holy [ __ ] guys the stock markets on

steroids the boom market is gaining

steam we're up 40% in the last two

months alone and that reminds me of a

video I did about three months ago where

I took a poll and said that you know the

markets like this coke in the bottle is

stuck inside that is pent-up demand it

wants to go higher but it can't go

higher and what effect was doing is

putting lots of stimulus like Mentos

into the coke bottle right shaking the

ball every single day in the moment

that's optimism the market or the

economy is reopening it's gonna explode

and that's your money shot right if you

forget here's a quick review of the clip

now eventually when a crisis is open

[Music]

and exports higher and those of you my

community and following me on telegram

Facebook and on YouTube would have seen

that amazing opportunity where we got to

buy great companies at ridiculous

massive discounts two months ago and if

you grab the opportunity should be

pretty happy right now sitting on some

pretty good games in fact you know one

of my portfolios was just seven hundred

thousand two months ago and now it's up

to about 1.15 million dollars right it's

about a sixty percent return in two

months and growing at about twenty K or

you know ten twenty fifteen K a day and

these are you know most of my positions

you can see huge discounts and now when

it rebounds you make huge profits so the

way to make big money in a stock market

is to buy when everyone is panicking and

everyone is selling that's how you get

great discounts and it's not just a

stock markets that have been trending

very strongly currency Forex has been

training reefs from me as well recently

right and true trading selling currency

pairs it's been pretty profitable you

can see this was just a last week of

trading right although it's a much

smaller account by making about seven

grand from taking small bites out of the

market just in and out you know every

single day just in and out in and out so

profits I mean some losses along the way

right sometimes you get a string of

losses you're gonna be a profits over

there

right so with trading is about making

money blues and making a net profit

along the way and although bring your

account and growing your well feels good

but you know what makes me really happy

is when I see my community of students

really really benefiting and doing well

during this crisis right this Eduardo

Lopez he says thanks to Eric ooh and Tim

I'm kickin the markets back right you

can see his account is up thirty percent

for the year beating the S&P 500 the Dow

Jones and the Nasdaq we've got mentor

and this guy's pretty cool because you

know he kept my program when he was

still in university you know some people

think that I always

investing when I've worked for you know

years in my career I've saved a lot of

money but he started learning to invest

and to invest even as a student when he

had you know just a bit of savings at

the time and he said hi Adam like to

share my trading and investing results

he does both trading and investing I

took up your courses last year in August

when I was a tree year student of the

National University of Singapore I took

a leap of faith and use almost all my

savings to attend your course I'm glad

that I made the right decision up to

today despite the pandemic we are facing

my portfolio is up 33 percent since

inception and up 68 percent year-to-date

ryan graduating this year really hard to

find a job

fortunately I'm able to sustain myself

the money I made from trading and

investing thank you for guidance and

teaching along the way you can see up to

68 percent here today that's pretty

amazing guys right it's from John

Twombly Adam like to personally thank

you I'm very new to investing in the

stock markets and at first I try to live

on my own lost a bit of money and the

best decision I made was to sign up for

the value momentum investing cost in

three months I have more than triple the

cost fee in the markets thank you I look

forward to learning more from you and

this person I think it's her name is

faith you know posted this really sweet

message on my Instagram account account

right Thank You Adam for being a

wonderful teacher and if you can see

that economy just flip it over over

there right at forty four point nine

five percent return for the year that's

pretty darn amazing right for these

newbie investors and traders during a

time of crisis and pandemics this is

from Sean because from Singapore he said

hire them you can post mine too if you

want I was up forty-five percent last

year

twin nineteen and year today up 15%

right prior to a telling your course I

was only up ten percent in short

attending your class trip up my growth

right love your investing playbook

slingshot strategies and the strategies

by Mr Bond who is our options specialist

I can see

his portfolio results right up 15

percent year-to-date now with the stock

market up 40 percent in the last two

months and you know for my last video

and I said that the stock market is

getting expensive could it still go even

higher and the answer is absolutely yes

here are five reasons why the stock

market could go much higher let me make

a disclaimer I'm not saying that it will

go higher it may go higher that's the

difference

why because I can't predict the future

no one can predict the future and it's

an an investor and as a trader I never

predict the future instead what I do is

I look at the fundamentals of companies

their valuations and I look at the

trends I only invest when a stock is

deeply undervalued if it's not

undervalue I don't buy so I was buying

like crazy

two months ago because it was deeply

undervalue so even though the stock

market could be going much higher now

I'm not buying any more shares let me

make it break it I'm not buying any more

why because it's no longer cheap I only

buy when it's cheap Asians or like to

buy when we get a great deal right so

I'm not buying any more okay at the same

time I always look at the trend as

traders we follow the trend we don't

argue with the trend as long as the

trend is bullish it means the market

will keep going up and the trend will

continue until it doesn't so people ask

me Adam so when are you gonna sell we're

not gonna shut the market the answer is

when the trend changes when a trend

reverses from an uptrend to a downtrend

how you put options to short the market

I'll take some profits on my stocks when

will that be

I can't predict the future could be

three months from now could be three

years from now could be 10 years from

now we follow the trend all the way to

the end so I'm here to share view that

hey the markets really expensive right

now is rebounded 40% but here are five

reasons why

it could still go a lot higher so the

first reason why the stock market could

go a lot higher is because of technical

momentum what does that mean one believe

that word right so as you know a lot of

people they were expecting that this

rally over here this short-term rally

was a big cat bounce in other words it

was gonna go up for a while and boom

collapse all the way back down that's

called a bear market rent and we want to

expect that that right and people expect

that that is only gonna go up to at the

very most

the 61.8% Fibonacci retracement level

because we study wave patterns you know

that the impulsive wave goes down then

it retraces to a Fibonacci level by the

38.2% 50% 61.8% Fibonacci level and boom

goes down so did that happen no it

didn't happen right so you can see what

happened was the market went down it

went up right initially to the 50%

Fibonacci level found a little bit of

resistance broke through that and then

it went to the grandfather of all

resistances 61.8% Fibonacci level and it

couldn't break it right it may be first

attempt second attempt and then boom it

broke that level and once the market

breaks a strong level of resistance

you've got extremely powerful technical

momentum alright and sure enough boom it

flies up and now that the market the S&P

500 has crossed a 200 moving average

there's a very very powerful bullish

signal in the markets and for now

there's no more resistance that's

stopping the market from going higher

right initially the moving averages act

as resistance the Fibonacci levels

acting as resistors now there's no more

resistance is clear skies ahead with the

price above the 200 moving average so

statistics and probability tell

that based on his technical signals the

market is more likely to go up then go

down from here now having said that

remember that nothing goes up in a

straight line right you will not just

work all the way out there right it's

gonna follow the wave pattern so so

remember the breathing patterns I told

you before all right breathe out it's

gonna breathe in breathe out breathe in

breathe out breathe in so there'll be

pull backs along the way so if I'm

trading it I'm not gonna jump in just

because it went up I wait for me trace

mind a pullback to a level of support

and I get in for the mix right up all

right so that's the first reason the

second reason why the stock market can

keep going up is because of the Federal

Reserve the Fed the Fed has unleashed

and launched unlimited quantitative

easing what does it mean it means the

Fed has the power to print unlimited

money and use the money to buy a risk SS

to buy equities via ETF to buy bonds to

buy up any [ __ ] they can get their hands

on right so as the fat keeps pumping

money into the system and buying you

know balls and shares of course it's

gonna go up so investors and traders

have now realized that the Fed will do

whatever it takes

how are the Avengers to ensure the

market goes up and doesn't mean that the

market can go down of course the market

could Sonny plunge again if there's a

second wave and it's more bankruptcy

sure it could plunge again but the Fed

has release it you know we're gonna do

whatever it takes to pop the market back

up again so you know what love them or

hate them you can't fight the Fed

they've got unlimited money if someone

has unlimited money they can print money

to buy whatever they want to push the

price up why fight them just enjoy the

ride so like it or not for the last I

don't know

5060 years the Fed has ripped the

markets they've rigged the markets to

always go up so why not get rich knowing

that so the more money the Fed pumped

into the system the more asset prices

will rise real estate prices will rise

stock prices will rise

everything will rise right so an

increase money supply increases asset

values like stocks like equities now

there's a way for us to calculate where

stock prices can go to based on the

current money supply and what we do is

we can calculate what is going to

surprise to liquidity ratio share prices

as a ratio to money supply so the way we

do it is we take the S&P 500

market capitalization which means the

market value of all 500 companies in the

S&P and we divided by the Federal

Reserve m2 money supply and you plot it

on a chart so you can see that based on

the last 20 year average right based on

the money in the system share prices on

average should be here which is this

yellow line that's the average of 20

years and right now we are only here

tada

which means that based on money supply

in the system share prices historically

have quite a lot more room to run to the

20 an average even going up to the highs

over here that was seen in 2017 2018 and

2019 all right the third reason why the

stock market could go high is because

most retail investors are still bearish

they are still short now again I've said

this many many many times in my previous

videos right and if you remember what I

said is that the market tends to move in

a way that screws most of the people

most the time the market tends to move

opposite of what the majority of people

so if every one thing things that a mock

is gonna go down market goes up when

everyone thinks amok is gonna keep going

up market goes up because the opposite

of the retail majority and again I've

done a very detailed explanation in my

past videos go watch it

right now again this is updated as of

today the fourth of June and this is the

IG client sentiment indicator of the S&P

500 so you can see that red represents

traders who are next shot in a market

who are bearish and again blue are

traders one net long in the markets so

you can see historically when there are

a lot more short than long traders more

people are bearish than bullish

the market goes up now currently where

we as of today you can see the number of

short traders who are bearish again they

outnumber the long traders in fact

retail trading data shows that 23% of

traders are net long in a hood in other

words they expect the market to go up

and 70 percent of traders are net shot

yeah betting the market will go down and

the short long traders are three to one

alright so again like I said the stock

markets like a bus when you are very few

people on the bus who have bought stocks

the bus can keep going up the hill

because it's light right but as more and

more people get on the bus as more and

more people buy stocks what happens

eventually the bus gets full and you can

go up anymore any collapses so the

moment I see that the number of long

trainers begins to go and it's gonna

reach the short traders that's a clue

the mark is gonna turn back down again

here's another interesting chart this is

from CFTC and you can see that the

number of traders who are short the SMP

futures are at a historical high right

now okay right now we are

here can you see that and as of now or

rather the last month you can see that

in terms of people shorting the SMP 500

taking short positions it is over here

right is it extreme levels of short

positions again people are very very

bearish in a more people bearish the

more the market goes the opposite goes

up and screws everyone else all right

that's how the market works I love it or

hate it that's how it works

all right yes another interesting thing

to look at global investors tend to

invest and allocate between bonds and

equities right and you can see that

currently we are here right now where

most global investors are under with

equities and overweight bonds in other

words most global investors don't have

much money in the stock market why cuz

you're scared you're keeping cash at the

side and the nominee in bonds and now

that they realize hey the market is

going up I'm getting more confident what

do they want to do they want to sell

your bonds and rotate into equities

they're gonna take that cash and put it

into the equity markets so historically

you can see that global equities as a

percentage of total holdings is actually

below the historical average

historically global investors have about

44% invested in stocks but right now

they only have about 40% that's right

so we expect more money to flow into the

stock market and it will then rise now

of course it rises too much and again

too many people get on the bus then it's

gonna tip over

right so when that happens I'll let you

know reason number four stock prices

milk relatively expensive based on p/e

ratios but stock prices are cheap

relative to bonds right why let's take a

look because the dividend yield on the

SMP 500 exceeds the dividend yield on 10

20 and 30-year Treasury bonds so if you

look at the S&P 500 the current dividend

you over here below is 1.9 one percent

all right now compare that to

alternative investments like investing

in US Treasuries or US bonds and you can

see that the 30-year bond only used one

point five six percent the ten-year bond

use 0.77% so ask yourself this question

would you like to buy a us-born lock in

your money for 30 years and get one

point five percent or ten years to get

zero point seven seven percent would you

rather put your money into great

businesses they can grow in value at the

same time return 1.9 percent in

dividends and the difference can grow as

well it's a no-brainer right so you can

see that equities are cheap relative to

Treasury bonds and historically as long

as whenever the dividend yuan the SMP

exceeds the useful Treasury bonds right

stock markets tend to go higher all

right reason number five history says

that we should go higher right now in

the last 50 days we have made the

largest percentage gain in the history

of the US market alright and if you look

at all the previous histories of the

market whenever the market gained more

than 20% over 50 days and again it

happened 1 2 3 4 5 6 7 8 times in

history whenever it happened and again

saw this piece from 1950 right whenever

it happened and we had at least a 20

percent gain in 50 days you can see that

you know 12 months later the market

gained additional returns and it

happened basically

right a hundred percent of the time one

two three four five six seven eight

sorry seven seven out of seven times it

has happened of course that's not

guarantee is gonna happen again but a

point is that history seems to be on the

side of it going higher alright so with

that let me just summarize what I'm

saying I'm saying that the markets have

gone up quite a bit they don't keep any

more on the expensive but there are

reasons why it could keep going higher

and higher and again let me make some

really important disclaimers this

claimant number one no one can predict

the future all we can do is to look at

probabilities so right now that the

probability is that a market is more

likely to go higher than go lower but

it's not a guarantee because anything

can happen in the markets anything can

happen so as an investor or trader you

have to be very very flexible so the

moment I see that a market is reversing

into a downtrend whenever it happens

what am I gonna do I'm gonna shock the

market by using put options I'm gonna

protect my portfolio I'm gonna take some

profits and shot and make some profits

as it goes down when will it happen I

don't know but I watched a price action

and I let the market tell me where it's

going before I take a new trade there

this came I want to make is there I

bought all the stocks I want to buy two

months ago I'm not buying anymore

why because prices are expensive I all

like to buy when it's the cheap so I'm

not going to buy anymore even though I

think it's gonna go up just gonna enjoy

the ride all right having said that if I

want to add more shares into certain

companies I have to wait for a pullback

I remember breathe out breathe in wait

for to pull back to a support level

before I add more shares never chase the

girl or I never have to fear of missing

out the Fobo never chase a good you

chase the girl she'll never respect you

in fact always wait for the good run to

you

right let her run into your arms when

she's fearful remember we'll always be

bad news that comes again I don't know

when but whenever there's bad news and a

girl runs to me I'm waiting for her with

open arms like what Richard buck says

I'm right here waiting for you

alright so hope you enjoyed this quick

update I'll see you in the next video so

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