 trade what you see with Larry Pezzavento call now toll-free at 1-877-927-6648 or internationally at 727-873-7618 now Larry Pezzavento okay folks gonna change course a little bit here today we were talking about being on the floor of the exchange on the last part of the segment of my previous show and I wanted to continue with that the reason why I went to Chicago to become a floor trader it was my 40th birthday right around my 40th birthday a little bit over but anyway a year over but anyway what happened was I knew that these computers were coming because I saw samples from CompuTrack and other places that this digital stuff was going to be coming you'd be able to trade up from your home which something that I always wanted to do and so I knew that was going to be happen at least in trading from an office where you didn't have to you know get I didn't have charts at Drexel you know all I had was dailies we didn't have any interday charts the only way to get an interday chart was go to ADP up at Conti Commodity and it was like $20 to get an interday chart on pork bellies or I didn't need that 20 when worked with me and he had a Panasonic computer long before these others came out and we could do some of that stuff but it was not easy to do and it was hard work to get it done so I knew that once that was done that if I could see you know what the prices were and I could get filled within a reasonable price of where I thought it was that I could beat the market consistently I knew I could do that because I had done that from 76 to 82 I never had a year less than a hundred percent a year I never did that ever since but during those years of course I was long gold and silver most of the time you know you it's hard to lose money from 76 you know to 80 in the market in gold because it was straight up and I was buying gold and silver plus other things you know inflation I got lucky you know it still did okay when I got to Chicago and believe me I did a lot of business at Lynn Waldoch they were the big meat brokers there so I did a lot of bellies hogs and cattle and then in the foreign currencies I was dealing with Rosenthal Collins and then over at the board of trade I was dealing with oh dear I can't even think of the name of it oh it sucks it huge firm oh shucks I'll think of in a second most of my business was not at the Merc anyway I did grained I did wheat corn and beans over there but that was pretty much it so I I knew that you're I thought it was gonna be really fair but when I got there you know I knew some people you know but I didn't know many people the first person that I met that was outside of the group that I knew was Byron Tucker and I met him by accident because he had his Brooks Brothers suit on with the vest and everything and his little fedora hat and he had galoshes on you know for rubber boots for the for the wintertime and I started laughing and he saw me laughing and he sent his girl over to you know say he wants to talk to you and I knew he was a big shop because he ran Goldman Sachs's desk and so why are you laughing I mean I said I'm not laughing at you I said I'm laughing at your galoshes he says no one calls these galoshes and I well anyway from that time he's been my closest friend for these past 38 years anyway the reason I'm getting that all are meandering around here it was in about the seven months into the trading of an in 1982 it was in August or something like that oh no you know what it was a July it was a July cattle report came out and I was short three port bellies and I had shorted them pretty good I had about a point and a half profit in them and and so the cattle report came out and it was the most bullish cattle report they had ever seen they were calling everything limit up bellies hogs cattle everything was going to be limit up and so the girl that had done all my run ran the trading desk for Drexel there at Lindwall Dock she was kind enough to I said can see if you can put this into the order desk of the lead broker Mori Oster at the at the Merc I said see if you can get on top of the deck she says well I asked him so goes over she comes back he wants to see you and soon as I saw her walking over I knew that I made a really bad mistake so I walked over to him he was a short fellow he's about five foot six so he's standing on the first step so we're about eyeball to eyeball he said I understand you got a problem I said yes sir I said I'm sorry I said I'll go back and I'll do it the legitimate way I do it the right way he said I understand that you have a problem and I see I do he said what's the problem I said I'm short bellies he says what's wrong with that he said well there's going to be a cattle report and they're going to call everything up the limit so bellies are going to be up the limit and I said well that's what they're saying over there he said who said that I said one of those guys over there and he said well he opened up his deck and it's the only time in the three years I was there that I saw the deck and on top of that deck it said sell 300 February bellies at the market that was 300 bellies that's a lot of bellies and so I knew the bellies were not going to open limit up with that if they did they might open higher but they're not going to open limit up and when cattle open which is 10 minutes before the bellies open cattle open slightly higher not limit up but slightly higher bellies didn't trade for two days they would limit down two days in a row that was the last time that I saw a deck okay and not only that I got fined $100 which I thought I should have got fined a lot more and that $100 fine was basically you know a slap in the wrist and that I was a happy camper just to go through that so after that I never saw a deck never wanted to see a deck all I could see those guys working their butts off down there to make things very fair and they were very fair this is when people were paying a minimum commission was $40 if you were trading at Merrill Lynch or Dean Whitter or EF hot in someplace like that you're probably playing $80 to $100 now you're paying $3 both sides I mean you're paying nothing you get you're just like a floor trader this is why the volume has gone crazy and seats have gone from 103 thousand I paid for mine to 4 million you know so that that's why this business has exploded because the volatility is there the volume is there the fairness is there it's a great business to be in and that's why I'm still doing it all these years and still doing it I have bad days yeah of course I have bad days have few good days in between too but main thing is is it's been fun for me and I really really enjoyed it so that's I've got other stories but that's a you know Byron always reminds me tell him the story about this and tell me the story about that nice yeah they might may or may not be interested but who knows there some of them are quite funny I've written notes through all the years are to get into those because I was going to do an autobiography 30 years well 20 years ago when I think it was thinking of retiring at 62 and I had that lasted about three months my daughter said I told her I was going to retire and she looked at me and she said and do what and sure enough that's still what I'm doing to this day all right let's get on to the markets folks we got the I'm going to put the chart of the the bond market up here now let's try the inlay the regional banks kre remember right there right around February 6 Jim Bartley only was on about six weeks ago that's been two months now and he said looks like we're getting ready for a break and look what's happened we went from 66 to 41 and we're still dropping and until this thing bottoms I don't think you're going to see a real significant rally in the stock market we're getting close as you can see from the bottom of the chart down there that's very very close to a three drive to a bottom that's going to be somewhere probably between 38 and share and $35 a share probably going to be one or two more banks that are going to be out there they're going to shake the tree a little bit but we're going to have a bottom sometime in here and if you remember we had Stan Harley on yesterday and he thinks there'll be a bottom sometime in June so we got to take a break here remember Mike Moore is going to have session two coming up here in just a little bit and I'll come up and one thing I need to focus on when we get back okay we'll be right back currencies commodities and bond markets are as important as ever right now with how they're driving the volatility in equity markets across the globe which is why it's a great time to try out Teddy Keg stats Tiger forex report Teddy Keg stat breaks down the forex markets every Monday using his 30 plus years of experience as a trading veteran of futures forex stocks and options Teddy releases his weekly Tiger forex report every Monday morning with coverage of all the major currency pairs including the dollar index the euro dollar pound dollar dollar Swiss dollar yen as well as many more and he also has weekly coverage of the crude oil market and the 30 year t-bonds as they both influence forex markets tremendously when you sign up for the Tiger forex report you also gain instant access to Teddy 60 minute webinar archive he just hosted forex strategies and fundamentals what is behind the Tiger forex report for all the details and to start your 30 day Tiger forex report subscription today visit the front page of TFNN.com TFNN educating investors TFNN has just launched their new trading room the Tigers Zen hosted at Discord TFNN has been educating traders for more than 20 years with live programming hosted by a variety of professional traders during market hours and now they are expanding their reach with the Tigers Zen available to all Tigers and Tigris's for just one dollar for the year there's no catch or added costs when you join our community of traders in the Tigers then you can look over the shoulders of Tom O'Brien and the other TFNN hosts while they analyze charts during their live Tiger TV programs and join an interactive trading community with hundreds of members exchanging ideas interact with other Tigers and Tigris's as they share trading ideas news analysis and discuss the market action all trading day even at night and on the weekends the Tigers Dan at Discord is accessible on mobile or tablets as well so it's always at your reach to sign up today and become a part of this educational community of traders just visit the front page of TFNN.com are you looking for a way to consistently add winning trades your portfolio Tom O'Brien is here to help Tom O'Brien has been successfully trading markets for over 30 years a frequent contributor to TD Ameritrade Network and CNBC Tom O'Brien founded TFNN over 20 years ago to help educate investors just like you Tom's Daily Market Newsletter market insights is published every morning when the markets open to give you the competitive informational edge you need to succeed these newsletters are packed full of Tom's advanced technical analysis in our gear to deliver comprehensive strategies for a successful portfolio get Tom O'Brien's newsletter market insights today and try all of our products and newsletters 30 days risk free with our money back guarantee at TFNN.com TFNN educating investors free at 1-877-927-6648 internationally at 727-873-7618 okay folks one of the things that I try to do every day is when I send out the videos is to select certain trades now this trade that you have setting up here right now is a chart of the half hour chart of November soybeans that's new crop soybeans and you'll notice that they went right within one penny of the 382 retracement this morning and then rallied about 18 cents and my reasoning behind not taking this trade was the fact that this is only the first down day out of the last nine now it's very unusual to have a market go up nine days and then only correct one day and that's why I want to do it there was a second reasoning behind it we had four positions on we were short the British pound with a nice profit we were short the stock market the many with a big profit we were long gold which is still doing good and we had natural gas was all doing good so I had four positions on and I didn't want to add five positions I'm not a money manager I'm just trying to give these guys trades to see that they can do it themselves if they practice and read the book and that's uh you know the book is the the floor traders handbook of course and then the uh trade what you see book but that floor traders handbooks got everything in it that you need to be a successful trader it's done on 30 000 trades and a euro over a long period of time all done by computer generated that shows you that the odds are in your favor 60 percent you're going to win 1.8 times more money than you lose and you can't get better odds than that folks if you just traded the euro that would be great these currencies are wonderful to trade and trading at the mercantile exchange is better than trading at foreign exchange place the reason why is if you trade at the merc you're dealing with a contract okay and you can get usually three dollars in and out or four dollars let's say four dollars in and out but if you're trading at a uh forex firm what they're going to do is they are going to charge you usually one pip sometimes two so that's usually 10 or 20 dollars so by golly you don't be able to see it uh what's going what's wrong i was just informed that the e mini s and p bounced right off the 3a to you on the rally back to that 41 20 i believe this morning and then went back to make new loans again that 3a to is a very very valuable thing to put in your trading armamentarium because uh boy that gives you a really good indication of where the trend is and the folks that you have to start watching now is to start watching gold folks because gold's had a big run let me just show you what happened now i know platinum has nothing to do with the gold but well it is a precious metals but those boys that trade platinum also trade gold so you want to pay uh close attention to that but you can see what's happened to platinum here let me get the chart up that was my first indication yesterday was to possibly look for an indication of where we might run into some resistance in gold we saw with mike more saying hey this is a this is a heads up pay attention to what's going on and that's all i'm doing same thing in the bonds today i see the same thing in the bonds that i'm seeing in the gold market and as we watch these things unfold here just get this gold chart up you'll see that this has been a rocket ship to the upside which we were fortunate enough to catch a little bit of the fuel on that rocket ship to the tune of a nice run but you can see they had that big up here we have a straight up move the retracement that we had today was exactly 382 you know down only what $17 from the high but that's the first indication now that you got to pay attention to what's going on if you're a moving average trader you trade all fundamentals so you don't need that but if you're looking to keep your risk small and not you know not risk an arm and a leg on some of these things then you've got to be able to you know and this with these machines are for they give you a heartbeat of what's going on in the market folks that's what that's what these charts are for it's showing you why they go up and down they all do it the same way ab equals cd i don't care what the elliot waves call those things but they're abcd patterns you can call them one two three four five six seven eight nine ten eleven twelve thirteen fourteen sixteen different swings but it's still ab equals cd that's where it all comes to and you get that right you got it right that's i'm sure you told your your kids a story about the the little boy who wants to to get the world right he's worried about all kinds of politics and he's doing the picture of a man and his mother says why are you doing a puzzle with the picture of the man he says mom he says i think if i can get the man right i he said i think i can get the world right and he's absolutely right uh oh i have to share with you something that is really really really neat because i i i met michael jackson once back in uh... nineteen in the west lake village in nineteen eighty and his family had just moved and he was out there feeding the ducks and we were coming back from church st jude's there and uh when uh he was out there and we saw the bodyguards and we didn't know who it was but when we got out we saw it was michael jackson and he went to the same high school in gary indiana in in emerson high school that uh the ex-wife went to and so she yelled out emerson red raiders and he raised his hand and he said go go and so the bodyguards realized that it was no danger and so we got to chat with him for a little bit and we got home and told the told the daughters who were eleven and twelve at the time that that we just met michael jackson they went wacko they knew he lived in the area but it was in a compound that was not easy to get to so let's get up here and take a look at this next chart that i want to show you give me one second here and that is the bitcoin i want to get it up here to show you had a question on this bitcoin this bitcoin is acting very negative folks let me tell you why the 382 in this range here going back a year remember we had 67 000 that's when it made the three drive to a top pattern we've hit that 382 level at 28 40 28 400 28 900 i think it at 29 000 if it ever closes any day above 29 000 then be careful being short cryptocurrencies because or block chains or any of that stuff because they could really go and block chains are based on a lot of trust and boy if we've ever seen laska trust in any country in the world with the exception of zimbabwe and nobody travels there because it's too dangerous this is the time to be skeptical the news is out the news is good the news is bad you don't even know what the news is three quarters of the time that's why i don't watch it when i watch tv it's on mute i read what's going on the headlines of what's there and that's what i try to look at i don't listen to any of that stuff gets me in trouble and i've heard it before especially with this thing with the saudis dropping this and dropping that i've been through all that stuff before now sometimes you're going to get trapped in one of those and you know that's going to be bad but you know you're going to work out of it you know you always can always have it these are not hard things to do when you're wrong you get out you know that's the best you can do and sometimes it's going to be bad ones that's knock on wood because that hasn't happened yet but it might happen today or tomorrow but when it does i'm going to be prepared for it so that's what it is remember folks luck is where preparation meets opportunity folks and the key there is to make sure that preparation that you're using is not the other kind that is between the leather and k and j whatever that letter oh it's an h let's move on and we're going to have mike more on have more analytics in just a second here out of noxville tennessee and i really enjoy listening to him talk about the crack spreads and stuff that he's going to be talking about because spreads give you leverage like you can't get anywhere else in the world we'll be right back folks with mike more mike analytics more analytics if you want to take advantage of this sector now is the time to subscribe to my gold report the gold report is a comprehensive look at the metal sector as well as the markets that move gold which is the currency and bond markets new subscribers get a 30 day money back guarantee so you have nothing to lose every monday morning i published a gold report with coverage of gold silver bonds the xa u h ui gdx as well as more than 30 different mining equities to see for yourself the types of profitable trades that are recommended within the gold report sign up now by visiting tfnn.com don't miss out on the next great gold trade sign up today sharpening your skills as an investor is like getting better at playing a musical instrument you have to practice sure but you also need excellent instruction from experts at tfnn you'll get advice and guidance from the authority and technical market analysis and it's not just dry tedious text either tfnn airs live financial content streamed live on tfnn.com and tfnn's youtube channel with tiger tv live every market day from 8 30 a.m to 4 p.m eastern for free each host is an experienced trader and gives their take on the market while taking calls and questions live from around the world from the moment the market opens until the closing bell sounds tiger tv has eight different shows with expert hosts to help you make the right moves with your money watch online at tfnn.com or on tfnn's youtube channel and become the investor you were born to be tfnn educating investors are you looking for a way to consistently add winning trades to your portfolio tom obrien is here to help tom obrien has been successfully trading markets for over 30 years a frequent contributor to td ameritrade network and cnbc tom obrien founded tfnn over 20 years ago to help educate investors just like you tom's daily market newsletter market insights is published every morning when the market's open to give you the competitive informational edge you need to succeed these newsletters are packed full of tom's advanced technical analysis and are geared to deliver comprehensive strategies for a successful portfolio get tom obrien's newsletter market insights today and try all of our products and newsletters 30 days risk-free with our money back guarantee at tfnn.com tfnn educating investors 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 okay we're back mike how you doing good to have you back my friend good thank you sir thank you for having me on this is a lovely office that you have here thank you that's really beautiful that's very nice you can't get those in these double wide traders here trailers here in Tucson, Arizona so someday i'll come down and visit that's really nice tell the folks what you're going to be talking to us about this second half hour i'd like to talk about those spreads that you do because i had done some spreads many years ago that were really really profitable haven't done them since because i'm just a you know flat out foreign currency and index trader but tell us what you're looking at when you see these spreads because the leverage that you have is like many times what it is off of the regular forex commodities and stuff isn't it yeah so this is actually a very unique moment to look at these spreads if you recall on some of the past shows when you've interviewed me before many people are looking for a leading indicator right they look at stochastics and they look at rsi's and MACD's and all these other things but in the energies you truly do have a leading indicator the unleaded gas lane in the heating oil lead the price direction of crude oil 85 to 90 percent of the time and the reason for that is those are the products of crude oil so the demand for those products are what drives the demand for crude oil that's why they normally lead however right now in these past two weeks we are seeing that 15 percent where the crude is leading and not the unleaded gas or heat and this makes sense because the the crude move up over the past two weeks has really been more because of an opaque cut of oil production than it has been an increase in the gasoline an increase in demand for the gasoline or the heating oil so if you see let me just show my screen here for a minute hey mike what kind of microphone are you using um i don't know it's called blue this big round blue ball okay does it sound okay well that's great you know i'm gonna take a look at getting one because uh can you get them for under 10 bucks no i think that's yeah better way i better wait better hold off on that dance go blue yeah blue it's called blue okay i'll check it out thank you very much i didn't interrupt but sound quality is so great and the fact that you don't have to wear earphones is a big plus so i'm going to take a look at that so in the crude oil right i'd said that on march 27th we left the bullish reversal and we've seen 11 dollars and 17 cents from 7064 however if you notice this is the unleaded gas crack here and i got bearish when we broke down below this line up in here on the 29th two days later and you can see the extent to that move right there is 5400 dollars per lot in just about three days at the same time do you want me to describe what the ar bob crack is just so yes i have i have a i have a you know i'm a i've been doing this for a very long time the question that i have is when i used to put spreads in you know we used to write the tickets you know spread by june you know sell these at whatever the whatever the the bid offer was you know say do it at let's say 10 cents but when you put them in electronically now do you put them in one at a time or can you put the spread in as a spread as a spread trade like a like a regular uh regular future or crude oil does it do that yes and no so to any of you trading out there if you're new to these spreads it's very important that you ask a very specific question of the software provider that you are trading through okay okay so what you need to ask is if you trade the energy spreads like the ar bob crack or the heating well crack are you trading the exchange traded spread or are you trading a synthetic spread what's the difference the difference is if you're trading an exchange traded spread you are actually trading this spread on the new york mercantile exchange exchange but there's many softwares out there that aren't actually giving you direct access to the exchange but they are mimicking what the exchange is doing with bids and offers on the ar bob and the crude and they're executing an ar bob crack for you but doing it in two separate uh products and the problem with that is is oftentimes there is a lot of price disparity yes not to mention other people can take advantage of you there because they can be getting inside that bid and offer okay and just just as a refresher for some of you out there what is an ar bob crack what is the heating well crack when crude oil comes into a refinery it goes into a machine literally called a cracker and that cracker cracks out of the crude oil either unleaded gasoline or heating oil amongst a few other smaller distillates but the main things are unleaded and heating oil and it's either taking one of those out at a time given what whatever the demand is right so we're going into summer the demands higher for unleaded gasoline so the ar bob cracks would be going more in the winter time the heating oil crack would uh would fire up but what you're doing for the crack uh whatever you're doing for the crack if you're buying the crack you're buying the product and selling the crude or if you're selling the crack you're selling the product and buying the crude and you're making money off of the price differential between the crude and that and that product so going back here to the ar bob crack you can see that over these past three days um if you were along the crude oil instead of the ar bob you would have made at maximum fifty fifty four fifty four hundred dollars more per lot in just three days and if you look at the heating well um sorry that's not the heat well bear with me the heating well crack the heating well crack have been bearish since up in here since we broke down below this line and that you would have made eighty six hundred dollars more if you were along the crude oil over the past number of days i just remember that the crude oil showing this to you on this chart the crude oil has been rallying out of here for the past number of days and the reasoning behind this is again i'm sure there's plenty of people that knew seven eight days ago that this opac cut was coming but a lot of retail traders are not going to know that people that are in the know that are over there um i'm sure we're taking positions on this a lot earlier than your average guy can that's why i like technical analysis because it will it will give you the signal to get in on a move um 90 percent of the time sooner than the fundamentals will paint that picture for you even though the fundamentals are what actually drives the market if that makes sense mm-hmm so this is one of the examples of uh when that switched however the heating oil just broke above this formation today and now that changes the pictures again the picture again to the heating oil being strong relative to the crude and the and you can see right here where i wrote about it in the analysis i said trade below 3859 projects is downward 110 ticks minimum 365 ticks plus maximum we attained 879 of that on the on the downside then this morning i said decent trade above 3262 um i said this i said this out yesterday afternoon because i send them out in the afternoon we'll want decent shore covering likely for days right so if your average um if your average range in there is it'll take it take a little take a few minutes come right back and then i have a couple questions that i need to ask you about the auto trading thing okay sharpening your skills as an investor is like getting better at playing a musical instrument you have to practice sure but you also need excellent instruction from experts at tfnn you'll get advice and guidance from the authority and technical market analysis and it's not just dry tedious text either tfnn airs live financial content streamed live on tfnn.com and tfnn's youtube channel with tiger tv live every market day from 8 30 a.m to 4 p.m eastern for free each host is an experienced trader and gives their take on the market while taking calls and questions live from around the world from the moment the market opens until the closing bell sounds tiger tv has eight different shows with expert hosts to help you make the right moves with your money watch online at tfnn.com or on tfnn's youtube channel and become the investor you were born to be tfnn educating investors everything in the universe is governed by the fibonacci sequence this mathematical principle is responsible for everything from the most aesthetically pleasing artwork to patterns in the stock market to stay on top of stock patterns you can take advantage of sign up for the fibonacci 24 7 newsletter at tfnn.com when you subscribe you'll get a weekly report from veteran day trader larry pesavento on stocks you need to pay attention to and you can trust larry's analysis after all he's got 45 years experience as a day trader larry will also provide daily charts videos and data on the key markets that he's tracking expect notifications from larry on market movement you need to act on at any time first-time subscribers also get a 30-day money back guarantee if you're not satisfied let us know and you'll get a full refund within 30 days of signing up subscribe to the fibonacci 24 7 newsletter today tfnn.com educating investors are china a shares hot or not if you trade china a shares now may be time to take a closer look trade chau or chad directions daily csi 300 china a share bull and bear etfs china a shares in either direction visit direction investments dot com 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 866-476-7523 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 four-side fund services llc this program is brought to you by vista gold traded on the nysc american ntsx under the symbol vgz okay we're back folks we're talking with mike more of more analytics and mike i you know i've been doing this business for a long time and you're doing stuff that is really sophisticated and i know you're an expert at it and everything but you you are working with a group out of chicago that works with automatic trading where people can you can actually do the trading for these folks can you how does that work i'm not even sure how it works um that's called letter of direction trading and by the way i said in the last show that you had to use more dash analytics but i got it reported so you can use more dash analytics or more analytics uh the bold point back to the same thing uh letter of direction trading is basically if you have an account set up you can set up a letter of direction where you allow the brokerage house to execute in your account uh on a per lot basis and you pay for that a fee per month so let's just say you want to trade uh the spread program and you want them to trade one lot you know at a cliff so let's say you pay a hundred fifty two hundred dollars a month or whatever they'll execute in your account whatever the trader is doing in his account so it'll just mimic that in the in each account okay okay so it's a way to participate in what the the trader's doing without you actually having to do execute the trades yourself if you don't have the time or you're not normally in front of a computer can can the customer put limits on it like say if it drops 25 stop trading or anything like that is is there a way to do that or yes yes okay good that would be more of a question for the brokerage house then that on my side but okay and then you know you should have some idea what those drawdowns are and whatnot and there's different appropriate amounts for whatever size the account is sure okay now i have one other question now uh is there a minimum that a person has to have to uh you know participate in something like this uh depends on what i mean i you know i'm answering a question for a letter of direction programs in general not necessarily yeah i understand that just a rough idea because i'm not familiar with him but also i'm learning as you go so please tell me what you're what you're seeing here i mean in general you're gonna have you know you're gonna have to have an account with you know at least you know 10 15 25 thousand dollars in it because you're gonna have to cover the margin and margin is what it costs to even trade a single lot of the yeah and then you're gonna have to have money on top of that to risk so um yeah i would say at least 15 25 grand or something like that but you know that's very okay people open up accounts with 100 grand 500 grand a million you know whatever it is okay do you want me to get back to these spreads yes please go yeah please do yeah and if person has an interest they can contact you at more analytics correct exactly and it's m m o h r uh no m o o r let me let me pull it back up here you go can you see it right there yeah i can see it now so i had to know some i happen to know someone with that spelling m o h r and i don't know why i can i know it is m o r so go ahead but yeah feel free to reach out to me um so just back to the point um let me just pull this back up because i want to show you a clear illustration of what i was talking about in case it was unclear in the crude oil you can see right down in here on 327 i said that we were bullish so let the minor bullish reversal below and it has rallied the past eight days higher but two days after that on the 29th you can see in here or no on the 27th actually the same day i said to get bearish the the heat crack so what that said to you is if you're going to be long you want to be long the crude oil instead of the heating oil because if the heat crack is bearish that means the heat is weak relative to the crude or the crude strong relative to the heat and so that price differential over the ensuing days was a price differential of $8,760 that's a lot of extra equity to make in just a shoot and just uh in just four days okay and the same thing goes with the unleaded gas unleaded i actually got kind of bearish when i broke below the size but more definitively right here in the 29th which was two days later but that there also came off $5,400 per lot now both of those pictures have changed this morning we got bullish when we broke above this formation and that's rallied 2980 in just one day and the heating oil crack just broke above this formation has rallied 1690 but i expect this to rally for days and when i say rally for days what does that mean to you financially well if you look at a look at what the typical range is in the heating oil crack it's 195 ticks so if it's going to rally for days with an s at the end of it you know you might be expecting four six eight ten grand more per lot and with your risk being relatively equal right you have a choice you want to get along the crude the arbor of the heat they're all basically going up but these spreads tell you which one is more likely to pay you a lot more than the other two and these past two weeks just happen to be that 15 percent of the time where the crude oil dictated that you should be along the crude as it's rallying instead of the arbor of the heat dictating that you should be either one of those did you want to look at the further energies you want to look at the s&p's or no we've only got a couple more three four more minutes let's take a look at the the s&p of the stock market in general that you'd like to because i know you do a lot of work with that and your technical work is great so please tell the folks what you're looking at here thank you so the stock market um back up here pull this up for you so where is my i just got to pull it up there we go um we held exhaustion macro exhaustion in here rallied up into a bullish correction and then on a lower time frame basis we've also been bullish we held exhaustion with the 39 39 in a quarter low we've rallied 232.5 points on that and then more recently we broke above 40 30 40 34 75 which projects this upward 109 minimum 233 plus maximum we've attained 137 of that so far so just looking at this on a lower time frame basis you can see here we had broken above this formation here the other day that's what's given us this projection to the upside we got up in here we held some key some key resistance and we rolled over a little bit so what does this really mean this could be in the midst of a new bullish structure but if we remain below here and roll over this could start a whole new bearish structure if we break down below these lines but currently even though it's lower i am bullish okay that's great and that lower line comes down around 40 42 area it's increased a little bit today there's also a line up above a 41 78 73 which is increased a little bit if we got above that we're likely to rally up as well so yeah currently bullish but the market's really trying to paint a much bigger picture within the next week or so here okay we got a question for one of our listeners what's your outlook safe for the next 10 days in the the crude oil complex any thing that jumps out at you i'm bullish in the crude oil complex like i said we broke above this formation we pulled right back to it i've been bullish since down a year but this has projections of $15 to the upside so large projections unless we see a decent break below 78 80 to 78 you know this is going to decrease a little bit let's just say 78 80 to 78 60 a decent break below there then that should bring in pressure for days well listen mike thanks for joining us buddy we'll have you on again very soon okay probably right after Easter and enjoy the holidays with your family and we'll see you and we'll see you next week sometime maybe next Friday how about next Friday you're gonna be busy uh that sounds good thank you very much 130 next Friday thank you very much in an honor you bet appreciate it yep we'll be right back if you're looking for potential trading setups in the stock market then rocket equities and options report is a newsletter you should try Tommy O'Brien delivers options and equity trades when the markets present them using a combination of fundamentals and technicals sign up for rocket equities and options report today with a 30-day money back guarantee so you have nothing to risk for all the details and to start your subscription today visit the front page of 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tfnn has been educating traders for more than 20 years with live programming hosted by a variety of professional traders during market hours the Tiger's Den available to all Tigers and Tigresses for just one dollar for the year there's no catch or added costs when you join our community of traders sign up today and become a part of this educational community of traders just visit the front page of tfnn.com catch Tom O'Brien professional trader and educator founder of TFNN also a special guest on CNBC Tom will bisect and dissect the markets the Tom O'Brien show next on TFNN okay we're back folks and I wanted to give you a little update here on what the markets are doing if you were on earlier and we talked about the treasury bonds we were selling them at 13405 they're now trading at 13402 you made a grand total of 93 American dollars so I would take that and take your family out for a nice dinner tonight and also put in ten dollars in the collection box on Easter Sunday but I do believe we're coming into a pretty good correction coming in into the treasury bonds to the tune of maybe oh somewhere between three to five points possibly even more because we've had this big move from 126 up to the high to day 134 so it's going to be interesting to see if that's going to be what it's going to be and it could be even greater I don't know maybe it didn't be less maybe they'll go to 139 without even backing off from here which is certainly possible the key thing to remember folks from our perspective here at trade what you see is the number that we hit Tuesday night last night or night before last on Tuesday you'll notice here that we were oh dear I hope that it's coming up now but I posted the chart in there of the the Dow Jones industrial average but I hope that it's coming up let me check and see here it is just a second here then we'll get it up here that that's not showing again it's showing some place else but not mine anyway that 61 percent retracement came in at 33,800 and 45 the high was 33,875 so it was only 40 points off on something 33,000 that is pretty much spot on so if we get above that boy it's going to be really really bullish but until that happens the market is still in a negative downward move we're trading you know about 50 handles under where we were looking at it to go short up there at that 41 58 level and so far it's working but you know like we say keep your stop and break even have a wonderful Easter folks do some nice things for your relatives and friends and strangers whatever you can do live every day in an attitude of gratitude and may god bless