 The following is a presentation of TFNN. The Trader's Edge with Steve Rhodes. Call now toll free at 1-877-927-6648 or internationally at 727-873-7618. The Trader's Edge. Now Steve Rhodes. Good afternoon, folks. Welcome to the October 23rd. Today's a wonderful Wednesday edition of today's Trader's Zed Show. I'm your host, Steve Perseverance Rhodes. Thanks so much for being here. Hey, look, this show, this next hour, it's really all about you. I'm here to serve you. So if you'd like, you can give us a call at 877-927-6648. We'll take a look at any instrument that you want as thoroughly as we can. Of course, if you can't call in, we've got you covered there, too. You can send me an email Steve at TFNN.com. Just put radio show question up in that subject heading, if you would. And the Tiger's Den, any ping? We'll do. Currently, we've got basically flat markets out here. Let's go take a look at those. You've got the Dow up 24 points. Flat. The S&P is up four. Basically flat. They're up 1-tenth, less than 2-tenths a percent to the upside. The NDX 100 the same. It's up eight points. Russell's up two. The semis are the ones leading the charge dollar-wise. Well, yeah, they're leading the charge to the downside. Percentage-wise, dollar-wise, 19 bucks to the downside. And transports are off 20 bucks as well, but that's just 2-tenths of 8% out there. Spot volatilities is down at 1420. It's down by about 2%. Gold's at 7... It's trading at $14.95. Up $7 in change. Silver up 7 pennies out here. Lights, we'd crude up a buck. Natural gas up almost 2 pennies out there. And bonds are up 5 ticks. Dollar-wise to the upside, leading the charge is lithium motors up 17 bucks. Nearly 14%. Thermo-fisher is up $17 or 6%. Teladine is up 5%. 15-buck runes. And Google's up 12. Chipotle is leading the charge to the downside off nearly 5%. Almost 40 bucks. Coastar Group down 32. Nearly 6%. Service now is off 9. Amazon's down 8. So there's certainly things to look at. Of course, we want to look at what you want to look at. And we'll do that for our first requester out here. And that is from Robert B. Robert B writes in. Let's take a look at... Please review the charts for FCG. Let me know if it's bottom. I don't currently have a position over. I'm interested in taking a long position in this ETF. So as you know, with ETFs, we always like to know what's inside them. First, what is FCG? FCG is the first trust natural gas ETF. Now, many of you might think, like I did, that maybe this is just holding the natural gas contract, just another ETF. Like UNG out there, but no, not so fast. Instead, what's the holdings with inside of FCG, there's 32 of them. And it's mostly corporations, mostly companies out there. Not everything out there, but like Cabot Oil and Gas Corporation is the number one holding. I bet you didn't know that. I didn't notice 5.19%. As of last night's close out there, Vermillion Energy, Murphy Oil Corp, Range Resources, Semirex. So you've got 32 different positions. The top five represent 5.10.15, about 25, maybe a little over 25%. So what you really want to do, Robert, I can't do that for you during the show here, is take a look at the holdings inside there, understand what they're doing. But here, if we take a look, if you ask the question, has it bottom? Well, here's a couple of things that we know. Today, it's traded with inside its daily profile. It's a daily profile that formed today. So you do have a new piece of information, Robert. It provides you with support and resistance. Support is 10.05. Resistance is 10.62. The actual high today, 10.65. Whereas it's trading 10.58. So you've asked the question, has it bottom? We don't know the answer to that yet. The second question, has it broken out? Has it cleared a level of resistance? Well, you now have a level of resistance. The answer right now is no. But a close above 10.62 would go a long way to saying, well, price should then move up to its next area of resistance from a profile standpoint. That would be 10.93. 10.93 is the bottom of the weekly profile. So if you are to take a long position, we can't see so far this week. It's only Wednesday. It's hump day out here. But you can't see bearish and gulping candle thus far. So we'll go see if there's some kind of pattern there on a weekly base. That suggests the bottom. And if so, watch 10.93 and then 11.99 on the way to the upside. On the monthly timeframe chart, no signal of any kind of bottom just yet. No reversal signal. No bullish reversal candle of such. So we don't know on the monthly timeframe out here. Now, if we go to Stevie's other charts, white background charts has all my other tools on there. Here what we can see is we can see not much. We don't have any kind of real bottoming pattern. That doesn't mean it hasn't bottomed. There's a handful of patterns that you and I like to look for when they're present. They really provide us with the conviction, is this trying to bottom or not? At this stage, those patterns being TD9 counts, wave number 7 or G. In this case, here you're in wave number 4, letter D. As we'll tell you, the market can do something else. Well, the something else may have already been done today by bouncing up and testing resistance. I don't know that out here. We can take a look at the road momentum indicator bottoms. A to B equals CD. Patterns oftentimes they'll be accompanied with or create a Gartley or a butterfly pattern out here. There is no A to B equal CD that I see on a daily chart for us to look at. There's no bullish reversal candle out here. Remember, a green candle doesn't mean it's bullish. It just tells you where price open and close the same with a red bodied candle out here. Okay. So the daily not really providing you and I with a whole lot, but I would say there's higher to go if price were to close above the top of that profile. So 1062, write that down on your pad of paper. If we do look at the weekly timeframe chart, what we do see though is we do see a road momentum indicator bottom. We're doing with less relative energy. So you've got a signal out here. Now the last time we saw a bottoming signal on a weekly basis, it both had a TD set up. Nine count as well as roads momentum indicator. That was right here the week of June 21st when it created that piercing candle. Now as we measure candles, we don't know what the weekly candle will be like. If I take a look at five reversal candles, but in this case here we'll talk about bullish reversal candles and we'll categorize them one through five out here from least bullish to most bullish piercing candles going to be number two. Going to be number two. So you always like to see that signal generate some type of bullish reversal message and follow-through out there, which in fact this did the week of June 28th. Then you like to see two weeks once you've taken out resistance, two closes, two bars I should say that give you that same message. It didn't really get that same message so to speak the week of July 25th out there. So that's what you're looking for. It's telling you it's trying to make a bottom. We don't have something on a daily timeframe out here to suggest otherwise, but you do have a bottoming signal. So I'd watch the daily timeframe, the 1062. If this has bottom, then what FCG should be able to do, Robert, is get above resistance out there. From a monthly standpoint, let me pull this back this way. I see why it's giving me that. The price is moving lower, doing less relative energy, but no bullish reversal candle yet. So to answer your question out here as a bottom it may have. And I'd watch the go ahead and put the weekly together with the daily to give you the most information out there again. 1062 is a close above, then 1093 and then you should be off to the upside, which would be 1199. So Robert, thanks for writing in. Hope that answers your question. John writes in John and Sarasota. He writes in and says, hey, Steve, is the OIH coming off of the bottom? So that is the Oil Service Holders Trust, OIH, Vanax Sector's Oil Services out here today. John, this is trading above the top of its daily profile. This would suggest to move into the 1291 area. So we get back from the break though. Let's go take look at the OIH. Let's use Stevie's other tools and let's go back to the OIH. So, sir, we already know it's come off of the bottom. The question is, was it a bottom? Was it a real good bottom out there? Steve Rhodes with TFNN will be right back. 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You can test drive the Tiger's Den absolutely free for 30 days and greatly enrich your knowledge of these markets and how to make your money work for you. Details on the Tiger's Den are on the front page of TFNN.com TFNN has launched our brand new website. You can still visit us at the same TFNN.com URL but when you do you'll see a new and improved home page with a much simpler navigation whether you're watching Tiger TV live in high definition or just accessing your newsletter subscriptions. We even have new pricing in 6 months and yearly options. Check out the new TFNN.com now and experience all the upgrades TFNN.com educating investors. Next one eight. Folks markets still relatively flat out here. We're trying to answer the question for John and Sarasota has OIH come out the bottom. So we're going to say the answer to that question is definitely yes. We answered that right way when we saw that yesterday and today now we have two days in a row where price is trading above the top of its daily profile that's resistance when you see that tells you of pending change and trend out there the weekly profiles here prices made its way up to the center box inside that price range which is 1119 to 1291 the center is where both buyers and sellers believe there is fair value so John what you're looking for here as an additional signal of a move higher would be some type of close above 1205 not 1206 but something above 1205 if you get that then you're looking at 1291 out there on a daily timeframe do I have what one of Stevie's bottoming signals and patterns out here we don't all we really have is a test of a prior swing point out here the prior swing point from August 15th it was tested on October 9th and the 10th out there doesn't mean that price can't move higher another upside target of price able to take out the top of its daily profile would be where OH broke down and that level is 1323 but is it off the bottom absolutely when we take a look at the daily timeframe out here the weekly chart the weekly chart shows us what shows us that there is a roads momentum indicator bottom and this week here is the first bullish reversal candle not with the week has not ended but if this were Friday and we were at the market close we would say yeah the weekly chart is generated a bottom signal for you longer term should price really be able to break out the upside should this be a really strong valid bottom 2462 is the number that you are looking at so the daily above resistance the weekly showing the potential for a bottoming signal the monthly we still have time to go it could also be forming the roads momentum indicator bottom so in summary John looks like prices off the bottom going to continue higher you're trading right into your next area of resistance at 1205 above that 1291 as well as the other figures that we provided to you so I got a couple other questions have come in but why don't we spend a little bit of time here we didn't really do it much yesterday go take a look at the market so we'll come back to those questions out here so we take a look at the markets trying to get a feel for what they're doing let's just do this let me do this for you well let me try to do it this way if we take a look at the the task daily profiles so just a refresh ourselves where we at so left hand panels ES many prices right now trading right in the resistance level that is the top of its daily profile that's at 30 30 I'm sorry that's at 29 20 I'm sorry that's a 29 95 I'll get it out don't worry about that I'll get it out if price closes above that you could see run up at least to its descending trendline in the 3018 ish area even up to 3032 so it's bullish well maybe not so fast we'll come back and we'll take a look at that if you take a look at the NQ it's trading in between its profiles here the Dow in between its profiles and the Russell 2000 in between its profiles out there the point here is that we haven't seen any piercing any levels of support fail they would each be the bottom of those profile levels out there so we don't have that okay number one number two what do we have well I don't know let's go take a look let's take a look at the New York Stock Exchange we take a look at the New York Stock Exchange you got your advanced decline oscillator it's up at 9304 oftentimes the New York Stock Exchange forms a top it does it around the plus 150 area so there could be more room to run to the upside price is a tad higher out here spot volatility the bottom panel is below its 50 day exponential moving average out there which is priced at 1608 the spot fix is currently is trading at where is it 1432 so there's really nothing bearish here is there hmm okay well hold on a minute you know earlier I mentioned the S&P or the E.S. Minis and this thing could run higher if we take a look at the E.S. Mini out here what it did yesterday was it generate well here first of all let's take a look at it like this yesterday was day number eight of a TD setup potential TD setup 9 count if today's close is above in the E.S. Mini the number you're looking at is 29 98 right now you're at 2997 there's a close of 2998 even Stephen out there then you're going to have a TD setup 9 count with bar 8 being the being the high of that count out there of course it could be bar number 10 so it could be tomorrow but we did have yesterday remember we were talking about the the piercing candle the brother from another mother of the piercing candle on the bearish side is a dark cloud cover candle that's what we had take place yesterday remember on the scale the the road scale out here the 0 to 5 or the 1 to 5 scale how the dark cloud are the piercing candle was a level 2 of 5 5 being the strongest well the dark cloud covers level 2 of 5 with 5 being the strongest of the bearish side out there but we did get an A to B equal CD to the upside completion yesterday we can go measure that the reason why we say it was a completion was because we got that dark cloud that bearish reversal candle so price has confirmed a top and then what took place last night about 830 just as the ball game was coming on we saw the ES mini trade down to support support is 2984 as we speak right now what is support it's steve's green line green red line why did I create the steve line out there the oscillator on the right side of the red line why did I do that maybe I had the same question that you had can you help me identify the difference between a retracement and something more than a retracement this is and I'm referring to retrace to the upside and to the downside out there what's the tool that you and I can create we can use we can help us to answer that question out there what's the biggest problem I'd be in a position I'd start to see something pulling back and I might say oh no thinking that things would just go straight up of course you and I know that things don't just go straight up or straight down or sometimes they do out there but the majority of the time they don't and so when they are going straight up and you see a pullback is at the end is that the beginning is that a pullback to it really helps provide me with an understanding of what the message of the markets is and isn't that really what it's all about so as we speak right now we have a valid topping pattern then I had to go through the whole gyration of what does a valid topping pattern really mean do you back up the truck you could or do you do something else well when you do get a pullback the idea of sellers is to go test support so we've got to be able to identify support well our oscillator and change line is one of those things that we use to identify support our TD set up nine count breakouts and breakdowns are other things that we use to identify very clear levels of support inside the S-mini that was 2875 25 so when price was pulling back a lot of people were looking at the swing point right there where price broke out you see prior to that prior to developing these two sets of tools out there I would have been sitting here telling you that support or the breakout would be going back and looking at the swing point and Stevie says not so fast swing points so the S-mini is done as a topping pattern and sellers tested support so we're kind of like in neutral land see roads with TF&M would be right back I'm certain you are or strive to be one of the best of the best at everything you do in life it's the most common trait that we tigers and tigers share if you're looking to become the best of the best when it comes to managing your money let me teach you to manage your money I'm Steve Rhodes author of Mastering Probability and for the last 12 months Timer Digest has been tracking my newsletter signals which have earned me the ranking as their number one market timer in the nation for the S&P 500 for the last 12, 6 and 3 months Timer Digest also ranks me as the number one market timer for gold as well the fact is markets can be timed and I'll teach you the exact set of tools that I use to transform me into 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many investors spend days, weeks or even months searching to find and right now we're offering licenses available at only $79 a month we are so confident that you're gonna love this new charting software that will even give you a 30 day unconditional money back guarantee don't miss out on this incredible new piece of software get your copy of the art of timing the trade charts today by visiting TFNN.com This segment is brought to you by Think or Swim for more information just click the Think or Swim banner on the front page of TFNN.com folks still flat markets out here we're taking a look at the equity markets and some of CV's tools out here you know just like my green slash red line can act as support it can also act as resistance out here if you take a look at the gold contract out there for those of you that are bulls out here be careful in fact be extraordinarily careful why take a look at where price what price is done here remember when that color line the chameleon out there the chameleon of that line is the fact that when it changes color it tells us an impending test between price and that line that's what has taken place so far today as of 1.30 in the afternoon you have a test and rejection now the color of that line is more important day it's red tells us the price oscillator is now below zero and this was the test to determine is the market really bearish or is it bullish will continue test and rejections of that line especially while it's red is bearish however there's another line of support out here it's called the bottom of its TAS daily profile 1480 to 40 if you see a close below that it will be timber look out below out there but let's go back to the equity markets out here because what else is it that we know about so we know we've got a valid topping pattern absolutely sellers did the right thing they push price down to support have been able to bust it we're trading in between the top of that resistance level which now is going to be yesterday's high that dark cloud cover candle and support so it's kind of neutral out here what other piece of information should we be looking for well if we take a look at this chart here kind of referred to it yesterday a little bit I thought it would just go ahead and make both charts closing basis charts the bottom chart is a spot volatility next the top chart is the S&P 500 you're going to see a number and there's maybe a few others we could add here but you're going to see a number of red diagonal lines what you'd be what you're focused on is take a look at one line just start from the right going left out here and what you're taking a look at in the S&P in this case here is price moving higher while at the same time on a closing basis the spot volatility index is also moving higher in other words higher bottoms and higher highs out here on a closing basis now when you have that same pattern as an example you can go back and find that right out back here on July 29th and the July 29th time frame out here you can see we had that same pattern when we saw the S&P 500 make a nice move to the downside into the early part of August if we come back out here during a time period in May of 2019 out here we had the S&P making higher highs at the same time the spot volatility index making higher lows out here and so this pattern and it also works in reverse what do you mean reverse we'll take a look at here during a time frame between May 13th and June 3rd in the S&P 500 we were seeing lower lows and if we take a look at the spot volatility index out here we were seeing lower highs out there so it's a great tool so where are we at right now where we're at right now we can't use this as a timing tool and use this as a preparation tool not a preparation H tool but a real preparation tool to help you to help us understand what the markets are communicating to you and I now because the spot volatility index is tied to the S&P 500 you and I for this tool we're more focused on the S&P cash or we're more focused on the ES mini of course you and I prefer to use the ES mini because we have more data to use we always like to use more data so yesterday sell the D point the 1 to 1.272A to B equals CD is really important to watch what's the next important thing to watch for the ES mini yeah you know it we already talked about it it's called Stevie's red line it's green right now and that's 2984 it'll change by a point or two as price moves up and down out here but that's really the level you want to be watching out here for the ES mini to give you its next piece of information so right now it's still bullish but we have to be careful about these other patterns that are present inside the market now look we have more we don't have to stop there and we won't stop there we won't stop till we have an answer now if we go take a look at the NASDAQ composite as an example what do we know about the NASDAQ composite out here well we know that yesterday big old bearish and golfing candle okay that was a completion of an A to B equals CD the NASDAQ composite we take a look at that pattern out here it looks like this so we'll just draw that in it was between a one to one and a one to one point two seven two A to B equals CD what is the NASDAQ composite group of sellers do push price down to where Stevie's green line 80 78 you see this line it's not a moving average so you can't replicate it I watch people try to replicate it all the time why would you replicate it when you can actually have the real thing out here but in any event inside the NASDAQ composite price was pushed down to support don't replicate it you don't need to do the real thing if we take a look at other instruments that show us potential topping the signals out here so you've got one inside the NASDAQ composite yeah it was yesterday take a look at the Dow transports on a fire but what was yesterday's high yesterday's high was a test of breakdown resistance 10 732 it was also the bar following bar nine of a TD setup nine count this has a potential topping pattern in place to now prices not pulled back to test Stevie's green line if we do see selling in the transports where do you think the price target is 10 451 or thereabouts because that number will change as price moves upward down but we know we've got a valid topping signal inside the Dow transports how about the Wilshire 5000 just trying to take a look at larger indices what was yesterday yesterday well it was bar number 8 of a TD setup nine count but in order for the Wilshire 5000 to have a valid TD setup nine count pattern today's close must be above 3561 .64 that is the close from bar number 5 does it need to do that pattern form that pattern oh it doesn't why because what you have here is a valid sell the D point there whoops that was the A to B equal CD to the upside inside the Wilshire 5000 it was confirmed with yesterday's dark cloud cover so what's the level that we should be watching if there's a move to the downside for the Wilshire very simple 30,394 Stevie's green line a close below that says price will pull back further out here we won't spend time figuring out the further because we're not there just yet the New York Stock Exchange which oftentimes you and I take a look we already did we took a look at the advanced decline pattern out there what was yesterday yesterday was bar number 8 of a TD setup nine count does the Wilshire 5000 have a valid sell the D point other words it completed an A to B equal CD pattern doesn't have one does anyone see one out here and the answer would be no you don't if you're using Stevie's sets of tools out here which is what's going to confirm the A to B equal CD pattern or the Gartley or the butterfly pattern is a reversal candle no reversal candle now does a TD setup nine count pattern need a reversal candle excellent question the answer is no it does not so today we can see the price is trading above the close of bar number 5 of course we know that the high for this count can come on bars 8 9 or the bar following 9 but at this stage here we have a if we see if price were to close right now in the New York Stock Exchange it too has a valid so 2 does the S&P 500 we looked at that with regard to the ES mini here you can see it also may form a TD setup nine count pattern it had the valid bearish engulfing yesterday for the sell the D point so we're starting to get some uniformity the uniformity is this it's as simple as this the markets want to top there are all kinds of topping signals out here remember nothing more bullish and failed bearish patterns out there so that will be helpful but has it topped enough to go short the market no confirmations no breaks of key levels of support that's called steve's green line which is sometimes red but it's the same line we'll be right back in the country where you can build and hold for 10 years and pay no tax on the profits which makes these lots valuable the investment is anywhere from 30,000 to 75,000 the interest paid is 7% yearly paid on a monthly basis according to bankrate.com the best rate for a four year CD in the country as of February 20th is 3.1% a $50,000 investment at a normal four year CD rate of 3.1% would give you income of $1,550 per year or $6,200 over the four year period that same $50,000 investment would give you $3,500 per year or $14,000 over the four years what should you prefer $6,200 or $14,000 of interest on your investment if you'd like more information about the target first mortgage program you can call me at 877-518-9190 that's 877-518-9190 for every trader looking to gain a competitive informational edge in today's markets TFNN newsletters cover every aspect of the markets to offer you the very latest in market news plus new subscribers get to test drive our newsletters risk free for 30 days from all aspects of the markets including stocks, bonds, metals commodities and tech there's a newsletter to fit your needs exclusively from TFNN be informed each day you trade and get the competitive edge that will help you stay ahead of the game visit our newsletters page by going to TFNN.com and click the newsletters button near the top of the page TFNN.com educating investors biotech is booming but for how long whether you think the biotech bull has room to run or has run its course trade LABU or LABD or you can visit the website www.directionstaylee.com visit Direction Investments.com slash biotech today an investor should consider the investment objectives, risks, charges and expenses of the Direction Shares carefully before investing the Prospectus and Summary Prospectus contain this and other information about Direction Shares to obtain a Prospectus or Summary Prospectus please contact Direction Shares at 866-4767523 the Prospectus or Summary Prospectus should be read carefully before investing an investment in the funds is subject to risk including the possible loss of principal the funds are designed to be utilized only by sophisticated investors such as traders and active investors distributor 4-side fund services LLC don't forget you can listen to TFNN live on your mobile device 24 hours per day go to TFNN.com then hit watch Tiger TV that's TFNN.com then hit watch Tiger TV and that's it folks let's go to a couple of a couple of requesters out here email requesters you too can get in on that game Steve at TFNN.com inside the subject heading please put radio show question of course we'd love to hear your voice at 877-927-6648 but Max is a holder of ticker symbol SKT SKT is Tanger Factory Outlook Outlet Centers out there I'm going to guess they're in the retail business really not the can you tell me a target to sell I think the price gets me into the $19 area so here's what we know about the Tanger Factory Outlets SKT prices well above the daily profile out there so looks like breakout mode it's above the weekly as we speak right now the top that box is 1681 and it's below the monthly so this target level to the upside if this is the bottom would be 2055 old support which may become new resistance but I know that Max wants more than that but that's where we're at with regard to your profiles now we take a look at the daily time frame chart out is a couple things one we don't have a valid bad I mean bottoming pattern per se we look at this ticker symbol look at how it made its most recent high most recent I'm referring to a September 12th you take a look at the TD set up nine count pattern it was bar number eight that made those highs out there and then price proceeded to move lower as sellers were supposed to do push price back to where this equity broke out well where it broke out was 1392 did it get back to 1392 no it did not it got down to a low of 1416 you gotta like that that was about 24 cents away okay maybe that's not good enough for you but what Max is concerned with or should be concerned with is hey last time this top with the TD set up nine count will it do the same now I don't know yesterday was bar number eight that means today is bar number nine Max what you should be doing is you should be tightening your stops I know you're looking for an exit to the upside and I'm going to try to give you those but what you should also be doing is you should be tightening your stops on ticker symbol SKT because today's high could be that top or it could be tomorrow or you just may see this continue to move forward because we did see a breakout here above resistance of 1585 but that really is kind of like old resistance we already saw a break of that level out here so ideally I would have stopped that line and not use that for this move out here we can see that Stevie's red line turn green for bars ago what do we know is the phenomena associated with that we see a revisit of Stevie's green line which is at 1622 that doesn't mean it pulls back to 1622 the line can be moving higher price can be moving lower all types of combinations out there but the answer to your question with regard to where are the target levels one the daily basis the next target to the upside would be 2033 I am not saying this is going to get to 2033 what I am saying is be careful you see the prior high before the one that we just took a look at that to form with the TD setup nine count it was the bar following nine that identified the high that which lies 17th out there I'm not saying that the third time is the charm I don't know if it's a charm I don't yet have a crystal ball I ordered it from Amazon they haven't delivered I wonder why but what we do have and you and I don't need a crystal ball we just need to know that these patterns are the way the market communicates to us when it gets exhausted when it gets exhausted to the upside to the downside and when these patterns are present we really pay attention I want you to pay attention regardless of what your upside target might be just simply adjust your stop use something you can use the average true range which on this equity out here on a daily basis at 52 cents use some multiplier of 52 cents because you don't want average results out here in fact you don't get average results when you do something average in life do you if you're an employer and somebody is doing an average job what do you think of that job not much okay we want extraordinary results out here we don't want average well so what you want to do is make sure your stop is somewhere outside of 52 cents below where it's trading right now I suggest you multiply times 1.272 or 1.618 just Fibonacci numbers out there that's what I would do prices that look it's above the weekly profile out here 1681 so that's a positive out here maybe the retracement is just pulling back the STB's green line when it does do that and that could be your test and rejection for further upside move where you would want to add to your position perhaps out here if I look at the weekly chart for some type of valid bottoming pattern signal out there I don't have it I've got wave number 6 that's letter F nice hammer candle out there price could be targeting 2066 that would be another level to be looking at so there's your review of tanger factory outlet that was for max a million dollars out there and best of luck with that trade LB writes in and LB wants to take a look at ACB I believe that is Aurora cannabis the Aurora Borealis and I took a position yesterday wondering if you can take a look at it see if you agree that they have bottomed so we take a look at Aurora cannabis ACB out here what do we know we know there's a daily profile this formed about a week ago or so bottom of which is 33.5 to that level doesn't tell us the bottom just tells us the support is held so you've got support out there monthly chart has pulled back to the center the top of its box I take that back at 374 you're trading slightly below it 367 we're not going to worry about those few pennies out there I'm not going to worry about it but you ask the question has it bottomed when we take a look at Stevie's other tools out here what we know is price was pushing lower do a less relative energy today you've got a bullish engulfing candle back on the 16th you had a bull sash to confirm this candle so it's really trying to form a bottom but what is missing from this LB is a break of resistance and in this case here that's you're not going to know until you see this close above if it can close above four dollars and 14 cents that's the top of its daily profile out there if I look to the weekly time frame chart here looking for some type of bottom we don't have it last week was week seven this week maybe week eight we have a TD setup nine count we need the full nine the last time we saw a nice bottom out here with that count was back on December the 28th out there the prior week was nine that following low as we know the low can occur on bars the bar following nine that's what took place and price ran right up to where resistance ten dollars and 30 cents I do not make this stuff up these lines really work that well to help us understand what the market is communicating remember when you can close above resistance out there it tells you of a change in trend type of signal out here and on the monthly time frame chart we don't have a lot of data but actually this suggests to us Lee and you want to just use a stop the UNI would not be surprised if ACB the Aurora Borealis out there pulled all the way back to a buck sixty and that might be your buy out there so yeah you've got it trying to form a bottom it hasn't proven itself to you I'm not saying to exit the trade I'm saying make sure you have a stop below three fifty two average range on this is twenty seven pennies out there so I'll be thanks so much for writing in I hope that that helps you out looks like we have a question inside the den Peter what are your settings on the VIX fifty Bollinger bands I'm doing something wrong fifty and one you may be doing fifty and two out there what is Peter referring to out here if we take a look at this Peter it should look something like this for your Bollinger band settings we'll put this one up here and you can see kind of like the little black line fourteen thirty six should be basically the bottom if you use one standard deviation fifty and one for Stevie's Bollinger band readings it's the only place I use it on the spot volatility index we'll be right back since nineteen eighty four Basil Chapman has been using the Chapman wave methodology to advise traders of his expert market opinion well originally hand drawing charts from the late nineteen seventies into the nineteen eighties Basil noticed that prices under most circumstances virtually always had a certain number of legs to the upside before declining sharply later Basil found that computer software which included the standard market technical indicators enhance the degree of accuracy in calling price turns as well as market trend calls thus was born the Chapman wave sequence using the Chapman wave methodology along with other indicators Basil Chapman advises his subscribers of his expert market opinion each market day with his opening call newsletter right now you can get a two week free trial to the opening call Basil's daily trading newsletter by visiting the front page of TFNN.com cancel it anytime during that trial and pay absolutely nothing get your two week free trial to Basil's newsletter the opening call today by visiting TFNN.com if you're a trader in the market looking for exposure to gold or gold mining equities then now is a perfect time to sign up for Tom O'Brien's gold report the summer is over gold is trading back above fifteen hundred dollars and the ten year treasury is hovering at around one point five percent Tom O'Brien has been writing his weekly gold report for almost eighteen years there's no one that knows more about how the gold market trades and how gold mining equities react new subscribers get a thirty day money back guarantee so you have nothing to lose every Monday morning Tom publishes his weekly gold report with coverage of gold silver bonds the XAU HUI GDX the dollar as well as more than thirty different mining equities as of September third gold report subscribers have five active open positions with an average unrealized profit of almost thirty eight percent for each position to see for yourself the types of profitable trades that are recommended within the gold report sign up today by visiting TFNN.com you know what's cool taking something that's good for you something specifically formulated to help with weight loss better sleep stress reduction and the need to detox. Nicar hunter and gatherer ancestors found all their nutritional requirements for health in their wild environment but today our food sources no longer contain the vitamins minerals and nutrients our bodies need to stay healthy and strong that's why we need primal edge daily nutrition it includes a special blend of ionic soil based vitamins minerals baddie and amino acids and easy to use liquid form primal edge is powered by highly concentrated folic and humic acids nature's preferred delivery system they've been called miracle molecules because like sunlight air and water life cannot exist without them that's right page they ensure we receive all the nutrition we need to be healthy and thrive we take it every morning primal edge formulated and approved by Niko and Paige of living primal lifestyle buy it today for just $89 click on the primal edge banner on the front page of TFNN.com this is David White stay tuned because coming up next is the power trading hour right here on TFNN more interested in pot stocks out here canopy growth is the next one we're going to take a look at and the answer I forgot to answer the question yesterday Jonathan Edwards what was the question Alex Trebek out there right it was who sang that song shanty out there we take a look at pot stocks just reminds me of that song I have not heard it for a long time but it's a goodie but an oldie and the question is what about what about canopy growth out here so canopy growth does have a valid bottoming pattern here's what we know about it right now no new profiles on the daily basis so prices trading below the bottom prices below of the daily of the weekly of the monthly out there but we know that the profile levels help us to identify support and resistance we can't really use them we can use them to help us understand if levels of support or resistance have failed in our effort to be able to find change in trend signals but they're not going to be used to call the bottom they can't be used for buying the dip of a prior bottoming pattern out there because they are levels of support but let's get to it Steve oh if you take a look at canopy growth out here we know that price was moving lower doing less route of energy that was in October 15th and the following day October 16th what we saw was a bullish reversal candle referred to as a bull sash out there by the way I would ask you this question a bull sash and a bear sash do you have to have an established trend like you do for a bullish or bearish and golfing candle something to think about if we do take a look at then on the following day not the following day but the day after October 18th you saw price close above Steve's red line a resistance level that failed today is bar number 5 Mike of a potential TD set up 9 count out here so be watching this over the next several days out here but you do have a valid bottoming pattern that would suggest price would get up to 2653 to 2889 so a nice bottoming pattern your preference is actually to see things pulled back and get rid of that TD set up 9 count pattern that's out there but we can't control what the markets are going to do the weekly chart shows that price is moving lower do with less route of energy no bullish reversal signal says watch 2398 that could be where you would see price become deflected so folks the answer was or is no bull sash and a bear sash there needs to be no established trend a bullish and a bearish golfing absolutely hey stay tuned thanks so much for being here your favorite polar bear David whites up next Tom will Brian will take it on from here and Steve son will be back with you tomorrow at 1 p.m. take care