 and Mr. Basil Chapman as we do each and every Tuesday at twenty past the hour and don't forget folks Basil has an outstanding show here every trading day ten to eleven eastern standard time also is a great newsletter the opening call now it's very easy to get the opening call folks come over to our website at TFN and you're going to see it right under featured content on the left hand side you just hit subscribe you can get the opening call for one month for a hundred and forty nine dollars you get it for six months to six ninety five which is a savings of a hundred ninety nine dollars at twenty two percent you get for one year for save for eleven ninety five which is the savings of five hundred ninety three dollars of thirty three percent now the bottom line when you get on basil's page you are going to see that he has a huge amount of webinars on their page you really get to understand how the market moves how the Chapman wave moves and guess what you like it at the end of thirty days you continue getting it for some reason it doesn't work for you folks you get your money back so check it out on the front page of TFNN Basil Chapman what's going on hi Tom I guess we're preparing for a big storm coming up this weekend we haven't had a big one like this I know it's sad because my daughter's coming down Saturday morning and I just saw this so it's coming in Friday night huh it's coming in Friday night and they said that midday Saturday yeah these things change no I know but I gotta get her out of there right now as soon as I get off I can see I can get her on the plane yeah oh that'll be good yeah it's Tommy's birthday it's the great it's February 2nd and February 1st is the year of the tiger yeah excellent happy happy birthday exactly exactly yeah so market-wise we've had plenty of action yeah that's for sure so a couple of things that I wanted to mention here is that and then actually I was going to do something else but I'll first go to the VIX index to say the VIX index had a huge move yesterday it went all the way to 38.94 this is the first time really in quite a while we've had a change of it used to be the Fed and the virus that I put at the top of these VIX spikes to the upside this is the first time I'm putting Fed and Russia the virus maybe still there but I just it's there because that's what the market was worrying about but 38.94 is above the 35.32 high in the volatility index on the 3rd of December and if you remember the first is when the market had that huge turnaround to the upside so this is very important just in terms of watching how the spike in the VIX index on a daily basis how it reverses and what happens within a day or two do you get these long wicks to the upside and then the VIX essentially just kind of dissipates and the market is left to move to the upside doesn't tell you how big the move is but it tells you that a climactic moment has been achieved so that's something we're looking at here and that makes yesterday's low very important and today's retest also very important one of the things that's very important in terms of the daily weekly monthly charts is that we've got a week to go and we're looking at whether or not the S&P is going to make and look at the S&P coming up here the monthly chart leg B with a huge red candle and the big question will be in February will this be the first opportunity for the S&P to have a monthly office big red candle to have no new high above 4818.62 and that'll make peak B and in my big picture monthly charts in buy modes invariably go to at least a D so it doesn't say how far we could pull back but it does say there should be higher highs above the 4818.62 high in 2022 so that's important yeah this is cool man okay so it's like we got a reset right yeah it's kind of like a reset but what's really important about this is that the sector rotation that I've been talking to you about for months now I think that yesterday's action and today's action says that the whole area of the QQQ the IBD 50 type stocks they are still struggling and what's really a focus for me and my subscribers is that now we're looking at how this energy and look at the XLE we're not in the XLE we're in another energy stock that's acting very well look at this this is a leg B going to a peak B in the daily chart and as I said in the chapter we've always looking for at least a D and at the 18th of January the high was 65.53 today's high is 65.55 so now we've started a leg C so it says basically what we've done is that the energy crisis and you can you think it's a crisis because you have to talk about it that way because as long as Russia is involved with oil I think that it means that you got to keep your eye on the oil contract this is very important to keep your eye on the oil contract oh listen to you know you get Chevron doing an ABC up you get ExxonMobil doing an ABC up I mean yeah you know you're talking big numbers here man yeah and these are really important stocks because they are so big big companies but what's really important about this is that the XL is finally broken out in the monthly chart from a declining trend line and I'd be waiting quite some time to see that and yeah we whoops if I can just get her right there and now we finally got it so that that to me is key because it says that you've now turned the whole area it's at 65 you've turned the whole area of between 60 and 58 into very strong support so I needed to see that I want I needed to see over the over these two days that's yesterday's action and today's action what's working and what's not not working and I think that the the folks who are in those uh... like the doctor signs it's not necessarily that one but I'm saying that type of stock might have to wait a little while before they get back on track it means look at this American Express comes up with earnings today it's up 15 points at 173 it was kind of meandering in a rectangle formation for quite a while all of a sudden it's acting really well and it's saying the whole area of interest rates is going to be very important so I like this because on Saturday when I do my overview for my subscribers probably another long one I'm going to be looking at areas that subscribers can look at even if they don't necessarily choose stocks that I like this the areas that are going to be very important I'm going to talk about the VIX index, I'm going to talk about what should work over the next coming weeks it's a little bit hard to go all the way into the spring but at least for the next couple of weeks and what seems to be struggling and I think we're getting such a clear picture now that I needed today to kind of confirm what I'm looking at and that's really good, we've raised cash we're starting to put money to work in special areas look at this, you know I've spoken to you about the DB Agriculture Fund it's really in from 13.77 is trading right now at 20.22 it keeps making these double tops and wanting to break upsides so this has wheat, soybean, corn and you know, you and I have spoken about the aspect of inflation absolutely once it picks up its head it's really hard to put it back in the box yeah, you know it blows my mind, Basil, is that you know you have very bright people saying you can put it back in the box, it's like okay man, it doesn't work, listen when you've been through it folks, I guess these people have never been through it because you don't put it back in the box three years from now, yeah it can be different, okay but it's not the wages aren't going to get down the price isn't going to get down, it's just that you don't get the acceleration up you know, so and the raising of prices is also something they need to worry about yep, so listen folks it's very important to come over our page, you just heard Basil saying because you're going to put out a special video for all your subscribers, right Basil? yes, on Saturday morning so it's very easy to do folks, come over to TFN and you'll see it right in the front page hit that subscribe button Basil, you have a great one, safe one, we look forward to show tomorrow thank you very much Tommy thank you