 Welcome back folks, this is Jacob Schup filming for Tom O'Brien while we do have Tim Ord coming on. First we have the one and only Basil Chapman, guys take a look on TFN website once you're done looking at Larry's webinar, come over here and you can check out the opening call newsletter by Basil, again that is a one month money back guarantee if for whatever reason you don't like the newsletter, I can't imagine that you would dislike it, but you know try it out, Basil are you with us? Hi Jacob how are you? I'm doing well, how are you doing Basil? I'm doing well, you got a busy afternoon. We got a lot going on here at TFN, but I'm glad we got you on the show so I always enjoy having you on, so what are we looking at today Basil, we got a lot of stuff going on. Yeah we got a lot of stuff, let me just tell you that this little break in the doubt, this big break in the doubt to the upside on a weekly basis, this is the first time we've actually broken channel resistance or trend line resistance, this is the second week I like to see two weeks of a break and so far this is really strong action, it's helping the monthly chart and in terms of the daily chart this is only a leg B and the stochastic, I like to see a stochastic strong and flat at 93%, that's really positive and the MACD is very strong and a couple of weeks ago what I was looking at is the Monday action after that Friday low late October said to me that if the VIX index really skyrocketed over the weekend that Sunday night into Monday we would get a really serious major low, but in fact what happened was Sunday evening and going into Monday the market turned around so the low was on the Friday but in assessing the action on that Monday my sense was that there were so many stocks that seemed to participate in that two-day rally from the Friday low into the Monday afternoon, I liked what I saw and I thought this is an ideal opportunity for subscribers to get into a stock that we were looking at for ages, we missed one of the moves and it just kept going up, going up, went to an all-time high and then started to pull back and I thought this is a perfect time because we were looking at Microsoft because it's in the Dow, it's in the S&P, it's in the NASDAQ 100, very important component and a very important part of the XLK which is the S&P Select Tax Sector. So we're very fortunate we got in at 338 and today it hit 371 and one of the reasons why I was very pleased with the action as you can see in this daily chart you see just on a very big picture if you cut a half close your eyes you see this like a U-shaped pattern going to another which makes a very large cup formation and what I like to do is I like to choose a particular candle if it isn't the obvious low where the number of bars from the left side high to the left to the bottom and then back to the right side high is equal then I have to find a particular place and I chose this little peak D in the chapel where the fourth highest peak is often where you want to go that's where you can see a turnaround and it was a perfect plus sign looks like it's a doji candle looks like a plus sign right there and I chose that as the midpoint and that was the midpoint on the 14th of September from the 18th of July 366.78 high so my analysis took it with the different techniques that I used that if I was correct from the from the low that was being made late late October there was a chance that we could have an inside wedge target resistance line taking it to exactly on the 10th of November back to that 366.78 high and yet we were down at 330 didn't look like much but I love the fact that the magnitude the moving average was rallying the nine period was over the 14 period so we were fortunate enough to get along and it went to the exact day the price the left side right side price time at was to the exact day and on that on was past Friday it went just about 366.78 today it's making a high of 371.95 now what's interesting using all these different techniques you can see you can see the cup formation much better here in the weekly chart so we've kind of achieved what we wanted and now the assessment is is there an alternate count is going to go higher but you can see this rising inside track these two green the green and pink line I call them inside track repellent zone that's that was our target so we've just hit that target if we if in November a Microsoft is able to get into the 377.380 area that'll be absolutely spectacular action so it's achieved everything that we wanted but as I say we wanted to use this as a proxy for the general market and what's really interesting is as this is rallying you're finally seeing some of the the real laggards the ones that just went nowhere I mean I'm including the Disney the Shopify all these stocks that just got slammed over the last couple of years starting to move and I think that that is very important so together with the IWM the Russell 2000 sorry to really break to the upside it wasn't looking very good just this morning in fact and now sorry to improve a lot so if we can start to see a rotation that says the the leaders the magnificent seven of which Microsoft is one of the leaders if they can slow down you could start to see the others take up the slack so I like you had mentioned SDLD I always I always remember the name and I forget the symbol that's still dynamics but if you look at the SLX which is the the SLX is the Van Egg vector still ETF all of a sudden they've come alive if you look at PAVE PAVE which is this is the Global X US Infrastructure Development and Development ETF just came alive so I think that this this is really important plus you've got the dollar pulling back very strongly and bonds are sorry to rally so that yields are coming down there are a lot of things that are looking pretty good they weren't looking so good even even a few days ago I like them I'm like what I'm seeing yeah absolutely I mean even you know I was talking earlier in the show too some of these housing stocks you know toll brothers is blown up today among a few others and I think with the interest rates right now we should the terminology I think is more rocketing yeah absolutely no no kidding I mean we're up like eight percent and like on average between like the I think five stocks are looking up today it's insane so yeah this market in general is just completely coming alive and it's kind of awesome to see you know because things have been a little laggard for a while right well what's awesome to see is that it's broadening out because there's selective moves where you've got just a handful of stocks in a particular sector moving up that's at least you're in it it's really unfortunate in this but you know talking about sectors we've been in the uranium sector who would have thought the uranium is doing so well so we've got uvc which is uranium energy core we've got it about three dollars and 64 cents here it is at 608 making a new recovery high I mean so it's really spreading out I like I like this market very much no and you're a hundred percent right that was one of the the things that worried me about the market right because you as you brought up the magnificent seven yeah like that was what was really dragging this market up at any kind of given point that you know the past year or whatever and seeing it spread out is uh is good for the market I feel like right overall it is and you know I'd like to look at different time frames if you're looking at like the one minute here the one minute in the E-mini is just fall back the and yet the five minute is still holding the nine period moving average as is the ten and that's exactly what we've been seeing in the market that if you can choose a particular indicator that keeps you in a position I mean that's that's really good Basil thank you so much it's always a pleasure having you on thank you very much I appreciate it take care now folks stay tuned we'll be right back