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Transcript

What’s Next After the Recent Correction?

Why did the market sell of and will it continue.

The stock market faced a volatile week, with the S&P 500 experiencing a sharp pullback. We started strong, rallying early in the week, but a disappointing economic outlook and weaker-than-expected earnings guidance from major companies led to a sell-off on Thursday and Friday.

00:00 - Start

01:29 - Why did the market crash last week

02:45 - Why did Walmart Stock Crash

03:12 - Why did UnitedHealth Stock Crash

04:40 - My trades

05:08 - Tesla (TSLA) stock analysis. buy or sell

05:45 - Rheinmetall AG (RHM) stock analysis. buy or sell

07:54 - How much cash do I hold in my portfolio

08:43 - Eli Lilly (LLY) stock analysis. buy or sell

09:22 - AbbVie (ABBV) stock analysis. buy or sell

10:46 - Brookfield Corp (BN) stock analysis. buy or sell

11:48 - Procter & Gamble (PG) stock analysis. buy or sell

14:34 - S&P500 ETF (SPDR) stock analysis. buy or sell

16:19 - AMD (AMD) stock analysis. buy or sell

17:43 - Chipotle (CMG) stock analysis. buy or sell

18:59 - GE Verona (GEV) stock analysis. buy or sell

19:56 - Alphabet Inc (GOOGL) stock analysis. buy or sell

21:16 - Hims & Hers Health (HIMS) stock analysis. buy or sell

24:04 - Axon (AXON) stock analysis. buy or sell

26:16 - Constellation Brands (STZ) stock analysis. buy or sell

28:27 - Walmart (WMT) stock analysis. buy or sell

29:52 - Berkshire Hathaway (BRK.B) stock analysis. buy or sell

32:50 - Constellation Software (CSU) stock analysis. buy or sell

34:08 - Rocket Lab (RKLB) stock analysis. buy or sell

35:38 - PepsiCo (PEP) stock analysis. buy or sell

37:46 - Should you invest in the stock market next week

39:34 - Should you sell S&P500 ETF

40:25 - How much risk is in the stock market

41:46 - Witch companies report earnings next week

Key Market Events:

  • Disappointing Economic Data: Weaker business activity readings signaled slowing consumer demand.

  • Walmart’s Guidance Miss: The retail giant dropped -2.5% after issuing weaker-than-expected earnings guidance.

  • UnitedHealth (UNH) Drops Hard: Investigations into their Medicare billing practices led to a steep decline.

  • Tech Sector Sell-Off: Nvidia (NVDA), Amazon (AMZN), and Tesla (TSLA) saw significant pullbacks.

My Portfolio Adjustments

Trades I Made

Tesla (TSLA) - Quick Swing Trade

Bought at a dip, sold quickly for a profit. Tesla remains unpredictable, but I capitalized on oversold conditions, executing two trades between February 18-19. Profit: €500

Rheinmetall (RHM) - A Costly Mistake

Took a position in Rheinmetall, Germany’s largest ammunition producer, after speculation about increased EU defense spending. The stock quickly pulled back, and I cut my losses. Loss: €100


Stocks I Reduced

Eli Lilly (LLY) & AbbVie (ABBV)

Both stocks were overbought, and I trimmed my positions. These remain solid pharmaceutical stocks, but I’m waiting for a deeper pullback to add again.

Procter & Gamble (PG)

Reduced to 5.24% of my portfolio. PG remains a strong dividend player, but I’ll consider adding back if it pulls back further.

Brookfield (BAM)

Waiting for a larger dip before re-adding. Currently holds 1.04% of my portfolio.


Stocks I Bought

Hims & Hers (HIMS) - Small Speculative Position

The FDA lifted its compounded weight-loss drug restrictions, causing a sell-off in HIMS. I took a small 0.93% portfolio position, expecting a rebound.

Axon Enterprises (AXON) - First Entry

Axon produces security cameras, tasers, and AI-driven public safety software. After a major pullback, I opened a 3.56% position.

Constellation Brands (STZ) - Berkshire Hathaway’s Pick

After Warren Buffett’s firm added STZ, I followed suit. Great alcohol brands like Corona & Modelo make it recession-resistant.

Walmart (WMT) - After the Sell-Off

I took advantage of Walmart’s post-earnings drop and added a 1.21% stake.

JPMorgan Chase (JPM) - Short-Term Trade

JPM dipped, so I bought in. I may not hold for long, but it’s a solid financial play.

Berkshire Hathaway (BRK.B) - Swapped for S&P 500 ETF

Instead of holding an S&P 500 ETF, I chose to own Berkshire Hathaway directly.

Rocket Lab (RKLB) - Long-Term Growth Bet

Expecting this company to become the “UPS of space” as the industry grows.

Pepsi (PEP) - Buying at Pandemic Levels

Added to Pepsi, which is now trading at its pre-pandemic valuation.


Risk Assessment for Next Week

  • MACD Sell Signal Triggered: Indicates caution.

  • RSI at 45: We could still see more downside.

  • Major Earnings Coming Up: Nvidia, Home Depot, Realty Income, and Rocket Lab are reporting. Their guidance will be critical.

  • Stock Buybacks Are Coming: Could support market strength through March.

  • Economic Reports (Feb 26 - Mar 2):

    • Durable Goods (Tuesday)

    • GDP Growth Rate (Thursday)

    • Core PCE & Personal Income (Friday)

👉 Risk level: 60% (Medium-High). Markets are shaky, but buybacks could push us higher into Q2.


Final Thoughts

Markets pulled back hard, but I see buying opportunities emerging. The next week will be crucial, with earnings and economic data driving sentiment. If earnings come in strong, we may see another leg up.

💡 What’s your strategy? Are you buying, holding, or waiting for more pullbacks? Let me know in the comments!


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