Hello and welcome back to our NVIDIA GTC cover. This is theCUBE, I'm John Furrier with my co's Dave Vellante. We're here, Dave, great to see you. We're here for the kind of the day two, but it's really day one, but all the sessions started but it's really day two. Jensen just did his private briefing with the press and the analysts here with ZS Carvella, ZK Research. Always great to have this analyst angle. Guys, thanks for joining me. Yeah, you're welcome, John. I mean, thanks for having us here. I mean, this is crazy. I mean, this is, talk about Fire Marshall Full. I mean, this place is packed, but, you know, Jensen did a great job yesterday at the keynote, sort of making the case for big honkin' chips. And then we just sat, the three of us just sat through a masterclass. Jensen spoke for an hour, like straight for an hour and then took Q&A from analysts for an hour. Every hand in the room was up, you got a question in. You know, I wasn't able to get my question in, but so good job there, sitting right up front. But, you know, it just strikes me that they're playing in every part of the market, AI everywhere. And my takeaway from listening to yesterday and today is, he's basically saying the same infrastructure is going to do both training and inference. Now, there's definitely a market. He talked about chip lifts a little bit, very little bit, because people have been trying to deposition an NVIDIA's monolithic approach. But there's real benefits to monolithic. And he talked about that, that every part talks to the memory, every part talks to each other. And we had to create a new communication system to be able to do that. So, I think they are taking the high end of the market and there's really nobody that, in my opinion, is going to touch them. Plus, they're also doing chip lift stuff with media tech. The other thing that I wanted to mention is, yesterday we heard about ANSYS, Synopsys, Cadence. No surprise, this rally is broadening. You know, and those companies are getting a lot of AI love. So, it's just AI everywhere. Well, we're here in the run and gun cube, guys. We're one camera, very tight footprint. We've got our cameras. I want to thank Noah and the team back in Palo Alto, making it all happen. We've got Howie Shoe doing a founder AI tracks at the studio. Obviously, it's AI's innovators, our big theme. ZS, we chatted yesterday to kick off the event outside. We did a great remote out front with the cube. We just heard Jensen kind of go kind of deeper under the covers, more personable, a little bit more expansive on his one on one with the ANS. We were just in that room. We had a chance to sit with him and get that vibe. What was your big takeaway that was different than the keynote? How did you share your thoughts? You got a question, congratulations. Yeah, well, he's super excited about it. And I think to follow up on what Dave's points were, was when you think about where NVIDIA came from as a chip company, there could have been a lot of limitations along the way the network's not fast enough, memory doesn't get transmitted fast enough, that could have held them back. And it didn't because they solved it, right? And in fact, we talked a little bit about NVLink yesterday and NVSwitch, where I think that's, I said to Jensen, I think it's the most underappreciated innovation from that company, because it solved the network problem for interchip communications.  It's all those things together. In fact, when they showed the Blackwell video, starting with the chip, then going to two chips, then going to a quad chip, to a motherboard, to a server, to a system, to a cluster of systems, right? That's really, yeah, and they build all of that together. And so are they vertically integrated, sure. But when you think of, up until this point, what's the best performing enterprise applications ever been? It's Oracle, right? And it's Oracle because it's a fully integrated vertical system. And when performance matters, nothing outperforms engineered systems. And so I think they've taken that and went into the nth degree. And the thing that impresses me about NVIDIA is whatever limitations there are along the way, they fix them, right? And whether they have to reinvent networking or memory, they do that. And I think that's a, it's not a company that can do that. You know, Jay, we're going to be sitting down tomorrow with Broadcom's financial analyst meetings here in San Jose. And we had Charlie Quas on theCUBE at MWC and you hear Jensen talk. And one of the things that strikes me about this generation, these leaders in the chips, and then switches, actually they have chips and switches, both of those companies, by the only companies that have both switches and chips. Unique, Broadcom and NVIDIA. But their CEOs are computer science guys. So when they explain concepts, it's refreshing because they have two degrees of computer science to hear the talk. And he's kind of simplifying computer science principles. And you can hear, you can see how much of their lead that they have. They've made big bets, really quietly made big bets. They put ray tracing and all the stuff. They have a tensor core and all the millions of PCs. Three years and 25,000 employees working on Blackwell. Big bets in zero billion markets that become huge. Everyone thinks they see the success but they don't see the failures. It just strikes me that they got it right and these bets are paying off and they have a huge lead. These systems are the way they're engineered. It's a data center basically as a service. They're selling as parts he said. So really interesting that the moat that they have Dave is really their lead. What do you guys think about that? What's your reaction to that whole size of the lead that they have in these markets? And what's real and what may not be as tight as a drum as you might think? Well the line that was an awesome line when he said we are market makers not share takers. So basically he's saying we're creating markets. Now, believe me, they're taking share. They're taking share from x86. That's like Broadcom saying they don't chase S-curves but they're on one. But exactly, by accident, by design. But so I think that their moat is substantial. I mean, I think when, you know, we've heard leading up to GTC a lot of talk about monolithic and almost used as a pejorative. To me, monolithic's not a pejorative because you need, as Jensen said, you need bigger and bigger and bigger chips. And his point is we share memory across all these components. And so when you even talked about the cabling, you talked about all the potential constraints. Cabling was one potential. They had to basically invent some new switching capabilities. So I think they're far ahead in packaging and obviously in chip design. I think they've got yield advantages with TSM.  And just to hear Jensen talk, he doesn't talk like a chip manufacturer. He talks like a system, a design person, system thinking. And he really talks about the future, the future of everything. And it's extremely impressive. And I think it really underscores their lead. Well, the other part of the lead though is just the size of the developer community, right? When even if somebody else were to come up and build the software needed and the developer tools needed, how long would it take you to build that developer ecosystem? I think he said in the keynote yesterday what was a 1.3 million robotic developers alone, right? So from a mode perspective, even if you were at par on the tech, which competitors aren't, it would take you, what, decade or so to go accumulate all those developers? And so that's always been the heart of this company, I find, and really the most misunderstood part of NVIDIA is they've done the things they need to do to make it easy for developers. And other chip companies didn't, for whatever reason, see that and NVIDIA is really the one winning the war now. Actually, I loved your question about accelerated computing and how you tied it to the network. But then he kind of went out in a tangent and it got my attention, Dave, because Zia's got that question in, but it sparked something in Jensen's head that he answered the question about IT, Swiss traffic, and AI. But he actually went on this tangent where he talked about the AI acceleration to industries. He meant, and he kind of was not bragging. It's not bragging if it's true, by the way. So he wasn't really bragging. He was saying, yeah, we have a lead and no one's really chasing us. But I think we're going to see a new dynamic with this accelerated computing that we've seen before, but not the same. Remember during the pandemic, there was this concept that was in the financial world called pull forward revenue. Yeah, the whole pull forward opportunities that because of the pandemic created new use cases. And some thought they were mirages, some thought they were not sustainable, but they had a huge financial impact. So this pull forward impact that the pandemic had, AI is happening. So what he's basically saying today was, I heard him say was, we're pulling forward from the future, accelerating use cases with our AI, rather than net new invention, we're going to have incremental improvement and bring forward some of these advances faster. And he named multiple use cases almost in every industry. We've been kind of saying that Dave, like AI is great in the industry. So I think this pull forward concept is going to be huge. I think it's going to have a material impact, not only on financial, but society. So I think this accelerated computing, accelerated AI is going to absolutely have an impact. And again, you're starting to see the early signs of it. And now you get the systems and the hardware in place. The chip side, I love that big chip, build a big chip because there's efficiencies with energy and chips. So there's huge advantages to the architecture, the business model, and then ultimately the impact. I think the concern, if I may, about the pull forward and use the pandemic, and I think this is a really good example, what happened in the pandemic is we got this sort of seesaw slingshot effect where everybody ramped up and then everybody had to ramp down because everything changed.  I mean, if you want a Blackwell, you got to sign up for Blackwell now or you go back to the end of the line. So of course, who's signing up? AWS, Microsoft, Google, Oracle, Dell, et cetera, they're all saying, yeah, give us the chips. And so you may see that type of slingshot effect, but look, it's better to be early and overbuilt than to be underbuilt and not be there to take advantage of the opportunity. And the other key status, he talked about 25,000 engineers, you just said over three years, $10 billion to build this thing. So at 50,000 bucks a piece, you're talking about a couple of years before he gets that payback. And then the other question that came up, somebody asked about software, like what's your software opportunity? He said, well, imagine we got a million GPUs out there at $4,500 a piece per GPU per year, you're talking about a four or $5 billion opportunity per year. They're going to make a lot of money. The thing I want to get you guys' thoughts on is that he mentioned a couple of things. We're going to manufacture AI and LLMs at scale and create LLMs, going to be in the LLM creation business as well as working with others. He mentioned someone's got to pay for this operating system. That's, he's hinting that they're the operating system for the future. But he started the whole thing with this new industrial revolution. And I find this interesting. I think NVIDIA is making a land grab for the token market, Dave. The tokens were, came up multiple times on the keynote. He drilled on it at the beginning of his keynote here in this new industrial revolution pitch, where he said, the old world is prerecorded. Like we think prerecorded videos, you know, you get the news, it's prerecorded, everything's prerecorded, you got to fetch it versus generative. Seeds of innovation. Data is seeds, the new seeds. Retrieval versus generation. So I think this whole token economics redo, remember the old crypto days, Dave? ICOs and token economics. I think you're going to see a token currency. And I think they're smart to build the system, to handle LLMs at scale, because he mentioned the word embeddings. He wants that embedding business. I think this is a big strategic move for NVIDIA to go after the tokens, because they can control that context window, they can control the reg and ultimately the LLMs. And if they have the factory, they got to have the embeds, Dave. The embeds is going to be the core currency for those tokens. So, did you hear that? What's your reaction to that? Yeah, no, I think ultimately the operating system analogy is the right one. In fact, during his keynote, he talked about Omniverse, being the operating system for digital twins. And he talked about LLMs, what they're doing there is being the, really effectively the operating system for content generation. So when you think of, once you're the operating system, then the ecosystems that get built on you become massive and create this pull through effect for me, right? So, I did like the comparison to operating system because I think it is an appropriate one. But clearly as we move into this world where more and more stuff gets generated on the fly, I mean, that's awfully hard for anybody else to do without owning the stack. What I like about Chesham, he obviously says some things over and over again like AI factories, and if you buy more, you save more. But he also introduces new content every time I see him talk. And I'll give you some examples here. He talked about the world of generated content is here. And he talked about how NVIDIA creates a lot of content formally through graphics and now they're generating tons of content. Yeah, he talked about that almost as being the renaissance for the GPU, right? Cause they started off as a company that created graphics and now they're creating all multimodal content. And he said Blackwell is built for this gen AI moment. And then he went through this thing of talking about simulation versus animation and how you do training and learning and generation. And then you have to ground the AI in physics and that's what Omniverse does. And so my point is, when Jensen talks, he talks with vision. When his competitors talk, they talk about, well, GPUs are really expensive and we're going to lower the cost of GPUs and we're going to compete. He talks about how he's changing the world. He said none of the stuff that I talk about was ever here before, gen AI. And this is all new. So his vision is really crisp and quite forward thinking. One of the pieces he hinted at at the end that I wish he'd have spent more time on was the sustainability impact of what NVIDIA is doing because that whenever I read media articles about what to expect, NVIDIA gets beat up a lot because Blackwell uses a lot of power. But if you think about the workloads they're running, now it's a weird comparison because you wouldn't run those workloads without Blackwell but now that you are, Blackwell uses a lot more power. But you can do things a lot more power efficiently. And so when he talked about embedding GPUs in AI into cellular radios, right? Instead of just sort of upping the power all the time, it can be a lot smarter about how it does that. So are they using more power? Sure, but we're talking about this on the way over that the power per transmitted packet goes way down and that's the calculation to do. And I think that's an opportunity for NVIDIA. They really, he touches on a little bit but given how important sustainability is, it's something you can drill down a lot more on. He just drops a lot of nuggets because he's kind of off script so he kind of slips in because we're reading every word and connecting the dots. SmartNix and all nodes, you catch that one? Oh yeah. Okay, that was good. East-West, Northwest encryption. You brought that up in your question. But the SmartNix and all the nodes is a decoupling and that really points to their success with MV Switch Day because if you look at their success with the new chip is unbelievable how they had that one chip that handles all the GPUs acting as one and then now that the Switch chip is by itself that's going to be a major innovation. And again, this is what we just talked about at MWC. The chips working together, IO, low energy, good yield. This is a huge issue because basically when people talk about these monolithic chips what they're talking about is you have a huge SRAM that's shared amongst all these components and those are synchronous connections whereas again, these alternative designs people can't get yields out of what Jensen is doing and somehow Jensen and NVIDIA have figured out how to get yields. So what they do is they build chiplets which have their place but they're asynchronous connections and by comparison they're much, much slower. The other mic drop moment I thought was he said NVIDIA is the world's largest quantum computing company that doesn't build quantum computers. And then he went off and started talking about- Kind of disinquantum. Yeah, he kind of was. He was saying we are quantum without the computer. Basically AI is going to solve a lot of these problems. Except for use case, except for specific use case things. Which was encryption, quantum encryption. He said AI is not going to solve that but he gave several examples which could be boiled down to pretty simple problem solving that he said AI was going to solve. He did shoot an arrow across the ethernet bow and the link can't go down. Super high quality. What do you think about that? Energy is low. I said this morning to Kevin at Dearly Runs Networking. They announced about the holy war between ethernet and infinite band and he said there's no holy war. But then he went on to say that you cannot use ethernet and AI.  So there is a holy war going on here. I know all the network vendors are part of the Altered Ethernet Forum but as you and I have talked about before I've seen this movie before where everyone wants ethernet to replace infinite band. But frankly if you look at the relative cost of networking within the AI cluster it's not all that much, right? And so the risk reward on replacing it with something that may or may not work to me isn't all that high. So I do think once you're outside the cluster you're going to go ethernet and out through ethernet might be good for that. And so it'll, ethernet will lead away at infinite band kind of at the margins but infinite band's here for a while. There's markets for both. And this is where when you sit down with Charlie Kawas and people like that who have deep technical expertise and he talks about open scale and power it's like okay this guy makes a lot of sense. And so I get, I think the takeaway John is there's markets for both. Yeah broad comment and video will be the dominant. All right guys last question real quick as we wrap this analyst angle up. This is a, he said the next decade don't be asleep for this decade. We're two years in for the next 10 years. Jensen said that today. We've been saying that in theCUBE. We wish we were 25 again and since a great run we're absolutely going to be paying attention and living this next 10 years. What's the impact of this NVIDIA GTC this year? I mean outside we're getting in the weeds but mainstream and people see the stock price. They know GPUs. This is a computer industry that's being redefined and he's actually saying it's the new industrial revolution obviously accelerated computing there at the head of the pack. What's the impact of this GTC? Dave we'll start with you. That's going to, is it a market history? What's your takeaway of the impact of this year? I think it is a market history. I think people are concerned. They're like okay when's NVIDIA going to run out of gas? What's the competition look like? What does that mean for NVIDIA's stock price? I think we are in the early days of a data center super cycle and I think it is going to morph the way that mobile and cloud changed our lives. I think it's going to be completely radical. He said within eight years and I agree with him we're going to have functional robots. So we're going to be talking to robots and they're going to be doing these menial tasks around our homes and it's going to change the way. I agree. It's going to change the way. You know we have to figure out other ways to get our exercise but it's going to change the way in which people live and work and we're just in the early innings of a 10 year data center super cycle. No robots on cube though, right? I don't know, we'll see. We'll see. I agree with you and I think with AI. We've been talking about AI for a long time so if you think of the typical hockey stick and option of technology, I think the AI blade's been a little longer than cloud and things like that but I think the shaft is going to be a lot steeper and a lot longer. And I do think we are in the very early innings here. One of the execs this morning in the Q and A said he thinks we're at first pitch. Not even first inning, right? So from that standpoint, NVIDIA's got a tremendous amount of runway. I think one of the other interesting things to think about just from a capital markets perspective is we're going to have some big tailwinds with AI. Who are the other companies that are going to take advantage of this but some may have to burn themselves down to be able to be reborn in this era but I think there's some obvious ones like Pure Storage and Arista maybe but I think the rest of that ecosystem is yet to be written. Reinforced learning, big theme, tokens, grounded in truth. This is the AI future where the cube is here on the ground running and gunning with a single camera. Nothing's going to stop us from getting the stories. We do whatever it takes to get that story out to you and thanks for watching this analyst angle on the cube. We're in systems revolution. Next 10 years is going to be a lot of fun, a lot of change, a lot of great opportunities to make a difference. We'll be there with you. Thanks for watching.


Gov. Samuel Autumn of Benwick State has disagreed with the President Muhammad Nubohari over the statement credited to him that states governors should tackle security challenges in their state. Autumn stated this at the weekend in the press conference organized by the state to mark the 2021 democracy day. The governor said it was wrong for the president to have said he would hands off security issues affecting states as he is the commander in chief of the armed forces. Autumn vowed that the sustained attacks on Benwick communities by marauding headmen would not compare the state to repeal the anti-obun grazing law.


Good afternoon everyone, this is Melissa with the Stock Swoosh and I am here to do a marker if you have a spy. Spy is rallying today called the market to hold, the market is holding, the market did gap down this morning and actually did gap down below where we opened. Let's take a look here. So low is 197.15, right there in the spy, but we opened today at 98.77. Remember support and resistance are areas, this is an area of support in the spy and it's holding. It is holding. Okay, so this level is holding because where we opened today held. I did a video yesterday on the QTQs and I talked about the fact that buying actually came into the market yesterday to support it, or the drop from yesterday would have been more severe and bigger. It sounds crazy for the fact that I say that buying came in on a day where the market was red, but it did. Institutional buying came into the market yesterday or would not have been supported in the way that it was. It would have fallen harder and deeper and greater and it did not. It did not. Then we fell this morning in the gap, in the gap down in the pre-market, fell, that was a continuation from yesterday, but once again buying came in and supported the market again into the open and is supporting it on a live day. So the call for today was a market would rally target was 200 to 150, 201, dream target today in the spy is 202 and it's 1122 and it could get there because people that are short this market will exit some of the position here today. People that have shorted in here and shorted in here will take some out or get all out even though people still think the market is lower. Some people will take this as a target and exit today. Some shorts we'll cover in here today, but really it's buying and supporting the market and we'll lift it up too. I don't know exactly where we close today, but we will close with a green body day and there's no chance of failure in that. We even broke the low at one point by five pennies or something. I don't even know what it was in the queues. I think we did it here. It was almost 20 cents. Almost 20 cents we broke the lows in the spy right into the reversal time of the 1015 and then we immediately bounced in help. But somebody is going to try to keep shorting this market in the 15 minutes today. It's just not going to go anywhere. We will close green today so the market's holding and we'll hold. I just don't know how aggressively we hold today, but it'll be enough to carry us through into next week. When I did the QQQ's video yesterday, I did say that sometimes soon, I don't know when because I can't predict the timing and I want no to see the gap. The institutional volume will come in back into market and in a big way. Now, this morning market got down, but I saw the gap down today as a buy. Again, not every gap down is a short. Now, every gap up is a long. You have to know exactly what you're looking at to determine how to do this. How do I do it? I have a 26 point rating system that tells me whether something's a good short or long. This was not a good bearish down in the gap today for it to fall through, to fall through lower. It was not a gap to short today in the market. In fact, you could have bought this gap in the market today and you would be up. You would be profitable. If you had your stop at the right place. I did call the market long in the room. Tricky day today because a lot of people probably thought this market would fall and they woke up and saw the gap down in the morning falling, especially when it broke 198, 197, it got down somewhere around there. But the market is holding and is holding the market still higher. Everything I've said for this year is still playing out. There's nothing here that is even remotely inconsistent with anything that I've been reading or saying. The market is behaving extremely well, very, very well. And I did call this in the letter that I sent out in the email at the end of 2014. This will be a tricky year for people if you don't know what to do. If you are not, if you're not a how to read this right, it will be a tricky trading year for you. And if you do know how to read it right, you will do very well. Okay. But it's going to be a rear that has a lot of potential for people to make money. If they have the right skills, if they're focused and have the right skill set, it'll be a big year. I'm one of those people, but if you do not know how to read this right, you might have a tough year this year because you might get sucked into thinking certain things are not going to play out. And one is that the market is in breaking here. And it's not, it's not, it's just not. And I keep saying that it's not. You have to read the price. Sometimes the red bars and the green bars help to pick something very quickly for you to determine something strong or weak. But that's not what I look at. I'm looking at the price action about something's trading. And that's how I knew yesterday that institutional buying came to hold that sport, that market at that level, even though we had a red day. It's, you have to read the price action how, what it's doing. And that's how you do it. That's how you know. This is again, something that I'm teaching people. It can be taught. It's based on reading price action in gaps that I've become so good at reading price. But I do have an extremely good eye for seeing things, you know, seeing certain levels or seeing what something's going to do before it does it. That's how I'm able to call the market that it's going to really have a big year rallying. I mean, we haven't, we haven't started it yet. But it's only January 16th. Market's been trading for two weeks. It's like nothing. You know, but all of this has people short in the market. And when they have to cover that will lift the market up even higher and even more so. Just look at that 15 minute. You know, and even when I saw this, it was a watching this. I watched this happen live this morning. This is, you know, it stepped in very aggressively, very aggressively stepped in. Anyways, let's go back to yesterday. This is being supported. This is buying coming in yesterday. The market was supported with institutional buying. Despite the fact the bar was red, this is being bought and supported. And if the market had wanted to fall yesterday, it would have fallen something crazy. That's the thing too. The market gapped up yesterday, gapped up, gapped up to the whole number two or two and failed on a daily buy set up and ran red and nearly broke below the previous day. But it didn't. But it could have, but it didn't. The market in the spine could have fallen and dropped yesterday to all the way down to 198, 196, 197, all the way down. The market could have if it wanted to sell out hard yesterday, fallen flat on its face, just falling really, really big. But it didn't. It was supported. It was supported because buying came in and held it to support it, not to do that. If this was real, if this had really played out the way that it could have played out, but did not, which I didn't think it would, this failure of the gap up and the failure of the buy set up on the daily chart could have just collapsed, collapsed through everything and sold off like a crazy person. And that's really how that would have played out to show more signs of weakness in there, which it's just not doing because there isn't anything weak in the market. There's nothing weak in the market. So the buying came in to support it, all right. Buying came in to stay here. We rallied hard in the morning on this day here, even though we fell on the news action that happened the afternoon. So you have to be able to read what's really going on in this, the way things are trading and acting, okay. The institutional buyers are waiting in the market to take more in and grab hold at any point. They are still stepping into the sports market or it wouldn't be here at this level today, all right. Call for next week is actually that we do follow through, finally on the rally backup. I will know when I see the gap Tuesday morning, but it really looks like we are working ourselves up, working up the momentum, working up the plan of action to continue higher before the end of the calendar month. That much I will say. I think that it could set up by early next week, but it will definitely be by the end of January. And when it comes in, it's going to be aggressive because that's always the way it happens because money has a huge, tremendous amount of power. Huge, massive, okay. That's why you can't trade against institutional money in the market. And I admit that this can be challenging to read, but I do know how to do it. I'm teaching people to do it. It's because I know how to read gaps that I do it. This information is accessible to anyone who wants to learn it. It's just that many, many people do not know how to do this. I said yesterday when I made the call in BBY, which was a great call and I saw it. And the market is another great call here that I've been, I've just been calling this so well for a long time now. And I'm calling it well even now. But you know, the thing that's unique about people I think that kind of find me to learn from me one-on-one is that there are, there are very few people that have the skill set that I have that is accessible to individuals to come and learn from me. Most people that have an educational business or run a live trading room do not have the advanced high sophisticated level of skill set that I do in reading price action or to have a trade. Most of them are doing other things. What does that mean? That means that there are other people that know how to read things like I do, all right.  You don't know their names. You don't know where they live. You don't know who they are. You will never meet those people. They're invisible. Okay. People that are doing things that are out there in the world that you don't have access to and never will. The real advantage that people have that even know me, that know of me, that have even come to one webinar or listened to any videos of me is that there's an opportunity to come and learn from someone like me with such an advanced high level sophisticated skill set to be able to reprice accurately in the U.S. stock market, to rail to market direction and stock direction is that you have accessibility to me right now. It is not something that is going to exist for eternity because people that have the kind of skill sets that I have have endless amounts of opportunity because there's very few people on the planet that know how to do what I know how to do. And the people that do are not accessible to regular individuals. They're not, they don't run businesses where they're teaching me how to do it because stuff that I know is something that is going to translate to a next step for me. This is what I'm doing right now is not something that I'm going to do forever. And this is why the people that come to me recognize it's an opportunity to talk to me and ask me questions and learn from me directly. This is not something I'm going to be doing forever because my skill set is so advanced and so high that it has an endless amount of opportunity because it's so unique. But there are people that can do what I do. They're just not accessible because they're not in the same ministry. They're not running trading rooms and they're not teaching people. They're doing other things, okay, which is where I'm going next. So it's just one of these things where, you know, I teach a class on how to read this stuff. If you want to do it, you can contact me and sign up for the course. The class, next class is January 24th and 25th. If you want to learn, but I really, really know how to read price. Something the room said today, they're going to listen to me and I'm the expert and it's true. I'm an expert in reading price action. And I'm an expert in reading the first five minutes of the day. I'm an expert in reading the daily chart, which tells you everything you need to know. And as a day trader, to be able to read that first few minutes of the day to know whether something's going to work or not work in what direction, if it's going to be really good or a failure, is extremely important if you want to day trade. Because day trading can be tricky. The moves happen fast. They happen very, very quickly. In order to get it, in order to get the right entry and the momentum, you have to be in the right direction. I called the market long immediately, as soon as I saw it, and I said it was going to hold this morning before the open. So if you'd like more information, you can email me at Melissa at the stocks, swish.com. If you want to sign up for the next Golden Gap class, it is next weekend. Again, this is an opportunity to learn from someone like me. So you can take it if you want it. Email me at Melissa at the stocks, swish.com if you want more information. Thanks, everybody. Have a great day.


QuickBooks Online 2022. Short-term investment, sales and gains. Get ready because it's go time with QuickBooks Online 2022. Here we are in our Get Great Guitars practice file. We set up with a 30-day free trial holding down control. Scroll it up just a bit to get to that one to five percent. Currently in the home page, otherwise known as the Get Things Done page in the business view as compared to the accounting view. If you wanted to change to the accounting view, it is something that you can do by going to the cog up top and the switching to the accounting view down below. We will be toggling back and forth between the two views as we go either here or by jumping over to the sample company file which is in the accounting view. Going back on over, we're going to open up a few tabs by going to the tab up top, right clicking on it, duplicating it. Back to the tab to the left, right clicking on it, duplicating it. Back to the tab to the left one more time, right clicking on it and duplicating it again. As that is thinking, we're going to jump over to the sample company file just to locate where the reports are at in the accounting view which is on the left hand side, simply called reports. Going back to the business view to see where the reports are located. We're currently in the second tab. We're in the business overview. We're going to be opening up the good old balance sheet. We're in the reports area. I'm going to close up the ham burger and let it think a little bit more standard tab and then the balance sheet. Opening up the balance sheet. Let's do the range change up top from 01, 01, 2, 2, 2, 2, 2, 2. Hold on a second. 01, 01, 2, 2, 2, 2, 12, 31, 2, 2 and run it. 2000 double dues. Back to the tab. Next tab to the right. We're going to go to the business overview reports area. Close up the hamburger. Let's open up the P to the L the profit and the loss and do the range change up top from 01, 01, 2, 2, 2, 12, 31, 2, 2 and run it. And then on the tab to the right, I'm going to switch things up a little bit by going to the business overview. I want to open up the income statement again. And this time let's test out just looking at the current month. So we'll have two income statements open. One that's going to be the year to date. The second which will just be the current month. We're working on closing up the hamburger. So let's just do this one from 02, 01, 2, 2, 2, 12, 31, 2, 2. So that is going to be at the starting point. So we can see that significant difference in the activity of the business statement on the year to date versus the current month income statement. Okay, back to the balance sheet. Hold in control, scrolling up just a bit. We want to talk a little bit about this investment information. So we put some money into the short term investment. So a couple of things to note on it. We have some difficulties with the investment. So one the issue with the investment is that first of all, if you're going to put money into the investment and you have like a business such as get great guitars where you're doing business as a guitar shop guitar lessons and so on, you're not typically then going to put the investments into the company file unless you're holding on to those short term investments generally for the business use. But instead, you would think that the business if they had excess cash, they don't plan on putting back into the business would give that cash to the owner if it was a corporation that would be in the form of dividends. If it was a sole proprietorship or partnership in the form of draws so that the business can do what the business does in this case, guitar sales and the owner can take that money the proceeds that have been earned and invest them in some other place such as stocks and bonds. However, you could use QuickBooks for personal use as well in which case you would want to be tracking your investments within the QuickBooks system not day to day tracking. That's not what QuickBooks is typically used for. It's not there to look at the trend analysis on a day to day basis or even possibly too much detail in terms of the types of investments you're putting money into. In other words, individual stocks or even too much detail on the types of stocks. However, you so you will want in QuickBooks to break out, for example, the the where you stand as of a point in time. So you might put the monthly information into QuickBooks. You might break out your information on a personal basis by the stocks that you're putting in place that are long term versus short term, or you might break out the stocks that you're putting in place by financial institution so that you can easily tie that out periodically to the financial statements. You might then break them out between the stocks and the bonds and investments that are under the umbrella of a 401k plan or some type of retirement plan such as an IRA because you don't have access to them as readily and therefore they be long term investments versus short term investments, which you do have access to. Those are a couple things you can you can do on the personal side. Whether you're on the personal side or the business side, you also have the problem then of saying, Well, what do I do with those temporary gains, those unrealized gains? In other words, oftentimes I'm going to want to adjust my stock investment in my balance sheet to match basically or mirror what's currently in the market condition, which you can do with stocks because the stocks are trading on a stock exchange. So unlike with something like a building or property plant and equipment, which I cannot tie to anything really on the market because they're unique in nature, I can try to make an estimate and so on. But it's not as easy for me to see what I could readily sell a building for today as I could if I'm talking about publicly traded stocks and investments. For that reason, it's more likely well, well, then the question is, well, should I be recording my investments at market value or at cost? Because if I haven't realized the gain, if I haven't sold the stock, usually I keep the books on at cost and so should I but with the stocks, we're going to want to basically record the current market value generally. So that means that we're going to decide, okay, I want to record the current market value on the stocks. If I had not realized the gain, then how am I going to do that? I'm going to increase the stocks if there was a gain periodically or decrease them if there was a loss periodically. Where does the other side go? Either there's two options, the more difficult or more complex or confusing option would be that you put it into the equity account, making an equity account that's called unrealized gains that doesn't hit the income statement, because you haven't actually realized them, and therefore it's not going to be part of basically actual income, or you can hit the income statement with the unrealized gains. If that was the case, then on the income statement, you might want to put them at the bottom of the income statement in other current income or other income, I should say, as opposed to up top in the income line item, so that you can see your your income without the unrealized gains and then tack on the unrealized gains on an individual portfolio basis. That's probably the easiest thing to do. So you can see your income before unrealized gains and then look at your unrealized gains kind of at the bottom of the statement. So keep that in mind. And you also might also think about, well, maybe you want your investment account here to have the investment that is going to be the cost, the amount that you put in to the investment and possibly another line item that will represent the gains and losses so that you can add them together, possibly the gains and losses being a sub account of the investment account so that you can kind of net them out and see what your gains and losses those are a couple, you know, suggestions just with investments in general. Here, we're going to imagine that we're going to sell the investment and we're going to sell the investment realizing the gain actually getting the cash as opposed to unrealized gains. And we're going to say that we sold it for 12250. Therefore, we have a 250 gain. And that instance, what form are we going to use? There's no form that's directly related to day to day transactions. In other words, if I hit the plus button here, there's no form that's here that's for related to selling stocks because it's not something you typically do on a day to day type of basis unless you're in the industry of selling stocks. So but cash is impacted. Therefore, we can use the cash form, which would in essence be the deposit form. So let's go to the first tab and think about what that would look like. It's a little bit more confusing here. This is an abnormal transaction that happens all the time. And there's three accounts that will be impacted. So you can also think about well, what if I had bank feeds, and I was doing this with bank feeds, then you would see the deposit hitting your bank at the $12,250. And you'd have to think about it a little bit more to bring that into your books, because there's going to be three accounts affected, you're going to have to decrease the investment account, and you're going to have to record the gain or the loss. So we can also do it with the register, but because there's three accounts affected, I think it would be easier to use the deposit form. So we'll go into the deposit form, which typically I use, you know, when something's in that clearing account after we've used a sales receipt or receive payment form. Okay, so deposit form checking account or cash account, it's going to be as of we're going to say 0202 0202 222. So 2222. That's a lot of twos and zeros, twos and zeros. Okay, so then we're going to town. And I'm going to say that we got cash for the full 12250. And we're going to put the short term investments have to come off the books. And before I get too deep into this note, this is another area where I'm going to have to add an account. And this is where I think there's a the business view isn't as strong at adding the accounts here, or I don't like the way they add the accounts as much. So I would if I'm adding accounts go into the accounting view. So I'm going to do that. I'm actually going to close this out. I'm not going to save it. I'm going to right click on the tab up top and duplicate it and try to go into the accounting view or I will go in. I'll accomplish the trying of going into the accounting view here. And then we'll see the data input, because we're going to have to add an account as we go. So I'm going to go to the cog up top to switch to make the change. So we're going to go into the cog up top and switch to the accounting view. And then we're going to do this again, let's hit the plus button, and then go into the deposit bank deposit form. And everything looks pretty much the same, except that when you add the accounts, the this one is in my opinion, 020222, in my opinion, better. Okay, so now we're going to be in the account here. So short term, short term investment, there we have it so we can record for the sale of investment. And then the payment method, I'm going to say, let's hold control and scroll down just a bit. I'm going to say the amount, I'm just going to put the amount of 12,000, it's going to go down by, I'm not going to put the full amount there because then I'd end up with a negative investment, it needs to go down to zero. And so then we got a gain. Now I don't think we have any gain gain. Did they have a gain on I don't think we have one yet. So I'm going to have to add it says I'm going to add it this way gain and notice if you're in the business view, this is going to it's going to be more difficult gains on sale, or it'll be different of invest more difficult in my opinion. So I'm going to type that in and then add it. And it's going to do that. And I'm going to say I'm not going to put it into an income account, because that's not my normal income. I want to put it into other income, which is going to be on the bottom of the income statement. So I'm going to save it there. And that's the key. That's the key dividend income. This doesn't really matter too much in terms of what it's going to do with the actual location. So I'll keep it on dividend income or other investment would probably be more appropriate gains on sale of investment. That's the important thing. So I'm going to say save it. There it is. So then the amount I could put the same description, we shouldn't say Dale of investment, it should be sale. It's a sale of the investment. And then this one is the gain. Let's put that here. And then this is going to be for 250. Okay, so we've got the total is going to go into our checking account 12250. We're going to see the short term investment goes down by 12,200. And then the gain on the bottom of the income statement, even though it's income, because it's other income of the 250, and it has been realized. So let's go ahead and save it and close it. And then we'll check it out. Let's go to the tab to the right and refresh it, run it again, holding control, scrolling in. And there's the there's the cash, let's go into the cash. And then we'll hold control and scroll back out. And then we're going we're going down to the deposit.  And we can see then our investment account went down to zero. It's down to zero because we cashed it in. Because we're going to use that money to make money by selling guitars. So there it is went down with a deposit form transaction type going back to the report again. Let's see what happened to the income statement, the P in the L this is the year to date income statement. Let's run it on the income statement. It didn't put it up top in the income line item. But rather, it went down here into the other other income down at the bottom. So notice anything that's not part of your normal operations, that could be a useful thing to do. Because then you get your income from operations. And you're saying, Yeah, the sale of stock. That's not what I do for business. I sell guitars. And I happen to make some money on the stock market and have a gain down here. So I want to put it at the bottom because when you're projecting forward and trying to predict what you're going to do next year, you're not really taking the 250 into consideration so much as you're thinking about your net income up top from your normal operations, given the fact that your normal operations what this entity is for what you set it up to do is to sell guitars. If I go to the tab to the right, and then refresh this one, refresh. Now I can see that all the activity I have are these two items for the current month of February. So that's going to be it. Let's go ahead and take a look at the trustee trial balance so we can see where we're standing right now. Gonna look down at our feet, our debit and credit feet. So I'm going to go down into the business overview, type in the trustee trial balance, the T to the B trial balance, close up the ham bug or ranging in the changing 010122 to 1231 to run it, hold control scroll up just a bit. This is where we stand. The debits are left foot, the credits are right foot and the numbers are toes. So if you if you tie out to this great if not try range change. Sometimes it's a date issue and we'll be doing a transaction detail list at the end of the section which is good for determining and diagnosing any differences.