 Welcome back folks. Take a look over here. This is the opening call newsletter by Basil Chapman. Again I've sung my praises about this rather sung Basil's praises about this newsletter. It's fantastic, seriously, goes in depth but it's concise as well. He had a subscriber webinar August 23rd so when you subscribed it to any newsletter, right, you get access to the archives subscriber webinars. It's awesome. You're just getting into trading. These are phenomenal. If you're interested in one host or the other you get a better insight and Basil's webinar was fantastic. Again that is a 30-day money-back guarantee if you are a first-time subscriber. I strongly recommend checking out the opening call. Basil are you with us? I am. Hi, how are you Jake? I'm doing well. How was your Labor Day weekend? Well the Labor Day, yeah it's all too quick. It's actually the first three-day weekend I can remember that we've had sunshine all the way through the week. In fact, first weekend we didn't have one day of the weekend with a big storm and the next day nice. So this was a pleasure and I'm just upset because for us it's pretty much over. The 90-degree weather will have some this week and then afterwards it's just downhill. Yeah well coming out of the hurricane it was nice having some good weather. We had a cold front but for Florida that was like you know 88 or something like that. But it was very nice. The body gets used to the temperatures. It might sound to someone else like wow that's warm but when you get used to something and it changes well it has its effect. That's right. You got to be adaptable right? Absolutely. So Basil what are we looking at today? So talk about adaptable. This is what we're looking at here. Well first of all let me just give you a brief synopsis of where I am from my subscribers to the opening call. We did go short the Dow using some of the techniques or at least one particular technique to get the high of the 1st of August at 35,679. So right there we went short and we are short the SMHs the semiconductors from two days after the high about a point and a half off the all-time high and we had real nice trades down to the 143.35 low and we were using the SOXS the short side of the three-time short so we kept the core position. We've taken a little bit of and then we've taken a lot we've taken everything off the short side in the address of 300% short. So we're watching this to see now you know we're talking about adaptability. Well I like to think that the SMH is the semiconductor chips the semiconductor chips itself if you think of chips in the 21st century as the crude oil of the 1900s because there everything not everything but just about everything had to do with petroleum products so now almost everything has to anything that moves has to do with semiconductors. So my contention is that where the semiconductors go basically the market is going to go in that direction so this it made an all-time high that was a good clue. We've had really good rallies in the different indices but the stalling formation that started in July I think it's going to continue a little while longer with sporadic bumps to the upside. So in that regard the semiconductors are saying hey don't think that it's all over now. We're still showing some strength and in that that regard I'm using that kind of as a benchmark to say we're in for a very choppy week and that's what I see just subscribers on Friday and then in my for my subscribers I do a one-hour video either Saturday or Sunday just going what's happened what I'm expecting the different indices what's what positions we have how we handling etc. So it's an educational as well as a very practical experience. So within that context so going back to the let me just do this right now going back to the Dow you can see this has been a very good rally off the low 34,000 28 but it's stored at this trend line so this is another technique in my show tomorrow in my Tiger Technician hour I'll talk about some of these patterns that I've talked about the falling axes the declining cone formation how you get into the inside track resistance area and you can see the S&P has done much better it's broken out of that resistance level and it's just stalling here so I like to look at different time frames and if you look at this daily time frame on the left it's very different to the weekly the weekly is still very strong I use something called the nine-period moving average over the 14 and look how high it is above the 14 and that shows strength even the Dow which is one of the weaker indices at this but like set for the IWM the Russell 2000 small caps look it's still holding pretty well in the weekly chart I don't want to talk about the month easy I'll do that on my show tomorrow but the month is also holding quite well so what I do I like this for my subscribers I like to get stocks or ETFs or whatever it is and if I get them really low priced it allows subscribers who say you know I don't want to put a lot of money to work but I do want to be involved in whatever it is that's moving in the in the direction at least the direction that shows some strength to the upside or weakness to the downside so we have a stock and it's interesting because you can see how the crude oil has been moving higher and higher but we have something in the energy sector uranium energy core awesome so we're in that at $3.46 a little while ago and here it is today it's $4.72 I mean it's 25 or 26 7% increase but what's nice is you've got a stock acting very well you've got a stock in the daily weekly and monthly charts improving their techniques that I use this is cup formation and this particular pattern says you see this dash midline yeah if you look at the left side number of bars to the right side number of bars look how we went to that 430 $4.30 goal of earlier this year in almost the same time frame number of bars to the left of the downside a number of bars to the right and then I have another technique called the chap we've cup and ladle is a breakout pattern it's not the cup and handle that stops at the left side look this says in leg C or B you go straight through that left side lip and that's the lip on this side right yet at $4.30 the week of the week of the third of February we broke out of it sharply in this leg C so that suggests that 430 is a support level and that we should go to at least another higher peak so this is leg C at some point we should make a lower high that makes a peak C and then we should go to a leg D so that's another technique that I use I like to put all these different techniques together so that what we're doing is we're following a game plan and that's the case here no and I think that's what's so good about your news on it right like you know at least for me like starting to work here I was a novice regarding you know any kind of trading and especially technical analysis and really I mean just how you explained it there right it's explained exactly like that too in your webinars on your show in the newsletter and it's something you can follow through you know I think also getting exposure to something like uranium which you know isn't doesn't get looked at a lot still very like fascinating kind of commodity right I mean it's just I think it's awesome that was really insightful too about the semiconductors as well I think looking at that as like an indicator going on is massive because you're right without tech and I mean what is tech right it runs on these semiconductors you don't have anything that this world's built on you know that's really fascinating stuff and the interesting thing is we don't know yet whether we're about to have a glut because you know all of last I know the last 18 months they've been building fabs and they've been producing the chips we'll see what happens gonna be a very interesting September and October absolutely well Basil if you can stay with us just for a little bit and folks stay tuned we'll be right back sure Steve Rhodes started his trading career as a student almost 20 years ago and the student has now become the master Steve won the prestigious timer of the year award in 2018 and barely missed that mark again in 2019 finishing at number two for the year an amazing accomplishment Steve Rhodes is committed to sharing his techniques and knowledge with anyone who wants to learn and he shares his vast amount of trading knowledge every day in his mastering probability newsletter Steve's award-winning newsletter mastering probability is delivered every trading day with updates throughout the afternoon sign up for Steve's market newsletter mastering probability and you'll receive 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