 The following is a presentation of TFNN The Trader's Edge with Steve Rhodes All now toll free at 1-877-927-6648 or internationally at 727-873-7618 The Trader's Edge now Steve Rhodes Good day folks, welcome to the June, the January, we'll get to June pretty soon But today is the January 26th edition, this is the terrific, this is the wonderful Wednesday edition of today's Trader's Edge show I'm your host Stevie Perseverance Rhodes who absolutely knows that each of us should always be pioneers of our future Versus prisoners of our past, hope everyone out there is having a great day Let's make sure we have an extraordinary one and the easiest way to do that is to always remember that life is happening for us, not to us That's right, when you and I make that one little 2x4 shift, well it means we can find the gift In every set of circumstance that life is going to toss at us Now today you and I are going to go check on the circumstance of these markets We're going to go figure out what those bulls and bears, what those buyers and sellers are communicating to you and I At just past 8 o'clock in the morning that's ready to listen at the normal time at it's 107 Thanks so much for doing that, we'll try to make this show as pertinent as we can for you But if you are listening live, we would love to hear from you So a couple ways to do that, you can give us a call at 877-927-6648 If you can't call in, you can always send me an email, send it early, send it to Steve at tfnn.com And inside the subject heading, if you would be kind enough to put radio show question And of course in our Tigers, and well any, and every ping will do So let's go ahead and get this show started on wonderful Wednesday Of course this is Tiger, Financial News Network, I'm Steve Rhodes Welcome to the show, we got US equity futures trading higher, the NASDAQ is up by 2%, that's 298 points The Dow equity future 1.1%, 381 points there The ESMini 1.5%, 65 points, Russell's up 31 points, that's 1.5% So we've got a rally going on, we're going to go try to figure out what that means If we take a look at what went on overseas last night in Asia, a bit of a mixed bag He had the Shanghai up 23 points, we'll figure out what that means, the Nikkei down 120 And the Hangsang up 46, over in Europe this morning, you've got the Dax up 2.5%, that's a big move It's gapped up, it's actually confirming a buy the D point, 375 points right now to the upside And the FTSE is up 1.75% or 128 bucks, Silver's up 2 pennies Gold is off 7 bucks, and Light's Recruit is up a buck 14, trained out at 86.74 Our 30 year treasury, what's it doing? 4 ticks to the downside, 1.5504 So let's do this here just as a quick synopsis as to what's going on inside the markets We'll just look at our 9 panel, what I use as my 9 panel, mark it up a chart to do at the top of the hour Typically, and this gives us a decent feel for what's taking place So if you take a look at the ESMini, the upper left hand side, it confirmed a buy the D point When it generated that bullish hammer candle a couple of days ago So all A to B equal CD patterns, I'll put the pattern in here right now for you All A to B equal CD patterns have a number of different potential outcomes For example, there's the 1 to 1 in 4504 Just imagine if you had just bought that 1 to 1 A to B equal CD and gotten shellacked out there Well price moves down below that to the 1.272, moves down below the 1.618 Over to the 1.618, gets all the way down to the 2 level But that itself doesn't matter which level it got to, the key is you need to see a bullish reversal candle And you got that a couple of days ago, you've actually got that going on right now, but the day is not over So we've got confirmed bottoms there In the case of spot ballotinics, it made its hide, did it with a shooting star candle Seems to be working, but it's somewhat questionable But look, as long as the spot ballotinics remains above that blue line, that's 2139 That's a 50-day expense moving average, it's always dangerous Or what I would say is any surprises would be no surprise to see a big rug pull in the ES mini out there Different story of price gets below that 50-day, we're a long ways away from that The NQ, just like the ES, that has a confirmed by the D point, generated that hammer candle a couple of days ago Price rate now is, I won't say this, I'll wait till we take a look at some other charts out there with regard to the NQ If you take a look at the U.S. dollar index right now, so it's trading above, so it generated a Gartley buy pattern It did it back here when it generated this bullish engulfing candle, bull sash candle back on January the 14th So there was an A to B equal CD to the downside Price above the top of the daily profile, we're trying to figure out where is resistance Well resistance happens to be, or it appears it happens to be the top of the monthly profile So 9611 is the number to watch there, price closes above that, of course is a monthly profile If it closes above it on a daily basis, it may or may not have meaning, but that's the resistance level If we take a look at Goldilocks, it's in an A to B equal CD to the upside The initial price projection, 1861, doesn't mean that it will stop there, could move up to the 1883 level As long as price remains above 1833, that's the top of the daily profile And it's a swing point, the B point of the A to B equal CD, then a continued move higher is likely The case of Silver, price right now did form a new profile a couple days ago And when it formed that profile, let me take that back So when it formed that profile, price was got right back inside the top of that profile So right now the key level here for Silver is going to be 2392, you're 2394 right now If price can close above 2392, it's A to B equal CD to the upside should continue With its next price projection being about 2529 Let's be crude, you can see it's trading right into resistance as well The top of its profile, 8710, we're trading at 8690 So watch the 8710 level Natural gas and it's chilly, it's been cold down here in Florida I imagine it's been cold all across the, most at least the Midwest and the North and the East And so natural gas is trying to find its mojo out here We're looking at the March contract, but you can see price is trading really into at least two resistance levels The descending trend line area and the top of its profile A close above $4.12 cents worth 414 right now would be a positive But really what price needs to close above in order to really get some mojo going here I would say would be the high from January 12th And that level is $4.35 cents out there With regard to the 30 year treasury, not doing much out here Not doing much at all Just consolidating with its daily profile support at 15318 Resistance 15628 So there's the overview of what's going on inside the markets Now, let's start digging down inside Well, I tell you what, let's go do this here Give me a moment, what we want to do is actually get a read for what's going on internationally Or I'd like to share with you what is going on internationally I gave you the numbers, but now let's actually go see what are those numbers actually mean out here We'll do that, we'll switch over and take a look at This is a set of charts here that we started off with With subscribers each day just to try to understand what the markets are communicating to us Sort of a one world market out here And so what today is especially important because we're looking for clues Today is all about clues Now if I was doing the one to two o'clock show, that would even be more fun Because we'd be in the hour prep right before the Fed releases its numbers out there So the clues between one and two are going to be different perhaps And they are at 8.13 in the morning out there But nonetheless we're searching for clues out here And if we're looking for clues coming from the international markets Here's what we know about the Shanghai The Shanghai has pulled all the way back So it forms a TD9 count top It does this on the trading day of, what is that day? It looks like December 13th A to B equals CD to the downside If it were to generate a bullish reversal candle Much like the U.S. markets it would generate a buy the D point Hasn't done that, but price did fight its footings at its breakout level And second breakout level of 360180 So as long as price can hold that level This could be signaling to move up to its oscillator and change line That's at the 3691 level The hang saying out here has a confirmed A to B equals CD to the upside The A to B point goes from here to about here And then that means I'll just take this leg over I'll just take that leg, I'll just take that line over And here's the A to B equal CD for the hang saying So price should be really targeting its breakdown level of 25414 out there You can see that the last two days price has tested, rejected Screen oscillator and change line after changing colors That's a normal behavior That pattern is what you and I will go take a look at that As it applies to the U.S. equity futures contracts As soon as we get back from this break The Anike might form a TD9 count bottom between tomorrow and Monday And there's that gap up at the attacks Confirm it, it's a buy the deep, we'll be right back What's separating you from the most successful men and women on Wall Street? 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Tiger Real Estate LLC is a firm that has extensive experience in the Tampa Bay Area Whether you're looking to sell your current property for maximum value Or you're in the market for a second home or investment property Tiger Realty has the experience across all areas of real estate in the Tampa Bay Area To help buyers and sellers make the most informed decisions across all price levels From the price you should be paying per square foot in certain up and coming areas To the type of cash flow investment properties are capable of creating Tiger Real Estate can help you make the best decision when it comes to all areas of the market Before you make one of the biggest decisions of your financial future Call Tiger Real Estate LLC today at 727-329-8322 Or email us at tiger at tfnn.com That's 727-329-8322 Call us 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 in 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 8.30am to 4pm 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 8 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 Welcome back folks so we're looking for clues out here Treasure hunters so to speak and so just before we leave these sets of charts out here The Shanghai has tested and held support suggesting they moved to its oscillator and change line The Hanksing already has a confirmed A to B equal CD to the upside Its oscillator and change line changes colors When it does that we usually see price pull back and test that level Now it went from red to green that is a bullish test As long as price remains above that oscillator and change line 24207 Price should then go ahead and fulfill that move to the upside that A to B equal CD with a significant resistance at 25,414 The DK is likely to form a TD9 count bottom pattern over the course of the next few days Price has to at least tick below this morning's low in order to do that And that has to occur between tomorrow that would be what Thursday, Friday or Monday out there In the case of the DAX it gapped up this gap up there's an A to B equal CD to the upside Much like our equity markets that we look at our equity future contracts out here So that gap up suggests that's a bullish reversal candle That suggests it moved to about the 15,636 level Price can close above that then it talks about a further rally Now the FTSE has a green oscillator and change line And it did have a sell the D point pattern Price never got back to its breakout level So it's suggesting two and I it's pretty strong Big wide ranging bar today But the question is what does price do as it gets that 75,21 level Price can get above that then that tells us the FTSE should make its run back for its prior highs out there And if it doesn't well then that could be the end of its move In the case of the US dollar index this has got the Gartley buy pattern You can see that bullish engulfing candle This suggests that price should move higher But you and I know that the US dollar index is also dealing with resistance That resistance was the top of the monthly profile And that number was 96,11 The euro it's trading below its red oscillator and change line Tells us we have a falling price oscillator below zero That's bearish and suggests lower price The Japanese yen formed an arrogement and indicator top Took price right back to its breakout level 113.55 nobody Nobody at least within the TNN a TF&N community Would have chosen 113.55 as a breakout That includes me That wasn't until we developed and we automated the TD9 counts And utilized those breakdown and breakdown levels Really important, really extraordinary If you don't know that pattern just subscribe to Mastering Probability Do it for at least 29 days doesn't cost you anything And you'll have an extraordinary tool for the rest of your life Now the case of the yen it should go target its oscillator and change line That's in the 114 area so I just wanted to make sure we reviewed that So what's the summary here? Summary here is these charts at least internationally They're suggesting that they want higher price So just kind of put that in the quill so to speak out there Now let's go from this set of charts Let's go back to our black oh no let's do this Let me stay on that let me do this here Sorry about that What I want to do is just put up a different set of charts And that set of charts are going to be we typically look at this The four equity future contract charts Daily time frames with the white background So it's got my ninja trader and all my tools on here So you know if you look at the ESENQ, the DAO, the Russell 2000 You'll see all bullish reversal candles Hammer candles for the first three The Russell 2000 had a bull sash candle out there Now what the Russell also did So that was a buy the D point They don't have the A to B equal CD or lightning bolt patterns Drawn in here but you can visually see them And you know they exist we've taken a look at them And in the case of the Russell 2000 It has two bottom patterns out here It has a CD9 count that confirmed yesterday So it's got two but price here should target its oscillator And change line of 2055 If price can get above that or close above that It could make a run to 2152 to 2180 That is the sell zone Because it did form a new bearish structure daily profile So 2055 is its key nut You want to watch this, you know Certainly at the end of the day if price is above that That's a signal that price wants to move higher If price is trades up to that and it closes right there Well then it hasn't, that could be the end Of a counter trend rally out here In the case of the NQ Which has a buy the D point pattern Its counter trend rally could or should end And its oscillator and change line That's about 14862 If price get above that it continues to move higher In the case of the ES mini The ES mini's oscillator and change line Just as the Dow so we're looking at the left hand panel charts You'll see that both of those OULs change colors About four or five days ago out here Just like we looked at inside the Hang Seng And I can't tell you why this works I just know it's a phenomena that works out there And you pay attention to it Now in this case here their oscillator and change lines Went from green to red If price just gets up and tests those levels And it should, at least those are the signals Coming from the bottoming patterns that we have In the daily timeframe for all four equity future contracts What we see going on across the globe out here Price should be able to, and knowing that those OULs and change line have changed colors And what that typically leads to The tell to me should be that price Should be able to make that move Make that move up to 3501 for the Dow Make that move up to the 4509 level For the ES mini Now if price tests rejects that and moves lower That should be the end of the rally That would be where the next cell zone would take place And if price closes above those levels Well then that would not be its message So what would be its message? Well that's kind of interesting Because overnight we had a new development That new development was a confirmation Of profiles out here And those confirmation of profiles We already kind of discussed the Russell 2000 What we didn't discuss was the profile In the Dow equity future contract Which is not on that white background chart But it is on these black background charts I'm just simply going to expand this out Now the new profile that completed yesterday Formed yesterday very wide 2687 points from the bottom 33, 366 to the top 36054 Now here is where this is really Kind of interesting out here So by the way What I did was I went back to 2007 Just because you know I mean that's a So we're 222 right now So 2007 So a bunch of years out here During that time period This is the third largest profile That has ever formed inside the Dow equity future contract In terms of points Not in terms of percentage Meaning percentage But it's a very large profile out there Now I started looking at that Late last night Just didn't have the energy to Because I'm trying to figure out What does that mean Out here And what I really mean by that So there's a couple of different things With regard to this profile The first thing that I would ask you to notice Is that the bottom of this profile Is below the bottom of the other one Okay perfect But the top of this new profile Is above the prior top And this is a signal of a consolidation So the message there Is we have a large consolidation Not just a consolidation With inside this profile But that in essence is the message That is providing to you and I So that is kind of interesting out here Now my experience is If price can close above the center Of a bolder structured profile That's what we have here We'll take a look at the Dow equity future contract That really increases the odds Of price being able to make its way to the top However, the only way that That is really going to come through fruition Is if price Now just pull this white background chart over here Is if the Dow equity future contract Can close above that red oscillator And change line out there So that number is going to change You can see it changing on your screen right now It's in the 35,000 area As price gets up to that level 35,015 Somewhere around there But whatever that number is If price is able to close above that level Well then what we're looking at out here Is that move could in fact take us To the top of that profile That is in the 36,054 level So that's the message of the daily time frame charts The ESMini It has not formed a new profile So there's nothing there for you and I To discuss But it too should target that 45,09 This area That is the top Or that is the oscillator and change line And if price can close above that Well then it's message right now Until a new profile would form Would be the target would become 46,43 Out there So if you're looking for tells It doesn't matter whether it's 126 Or 826 in the morning right now These are suggesting higher price So what we're going to do from here Is we're going to go take a dive down Into those 30 minute time frame charts See what kind of signals it's generating For us and we'll just take this Stuff one step at a time I'm loving this step right here At 826 in the morning Being with you bright and early Steve Rhodes with TFNN Hope you're right now Are you looking for a way to Consistently add winning trades to your portfolio? 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Timing the Trade Chart Allows you to scan thousands of stocks For Fibonacci formation setups Including Godly's, ABC's, Butterflies And much more The Art of Timing the Trade Chart Is designed to help you When scouring the markets for stocks Just beginning to form the trading patterns That many investors spend days, weeks Or even months searching to find And right now we're offering licenses available At only $79 a month We're offering software that will even give you A 30-day unconditional money-back guarantee Don't miss out on this incredible new piece of software Get your copy of The Art of Timing the Trade Charts today by visiting TFNN.com Welcome back all folks And one of our generous Tuckling the Tiger's Den Was talking about retracement levels for the Dow The daily time frame for that Dow equity Future contract And price is at that .382 retracement level It's a little bit above it So interestingly enough We already had the retracement levels Because we had established With that buy the D point pattern The hammer candle that formed on the trading day Of January 24th a couple days ago So we had the high to the low And yesterday's high out there Was at that .382 retracement level I mean really almost right to the tick That high yesterday 34, 472 And I've got 34, 482 As a .382 retracement area That's typically where people get off the elevator But people are back on the elevator right now So what you and I are trying to do here What I'm at least trying to do for you Is trying to provide you with clues What are the clues that the market is generating for So once you get above the .382 retracement level This would suggest the next move would be To the .618 area 35, 380 But you and I know That is more of a rendezvous at the 007 35007ish area That's because that's what it's printing right now That's not the number that'll hit But that is the next really rendezvous out there Now to confirm that as well Here we'll go take a look at the short term time frame charts And for the short term time frame charts I'm just going to focus on at least right now The 30 minute charts And on the 30 minute charts here What I want you to notice is that Inside the ES mini there is a TD9 count top And the TD9 count top here it would suggest If there is a close above 4419 50, 4419, 75 Or one tick above that If we close above 4419 50 Then that suggests higher price In the case of the Dow equity future contract It has a TD9 count top A close above on a 30 minute basis A close above 34602 Is going to negate that pattern And suggest higher price And the Russell 2000 If price is able to close above 203990 That'll negate that signal and tell us That we are likely headed to higher ground There is no TD9 count for the NQ There is a sell the D point And that was negated As we were coming into that 830 session So two minutes you're not seeing it Sorry about that I occasionally screw up Not occasionally, I tend to do that more often than not Now you've got those 30 minute charts Thank you Dan, I appreciate it So here you've got the TD9 count Hopefully you wrote those down for the ES The Dow equity future contract and the Russell But here there was an A to B Equal CD to the upside That was confirmed with his bear sash candle It negates that pattern So this suggests that it wants higher price But the fact that it says it wants higher price We always have to understand where are the battle grounds You've got to know where your defense is at Where is it that the offense is trying to plow through Well, in the case of the NQ It's a 1448950 So price really needs to close above that Two consecutive bars So then suggest to move up to the 14750 level And that would be its next area Where there would be a battle But we've got a caller on the line Let's go out to Brent in Martinez, California Brent, thanks for calling Thanks for joining us so early this morning How are you? I'm doing well, Steve, how are you? Excellent, thank you very much for asking And I believe you were calling about the VIX This morning, how can I best help you there? I just wanted to explore the possibility That Well, the VIX Is the first thing I wanted to look at And I just wanted to tie that into some other Possibility I think there's the potential Because it is elevated And it looks like we're going to have a decent rally Of course we have no idea what the day is going to end like But it seems like There is the potential for it to have That greater than 10% Rate of change today If that were to happen How can I add to you The potential, I guess what I'm getting at Is there, you know, trying to figure out Is this, you know, some kind of a bottom That's going to last here We made a pretty major bottom Is this just going to be some kind of counter Trying to balance that's what I'm trying to Put some pieces together and just get your thoughts on that And I know you're kind of exploring that right now With the Shoulder term charts and trying to put that together And, you know, there's levels I know Once we have this kind of damage We're going to have a lot of levels we have to get through To kind of make that all happen But I just want to get your thoughts on that in general Sure, well, so the first So let's take a look at the spot volatility And so what Brett was referring to Is if the spot volatility declines By more than 10% A one-day rate of change Below 10% Below minus 10% that is Because that's what we'd be looking at Then what that typically signals, folks Is one of these green arrows on the chart here And that's an initial, oh, you're not looking at the chart Man, sorry, I guess the I guess I had a really rough night I don't think I did, but apparently I did So now we're back to that screen This is decorated, the bottom panel is showing you One-day rate of change when they're above Plus 10% and when they're below minus 10% I can't tell you why it works, I just know that it does work And so we pay attention to it And typically those one-day rate of change Below minus 10% generate an initiation signal The last one that we had out here Brett was after a decline, that was a small decline Into December 20th And then on the trading day of December 22nd You got that initiation signal Price moves higher There was another decline that we were experiencing back in the early part of December We have two initiation signals One was, I believe, on the trading day of December 2nd And then two trading days later Both those led to higher price out there So you can see these green arrows typically Do lead to higher price, and so very good Point there, Brent, at the end of the day Everybody should be looking to see what that one-day rate of change Is in the spot volatility index So any questions about this chart before I switch over To something else? No, thanks, Steve, that was helpful Perfect, okay The issue here, Brent, is this just a counter-trend rally? Is this a bottom that's going to move us Higher out there? And so I will say When I'm confused, I will tell you when I'm confused And right now I'm slightly confused out here And it's because of the width Of this Dow market profile The fact that it's bullish in structure And a price close above it I know what that typically means out there So there is a Weight of evidence inside the Dow That suggests that we could see A fairly large, a very large rally If we get back to 3608 Or the 36054 ish area out there People are going to think, boy, that was just And we're coming, we're right now We're in the zone Of when we would see a seasonal bottom The end of January bottom I believe that today is the 26th To me, that's kind of the end of January So that's a possibility out there Most certainly So What else can we look at To really try to help us understand What's going on inside these markets And it's really the weekly time frames So we take a look at these four charts out here What we do know is that last week The ESMini, the NASDAQ They generated change in trend signals Intermediate term time frame Change in trend signals And the only way that those signals get negated Is a close back above the bottom Of those monthly profiles So those are other areas that we need to watch If in fact, at come week Come week's end, the NQ closed About 14804, well then that will have been A false breakdown down message The ESMini closed about 4549 That will have been a false breakdown Message out here, the Dow right now Is already trading slightly above The bottom of its weekly profile So that number there to be watching Is 34435, let's say that The markets don't close above these And in fact the Dow closes back Below the 34570 level This week, then Brent what I would be saying Is no, I think we have a change in trend And we look for markets to move lower So any questions about This set of charts? No, I think that makes sense I know you normally have a two-bar rule So you know, because it was below One week doesn't necessarily mean that it's going to be If that changes this week Well then that was like you said Kind of a false breakdown, so that is a helpful thing Yeah, and exactly, come Friday Because it really doesn't matter what it's like On Wednesday at 838 in the morning But come Friday, if in fact The Dow equity future contract is able to close About 34435, it just adds Another piece of that information for you and I That it may make a run All the way up to that 36000 level The top of the profile So Brent, we're going to a break here Feel free to hold on, if you will There's one other chart that we'll take a look at That's inside the advance And then we're going to look at the advance client oscillator For the New York Stock Exchange And then we're going to feel for what its message might be For you and I See Rhodes with TFNN We'll be right back You having fun trading the markets But having trouble finding like-minded individuals To discuss your trading and investment ideas with Become an apex predator in the trading markets And join the Tiger's Den Trading Room Only at TFNN.com The Tiger's Den is an exclusive trading room Where successful traders from around the world Come to exchange trades and ideas Join the Den And surround yourself with the sharpest minds In the trading world Subscribers to the Tiger's Den Are also the first to have their questions answered Live on air And can privately chat with our TFNN hosts Live during their shows Interact with other Tigers and Tigers As they share trading ideas News analysis and discuss the market action All trading day Subscribe to the Tiger's Den With our 30-day money back guarantee And become part of the TFNN trading community TFNN Educating investors Are you in the market for buying Or selling real estate in the Bay Area Including the surrounding St. Petersburg, Tampa And Clearwater markets? 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No, that's great Steve, thank you Yeah, no, no problem So that's what we're looking at at this stage here Now what I can share with folks is that Let me see if I can find this page here Now this one's going to see a lot of numbers As soon as I can find it Where did I put it? Right here, rates of change So now there's going to be lots of dotted This takes a lot of time, not a lot of time It takes several minutes here forward to completely update But Brent, this is a table That looks at all the major indices In the upper left hand corner Sectors inside the S&P 500 right below that Then I take a look at debt instruments out there Then below that I've got currency pairs Then we move over to the right hand side here We've got really all of the international ETFs These are things that people can follow out here For countries around the globe Then we take a look at metal, oil, natural gas commodities Out there, then other commodities below that What I'm looking for, then I've got the rates of change So I'm going to go from right to left The very right hand side says 2022 year So that is what's taking place so far this year Then next to that it says rate of change It's got Y next to a year That means I'm looking at the last 12 consecutive months To look at the rate of change Then I've got the rate of change that says W4 So I'm trying to get a monthly fee But I'm looking at the last four weeks worth of data Then I've got a weekly chart that says rate of change D That's daily, but I'm using five days To come up with a week out here And then I've got the daily Now what I'm looking for here What I've been looking for during this decline For any of these time periods is Where is capital flowing to? We know where capital is coming out But where is capital flowing to? And Brent, I could not find anything I mean, I see we've got some commodities That have moved a little bit higher out there But I think that's more supply demand And inflation stuff versus a concentration of capital So to speak out here So my point is there is no concentration of capital Here in the US If there was a concentration of capital inside the US Or maybe some of the sectors inside the US I would say, yeah, this could very well be A significant bottom The type that we would typically see in January It still may be that Stevie may be overthinking it But what this is really telling me Or what I believe that this is telling me Is what we've seen here is a liquidation event And what I don't know Is an liquidation event out here Is likely coming from sovereign governments Not some type of hedge fund that is blown up And if this is a liquidation event And this goes back to the question that John Z And the Tiger's Den asked yesterday Could this just be a rip your face off rally In a bear market? And my answer to him was yes And part of the reason why the answer to him Was yes on that was because I think this is a liquidation event And I don't know that it's over But we'll probably have a pretty decent feel For that by the end of the day So that's a ton of information to throw upon you But any questions about This gobbly cook No I do appreciate it Steve It is interesting that we happen to be In that time of year where You know your seasonal chart Would indicate this would be Potentially an error for a bottom So I mean there's some things It's you know there's You could look at both sides of the equation There's things that you know You could definitely point out that It could indicate it could go further There's also things that you know Could potentially show you know The last so we'll find out I guess That days progress and At the end of this week will be kind of You know important to see where we end up If we're above those levels you know The times levels you know On the weekly that'll make a difference I guess we'll find out Yes absolutely and we'll also have Some pretty good information come Monday Or really Tuesday because Monday is The end of the month and so the question Will be what patterns you know have Formed on a monthly basis out there That is forming on the Dow but we'll Really need to know on Monday is The type of signal that has been present Before the beginning of every bear market Now that does not mean that every one of Those signals produces a bear market It just means that when that signal Is present and we start Breaking through key levels of support So in the case of the Dow that's Going to be the bottom of that weekly profile Level that's at 34, 4, 35 If that present is pattern it Really what it does it reinforces My original idea which was late last year That we could see a market that moves Lower for several years out here At least a couple of months But certainly maybe a much Longer time period than that So Brent I hope that helps you out Always good to speak to you I hope I didn't confuse you with anything But I think we just have to take this stuff Objectively which is use these numbers And let these numbers communicate to us What the intent of the market is So those are my thoughts I really appreciate you taking all the time To go over each one of those It's been a great market for day trading It's been really starting from The start of the week Monday Was a really good day and I've just been I've been more on the bullish side As way for these bottoms to form And then I haven't been doing much The other direction but it's been Fruitful and it's going to keep Trying to do that throughout the week And thanks so much for your help And as always have a great day Thanks for calling Brent and much appreciated And obviously folks of Brent's Got questions you know you probably Have those same types of questions and as I said Today's show has pretty much been dedicated To trying to look for clues You know what are the markets communicating To you and I but we do have a question that's come in And this one is from Nicholas Nicholas A and Nick wants to take a look At the SMH's out here so let's fire up The black background chart so what I'll do Is if you give me just a moment Here I want to get this fired up With the white background chart as well So the SMH's and Nick's question is Could you go over the SMH's Absolutely so as we take A look at the SMH's it looks like They also have formed a Not really a buy the D point bottom There's no A to B equal CD that I see Out here in the daily timeframe What I do see though is a consolidation And so it looks like it has completed That measured move looks like greater than The measured move or maybe so here's Your consolidation I'm just simply going to take I'm going to move this to the bottom out here So yeah I mean For the most part it has completed The SMH's that is It's consolidation move and it generated that little Pull sash candle Pull chagolping candle On December on January 24th out there So we come back from this breakout here Let's go take my white background chart For the SMH's and help out Nicholas A Steve Rhodes with TFN and we'll be right back The reality is that Navigating financial markets Can be risky Markets can be chaotic And difficult to understand Having the latest market advice Can help you turn this chaos Into a key for creating Winning trades At TFNN we understand That it can be hard to find Reliable market news That's why each of our market experts Offers their very own Market newsletter Every trader out there striving To find an edge in today's markets TFNN newsletters cover Every aspect of the markets So you can analyze the market Before you trade Try any of our Great newsletters risk free With our 30 day money back guarantee Just Visit the newsletters tab On the front page of TFNN.com TFNN Educating investors Are you having fun trading the markets But having trouble finding Like minded individuals To discuss your trading and investment ideas with Become an apex predator In the trading markets and join The Tiger's Den Trading Room Only at TFNN.com The Tiger's Den is an exclusive Trading room where successful traders From around the world come to exchange Trades and ideas Join the den and surround yourself With the sharpest minds in the trading world Subscribers to the Tiger's Den are also The first to have their questions answered Live on air and can privately chat With our TFNN hosts live During their shows. Interact with Other Tigers and Tigers as they share Trading ideas, news analysis And discuss the market action all trading Day. Subscribe to the Tiger's Den Risk free with our 30 day money Back guarantee and become part Of the TFNN trading community TFNN Educating investors Are you looking for a secured investment Which pays you on a monthly basis? The Tiger First Mortgage Program may be the program For you. The best rate on a 5 year CD in the country right now according to Bankrate.com is paying 1% Per year or $1,000 per A $100,000 invested. The Tiger First Mortgage Program pays 7% Per year, paid monthly on Secured, high value, billable properties In St. Petersburg, Florida. The investment is For 4 years paying 7% Per year or $7,000 Invested. Your investment is secured By high value real estate In St. Petersburg, Florida. Your investment Can be anywhere from $100,000 to $500,000. Do you want to make $1,000 Per year on $100,000 invested? Or $7,000 per year On a secured Tiger First Mortgage The Tiger First Mortgage Program may be just The program for you. The Tiger First Mortgage Program pays 7% per year Paid monthly. For more information You can call 877-518-9190 That's 877-518-9190 Don't forget You can listen to TFNN Live on your mobile device 24 hours per day Go to TFNN.com Then hit watch Tiger TV That's TFNN.com Then hit watch Tiger TV Welcome back. So, Nick, what we're going to do Here is we're going to start from larger time frame And go back to the smaller time frames The larger time frame being the yearly And so we take a look at the SMHs They reflect what we've seen in the majority Of the US indices out here And that is on a yearly basis We have a TD9 count top. Remember The high of the pattern On a TD9 count pattern Needs to form on bars 8, 9, or the bar following 9 In this case, here was the bar following 9 So that says, OK, prepare For a top. It was the reason why When I ran the annual charts, the yearly charts Back in probably December, November, December I was like, oh man, this is interesting Now if we take a look at the monthly time frame chart Right, if you got a top on a yearly Then what you like to see is some type of top On a monthly chart, you know, you kind of go down I mean, I guess you could go quarterly But I don't have the quarterly charts here So we're going to go from yearly to monthly In the case of the monthly, it too has a TD9 count top This is the SMH that we're looking at And it appears that it will go ahead and confirm A three-river evening star pattern Confirming a road cement and indicator top Now, what price is done is pulled right back To support 264.33 The top of its monthly profile But this is going to suggest to you and I That all the support is held But the pattern is not likely to change here Between now and Monday, it could But it looks like you've got a confirmed top On the monthly, two confirmed tops on the monthly This is what suggests to me, Nicholas That over time, we'd likely see price get down To the 216.14 level The weekly chart has a confirmed Road cement and indicator top Prices below the bottom of that Weekly bullish structure profile Looks like this will be week number two below that That suggests over time, we'll move back The weekly timeframe and the daily chart out here It has a confirmed road cement and indicator top But on the daily, what you and I noticed Was it also completed that Consolidation measured move Does it with a bullish engulfing candle Which was also pulling back to its first Breakout level, which held out here Until yesterday, that was at the 273 area So price could be targeting 257.03 To the downside So that's what I see when I take a look At the SMH's folks This morning's show and obviously this afternoon Which will be replayed between one and two Was all about trying to look for clues And right now the clues are suggesting We shouldn't see markets trading higher Regardless of what the Fed says We'll know more in the morning Join me at 8 o'clock tomorrow please And have a wonderful Wednesday We'll see you on terrific Thursday folks Building wealth trading in the stock market Seems impossible to most people They think it's too volatile and risky Most people aren't going to take the time To educate themselves on how to do it right But you're not most people are you At TFNN You'll get the guidance you need To refine your strategies and techniques To invest like a pro Because you'll be a pro All TFNN subscriptions, books Software and courses are available At TFNN.com And I'm even going to tell you How to get them for less Use TFNN's tiger dollars And you'll get up to a 20% bonus In your purchase And once you apply them to your account Tiger dollars are automatically used For all future or recurring charges Tiger dollars also never expire Are fully transferable And are a great way to add savings To your newsletters or services Become the investor you were born to be At TFNN.com TFNN Educating Investors