 That's what's happening. What's going on? Well, it's a very good time to have a sale, isn't it? It is. Ho, ho, ho And actually what's very interesting also is that there are some stocks fabulous companies that have just been beaten down over the last six to eight weeks and There are stocks that look very overboard So I think that this is a great time to be looking at how you can set up a portfolio Getting started to go into January of 2022 and we've raised some cash And I think this is kind of what we're looking at right now It doesn't really matter about the Fed because you're looking at the Nasdaq and the Nasdaq saying quite a bit of a struggle here You're looking at the semiconductor index. I went through them on my show the Tiger technicians hour today And I went through yesterday There are a lot of these semiconductors that look like they've been fantastic leaders and now they just need a breather So I think this rotation is get fascinating and when you're talking about markets Usually you get the defensive. I don't mean Raytheon. I mean stocks like Coca-Cola and general general Mills you these are stocks that when markets are going down sharply though These are the stocks that people go into. Yes, but you know, we've been at close to record highs for the past number of weeks and You've got the combination of General Mills getting to almost all-time highs And you've got you know some of the some of the indexes that were very close to high So this is a very unusual mark and I I've seen subscribers. We've got it We can't be afraid. We've got to look at what's working and go with that You put in your stops if you're long or if you're short you put in your buy stuff Whatever it is and just let the market tell you I mean there are patterns that I follow all the time For instance is this one that looks like where the price rises sharply and then a sauce to come down a sauce to make low Lower highs and lower lows then all of a sudden it finds a base and it really sharpening it breaks that trend line That was coming down and that's usually very positive. Well, yeah I'm gonna keep the chart up this in the middle the other group with a great background But look here's the down on the left. This is the dating chart Where did it stop a stop right at a trend line at there? There it is This is the pattern that we were looking at straight line up and then you come down So it's very so me is very simple if the if the doubt regardless of what the Fed says because the Dow is holding up a Little bit better than the others because it's got a different kind of a mix Not everything there is involved with whether or not rates go up Because you have some you have some health care. You have you know, you have a mix Insurance so at the same time I'm looking at this and I'm saying if the Dow at any point in the next three four But by early next week if it's got traded into the 36,000 that's a nice break to the upside and if the Dow closes under 35,000 it's a 35,000 587 right now. It says hey be ready for this arch formation What's the arch formation? He has another pattern that we look at all the time on this particular choice He has a red line comes down and then it makes a rally and then it turns down usually the peak a or a peak B And that's the H pattern or dreaded H pattern because if it takes out that left side low can go much deeper It did exactly that look right. There's the H pattern to broke down. Well now's a much larger one So if we start to see the Dow under 35,000 100 35,000 means oh, oh be careful because we could come all the way back to the 200 period moving average So I think for for my way of looking at the market the levels that I'm looking at are Very clear and that's that makes it better than saying. Oh my god What's the Fed going to do is how the market responds and we can see in the QQ Q We're talking about that just a moment ago We're going to type that right there. So the QQ Q the index 100 Failed at that arch formation right at that resistance line there again if the QQ Q breaks under 378 90 the low of weaker so go That's that's negative It's going to be going much lower and if it manages somehow other to get to 401 is trading in 388 right now in the next week. It says it's overcome whatever the Fed is Decision is and it's pushing higher. So I think the parameters and levels to watch are quite clear What the Fed is going to do? We know that they're gonna have to talk about raising rates we know that they're in a difficult position because There are a lot of cross counts at this particular point. Is this the perfect time to actually be raising rates? It's going to be very interesting and you know this very well in the housing sector Look at this the housing sector has done so well even with the rates at the upper level even though They're very low The Philadelphia housing index is just off its most recent high of 530. It's at 512. So I think As far as what the Fed does We know that it's it's the speed with which they do it. I think that's the way we got a look at it Yeah, it's gonna it's gonna be no doubt interesting because Well, you'll hear this tonight folks. Okay, and this is pretty wild man on the European Union now their their inflation right now is running as bad as eyes folks and they came out on the The woman that's in charge of the European Central Bank They're coming out this saying that hey man next year. It's only gonna be 2% and 2 to 3% the following year It's like really but yeah, this happened about three hours ago And it's like you gotta be kidding me man I don't know what school these got these folks went to but it must be the school of the blind leading the blind is something Because they have a different crystal ball than we do man. I I just you know, I mean that seems to me like just a blatant, you know how We're all in the probability business, but how do you go from like six to seven percent to two and less like in 12 months. Yeah, I do know that has historically once rates start to rise I don't mean just one quick rally, but once they start to do that over different quarters It's really tough to get them back in the box rates Once they start once you get this inflationary aspect It's very difficult to curb it. So in fact, I was doing with someone earlier today. They were talking about Volcker I mean what Volcker did was very see I mean, you know, yeah, that rates that were way up You know smoggy just some of the 16 17 percent. Yeah, I was paying 14 and a half So I bought my first house 1971 was 14 and a half percent, right? I mean and now you're talking about something completely different. So that In the end we will know because as far as I'm concerned price dictates the trend And I'm just saying look we're looking at the TLT right now It's at 150 a break into the 150 threes says oh oh rates are yes rates are definitely coming down They're coming down sharp, but if there's a sudden plunge in the TLT Well, you just bring up a great point. So so what happens there folks is this? I mean this TLT, you know, it's rejecting a little price out there and and what we have you know, this is what's different. We have Worldwide they're buying our bonds. So, you know, we all keep looking at the United States But guess what? This is a worldwide phenomenon folks for us bonds. Yeah pretty well. That's right. Have a great one Have a safe one Basil. Thank you. Stay right there folks come right back