 I'm Amis the Basel Chapman as you do each and every Tuesday at 20 past the hour and don't forget folks Basel is an outstanding show here every trading day 10 to 11 Eastern standard time also a great newsletter the opening call Now it's very easy to get the opening call move it out website at TFNN You're gonna see it right under featured content You just hit subscribe to the opening call you'd get the opening call for one month for $149 you get it for six months for 695 Savings of 22% are $199 and you can get it for the year for 1195 Which is a savings of $593 or 33% now? They all come bottom line 30-day money back guarantee check it out do it for a month you enjoy it great Just keep going for some reason doesn't work for you get your money back and and Basel's opening call He has about 11 different archives so you can understand exactly how to ride that wave Basel Chapman what's going on? Hi Tom, how are you? Welcome back. Thank you wait to be back and thank you for all the help. I really appreciate it, man That's my pleasure, of course Yeah, this is very interesting. So You weren't your last Tuesday, but Tuesday early morning pre-market for my subscribers from opening call We started a what I call a shorter term long position in the Dow Diamonds. Okay so We sort of have a course small position from way back in I was as April of 2000 and It was a 2020 so we've kept that but most importantly And we've traded around it with the short position of the Dow long position So this one my thinking was that there was a pattern that I call the lowercase H pattern and because the market had held The Dow not the Q's the Q's went under their left side load with the low of the 24th of February 32,000 272 Ran up and then stalled but came back and held about 200 points above that with 300 points Actually 32 578 I thought we've had five days of consolidation I'll call that a squash when it just goes sideways. It's like it's wet like a spring is just waiting to do something It did the same sort of thing back in early February in the Dow Where it took took off from the bottom and it just stalled. So my thinking here was that Everything I'm looking at is suggesting that there's a base that's formed And it doesn't tell you how high you can go He just says because the base is there the wrist reward really favors the upside so we got we went long and I will have to see how it tested this a dashed line. You can see in the daily chart on the left There's a little green and red Channel a little mini channel. I cause inside track repellent zone. I needed to see how quickly and how how How much the candle how big the candle would be if it broke out of that? But it did that and then it continued higher and each day just about from that Tuesday Each day had this big move in the Dow which closed almost at the high And then normally what I say is that when you get a move like that The last hour of whatever the gain is they usually give back 20 or 30 percent of that last hour And then you try to see if this further Acceleration to the upside. Well, you can see by the charts that it was very quick Just it was hard to any give back and then the market moved up So the Dow itself is acting very well. It's gone four days now because today's young but right now We're up to it in 34 3374 is the orange 200 period exponential moving average in the day So in the Chapman wave, we're always looking for a buy signal To upgrade to a buy mode and the implication there is there should be at least four higher peaks I alphabetize them ABCD it goes to EF and G but these are any the objective in the Chapman wave methodology Take it taking off. So we went to a leg C. We're in that leg C I expect there will be a bit of a pullback and then that 35,000 area where 34,000 775 right now That's going to be the big test. Do we do it in leg C? Do we pull back and then go to that missing leg D? But if you look at the dating chart the mag D the moving average conversion Savages the guy why that that aperture is between the green line the nine period differential and the red line This is the slow moving 26 period moving average to me. That's a good sign so far. Is that the first shot? I'm looking at basil. Well, yeah, cool. Okay. I got it. Yeah, awesome. Thanks He's the daddy the one in the middle is the weekly and the one on the right is there's a month, right? So what's really important is I? Love when the stochastic goes over 80 percent especially over 85 percent. This is at 96 percent So if it flattens out if it comes back, you'll see you're pointing to this chart He has the stochastic back around about the 12 13th of February Look how quickly it went it went over the 80 percent level and very quickly pulled back and look what happened The market failed the Dow failed at peak C minus and went down to a low low So it's really important that the stochastic holds that's number one number two is the weekly chart has come all the way Back to what was the support level of this inside track for a long long tell me how many times it hit all the way I can go back further but even right back to July and then it became announced resistance So we're right in this track to just say that you've broken the resistance You really have to see thirty five thousand two fifty on a closing basis in the week He said we kind of early in this whole turnaround if it's going to continue higher But what's really impressive for me is this monthly chart on the right? And if you look I'm going to go to the S&P because that's the one that had a Technique that I developed years ago. So where did I I type that I've tapped in the wrong place was a candle that I identify that I call a Roman candle Chapman wave Roman candle because it has this tiny little wick at the top and a long body But it closes halfway to two-thirds of the low and that's this candle right here in the monthly chart And my rule of thumb is if the price it doesn't matter if it's a daddy or a weekly or a monthly chart If the price holds in a shorter time frame Halfway into the lower part of the wick halfway into that wick Usually you test the low or you can even go low or we did that This is the January candle February candle actually has almost the same look and we've tested it now We're at the upper part So when you think of what's going on in the world what's going on in interest rates to think that we've gone from 48 18 Down to 41 14 in all this noise and the candle is halfway actually a little bit more than half way Between the high and the low. I'm kind of impressed unless I never expected that we would get that and the month is young We've still got What about seven or eight trading days to Thursday a week that we had where the month finishes but I just wanted to say that so far I'm kind of impressed with the speed with which we've come back and Whoops And the other thing I wanted to talk about is so we went long dear. I'm sorry about that. Let me just get rid of that Okay So dear is I thought with the wheat skyrocketing like this that deer would be appropriate to have and It's a nice move. Yeah, this is a very nice move. It's at an all-time high. I've got this technique Yeah, you remember this one. It's called the stalk leg formation. Oh, yeah, how can I forget that? If the oval pattern continues to break out like this, it actually can become a one-to-one to the upside It doesn't have to have the full length, but it's it it moves Very nicely above the oval pattern my concern here Is that there's a long rectangle formation in the weekly chart if you remember? I've spoken about this in the IWM had the russell 2000 had those huge Sideways move broke out to a peak D and they came right back So I have to watch this very closely but so far deer is acting really well And we've got a couple others that are doing very nicely So not complaining about this move, but I now comes the test this week is the test Do we get to the D and then what happens in the peak D in both deer and then look down And folks very easy to get basil's lose let it come to that website hit the open and call basil have a great one Safe one look forward to show tomorrow. Thank you. Thank you