 Welcome back folks, Dow, Dow Industrial is right now down 72, Nasir is up 12, S&Ps are off one. Let's go over to our mammoth, the Basil Chapman, as we do each and every Tuesday at 20 past the hour. And don't forget folks, Basil has an outstanding show here every trading day, 12 to 1 Eastern standard time, also a great newsletter, the opening call. Now it's very easy to get the opening call, you come over to our website at TFNN, you go under newsletters, you're going to see the opening call on the top right hand corner, you hit the opening call, you hit subscribe, you can get the opening call for one month for $128, you can get it for six months for $5.95 which is the savings of $173, you can get it for a year for $995 which is the savings of $541, they all come with a 30 day money back guarantee. So everything to win, zero to lose. Basil Chapman, I saw this morning, Tommy and I were on the first great white, finally came back to Cape Town after 20 months, they've been missing, the great white shots, they've been missing. Really? I did not know that. Yeah, they've been all down your way, they've been down the Cape, man, a different Cape. One day I'll tell a funny story about sharks and myself back in Cape Town, but we can let it go for now. I love it. Okay, let's stock markets. Here we go, I get the charts up here. So on the left I've got the Dow daily, in the middle is the weekly chart and on the right is the monthly chart. And you can see what's happened here, there's a trend line that the Dow went right into the top part, this little pink dashed line, it went right there, then it started to pull back and it had a spike on the 2nd of January to 28,872 and in the interim we've had a pullback that has been bought because this black line, the 14 period exponential moving average has acted as support and this green line, and I'm going to show this as a chart that I've shown you for weeks and weeks and I've said this is really important to me, the 9 period green line is way above the 14 period black line. Okay. I've got a rectangle and it's outlining that 28,872 high from the 2nd and I'm actually getting back from the day before where the low was 28,376. So this is a process and I call it a process because you can see from way back in November we were looking at some pretty sharp quick moves to the downside and yet right there on the, right there that's on the 5th of December that green line refused to cross negative, it was so close and then it went back again. So I have to consider that there's a process going on and you can see it in the way that the market is acting that it's very selective and every day we've got a different stock that's moving very sharply higher and even a different sector. And also now you're starting to see that fund managers are starting to go into what were low price stocks, the oil and oil service so that they're playing some kind of a trend here but when you actually look at the Dow, you'll see that a lot of the stocks at least that I look at in the Dow are making these and these in their daily chart which seems to me that they're getting somewhat toppy yet I'm going to get off this right now because you can see the distance is still very good between the two but you're starting to slow down in the little histogram and that's the distance between the two shows that they're starting to narrow a little bit but most importantly it's this weekly chart, the weekly chart you see this little doji candle I call it a long-legged candle it looks like a little candle but actually the price is quite big but it opened and closed at the same price that's really what a doji is it opens and closes at about the same price it looks like a plus sign I like to look at it just seems a little plus sign right here when we go the day after there was a sell signal from the 19th of the week of the 19th of July and so these little candles are essentially looking that we look at them as either halfway markers or reversal points so this is going to be very important if by Friday with all this chopping around in what we're looking at at this particular point every day are we getting 200 300 points up or down not really going anywhere when you look at the left side chart and you just go back to a week and a half ago we kind of in that same area but it's going to be very important if we get a close underneath the low of last week of 28,376 that'll suggest that and without a new high this week that'll suggest that we're looking at a peak C with very good technicals which suggests that there could be a pullback maybe a few weeks just I'd say a rest period at this point that's what I'd be calling it and that would be very important to to give a breather and to have some of the stocks that have done so well start to reinvigorate to re-energize for another move up because most of them the monthly charts are still very good so I'm looking at this is a period where we're looking at a roll over and it's a slow roll over with still you know I always talk about the tide that you go to the beach and says hi tide at noon yes so at 1206 there's a wave that didn't see the sign and it goes way up the beach and gets everybody wet but when you turn around the tides going out so that's called a rogue wave and I think we're in this phase right now we could get we could get a couple of furries to the upside but I see a lot of resistance in the low 29,000s I would say in this particular phase it looks to me like 30,000 has to wait before that's going to be reached so that's kind of the way I'm looking at the overall market and I'm also thinking for subscribers now we've had some really nice positions I think it's time to take some a little more profits off and maybe raise some cash and I don't see anything wrong with that because there are always stocks that have had fabulous moves that you may be missed on the upside that you want to get so I think it's good to have some powder dry but most importantly there are sectors that have suddenly started to work for instance I thought that our cyber the stock that we've had from 104 I thought this was turning down look it made a peak after the Chapman wave at 126 79 the 16th of December pullback sharpening to 115 that's 11 points is 10% and all of a sudden obviously because of the news that a cyber this is cyber arc software C Y R training at 128 right now so all of a sudden network security has become the hot thing and you just you never know for a week to week was technically it really looked like it was about to pull back a little more so there it is at the recovery high way off it's 148.74 all-time high but I think it's time to be looking at certain sectors for me that have some appeal and that's what we're trying to do we're looking under the radar looking at areas that probably have been oversold and maybe can now have a pretty good balance so for subscribers we've been very selective here and as I said I think it's you know we've been raising some cash we might raise a little bit more cash this is a very important period that we're coming into market is at a fabulous move and yeah we are in January we've made a new high right at the very beginning of January and the market I think it's starting to get ready if you look at the S&P the S&P is the same thing the day you start to look a little tied the technicals are deteriorating in the magnet in stochastic yet the ninth period is still nicely above the 14 so I think it's a slow process monthly chart is still good I'm just thinking this is time for a rest you know what you need Basil you need you need you need a couple analysts coming out saying dial 50,000 but you know we haven't had anything I know I know over the weekend I said it has anybody at any of your New Year's Day party a Christmas party right whatever it is but people coming up to you and talking about the stock market yeah I have to tell you I was in a play a party on on New Year's Day there must have been 60 65 people maybe more not one even the people that normally would talk to me about the market not a single person even mentioned the market yeah I'm trying to figure out is it in their IRA so they get so scared because they lost so much money they don't want to say anything knock on wood because it's coming back up but I think also politically they didn't want to get involved in some kind of a conversation that they weren't prepared to yeah that's that's a fact that's a fact folks from over on website at TFNN you go into newsletters you see opening call right there Basil have a great one safe one we look forward to show tomorrow thank you very much Tom you too stay right there folks come