own schizophrenic,
sort of mentality around that.
351
:And then, Thursday also, the ninth
we have, Q4 GDP, and Fab, PCE.
352
:So
353
:Jerremy Alexander Newsome: Oh
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:Dave Conley: that's our week ahead.
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:Jerremy Alexander Newsome: Yes.
356
:Well, I, I agree with you at least
on the Tuesday, four, eight hour
357
:Iran, you know, deal with Trump.
358
:Like he'll just push that back and that'll
keep circling the drain for a little bit.
359
:Dave Conley: Yeah.
360
:Jerremy Alexander Newsome: but
again, that's, that's why I do
361
:feel like the, the, the, the two
chances for you winning or I winning
362
:whoever's getting the silver dollar.
363
:The only way I win is they actually
reach an, an arrangement or a deal
364
:Dave Conley: Yeah.
365
:Jerremy Alexander Newsome: he flies
over and they, he shakes someone's
366
:hand and they're like pieces and they
see him playing golf at Mar-a-Lago.
367
:Dave Conley: that would
be the best if, if,
368
:Jerremy Alexander Newsome: We soar bro
369
:Dave Conley: Trump, Trump and
the Ayatollah and Netanyahu are
370
:just like, shirtless and hugging.
371
:Oh man.
372
:That would be the,
373
:Jerremy Alexander Newsome: Bull, bull
374
:Dave Conley: whew.
375
:Jerremy Alexander Newsome: We open back
up, everyone thinks, you know, everything
376
:Dave Conley: Yeah.
377
:Jerremy Alexander Newsome:
blah, blah, blah.
378
:Dave Conley: Yeah.
379
:Jerremy Alexander Newsome:
chances that happening, I
380
:would put it at less than 10%.
381
:Dave Conley: That's generous, but
I'll, I'll, I'll, I'll, I will
382
:wish that for the universe we
will bring that into existence.
383
:I was like, yes.
384
:Jerremy Alexander Newsome: So, you know,
385
:Dave Conley: Hmm.
386
:Jerremy Alexander Newsome: you wouldn't
put a lot of big, a big wage on that.
387
:what has been happening for the
last two weeks probably keep
388
:happening for the next two weeks.
389
:That, that I would put it like a
55 to 70% you know, we just slowly
390
:keep grinding lower and kind of chop
around and, you know, kind of ping and
391
:pong back and forth ly like, and if
we drop any large, large weapon on.
392
:I guess Iran or anywhere
in that general area.
393
:'cause there have been some safe
nuclear tests that have been happening.
394
:if, if Trump actually bombs them
back into the stone age, I don't
395
:think that's gonna optic well.
396
:And we and the new win, you,
you act, you win that bet.
397
:'cause we do make brand new lows
of, of the markets by the end
398
:Dave Conley: I.
399
:Jerremy Alexander Newsome: If,
if we drop something heavy.
400
:Dave Conley: Well, realistically,
I, you know, I believe that the
401
:week ahead is certainly boots on
the ground in some form or fashion.
402
:We've already had boots on the ground
in the sense that, you know, an
403
:airman was, was rescued, Saturday.
404
:So we've had, we've had, you
know, boots on the ground.
405
:We certainly have special ops,
special forces, and special
406
:operators in, in country.
407
:That's certainly happening.
408
:so, you know, in, in a more significant,
sense, you know, having, you know, having.
409
:Having US troops on the ground
and, and them taking fire.
410
:I think that's gonna be the
big escalation for the week.
411
:And I think that that is, is real.
412
:You don't move in 50 to a hundred
thousand, American boys and,
413
:and, and girls into the, the,
the, the area and don't use them.
414
:It just doesn't happen.
415
:So, that's,
416
:Jerremy Alexander Newsome: That's,
417
:Dave Conley: our escalation trap.
418
:Yeah.
419
:Jerremy Alexander Newsome:
that's exactly right.
420
:That's exactly right.
421
:So, for those of you are trading the.
422
:Make sure that you do a lot
of hedges over the weekends.
423
:You protect yourself.
424
:You start getting relatively comfortable
getting into some bear positions.
425
:if you've never practiced
markets going down, ever that,
426
:especially in war times, right?
427
:Go and get some.
428
:Get some experience just knowing how
to hedge right with SPX bear call
429
:spreads or iron condors potentially,
or straight up just buying puts or
430
:shorting shares or buying inverse ETFs.
431
:Just know that there are ways for
you to protect yourself and generate
432
:cashflow for your family, right?
433
:Let's like whatever's happening, we need
to make a bunch more money right now.
434
:'cause I don't know if you're
looking, but everything's a lot more
435
:flippant, expensive, everywhere.
436
:Dave Conley: Oof.
437
:Jerremy Alexander Newsome:
So we need to, we
438
:Dave Conley: Mm-hmm.
439
:Jerremy Alexander Newsome: more and,
and, and creating more, and that's.
440
:extremely apparent, so for
everyone watching, thanks.
441
:Thanks for tuning in.
442
:we've been honored to be a part of
hanging out with Quasar Markets and the
443
:podcast that Dave and I produce every
single week is really, really remarkable.
444
:We've been doing it for
going on two years now.
445
:We have over 150 episodes.
446
:It's called Solving America's Problems.
447
:And our goal is to really do just that.
448
:We interview people.
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:We have great conversations, and we're
collecting remarkable amounts of data
450
:so that we can actually solve problems.
