Cliff Notes: Why The Stock Market Goes Down Every September

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Shout out to my young boy Shams.

He's just getting into the market, and so I had showed him what the profits you can make in investing, and he was like, man, that's incredible. But also I took a picture of the games today because they were negative.

I told him like this, two sides of this point.

Yeah, what when you trust your research and you trust what you've done, and you trust your investments, you don't flinch. You don't even feel it because you know how this works. We said this two weeks ago. I remember the date September second, twenty twenty, when we had a huge pull back, almost like nine percent. I'm like, Okay, this is a new feeling. This is a feeling. Can you sustain this? Can you walk away from this and not feel any

This wasn't a.

Surprise, it was just what would be the catalyst? Right, So it was like, what was going to be the catalyst? And so I ran some numbers, even real quick. So if you look at the history of the DOW for the past thirty years, right, this wouldn't even be a

Rough, right, but you still got to keep money and but yeah, September, and.

That's part of it too.

It's like, all right, well, this is a good if we're positioning ourselves and we had money in a money marketing account, like Shoddy always says, while keeping in saving account, put in a money marketing account. If we're then we're looking at the entry points now because some of those entry points that we've been saying and we thought that they would never come back to that life.

Listen, what y'all stop with that?

Like I'm telling you where to get in where I want to get in where some of the people y'all look up to, or calling me for entries, just get them free for the culture I'm begging, Like we tried. We tried to do like Troy Killer research man the entries. If me trapped, Troy Bono and Josh Brown say it, it's going to happen.

We're coming there now.

Like even with the dow, September has been bad since the nineteen fifties historically, just research, even if you don't do the research we've done all.

The research for you. Just looked at related.

Laid it out for you, man, Enjoy, enjoy. September is a great month if you're looking to get into the market. And when you pst it's crazy to even say like two thirty nine to twenty eight is like a good entry for it.

Smalls text me bro.

So in that video.

So when you saw a shotty posted video right when you like, we're in the lab, what time was that like twelve o'clock. No, we're really in the lab, Like I'm saying, so all right, ware, did these contracts open at? How far they pulled back? Is it now time to enter straight up? Like you just video recorded because we were on clothes all the day. But that's the work. That's what we're doing.

That goes into it.

That goes into it. And so it's like, all right, well, nah.

As Amazon hit the point where I like it to January twenty four, all right, let's see what happens tomorrow. But we already had money in a money market account ready to invest if it hits on. It's just about being patience in.

Yeah, just quickly, I'm asking a question.

But yeah, that's something that you know, even going into last week last.

Tuesday, I think, or last Wednesday.

You know, I just put a substantial amount of money into my brokera's account, just to have it cleared on time and to have it in a money market because we know that around this time the stock market usually drops, so we can kind of anticipate. We can never you know, know exactly what's going to happen, but we can make an educated guest on the past, and if you understand the past, you know that around this time usually the stock market always drops, so you got to be prepared.

But now prepared.

So it wasn't really a surprise when we saw that stock market drop right now, because it's actually supposed to drop, like this.

Is something that you know historically happened so often.

Yeah, yeah, it's great.

Like and the people who've been listening to Market Mondays since we started, we went through the this last.

September and it was like, oh my gosh, what are we going to do? And see that they look put your seatboot on.

Trust the resins that you've done, trust the investments that you've made right, And we spoke about it two weeks ago. What would your account or your portfolio look like had you not moved at all?

Right?

If you pulled back in September nine percent, it was a little slight one in October. I recall November we started seeing some games, and December came and we saw some games.

Had you not touched your portfolio, where would it be?

And just because the stock market pulls back, it doesn't mean an individual positionally has pulled back to the point. So SMH stock market is down. ESMAH was down heavy today, but it's still only four percent off of this all time high. It's all time high with seventy six and it's had two sixty four right now. So like just to kind of give you some perspective, if it drops ten percent, that'll be two fifty, So it's still not really that far from its all time high. XLK all

So yeah, I mean we got we got put in context, right, like that's that pull back. I mean I think we sit next to each other, we're like, Yo, this thing gonna drop five hundred.

We're going to five hundred. But even now it was like three percent, it's not a lot, it's not even that even.

Doesn't qualify as a correction, right, Like it has to at least be between six to twenty.

Percent, like well half to a correction. So we just got to keep that in perspective.

It happens every single year. The one of my favorite quotes the money Master of the Game is just like any other climate, you're gonna have summer, spring, fall, winter, September just happens to be when winter comes. Then Also like for those of you who were at investvest. If you love investments, please please drop fire and chat. But I told you one of the best targets for you to use for the Dallas five hundred and twenty three points.

Sixty two hundred people on the check hit the life onnon Please.

Red Panda family, please hit the like button. Tell you aunties, Uncles, Grandma, great aunties, hit the like button, and.

How to take advantage of drops with futures market.

I'm gonna just give you out of targets real quick.

Down You should short if the market falls and only do this maybe three times a year.

Five hundred and twenty three points.

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Pints NOW'SDAK. I want you to go for seven hundred points. The stop laws should be one hundred takes to one hundred points. Your risk will want to make seven. Those who will move faster. You don't really need to think about the es. But here's the thing that is great about the market. Too many people are so focused on puts. You shouldn't have any long term positions to the downside. Because ninety five percent of the move is going to be up up over a five year period, so you're

Market drops like this.

It shakes all these scary ass investors out who haven't studied, because if the market is bloody and you're afraid, it means you haven't put enough time in.

I don't want you to buy at a high. I want you to buy when things are at a low. We are at a proverbial loan, and in three months you will forget this even happen now.

If you want to know a day that is identical to today, go to August twenty fourth and August twenty fifth, twenty first, So August twenty first and twenty fourth of twenty fifteen.

See how that move played out.

We are at some point going to get a dead cat bounce off the weekly chart, and we're going to bounce off of it and come back down. Mark off your areas in advance. A lot of people are panicking because what happens in September. You should be marking off the places you want to get in for October and in September, excuse me, in August you need to be prepare where you want to get in for September, always

Let me ask you this being that we know that.

This time of the year and always the stock market usually always goes down.

Your reference for next year?

Is this something that people can play an inverted index play for.

I wouldn't do it.

I'm gonna be real because most people don't have to discipline to I know I've told you guys about uv XY before, but if you don't listen, like you shouldn't hold an inverted index longer than two days because you're betting against the market. The market is going to be up majority of the time. And what's going to happen? Man Rashad gotta holler at you, bro. You call Ian a goat and I'm getting slaughtered. How are you the goat?

Yeah?

Bro, all lost fifteen hundred. I'm like, I didn't tell you to hold it for that long to index to tech, no stress, listen to me. If someone else made you more money than listening to me, please log out a market mone watch.

How these numbers don't change.

I'm begging y'all please stop making this so complicated. Like if I'm giving you the Phil Jackson triangle and we got microL.

And Kobe, we're good. So what Bill.

Wanting to miss one shot? We got it on the next three pound baby, Like, it's not that complicated. The part that makes it tough as people alter a recipe. Like imagine if you went to Coca Cola. I was in Atlanta, like and you finally cracked, like went in and got the formula from the vault, and you like, I'm gonna add some pepper and chive to this because my grandmamaa love peppering.

That's not the Coca Cola formula. Just stick with it. If you're gonna do it.

Inverted index and you're gonna trade a great holder for two days max. But anything more than that you're gonna tear your account.

And the inverted index is betting what the stock market is gonna go down. Yes, index that goes up when the stock market goes down.

Right, So like the day like today, if you had a down, I think that at his peak in today was down nine hundred and seventy points mmm. Like if you had an invert index, then you would have made money because obviously you dropped one hundred and seventy But like I said, it closed that.

Six six sixty down down.

So that's it.

And that's another thing is that we always preach about not fall a sleep at the wheel and so always stress to people some of those indicids.

Right, Like we watched the vics, and so if we've were watching the.

VIX, we've been solely seeing that VIX creep up out of the teens up into the twenties today I think twenty six, and so we keep an eye on that because we know that that.

Means it's the volatility. It's very important for people. They might a lot of people just tune in for the first time.

So what is the VIX social volatility index? And so it shows you how the market is moving.

If the number gets high, markers reacting.

Right, how the market is reacting.

So if you see those numbers creeping higher, usually in that range of ten to twenty, well ten to fifteen, I don't want to say twenty because it's up there now, it means that this is pretty like some steady movement inside the market.

We saw creeping up inside the twenties.

You know, last September we had forty two, that's October hit forty seven.

Marshall here eighty point eight five on the box statu yeah.

Five right on the thirteenth, right when the world when the world closed, it was like, all right, well, this is going to be some extreme volatility we saw to shoot up. Another thing that we always talked about is the fair and greet in debts, and I know that's something you brought up. Always hit twenty one right now, right, And we know when we see fear, we feast, right, we don't. We're finding oppositions. We waited for these these moments.

Might have to wait five weeks, you might have to wait six months.

What is the fear and.

It measures the ratio of which people are fearful about the market versus super optimistic.

Right, But it's very important because we can't we can't take it.

We can't look over it for the first time.

We can't take it that somebody just automatically knows.

No, somebody said it for the first time.

And so that index goes from zero to one hundred, right, And so the further you go to one hundred, that's extreme greed.

Right.

If it's extreme greed, usually it is going to be a pullback because people are over saturate the market, the overbying.

When we see extreme fear that obviously the number gets know.

If it gets a zero, please buy shout as to everybody was one and two.

I was gonna say, if we go under twenty, this is this might be a point, like that might be the trigger point.

I think we might have mentioned that, like I think eight point five is a great play, like, but if it ever gets like, put all the money you can in.

If it goes.

Zero, that means it's extreme fear.

And this is why it's so important to be ready.

Like we all differ context my bet trick.

I was just gonna say, it's the same thing, like we don't have to get ready to stay ready.

Yes, the last time the vix was this hot, like was at a like a frothy moment like this was January. It was at thirty five. It went on a six month run of being down. I'm going to tell you, like, okay, so the crystal ball shining bright. We'll probably get back to nineteen within three weeks. It's nothing to worry about. If you are afraid of Apple, Microsoft, AMD and Video cost Co Home Deep, write these down because you want a scholarship.

V T I v O VUG please sell them to me.

Please please DM me at the Master investor sell them to me. You're going to be upset in the year. I'll take all the shares off you Small's call me next time too.

There you have it. There you have it, Ladies and gentlemen.

My graduates from my school being forced back. Drop drop, Mike drop, You.

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