 Welcome back, folks. This is Jacob Shook, fillin' in for Tom O'Brien. Before we go on here, I want to take a look here at TFNN.com. We can go over here to Newsletters. Now, this is the opening call, folks. And Basil just came out with a webinar at the end of last month. This is Sectors and Stocks, just coming off major lows from 2023, ready for even more upside action. This is the best way to kind of start your year trading. Figure out what you want to do with your portfolio if you're just starting trading, right? You've been following us, kind of just trying to get some more information of what we're doing. I would really recommend subscribing to the opening call, Newsletter from Basil Chapman, okay? This is a 30-day money-back guarantee if it's your first time. Yeah, nothing to risk here, all right? You get access to all of these old webinars. These things run, you know, right here we have one from 90 minutes. We have one for two hours. I mean, these are really worth it, guys. If you have not checked them out yet, I really recommend it. I believe we have Basil on the phone right now. Basil, can you hear me? You certainly have me on the phone and actually have me on the mic, but could you speak with you in a happy new year and you're doing a great job. Yeah, I can't believe how much you've added to TFNN, came in as a novice and you are superb, doing fabulous work. Thank you so much, Basil. And really listening to all you guys online has just really helped a lot. So I really appreciate that. And happy new year. How's the weather over in the New England? I heard you guys got some interesting weather coming to you. We did have a very... It depends where you were in Massachusetts. The Western Mass got blasted with about 12 inches. We only got about two, three inches and it was soft and it kind of went away at least in the streets where the sidewalks are still quite snowy. Yeah. There you go, yeah. We're getting some tough winds here tonight, so. Oh, yeah. Oh, okay. Well, good luck. Well, Basil, what are we looking at today? So I thought I'd just give it a little overview here. So we actually are short the Dow. But in the long term, we have positions that go back to March. Long-term positions go back to March of 2020. We also have the diamonds and we have the diamonds plus the three times long. You shouldn't have that, but we've kept it all the way from October of this past year from the lows. But within that, just this choppiness just says to me that there's a really good chance we've got, at best, a sideways up a level consolidation. And you can see by this daily chart here on the Dow, this rectangle. But when I look at this weekly chart, this is a single leg from the October 27th low. That was the 27th of October where the Dow was at 32,327. And all the other indexes were at their lows. This move went one, two, three, four, five, six, seven, eight, nine, 10 weeks with higher highs. That means I call, in the Chamber of Methodology, I call this a floating letter until it makes a peak. Well, technically I could consider it a peak F, meaning whoa, you've got to be careful here. But the strength of the technicals in the weekly are so strong that I have to call it a possible new leg A, maybe even a peak A if we don't make a new recovery high this week. And that just says to me on the short term, we might have some volatility. But so far, unless there's really bad news, and we haven't had, you know, the yields are still more at their lows than the highs. You mentioned copper, copper has been weak. But in fact, there are a lot of things, for instance, gold is part of an inflationary look at the markets. And that's not going anywhere. I have to tell you that all the things that would be very negative on the short term, I see little smatterings of that. So I have a position, this for subscribers. And this is, I would call it a hedge more than an actual directional move until this nine period moving average, this green line. Let me just put it on this chart right here. Until this green line starts to go pink by going under the 14, the nine period goes under the 14 period moving average. We have been in this green line since the third of November. And that green line is the nine period moving average. And it's just the, I call this the indicator of loss result. All the other indicators could be failing as long as this remains positive. It means that there's internal strength. So I am anticipating that we do get some kind of a pullback over the, that we, that the weekly chart that I showed you the spectacular move up actually does make a peak this week with a lower high than last week. And then we'll look at to see how we have a digestive phase. So within that context, my question was, on August the first, we actually went short the Dow on a shorter term basis. And that was right then I said, we're going to have to wait for that nine period moving average to cost negative. Eventually it did. Then of course we tumbled down to the 32,000. I don't see this quite the same at this point. I see a lot of support levels between 37,000 in the Dow and 36,500. But I do see very similar action here with this little double top like we had over there. So I'm watching it very closely because it's a good sign when you have Boeing tanking. Yes, not that it's a good sign for Boeing. I'm just saying that Boeing was sharply lower. And yet the Dow managed a really strong move up yesterday. Yeah. And so now you've got a few more Dow stocks that are weakening and that just says to me we've got to be a bit careful. But I heard you speaking a little while ago about uranium. Yes. And I thought, oh, that is interesting because we have a uranium stock. UEC is a symbol. This is called Uranium Energy Corporation. And I said to subscribers every year we, not every single year, but a lot of the years that we've had over the last five, six years, we've had some kind of single digit stock or very low price stock that just seemed to find its niche. And that, and if you look at the way uranium, this uranium energy corporation, it went to a new recovery high. So at an all-time high that goes all the way back to 2010 where it hit 748. But in the interim it's been all the way down to a low that was made March of 2020 at 35 cents. And now it's dating at 6.80. And you can look at this cup formation. And all the technicals are still very strong. And I said to subscribers this could very well be one of those situations where under all the conditions that should take this particular stock down, it just, it defies gravity and it keeps holding well. And look at this weekly chart how it's walking this green nine-period moving average, which is way above the 14. So I, uranium I think is telling if you go to the uranium URNM, the uranium ETF, this is a Sprut uranium minus ETF, very strong move today. It was not acting, the chart didn't look quite as good as the UEC, but now it's acting very well. And if it takes out the high that was made, oh, look at this. If it takes out the high that was made on the week of the 8th of December, which is at 50.55, if it just goes to 50.56, that breaks out and that becomes a new leg seen the weekly chart and extends the leg seen in the monthly and says, wow, there's a chance that we could go, you know, we could start to go into the 55 area over the next month or so. So it's such, this market is so diverse, it's so bifurcated that if you're in the wrong area, you're just wondering what everybody is talking about when they say things are looking very good. And if you're in the right area and you just say, wow, that's fantastic. Very diverse action, yes. Absolutely, and Basil, sit right there because I want to pick your brain a little bit more on uranium. When I saw that you had picked that in the news that I was so hyped because I just think there's so much potential for that commodity. But Basil, please stay right there, we'll be right back. Welcome back folks, this is Jacob Shoup filling in for Tom O'Brien. I am with Basil Chapman right now. Before we went to the break, Basil, we're talking a little bit about uranium and how you're looking at it. I want to say too, on some, you know, fundamental stuff as well, the DOE has issued requests to get basically some test uranium, right? They went in rich from 5% up to 20%, so this is really big, and a lot of these uranium guys are taken off. So just wanted to put that in there because I thought it was good information as well. I like the way you tied the fundamentals to the technicals because if the fundamentals are improving or strong or weak, that in fact does impact the charts potential. Sure, absolutely. So in this particular instance, the reason why I kept saying, I love the way the uranium, especially the UEC stock that we have, is acting very, very well, but most importantly, it's as if they've ignored the marketplace, the overall market that is the stock market. They're in their own niche at this particular point, and I think that that's really important. For instance, we have Microsoft from the 338 level, we've had very nice trades in between, but once it goes sideways, there's a pattern that I call the lowercase h, in other words you come down, then you make an arch formation, you hold the left side low, then you make another h, and that can go on for a little while. That's like a rectangle formation just going sideways. So that could be considered a consolidation. On a purely technical level, AI has been talked about for months, almost all year, through 2023, and yet when you look at the AI queue, we're actually along the AI queue, which is the Global X Artificial Intelligence EDF. I don't think it's done so fantastically from the talk. If you had a Google search for the word, or the two letters, AI, I mean, you would see the volume, it would be out of this world. I can't even imagine how many times it would have been mentioned. Therefore, you would think appropriately that whatever you're following should have that kind of demand, but I must tell you, and Microsoft's telling me that the whole thing with AI, just in the shorter term, this is a rest period, a digestive phase. So that's what I'm saying, this rotation through the different sectors is really fascinating and important. Yeah, what a great thing to tie in as well, right? You're finding these stocks that are being resistant towards the greater move, and that's through these technicals, and that is what's so valuable about the Chapman Wave, and all the technicals, as well as long as they're done properly by good practitioners and technicians. That's phenomenal, that's phenomenal stuff. So here's another thing I thought I was listening to you earlier. You had mentioned steel dynamics. Steel dynamics is a stock I followed for years. I don't think we've ever owned it, but for some reason, there's a reason why it used to be that way, and it kind of remained that way in the last two years. You can see this monthly chart, you see the way it moves up magnificently, but then it has a pretty serious decline, and then it goes straight up, and then it takes its time as a big... So it's the declines that kind of worry me. It's not that if you got it down this particular, sometimes we get a stock down the lows, I'm prepared to try to survive the vicissitudes of all the declines that you're climbing on those stunning waves, but in this case, it would be tough if you got in at any point on the upside move, and you weren't prepared for the downside, and yet here it is making, it makes higher highs and higher lows. That's a pretty good looking chart in the shorter term. It has your peak E and it's pulled back making this inverted V-shaped pattern. So it's just taking a digestive phase, but I always... Whoops, I like to always talk about the steel stocks, I mentioned steel stocks. Look, the steel stocks, the Van Eyck Vector Steel ETF, look at this beautify, I call this the inside track, it has a monthly chart on the right, you see the little green line and a little tiny little channel, pink line, that's what I call the channel wave inside track repellent zone. Once it breaks above it, it becomes the support level and becomes a propellant, and look at the way every time you go, yes, exactly you go. Every time it's got close to this pink line, it pulls back, but it is making higher highs and higher lows, and I think that that's really telling me that the economy, because you cannot have steel stocks moving up if the economy, the sub-economy hasn't been doing quite well. So when I look at it this way, I think that this is, this fits exactly the scenario I'm thinking we're in right now, a digestive phase really spectacular November and December, you need a breather, it's just important, you're going to take a breath, get ready for the next big move, and that's kind of I think where we are. Yeah, absolutely, and even with steel dynamics, you kind of bring up a fear I have with it, right? And I focused just mainly on steel dynamics because I traded it for so long and I got to kind of understand how it worked, but you know you have these like, you had a pretty significant trading range from about 100 up to 110 it was so predictable, right? As you're even saying, you get these high highs, you buy it on that movement up, you know and you don't, as you say you can't have like the kind of strength to hold it on the way down, you know you would see this constant movement, but then we had this breakthrough at the 100 level, which was really support for that stock for quite a while. That was very good action, yes. Yes, and but what was so interesting and you know it broke down that support level on quite significant volume, but for what it usually traded at. And that was a little bit strange to me and I had thought that, you know, this was a surefire thing that we were setting up for lower prices, but it completely, you know, it kind of defied that I would suppose, right? And as you're saying, you're really seeing that, you get a nice run-up, a pull-back, and then a run-up again to higher highs and I think that's what's so appealing at least, you know currently with this stock, so. So you had mentioned earlier that my last webinar, and it's actually a viable webinar. I said, this is not an exact timing type webinar. I want this as an educational one. Yes. And I said, what we are looking for or what are the areas, the laggards, the stocks and the ETFs that were really poor going into the lows of 2023, are they coming through? Are they about to start and you move up and to become leaders for the first quarter of 2024? So for my newsletter, we've been, we're trying to find those sectors and stocks and ETFs that really kind of, just, they were very poor. They're off everyone's radar. This is when I like to get them. I love it. And if we're able to get them kind of at the lows, it gives you leeway on the upside when you get those, as I call them, the vicissitudes, those down moves that suddenly come about. If you get them right, it means you can survive that kind of decline. And as long as they're moving to higher highs and higher lows. So this is a very important period. I think people should not be afraid. Get your little kitty ready. Get your stock list, the stocks that maybe you missed on the way up before. And you say, when they come back down, these are fabulous companies. That's the reason why we got Microsoft because it's just an incredible company. We were able to get it near the lows. And now we've got that room to say, well, we've got a little leeway. If it does this digestive phase, that's fine, but it's important to be able to identify, if you can, the ones that were terrible losers that could become, at least in the intermediate term, better stocks or better leading stocks in this particular instance, so that if the market does pull back, as I anticipate on the shorter term, we'll see what happens. And the semiconductors are probably going to be the big clue here. We'll see what happens with them. Yeah, I love the thesis behind that. Basil, thank you so much for joining me in having this conversation. It's always a pleasure, seriously. I really appreciate it. Thank you, Jacob. Take care, Basil. It's always a pleasure to listen to you. Thank you. And remember, folks, go out here, tfnn.com, newsletters, the opening call by Basil Chapman, 30-day money-back guarantee on the first time you subscribe. Folks, stay tuned. We will be right back.