Video Closed Caption:
good morning good afternoon good evening
folks Michael Zuber won rental at a time
first and foremost I apologize for the
video quality perhaps the sound is a
little different I honestly did not plan
to do any interviews this week while we
were on vacation but my good friend Mr
Dan bird sent me a note saying I got a
warning for your folks can’t you squeeze
me in and I’m like
if you got a warning for our audience uh
I will make it happen so again video
audio we’re gonna do the best we can
we’re going to get this done in one
video but Dan thank you very much for
adjusting your schedule this morning
yeah no problem I know you’re doing this
earlier because you’re getting ready to
leave so yeah it’s not going to be we’re
just doing one and it will be
abbreviated probably yeah so we’re
basically going to cover what we
normally do in two videos in three first
will be a look back uh let’s take a look
back last week uh we obviously had CPI
Monday which came in uh lower than
expected I think expected was eight
seven came in at eight five you wanted
eight three I’m gonna call that a win
you were right and then more importantly
I think PPI uh came in lower than
expected kind of that validation that
wholesale number so what’d you see in
the market uh you know when you got
confirmation and again I don’t think
you’re calling it because there’s not a
trend yet but a lot of people started
saying Peak inflation
yeah I mean it’s just one data point so
we need the next one which uh which will
be before the next fed meeting correct
and I think that it will continue to go
down
yeah because we’ve been here before
right we we had one month go down and
then it went back we did so yeah yeah we
had one month that went to 8.3 and then
next month it went to 8.6 yeah so yeah
instead of continuing down yeah I think
it was eight five eight three and then
we went to eight six yes eight five
eight three eight six correct and then
the nine one and now we’re back to eight
five
so basically same place we were four
months ago yeah the interesting thing on
this number and I think we talked about
it last week I know I talked about it on
Monday with Taylor is I I said headlines
coming down and I actually said eight
three as well as you uh so we were both
off a little bit but I actually thought
core would go up and core was obviously
flat uh yeah core
I just I don’t see the I don’t see the
things inside to make core come down
right we’ve got gas obviously 60 some
odd days in a row food coming down with
the Commodities and probably again I
think headline comes down lower next
month
but that core number man that core
number could be sticky and it might go
up next month because of rent so what
what do you think of headline comes in
and and core is I think I think Cora is
going to be flat for a while actually
yeah I’m not sure it’s going to go up a
lot I’m not sure it’s going to go down a
lot either I think headline will
continue to slowly go down
it’s not going to drop as quickly as
folks would like yeah I thought it was
interesting that the Biden
Administration
Victory lap saying that inflation was
Zero I thought that was very creative
inflation is zero yeah like they don’t
think that Americans know what the real
story is why I mean there are some times
when you can actually say a statistic
but then you got to remember that most
people are going to go to the store and
go not zero where I am it’s it’s uh yeah
that was that’s right that might have
been an accurate statement
but probably not a wise statement that’s
an accurate statement with a qualifier
oh of course that’s what I I’m not I
believe me I’m not defending him I’m
just like yeah the Victory lap was
probably not not a wise move right
it’s like it’s like calling uh the
spending Bill
inflation reduction induction act like
they don’t think Americans are
stupid they think they think we’re
stupid out here yeah well uh yes Dan
they think we’re stupid yes you might
believe that
inflation is caused by spending agreed
yeah inflation has always been I think
this is Milton Friedman has always and
always will be a monetary phenomenon
right that’s right and the FED can only
affect the demand side it can’t affect
the supply side correct if if the
Congress wants to continue you know
exacerbating the supply side and by
Supply I mean money yeah yeah they keep
creating money to pay for all these
programs yep the FED can’t affect that
nope so no matter how how much the FED
raises the rates it’s not going to
affect inflation if uh Congress keeps
spending I agree so what did you see in
the stock market last week because again
you got what you wanted you and I talked
last week I remember asking you
explicitly what happens if it comes down
you said the market would pop you also I
don’t think got your validation of head
and shoulders I don’t think that
happened if I remember no that was
negated actually
um oh wow look at that’s that’s yeah let
me show my newsletter real quick oh yes
please sorry anybody that wants to
participate it’s funny I I got uh I
think I got eight messages yesterday
after you sent it out saying Michael
this might be one of Dan’s best
newsletters you know somebody sent me
that too yeah so um yeah I’m not sure
why because I just did the same thing I
always do but your newsletters are
always good and they’re free and they’re
free yeah right
um I’m think I’m toying with the idea I
don’t know how the formatting comes
through on your side one person said the
formatting it doesn’t look right on
their screen
and they have to scroll right and left
to read it oh no it came’s fine but
they’re the only ones that said that so
I’m toying with the idea of creating it
as a PDF file instead of an email
yeah yeah I might try it once and see
what people think anyway
um the newsletter like you said is free
I sent it out every Saturday as I’m
doing my own research if you want to get
included at the send me an email at
breakpoint trading at gmail.com
and I’ll add you to the list and if you
want to stop getting it just let me know
no big deal I put little cartoons in so
this one in the upper left I thought was
great yeah it’s a tweet from Elon Musk
when the country that revolted over
taxes I saw that that’s a new IRS agents
is he implying we need another Revolt I
didn’t be no comment the one and the one
on the right up here I actually put in
for a friend of mine
is not on your on your uh
a group of people but um he’s beating
expectations he’s back years and years
yeah he’s been a big proponent of novax
ah okay and two up to two weeks ago
the
CEO has been telling everyone that
they’re going to report a billion
dollars in revenue and he’s been
pounding the table no way you gotta buy
this you got to buy this and I didn’t
because I didn’t really like the chart
yeah well they reported last week and
they missed 40 yeah that’s not good not
a billion 600 million
they missed by 40 they they only got 60
of what they were promising
so that’s why I put this in here a
little of x
logos we’re beating expectations and
here’s expectations yep yep I like that
that’s very creative
um
talk about this right now this emotional
Market cycle this actually comes from
VectorVest
and this kind of tells you you know
where the cycle is
it’s right now it’s the it this week a
reported 1.66 yeah that’s crazy and you
can see 1.6 is the high so this is one
of the warnings that I mentioned
that it’s it’s way overbought way way
overbought and then I I put this in here
which comes from stock Traders Almanac
which they do a ton of research on
historical information so this is the
last 21 years what the market has done
in August
and it’s you know all of the market
segments Russell NASDAQ s p Etc which
you can see typically in August it runs
up
right until the middle of the week
unlock this expiration week yeah absent
this is my second warning options
expiration is next Friday and as I said
in my newsletter although I left one
piece out there there’s right now
there’s 1.9 billion dollars in open call
options interest so let me just kind of
repeat that for the people listening to
that that heard the numbers but don’t
get it basically that’s a bunch of
retail investors who were I don’t know
buying the dip or thinking the fed’s
going to cut or whatever they thought
they thought the market would go up for
whatever reason they’ve been proven
right they now have a positive bet of
1.9 billion dollars that the market
makers are on the hurt for
yeah and it’s not just retail it’s it’s
uh interesting investment houses anybody
anybody that’s buying options okay so
everybody basically everybody and their
brother is buying the dip the dip was in
June hit the bottom so everybody now is
convinced the market is headed to the
Moon
so they’re buying call options
and those call options expire on Friday
and market makers have to make the other
side of a market right so the way it
works and um Tom bowley does a session
he’s going to do it next week which I’m
going to tune into there’s a session
every month before options called Max
Payne what’s the maximum pain what’s the
point is the maximum pain for market
makers
in other words he takes all the call
interests and all of the put interests
and takes the difference between those
and it gives them the price at which the
maximum pain is
now up until this week the last few
times when I put it in the newsletter
last few times the market had been going
down dramatically
So Max Payne was on the upside
which means everybody was buying puts
right and so it options after expiration
in order for the market makers to not
have to pay out
on all those puts if they run the market
up
and those puts expire worthless right
market makers do not have to pay
billions of dollars to cover this they
just collect their fees for the options
we’ll just collect the fees right
and they’re taking the other side of the
market as well well as the market was
going down number one they want those to
expire work with those puts to expire
worthless right right you don’t have to
pay on them but number two they’re
taking the other side as well so they’re
buying stocks as everyone else is
selling stocks
so that that continues into the next
week after options exploration so in
March and in May the market was tanking
big time and that’s when we had our big
run-ups people were calling uh bear
Market rallies right
has a big run up and then it dropped and
went all the way down in fact it went
even further down and in May it went
further down again and the same thing
happened options expiration it ran up
because of Max Payne so market makers
didn’t have to pay out those puts people
were still buying puts
so the market went up
and all those puts expire worthless and
market makers were buying stocks for
about a week or so and then the market
tanked again and went to its low in June
okay this time we have a complete it’s
going to be the same thing but it’s
complete opposite situation okay now the
Market’s been going up instead of buying
puts everybody’s buying calls
right so Max Payne now is on the
downside
so so it’s to the market makers benefit
to run the market down next week so that
all of those call options expire
worthless and just so I I think I
remember this they they expire on Friday
close a business right
uh yes that’s right the end of the day
on Friday got it
um so you know that’s why in this
this is very interesting here from stock
Traders Almanac and this is next week in
between these two vertical lines right
and here’s Wednesday so the market runs
up and then runs all the way down
be it actually goes down
almost to where it was a month ago so
that could be a big sell-off and a lot
of times it continues into the next week
although I think it’s the good news is I
think that’s going to be it I think
after that we’re going to probably be
heading higher
yeah we get we get a couple of
interesting economic news I think I
think options obviously are going to pay
a disproportionate
uh given what you’ve just shared with us
right because again it’s 1.9 billion on
the Spy right that’s not NASDAQ that’s
not anything that’s right and I forgot
to put that in my newsletter that’s 1.9
billion open call interests only on the
Spy so that’s just the s p and NASDAQ is
bigger right if you’re going to do it on
the NASDAQ or the case bigger but that
that’s where everybody’s been buying
calls so it could be it could be 5
billion it could be it could be a total
of five point just on those two yeah
yeah so I think that’s going to be I
think you’re right I think that’s going
to be something to watch for
um
they’re all there are two interesting
economic reports one is retail sales I
think it’s Wednesday right uh and then
the other one is existing home sales
right how busy or slow uh next week and
again I think I think both of these
reports are going to be the classic good
news is bad news or bad news is good
news right so if we get a bad retail
sales meaning it’s negative or we get
bad existing home sales meaning it’s
worse than expected I think that is seen
as good news meaning the FED doesn’t
have to tighten right but if retail
sales comes in higher and existing home
sales for whatever reason surprises it’s
good news but again it’s bad news for
the FED is that fair the FED can tighten
knowing the economy can take it exactly
so I think those two reports I think
they’re interesting I think the
interesting one to watch on retail is
the inventory levels yeah but we get a
bunch of reports right we get Home Depot
Lowe’s Walmart Target all next week yeah
this is uh the image that I put in the
newsletter that that shows what I was
just explaining what happened in March
as the market was tanking
here’s options expiration this line
right here you can see just before
options expiration the market starts
going up they forced it up yeah so all
these open puts end up you know expiring
worthless and then the market continued
and then the market dropped went below
the previous low kept on going down
interesting here’s offense expiration in
May
same thing happened
so now we have the reverse Trend the
markers generally but now you know it’s
all calls you know everybody’s been
buying calls right into options
exploration so from the market Maker’s
perspective it’s their benefit by
billions of dollars yeah benefit to run
the market down well do me a favor you I
think you had it in your newsletter so I
think you could find it do you have uh
Bailey’s uh event it’s a free event I
think you said yes it is I do let’s see
if it shows up it didn’t show up here
but I do have it that’s in the
newsletter so yeah well it’s in the
newsletter but it doesn’t didn’t really
show up for some reason there was a link
though I remember there’s a link you can
just yes put your cursor over this and
click the look there you go yeah he’s
he’s going to do this on the 27th
um he did this back in January when the
market was at all-time highs and he said
the market is going down he explained
why which I’ve explained on this channel
many times yep same thing that he said
he said it’s going to go down for six
months and after six months it’s going
to start going back up and that will be
the end of the bear Market
and he had the valley bottom I think it
was on your chart he still he still
looks pretty good June 16. that wasn’t
that was in early January January 4th or
7th or something so he’s doing kind of
doing the same thing on August 27th to
talk about the rest of the year where he
thinks the Market’s headed for the rest
of the year yeah if you’re watching my
uh Channel folks you know and you have
the time on Saturday you might want to
tune into this
um again go back and watch Dan’s
playlist we we talked about Bali a month
ago or so talking about the valley
bottom it was really good right so a
couple more things real quick this is um
this shows you a negative Divergence I’m
always looking for divergences on charts
yeah this is this is a 65-minute chart
I showed this last week but we didn’t
have this extra right
um uptrend right here so now the
Market’s actually hit another high you
can see the Gap up when the CPI number
came out yeah right there yeah Market
kept on going hit a new high but the the
momentum indicators continuing
down so while the Market’s hitting
higher highs momentum is slowing
interesting okay another another
cautionary issue for next week
um this is the NASDAQ it’s even more
pronounced on the NASDAQ yeah I see it
right
um this is a chart that I showed before
that includes the 10-year Treasury
10-year treasury has started to creep
back up
still below three
although the vix is continuing to go
down now by the way if the vix gets
below 17
that’s the area that is normally a top
as well interesting okay everybody’s
bullish every everyone’s bullish that’s
complacency this is the dollar
I said last week watch this if it gets
below the 21 Day moving average yeah
then I think you have a shot next week
again I think we have bad news is good
news good news is bad news I think if
retail sales come in light home sales
come in light this this could happen I
mean it’s going to be more evidence that
the FED can back off yeah if we get a
weakening dollar we get a 10-year that
stays below three and we get another uh
good inflation report Mark is just going
to take oh it’s going to take off at the
end of the year this is the vix
fix has just steadily been going down
you can see here’s 20 and that’s below
20 right now if it gets down in this
area down here that’s usually where you
can see over here in January of 22.
right here it has to be low it was below
17 and a half over here yep that’s when
the market started going down gotcha so
fixes opposite the amount of the market
when it goes down the market goes up
when it goes up the market goes down
yeah okay so there’s January if it gets
back down to this level here this is in
uh
April well we had the we had the rally
in March that I showed you the market
makers
um engineered yeah and then after that
rally we started going down again okay
now if we get down below this line which
we already are below this line but
anything down here in this area is about
the time when uh Market goes down and
then this is I put this on LinkedIn I
didn’t put in the newsletter but
this shows the market is these red and
green this is actually the NASDAQ these
are the two recessions
you can see in in green right here
and in red so this is the rate height
this is the Fed rate hikes when they
begin this is when they begin the market
was going down you can barely see it
down here but it went down 26 right here
oh wow all right so when the market when
the rate hikes start for about four to
six months the market goes down
here’s uh before kova this was actually
almost two years before
um when when the FED started raising
rates the rate hikes begin the market
actually went down in this case 25
percent
yeah right for six months and then the
market went up so basically yeah so this
is kind of like hey the market you know
adjust adjusts takes time to unwind
reposition exactly and then they just
you know it’s not
it’s not the next fed increase it’s the
start and then they get used to it they
the FED tells them what’s coming they
they plan for it okay until until the
FED goes too far correct you can see
they went too far in 2018 right here in
the market taper taper tantrum right
right now this this is the red the rate
hike started here we’re just about six
months in but we’ve already had our
correction in this case 35 on the NASDAQ
right now we’re starting to head back up
just like we did both these times okay
and then up here is um the recession so
two two points a recession doesn’t start
until after
unemployment rate that’s this red line
the unemployment rate stops going down
and starts going up that’s when
inflation that’s when recession hits so
over here I hit the low right here
started back up and then recession got
it over here it hit the lows down here
started back up went back and hit the
low but started up right there and then
recession happened right now we just had
a new low
we’re not going into we’re not in any
recession or going into one yet we
haven’t started going back up on the
unemployment rate yet yeah the same
thing with the FED
um rate hikes recessions don’t happen
when the FED is raising rates you can
see all the way through here you can see
how high the rates went back here fed
kept raising all the way to here we
didn’t have a recession until the feds
started lowering rates interesting and
then this one here fed cap raising kept
raising kept raising no recession
that started lowering then we had a
recession got it so both of those things
will show you when a recession is coming
and neither one of those is indicating a
recession yet sure doesn’t mean it won’t
happen right it easily Could Happen of
course
um which which is just like you know
like I said with with the uh Head and
Shoulders here’s the left shoulder
here’s the head right shoulder I was
looking for down here yep it never
happened yeah it never happened yeah
that’s the neckline we started to roll
over but then the CPI number came out we
blew right through it yeah where does so
what are we at and I didn’t even check
because I’ve been away from my computer
for we’re at uh 4219 wow we’re at 42 80.
wow almost 43 wow almost 43 43 is Major
resistance this is another part of the
warning that I mentioned and what was
the peak of the year like 5 000 or
something the year was 48.16. uh so call
it 48 wow okay right so with the head
and shoulders the target was right
around here a little under 47. with this
move here the the target is still right
around 45.50 okay close to up here yeah
so when I when I just try to marry all
of our conversations to go you basically
expect the next five or six weeks to be
to kind of give validation that the
economy is slowing down but the you know
basic basically when we get to September
your current call is 25 or nothing from
the FED yeah
that’s right yeah so I’m going to take
the 50 or 75 but again I think you’ve
been right I think I think the last
several weeks you’ve been on it I’ve
been wrong uh this is why I love these
conversations again as you’ve told me
many times the stock market is not the
economy the economy is not the stock
market so I appreciate your wisdom and
thoughts uh any other kind of closing
comments yeah we’ve got about 10 minutes
I think you gave me 30. okay so um let’s
go with my show but um
yeah I mean all I’m doing is is looking
at what the charts are telling me based
on my experience these things over 20
years yeah it doesn’t mean it’s always
going to happen
um it I’m not making predictions nope
it’s a risk management yes how do you
manage your risk yeah I think I think we
need to hit that more often that’s
really what you know when you when I
reached out to you and we started your
playlist it was like Hey help help me
understand risk management because
before I was a gambling idiot with
stocks right
um so yeah all of this we’re doing here
is about your personal risk management
so I appreciate you yeah so so what this
means for me as a Trader is I got out
of almost everything on Friday oh you
went flat okay not completely flat but
almost flat but the things you kept are
investments not trades
well they could be trades
all right they’re just still looking
pretty good but but some of the growth
ones like uh some of the the chip stocks
that I was in that I made quite a bit of
money on this runoff
because of the three things that I’ve
mentioned already the 1.66 on VectorVest
the um after his expiration yeah coming
Friday and this 4300 level right here
I my risk management tells me
don’t
don’t play with fire yeah the uh the
upside’s not working it could be wrong
this could blow right through 4 300 and
keep on going absolutely could
absolutely and then I’ll get back into
those stocks and I have no problem
selling at a certain price and if it
goes higher buying back at a higher
price yeah if the yeah the momentum is
the right way I like it but right now
risk management tells me be careful okay
now the next next week and the week
after you know going up to the first of
September
could be a struggle for the markets now
a couple things I want to show
[Music]
um
just kind of my process sometimes
in uh Investors Business Daily they
always mention
um some stocks are they’re getting close
to buy levels so I want to look at
there’s five of them this week very
quickly look at them and the reason that
these are getting it close to buy levels
is something called a cup and handle
which is another technology technical
analysts pattern to look for
a cup and handle basically is
stock makes a high it retraces to a low
it climbs back up the right hand side so
it forms a cup
it gets too close to or a little higher
than this previous high and then it
starts selling off and that that makes
sense because these people over here
that bought in when it started going
down they just want to get back to break
even right
so they start selling when it gets back
up to the to that same level
it forms a cup and this is the point
where once it breaks out of the cup that
is the Buy Signal that is very often a
really good Buy Signal on a strong stock
so this is one of the ones that they
mentioned was ON Semiconductor and it
actually not only and this this little
blue area is what IBD they actually show
you the chart they show you where your
buy point is and they’ll show you where
your sell point is and they show you
where your loss is
so where to put your stop right so
that’s kind of nice
not only did it break out of the cup and
handle but it broke right at or above
this high that went all the way back
here to beginning of the year
hmm so this is making new highs
another one was Builder Builder
Warehouse
Builder’s First Choice
same thing you can kind of see the cup
the handle this hasn’t quite broken out
yet
but that’s coming up on it
um eqnr
so this one again here’s here’s the cup
here’s the high right here 39.15.
hasn’t quite broken out yet but what’s
it once it gets above 39.15 that’s the
buy Point by the way this essentially is
a Darvis box if you remember a way that
I do yeah talk about Nicholas Darvis in
the 50s he was a ballroom dancer and he
started noticing as he was traveling the
world he started noticing good stocks
would form a box they’d trade up and
down inside of a box
and once it broke out of the top of the
box that’s when he would buy
this basically is a great example of a
Darvis box
so in his case when he gets to this blue
area up here above 3915 that’s where he
would buy it
all right KBR
here’s KBR same thing
cup and handle the high over here is
56.94 but the the buy area is that as it
breaks out of this handle
it’s a 53.50 if it gets to there that’s
the buy point
and then the last one
is
what is that did I do them all
two three four oh Costco
Costco here’s Costco
little handle right here oh wow
um so in this one you can actually see
where where they recommend taking the
profit which is up here okay here’s
here’s your stop loss here’s your buy
area which is about 552 553
and then run up here to about 650 or so
700 take profit
so that’s five that were in IBD this
week
um just to give folks a sense for kind
of the process that I go through hey do
me a favor I’m going to throw I’m gonna
we have we talked about it earlier four
retailers report next week okay you want
to look at those four and see how they
look sure you can use whatever chart you
want this one or something else Home
Depot sure
oh by the way the other thing um like on
Costco that I really like about the IBD
site it shows you what the previous
earnings were oh there you go shows you
the trends down here
which is nice so Home Depot
it’s uh still working on the right hand
side it’s got the 200-day moving average
above it okay which could be resistance
it’s um it’s got down trending earnings
that’s not good not good earnings is in
two days yeah yeah I think they’re I
think them in Walmart are first so eight
uh Home Depot then Lowe’s
let’s compare those two
Lowe’s is getting closer to its 200 so
there’s a resistance right there the 200
and then their earnings they actually
they had zero and then nine so they had
a little better earnings but a little
worse Revenue all right then Walmart
didn’t Walmart already report oh it’s
Tuesday or yeah you’re right Tuesday
uh yeah they’ve revised twice but
they’ve been reported oh that’s right so
here you go Walmart
yeah and they’ve warned about this
quarter I think I think they will
probably beat their no of course
Walmart’s
Walmart’s no joke they lowered the bar
so they can get over it they didn’t
lower the bar like who did that they
lowered the bar and then came under it
that was not a good idea yeah
yeah and then the last one is uh Target
sorry
Target uh 200 days up here it’s above a
southern moving averages
- oh that does not look good so
Walmart and Target
I I’m questionable on those Home Depot
and Lowe’s might meet estimates
but they’ve got some overhead resistance
yeah there’s a lot of stuff going on all
right and then uh stem the one that I
showed last week oh yeah stem
yeah they did the stock of the week I
think it was yeah stock of the week last
week I don’t I don’t really have a stock
of the week this week but yeah other
than those ones I went through
um you can see it went up and now it’s
going sideways I actually got in at
14.75 on one third of my position right
and then I’m gonna see what happens but
it’s it’s actually good that it’s moving
sideways
because you see how you see how it ran
up right here they had earnings right
here and took off
but I got way above its moving averages
so when a stock moves sideways that’s
actually a very healthy good sign
because it allows the moving averages to
catch up right okay
so I’m gonna watch that one
um if we if the market struggles this
one could come in
when would you buy your third your
second third
if it starts coming in I’m at 14.75
right now I mean if it gets down you
know to the 21 day which is what I’m
sorry I can’t
um let’s see does this tell me I’m not
sure if this actually tells me
but let me go back we can guest a bit oh
maybe not well I can show you yeah
all right so the 21 day is at 11.95 so
if it gets that back down here and and
the 200 day is at 12.62. okay if it gets
down to 13 1250 to 13. okay I’ll buy
another third I would buy another third
there and then see if it starts going
back up or if it continues down and then
if it starts going back up I’ll buy I’ll
buy my last third when it gets back up
to my original buy Point 1450 or so okay
if it doesn’t come down it starts to
take off then probably somewhere around
16 I’ll buy another third see that’s
that’s you know this is this is what
this is what you’re trying to teach me
right you letter in your position you
have your points you have your stops you
have all that stuff uh yeah make it make
the stock prove itself
yeah exactly I like that thank you
um so one last thing we got one minute
uh one person sent me a note saying you
know can you talk about your your daily
process okay what do you do typically I
mean there’s a lot of things that I do
and I look at a lot of charts and some
of the relative strength charts I put in
the newsletter now they’re at the end of
the newsletter people can bookmark those
and look at them anytime they want one
thing I do is I start at the high level
what’s the market doing number one it’s
going up
well when you say Market just so we’re
clear that’s the Dow NASDAQ yeah yeah
down NASDAQ s p right okay what are they
doing they’ve been going up since June
middle of June okay so then I want to go
to the next level down is what sectors
are performing so as we should expect
it’s consumer discretionary and
Technology
but this is a one month view but I’ve
noticed that Industrials are making a
big run
Industrials are starting to come back
and actually you know moving up faster
than these two oh interesting okay I’m
wondering what’s happening in
Industrials what’s an industrial company
for example no Industrials um here’s oh
okay yeah I got it Machinery
Transportation heavy construction got it
Marine Transportation commercial
vehicles things like that okay so I I
clicked on on that I clicked on the
Industrials this gives me all of the
industries
so I can start with the ones that
perform the best over the last month
and one that I noticed is heavy
construction right here right
so if I click on heavy construction it
shows me the stocks in that industry
is is deer in this by chance
um
I think deer is in a different one the
reason I asked is because Dr reports
Friday I’m just curious no big deal
um so these these are all here’s KBR
which was on that uh Investors Business
Daily list yep so I can actually click
on that and look at the chart okay so
now I can see now you can see the cup
and handle just like I showed before
so the
buy point is when it gets Above This
high right here the left side of the or
the right side of the cup yep when it
breaks out of that these are these are
Investors Business Daily Rules by the
way yeah that um
that uh that they put put out there so
it says when it when it closes above
the cup that’s the buy point so
somewhere around 54.
would be the buy point
I gotta see the accumulation
distribution looks really good the
Industry Group looks good they’ve been
underperforming their Industry Group
so
it’s out of curiosity here’s deer
deers had a really nice run it’s above
its 200-day oh wow look at that um it’s
outperforming its Industry Group
Industry Group looks good cool
so deer actually might might do well I’m
a little concerned about the overbought
situation with the RSI up here yeah it’s
up there so yeah this this is one this
is one to watch and see if they have
they have good earnings but they sell
off which could happen if the Market’s
struggling right if they do sell off
then it’s a good opportunity to buy
lower down here because they probably
will continue up got it in general it’s
a good thing to watch for if you if you
identify a company that looks strong and
the jar looks strong and they have good
accumulation distribution and then For
What and they have good earnings and
then they sell off for whatever reason
which which often happens yeah the
market could just be upset one day yeah
yeah they’d buy on the rumor and sell on
the news right so those are those are
good ones to watch if it’s if everything
else looks good and after earnings they
sell off then that’s a good opportunity
to buy it yeah
very cool
all right and uh my newsletter if
anyone’s interested if you are listening
on the podcast again it is
breakpointtrading gmail.com uh Dan thank
you very much for reaching out I’m glad
you brought us this warning uh I’m glad
this uh yeah and the warning may not
happen of course not anything else I
mean I showed three reasons why it might
yeah but it but it might not but just
something to keep in mind and be careful
hey I’m I’m just learning I don’t I
don’t have any skin in the game I’m just
gonna watch and uh we will be back at it
next Sunday okay sounds good have a good
vacation all right buddy thanks again
take care