 Fundamentals, okay, are only important right only important from the trading aspects Welcome to access a trader the number one community for those who are committed to taking control of their trading in order to achieve success profitability and longevity Thank you for joining us. Here's Dan Shapiro to help you find your edge master your process and own your future Hey guys giving everybody welcome to another edition of the access a trader calm nightly wrap-up show hope everybody is Doing well, so let's back test really quickly Yesterday first close below the $50 or $50 50 50 day moving average both on the QQQ and On the SPY obviously is not a good thing. We discussed in pretty much a nausea What happens when we close below the 50-day moving average and build below the 50-day moving average? All you got to do is reference this point right here when we lost the 50-day moving average on 411 And when kind of sideways for the next Four or five days and that is not a good thing for the bulls We keep we kept on talking about last night on the video the market doesn't need to go straight down But it's got a hard hard time going back up because we're into supply. That's the whole point of supply There's emotional buyers keep on buying from technical sellers and they're selling them into supply. There's more inventory Available and that's not a good thing eventually the bears, you know really really take over and start really aggressive move down That's exactly what we saw for about four or five months And you know then we broke above the 50-day moving average Which is the upside of or the opposite side of what happened on on April And we rally for the next month and only to lose it yesterday and this is the second consecutive day We are below it not only on the queues not only on the spies, but now we are seeing other industries right this is not just regulated to Technology shares and growth companies that shouldn't have been at higher levels That's the argument to begin with in the first place And now we are starting to look at companies that has nothing to do with the fit with technology You've seen caterpillar the same thing right? Here's the common denominator caterpillars second close below the 50-day moving average AIG Second close below the 50-day moving average AVB right these are three different companies and Three different industry groups that have nothing to do with each other But at the bottom line is it's the same common denominator the 50-day moving average That is a super super important level that we've discussed in nausea that we've told You know, we've told investors what happens if we close the 50-day moving average and again the cheat sheet in case you didn't watch The video even even last night Again above the 50 good below the 50 bad and again nothing's gonna go down in a straight line But the longer that we base below the 50-day moving average You're going to have a higher probability of lower prices and here's the crazy part is not you know Not everything's below the 50-day moving average There's still Companies that are still way above and that's going to give us a trade for next week But even though we are still going lower and again people gonna make the excuse as well People are gonna be on vacation price actions price action doesn't make a difference how it gets there The scoreboard is the scoreboard and if you see the common denominator right this light light blue line That's the 50-day moving average you look at a bunch of stocks a bunch of stocks What happens when they close below the 50-day moving average? Well, let's go Let's you know let's talk about those names again a lot of these names are going to be semiconductor related But look right here's a mat right here's the 50-day moving average What happens when it got below the 50-day moving average lower right in a video Which has been an absolute monster mover now for the last three four days What happened lost the 50-day moving average lower you got Microsoft losing the 50-day moving average Right lower you got AMD again just again you could go through the whole thing right AMD that confirmed yesterday Lower you got Marvel again another semiconductor right got below the 50-day moving average lower You got Google below the 50-day moving average right lower and that's the point the 50-day moving average is going to give you a really good Sample size of what happens for the next you know for that for near-term sentiment, right? This is not the five-day moving average is giving you an indication of short-term sentiment You could clearly see how one day they could reclaim the five and the next day they lose the five That really doesn't make a difference when you have a big body of work, right such as the 50-day moving average It's going to give you a glimpse of what happens in your near-term future and now we're only right only day two We're making a nice little bed here We're going sideways and the key is the longer we stay on the clothes below 304 303 area The higher probability gonna start seeing right lower prices and that's a very very important key So we got SPY out of the way, right? We got the cues out of the way and now we're talking about speculation money right speculation money is the IWM the IWM today again This is the first close on the 50-day moving average, right? If tomorrow they start building below this 183 level again, why do you think the IWM is going to be different in the cues? Why do you think it's gonna be different than the S&P 500? Why do you think it's gonna be different than any other stock that lost its 50-day moving average that you've you've seen? Obvious evidence what happens when that area gets violated and technical damage occurs again Nothing is going to be safe because technical analysis is not subjective and that's exactly what's happening here So the longer we build a base We started talking about this yesterday Excuse me. We started talking about that yesterday on the video the longer the bulls cannot reclaim back the 50-day moving average The higher probability we go lower and that's a very very Concerning thing, especially if you are a longer-term investor, right? I we talked about two days ago. What happens, you know before this happens, right start taking precautions Maybe start lighting up your inventory Maybe start hedging your longer-term holdings with some cues spies whatever you your your your concentration area is But again, you don't need to be a deer in headlights just like people were right over here saying well It only closed the first day. It's not really a big deal. I know it's not a big deal You know two days, right? It's not a big deal two days. Not a big day three days Eventually becomes a big deal, right? It doesn't become two three days. It becomes two three four months a very very aggressive selling And again, if you believe Fundamentals, you know fundamentals outweigh technicals. Well, yeah, that might be true for the long tall long haul But keep this in mind Fundamentals, okay, you're only important right only important from the trading aspects if Technicals confirm fundamentals, right? It's not the other way around so it's very very important You can have the greatest company the world, but if it starts losing the 50-day moving average It's gonna it's gonna have it's gonna replicate exactly the same thing As everything else so for every company that's still that already is below the 50-day moving average Look how many names going into next week are it's still above it, right? And if they start the fall, these are the darlings, right? You got Tesla's Tesla is still Above the 50-day moving average, but again if it closes below just like everything else in this light blue line It's gonna be a problem apple is hoarding more cash than anybody in the whole universe, right? It's still above the 50-day moving average again It's not gonna make a difference that they're selling three trillion iPhones, right? And one quarter the point is if they get below the 50-day moving average and we don't know if it will But don't we have to again like I say don't we have to at least prepare for it, right? Amazon? They sell everything from blow-up dolls to microwaves to to dirty bathwater, right? Phenomenal company. There's nobody you know There's nobody gonna turn around say Amazon is crap the stocks should go to zero But at the same time the 50 days the 50 days the 50 days again We're maybe one or two days away from testing this 50-day moving average And if this thing gets below again, there's a lot of room down as well So again, you don't need to be you know, you don't need to be a criminal of society You don't need to be you know a bad human being you're just trading both sides of the market And that's all we talked about when the market was good and the bulls reclaimed the 50-day moving average to the upside right here There's 296 75 level we removed the cell button. That's the whole point You got by bias and this is what happened a whole month rally But now that we're below the 50-day moving average until we get back above again I have no bias in this tape I don't care if the market goes up down definitely don't want to go sideways But I don't care which way we go as long as we have a trend and we're definitely Developing a trend two days below the the the 50-day moving average tomorrow will be day three and if we start Violating right if we start violating below, you know the previous days low of 298 40s We're gonna go lower I mean that's just it is kind of just the way it is and the most important part is Don't fight it right and like I said this morning when we were green on the day I said this morning. I have zero interest Getting long stocks until we reclaim the 50-day moving average. It's just again Can you do it for a scalp? Can you find some things blah blah blah blah blah? Those little scouts to the upside which are which are reverse sentiment trades. They're gonna burn your brains, right? They're gonna burn your mental equity You're not gonna get you're not gonna go with them with any type of size because you know deep in your heart Technical analysis tell me you're underneath supply So you're going through the motions rather go through the motions instead of picking out that one stock that looks strong Right instead of instead of the sum of the parts look at the whole look at the totality of what's going on here What the market's telling you but yes once we reclaim if we reclaim back 304 on the close and confirm this 307 channel back It's roses, right? We're going back to the upside, but for now we're building below Supply we continue to build below supply for all you ETF players tomorrow again watch, you know watch the IWM That 183 is the is the you know blind in the sand again. There's nothing to talk about. Here's the 50 day moving average 183 If this thing starts blowing blow blow blow the 153 area. Yeah, it's a problem, right? There's an absolute problem that should take out steam with anything that represents Speculation money. So that's it guys. That is it. I unfortunately have to run my son Even though he starts school two weeks from now. He has his first soccer game So I got about a 40 minute drive guys. God bless. Stay safe remember There are no there is no there is no video Thursday nights. It's my day off I will see you guys on the weekend video. Stay safe Trade the market that you you have not the market that you want. Stay blessed. Stay healthy Stay smiling guys. God bless. I'll see you all tomorrow