Hey guys what's going on today is March 3rd, 2021. In this quick video, I'm actually going to show you exactly why the market will begin crashing as early as today, but major drop coming tomorrow on March 4th and March 5th. Now I'm not going to take too much time explaining what I've already shown you guys in the last couple of videos about nailing the top in the market, but nailing the top and some key stocks. I'm just going to ask you a very simple question to help you visualize things. Okay? So I'm going to show you four charts. This is the chart of SPX, and this is where we at right now. And the question is, does this chart look bullish? So on one hand, if you're a bull, you're going to look at the chart and you're going to be like, well, of course, I mean, we haven't broken the trend line.
You know, everything is above the blue, which is the 50 day moving average. Every fender looks beautiful. Every time we get down or we move down the gum in the buy, the dip, how, whether there is a time in the markets that presents an ideal opportunity to profit from the opposite side of the equation. And this is exactly the type of condition that we're meeting right now. See this top information right here. Okay. You can call it the resemblance of a head and shoulder, a triple top, whatever you may want to visualize this app. It does exactly resemble the pattern that happened in the markets in September, October in December of 2018. And if you analyze what the market is trying to portray right now, basically the fear of the rising rates is the excuse the market is using to sell off. This was the exact same reason why the market crashed in December of 2018, because Powell, instead of what everybody thought was going to be lowering rates, or at least pausing on the rate hikes, he did do one last rate hike in December of 2018.
And that's when market just completely collapsed. I mean, we had Amazon dropping 30% within like a couple of weeks during that time. Uh, so we had some major, major moves in the market and the market itself dropped 30%. Majority of the market participants clearly believe that the market will move nowhere but higher. And they were celebrating Monday. Now, remember what I said in the last video? I said, if the market bounces at any point right now, what do you want to do? You want to short the hell out of this market? You want to be buying books on any bounce because what you're going to see, this is a chart from this morning, March 3rd, 2021 by 10:00 AM. You will see a huge leg lower. And again, this leg, you're not, there's no guarantee that it's going to stop at the blue line, Neo expecting it to reach the blue line today, but what's going to happen tomorrow is we can get down with a huge gap, kind of like this one right here in this part of the chart guys.
And we'll see a huge gap down. And once we break that blue line, we're going to have an increase in volume. So, so far as you can see, despite the market marching higher, uh, the prevalent trend, as far as the volume, we have bigger volume on the sell days. And at some point that resolves into a huge break, lower based off the 13 markets move formula. That break will take place tomorrow, March the fourth, call it market crash, call it market drop, call it market correction. What I am trying to tell them is a huge opportunity here on the trend reversal opportunity, where what apparently still to all the market participants are majority of the market participants. It appears to be an intact bull market, the main story over the next week or the next two weeks. Anytime you turn on your TV channel, whatever you watch and it CNBC Bloomberg or something else out there, they will be talking about, Oh, well, how much lower in this market go?
Uh, Oh, the trend is broken. Oh, should we be worried? Oh, why is this happening while you know, we got the vaccine on the control and you know, you're going to see a lot of stupidity going on as if nobody knows how to look at the M chart. Well, all of them need out charts, diverse, just scores. And if you don't, Hey guys, you can solve this issue. But if you haven't taken out diverse discourse, charts, patterns, or recognition, let me show you exactly why this particular instance in time is so freaking bearish for the market. So we've got this huge major Def cross on the magazine and trust me, I've nailed every single top and downturn in the markets in the last 10 freaking years. So, and the main condition you've got to observe is accumulation distribution, Cannes to be at all time high on the chart.
On the daily chart, you have the presence of a death cross, which is about the form or just formed. And you've got RSI is getting weaker in relation to the prior levels where the market was just recently reaching its Briar top. So all of these divergences, in a nutshell, that resolve into a major break lower. Now I mentioned earlier, I was going to ask you a simple question to help you visualize this a little bit better and that is, can the market possibly go higher? If these four stocks I'm about show you right now, if they move lower. So if Amazon moves power, which I already use this morning, okay, it's about that. And multiple videos guys. And so finally, I'm giving you the exact timing of when this big move is about to happen. So if Amazon can not move higher and if Amazon especially famazon continues lower, okay.
Which is a great shorten opportunity. Okay? If Amazon continues lower, what are the chances of the market? Moving higher question. Simple question. Want to think, think about, uh, if Facebook, which is, is creating what we call a death hook formation, as you notice this blue line gets terribly close to this orange line. At some point they will cross. So there is a much bigger drop in the shares of Facebook. That's in the making here. So if Facebook drops, if Amazon drops, if Facebook drops, if Apple drops and guys Apple is probably the most bearish out of all of them, because look at these head and shoulder formation, here's your shoulder one. Here's your head. Here's your other shoulder. Apple is about to drop Dan 20%. The only reason it avoided this black candle formation was black candles guys. They're 90% precise. Every time you get a black candle, there's a drop.
The only reason this is an exception to the rule is because Warren buffet topped up the stock over the weekend. So Warren Buffett said some great things, how he's buying more Apple and stuff like that. But guys, what Warren Buffett is doing, okay, shouldn't be none of your business because he's a long-term investor. This is a channel for traders. Okay. What Warren buffet did a month ago or what he's done a year ago? What he's doing this month? It doesn't matter. I'll give you two recent examples. Warren buffet was unloading all the airline stocks at the Lowe's in March and April of 2020, while we were highly bullish on the same type of stocks. So from a trading perspective, we were right. He was wrong. Warren Buffett's greatest investor of all time. He's not necessarily the greatest trader of all time. IBM. He was buying in the last couple of years at 180 bucks.
Okay. And he was unloaded at one 17 guys. Warren Buffett does simple mistakes, just like everybody else does. Okay. What I am saying from the standpoint of a trader, just because he talked up the stock, it does not mean that Apple is not just about the drop 10, 20%. And if it does, I'm sure he's going to buy some more. But what I am trying to tell you, the next move in Apple is lower rather than higher. And again, to summarize this, if Amazon drops lower, if Facebook drops lower, if Apple moves lower, I mean, you get where I'm going. If all the Fang stocks drop and the most resilient out of them, of course has been Googled because of that amazing earnings report. But guess what? But guess Google's got a problem too. I mean, he's got the same characteristics here. There's a deaf cross here.
Yeah. There's more bind because of that sensational earnings report. But guess what? This is a top in pattern. The next move, despite of how great Google is doing okay. The next move in the stock based on what the chart is pointing to is lower. So if we got all these heavyweight champs of the indexes going lower, what are the chances number one of the market moving higher? Well, there is like next to zero probability of a market moving higher. So for all of the girls out there that are telling you all, we're certainly going to hit 4,000 before we, you know, be informed. I have a chance of drop guys. The top in the market has been reached. Okay. Maybe we were 30 points off the top. I called the top of 39 Oh three and the market, uh, at one point per market went up about 30, 40 points over that.
But the bottom line is you can see 3,900. Okay. Ain't nobody calling the top. No 39 Oh three. Right? When the market was marching to all time highs right here, nobody was calling the top. We did it based off the chart pattern. And right now with killing you that the market's got substantial, substantial room lower from here. Now the simple case is if the Fang stocks and all the technology stocks continue sideways, the market's got no ability to break above this 3,900. If the technology stocks they drop the market is not just going to stall out like what it's been doing here. The market is going to drop substantially lower. Now here's the most interesting thing is the market expectations for the turnaround stock for reopening the economy stocks, they have rant so crazy high that you've got stocks like D trading at all time highs and all these stocks, they are about to freaking turn around, along with it technology stocks.
So there's going to be some extra headwinds. So some extra headwinds you're going to see from stocks like a deer that just clearly set a top. Here's your mini head and shoulder formation in a smaller timeframe around here. Uh, stocks like a Caterpillar. Okay. The travel stocks look, I mean on the Caterpillar guys, this thing is about to cross this. Thing's got nowhere to go, but lower from here, short term. So not only the technology sector, clearly showing, showing signs that there is going to be a continuation of a sell off here, but you've got out of sectors D E Caterpillar, all these favorites, uh, that have been favorites in the last four months. Guys, these stocks are about to sell off and to go way, way lower. And of course, needless to say, we'll spend a lot of time. You talking about no stocks like travel stock.
Our favorite shorts still remains to be RCL and Biki and G in the sector. I mean, look at why you would want to short the hell out of beacon Jeep today. It's because it's a 2305. There is a hand and shoulder pad, and this is a definite top right here. And you've got a cross. That's going to take place here in the next 48 hours. I mean, we can see this stock back to 1900. That's a full hundred dollar potential drop over the next 10 days. Guys. This is a simply beautiful setup that as a trader, you can't ignore. And if you don't know how to take advantage of trades like this, how to put them together, meaning what expired nation should you be buying? Uh, what, uh, strike price should you be buying? What there's a number of contracts you should be buying in relation to your account size and all of those things.
Guys, if you have questions about that, uh, don't miss out on this next opportunity to profit as a short seller on the market drop. And even if you're a bull, just a change of strategy is what the market requires sometimes. So you can continue being a profitable bull, not a bull that, you know, made some money over the last few months because the market's been sold easy. And don't be the bull that just going to give it all back in the next year date. But March 4th is when the market is going to tank. It's going to have a huge drop. It's going to be the beginning, all the bigger move. In other words, it's not just going to be a move where we drop for one day, everybody gets it excited and buys the dip. This is going to be a time. We have a buys the DMD on Thursday.
Uh, they're going to wake up Friday and they're going to have a heart attack, okay? Because the market's going to be even lower. Now here's a representation of what's about to happen to the S and P 500. So as I just looked at the S and P 500 was still above the blue line. Well, now NASDAQ is already breaching that level. And sometimes indexes will do the smaller issues, not just the annexes, but stocks overall and everything else. And they'll slide just under a key level and institutions will come in and they'll buy that level. Now, the longer an index or a stock or a commodity, whatever, whatever it is that you're trading that stays onto the blue line, the higher, the probability becomes that it's actually going to drop a lower. So that is the case. I've shown you the chart of Amazon and Apple and Facebook and Google.
All of them are highly, highly bearish making these crosses. And it is also reflected in the grander index itself right here, guys. So we've got long ways to go. I mean, 11 five wouldn't have been touched the surface. I mean, cause we could be a 12 by Friday. Okay. That's that could draw between now March 3rd and this Friday, March 5th naturally could drop all the way down to 20,000. So once these things shape up and these precise patterns, okay. If you're not familiar with the hand and shoulder pattern, guys, you've got to learn it. Here's your hand and shoulder on the NASDAQ chart. You got a shoulder right here. You've got a head part of the pattern right here. And you've got the other shoulder now for some time head and shoulder pattern on this shoulder, they can go a little bit sideways, but then you will get a major, major shock.
You will get a major draw lower. Okay. And I will leave you with this final thought as everybody is following Cathy wood. And she's pretty much all over the news. Uh, so yesterday Kathy would zoom. Okay. $95 million. All right. She bought zoom. Okay. One announced this great earnings report. Now we're not in a situation. The market behind me is not such that you buy great earnings report. Every company has got a great earnings report. Do you know why? Because the expectations were lowered so badly that anybody can beat earnings during these earnings season. So it's not because the companies that before men, you know, great it's because the expectations are so low. So Cathy would bought 95 million shares of zoom. Now the question that we should be asking here as well, should we be doing what Cathy wood is doing? And a lot of individual investors they're following her closely.
That's why I figured it's so important to talk about it, but how does her strategy align with your strategy? You are a day trader you trade weekly options. Okay. Why would you wanna be buying zoom, uh, calls for example here, why would you want to be, why would you want to be bullish in any sort of shape or form here at all? So, okay. Maybe she started buying zone after and made the little drop the dip. So she bought the dip of 400. Maybe she bought some more at three 85. And the question is, is she still bonded? The three 57? The bigger part of the question here is what is scaffold would going to be doing? If this zoom stock drops another 50 bucks or another basically a 15%, right? While she's going to be forced on load shares. I mean, they can't be holding fricking huge losses like that forever.
At some point she's going to have to sell. And so everybody that's fallen, Cathy wood and her 95 million worth of shares that she's bought. She was going to unload them. If the stock continues dropping. Now, apparently her calculation was the same with Tesla that she's going to nail the bottom here and she's going to buy the dip and maybe she's done well with some of these stocks, um, in the past. But it doesn't necessarily mean that she's right this time. So her recent purchase also included Tesla and she was buying Tesla on the dip. Yes, right here, six 50 dip to 700 bucks, seven 30 that's when she was buying Tesla, she bought a shitload of Tesla here. Now the question is she ride on this train. She's not riding on this train because at this point, desolate can easily go. Not just to the 600 as we actually predicted it was going to trade down to 600.
Uh, in the last 30 days we've posted the video. A Tesla can easily go to 500, 470 level and notice the similarity in the pattern, right? It's the same head and shoulder formation. It's the top information. Okay. Not every Hanna. Shoulder's going to look the same. They're going to be on different timeframes. But the bottom line Tesla is going lower. And here's another stock. If we add deaths this stock, because it does have a pretty heavyweight in the indexes, right? If we had Amazon, Amazon, Facebook, Apple, Google, and with throwing at Tesla on top of that, there guys, this market is going lower. And the cool thing about this is despite of this move, which when nailed the top decile desolate eight 77, and then at six 80. Now that's a 200 point drop. There could be another two, 300 point drop here and it can happen lightning fast.
And of course after that, this like, it's still recover. But what I'm saying right now, it's not the time to buy the DMT broadening out, because if you're going to start buying these dips like Cathy wood is doing right now, this is a disaster, uh, to your account. So you want to short the tops. Why? Because the market is stopping because despite of all the crazy bullishness and what you read in the news media, okay. The charts have pointed to an entirely different outcome going short term from today, March 3rd, 2021. Guys, if you'd like to learn more about trade, if you'd like to learn how you can benefit from this analysis, if you're listening to this information, but you're not sure how exactly you could turn this information into money in your trading account. Make sure you click the link below.
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