 The following is a presentation of TFNN. The Trader's Edge with Steve Rhodes. Toll free at 1-877-927-6648 or internationally at 727-873-7618. The Trader's Edge. Now Steve Rhodes. Good afternoon from TFNN. Welcome to the terrific Tuesday, the September 24th edition of today's Trader's Edge show. I'm your host, Steve E. Perseverance Rhodes, who absolutely knows. And he should always be pioneers of our future versus prisoners of our past. Everyone out there is having a great day. Hey, let's make sure we have an extraordinary day. Yep, let's make it an extraordinary day. And the easiest way to do that is to always remember that life is happening for us. Not to us. That's right, we knew when I make that one little 2x4 shift, it means we can find the gift in every set of circumstances that life is going to toss at us. Not today, you and I, we're 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 just passed one o'clock in the afternoon. I want you to know that I'm absolutely grateful for your presence here, but much, much more important than that. During this next 60 minutes, I'm here to serve you. So feel free to pick up that phone. You can dial on in at 877-927-6648. If you can't dial in, go ahead and send me an email, Steve, at tfnn.com. Inside the subject heading, please put radio show question. Of course, in our Tigers 10. Well, any ping, we'll do. So let's go ahead and get this show started on terrific Tuesday. Of course, this is Tiger, Financial News Network. I'm Steve Rhodes. Welcome to let's show right now. We got all the indices in the red dial off 164. Excuse me. S&P down 25. NASDAQ 100 off 102. Russell off 21. Spot volatile next is up 13%. Of course, we're going to want to know what the end of day rate of change is up $1.95. Anything north of 10%, you know what the fire drill is out there. Gold is up $8 straight out of 1539 and Silver's off seven pennies. And lights we crude back a buck 22 lead the charge. The upside pod P O double D insulate Corp up about 4% or 6 bucks. Fresh Del Monte produce up $5 to the downside auto zone is the leader down 53 bucks. That's nearly 5%. Amazon 38 bucks, 2% Shopify, 20 bucks, 6%. Tesla's off 15 or 6%. And what, what, what, what, what, what, what, what. What we want to get a first, first, first. First, what we want to do before we go take a look at what's going on a daily timeframe. I got to alert everybody out there that the ES mini and the Dow, not the NQ, but the ES mini and the Dow are now in the bar following bar nine of a TD set of nine count on the 30 minute timeframe chart. So you're looking at the ES mini right now. If there's going to be a bottom in the afternoon, it was taking place as we were coming on the air or during this half hour. Now, what you and I know is that wave count nine or eight, nine or 10, not wave count, but the TD setup, it's different than Basil's wave count. You happen to see wave letter G here in the center of my chart out here. That was at 7.30 last night as the, as the roge momentum indicator bottom that took place yesterday at 5.30. We discussed that price petered out, so to speak. And Peter, I didn't mean any, no, please be, you know what I mean by that. It price found it's high, saying it in the key of Stevie, the key of G out there, the key of Basil, you know, but letter number G, wave number seven out there. That was the high. Now what we're taking a look at is potentially this way. So if you're short, if you're integrated interday trader out there, please tighten those stops. There's no profile levels for me to provide to you, but just know that we are in the bar following bar nine and a bottom could have formed as we came in at one o'clock. Maybe there's a lower low going into 130. Just be on the lookout for that. That's the ES mini out here. If we take a look at the Dow equity futures contract for the 30 minute timeframe, you're going to see the same pattern out here. So this is going to be something for us to be paying attention to between now and the 2pm hour out there. So that's what's going on in the short term timeframe. The NQ somebody might have asked that is not in wave number nine, not just jet. That's only in wave number six. So I don't have a bottom per se or pattern, but there's the A to B equal CD pattern. You can see it. There's several of them. Here's the large one. Here's the TDA set up nine count top. Looks like background last week out there inside the NQ and then now what we're looking at is a one to 1.272 A to B equal CD to the downside. So the 30 minute chart for the NQ has a potential of a Gartley buy pattern going on. It would need to form a bullish reversal candle and it's got about, what are we looking at? 19 minutes, 18 and a half minutes in order to do that. So we'll want to be able to check back in. So in other words, in the short term timeframes, 30 minute timeframes for the ES, the NQ and the YM, each of them have patterns worth paying attention to out here. Now, to the larger timeframe, meaning the daily and the weekly out here, here is, let's just stick with the Dow right now. We're going to be taking a look at the equity futures contract so that you and I can use these profile levels to assist us on what's going on. Now in this chart right here, what you're looking at is the current December contract. Now you're going to, we're going to be flipping back and forth in between the current contract, the current tradable contract and then Stevie's compositor synthetic version of the contract. And that's going to give us different profile levels. Sorry for that. But you can see if we just go ahead and pull this December contract back further to the left, you're going to see a lot of missing data. And if you use missing data, you're not going to really get great results out there with regard to the numbers out here. But nonetheless, we have to use both, or I like to use both out here to get a gauge as to what's going on. The Dow equity futures contract says a close below 269.24. That's the bottom of its daily profile says a daily timeframe change in trend out here. And this would say price could pull back, let's say to the bottom of the weekly profile. I could go below that, but that becomes the next level of support. That's 26273. Now if we switch over and take a look at the synthetic version of the contract, and the reason is again, because this now has more data. More data means better, more reliable numbers. And this is just a numbers game. So now when you see me pull over the synthetic contract, it is different from the continuous contract. And that way this provides us with reliable numbers. Now what you're going to see here, this is just the daily timeframe. If I shorten this trade up or chart up, I should say you're going to see that the daily panel is in the left-hand corner. The weekly panel is the upper right-hand corner. The lower left is the monthly timeframe and the quarterly timeframe is the bottom right. Here's what you know about the larger timeframes. Prices above resistance, meaning the top of the profile and the quarterly basis at 25, 856. Giganto bullish out there. Giganto bullishness, when you take a look at the quarterly timeframe and know that we are trading above the top of the profile out here. Now this takes us back into the 2002 timeframe. You can see the breakout on the quarterly basis for the Dow back in January of 2012. So pay attention right now, prices above the quarterly timeframe out here. And that's especially for you, Mr. 666, who every day that you see the Dow drop by a couple hundred points feels the need to send me an email to tell me that the S&P is going back to 666. Man, oh man, oh man. Hey, here's the number for the daily timeframe that the Dow Equity Futures contract has to fall below, close below. It's 26642. That's using Stevie's synthetic contract and is a super Doppler tools out there. We'll be right back. We'll be right back. Immediately upon signing up all new subscriptions also come with a 30 day money back guarantee so you have nothing to risk. Start your subscription by visiting the front page of TFNN.com today and you'll find the TAS Profile Scanner under the Services tab. Sign up today. Are you in the market for buying or selling real estate in the Bay Area, including the surrounding St. Petersburg, Tampa and Clearwater markets? Tiger Real Estate LLC is a firm that has extensive experience in the Tampa Bay Area. 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Hear all of the TFNN shows, plus see all of the charts as they happen live and have access to archives of all of those charts. You can test drive The Tiger's Den absolutely free for 30 days and greatly enrich your knowledge of these markets and how to make your money work for you. Detailed on The Tiger's Den or on the front page of TFNN.com. TFNN has launched our brand new website. You can still visit us at the same TFNN.com URL, but when you do, you'll see a new and improved home page with a much simpler navigation, whether you're watching Tiger TV live in high definition or just accessing your newsletter subscriptions. We even have new pricing in six months and yearly options. Check out the new TFNN.com now and experience all the upgrades. TFNN.com Educating investors. Call now. Toll free at 1-877-927-6648 internationally at 727-873-7618. Welcome back, folks. Hey, let's go to our first caller, Brent in Martinez, California. Brent, thanks for calling. Thanks for holding. How are you doing this morning? I'm doing well, Steve. How are you today? I'm also doing well. Thanks so much for asking. And we're going to go take a look at Cleveland Cliffs, ticker symbol of CLF, folks. And Brent, tell me what you're doing, how it can help you. I don't have any position at present. I just, what I wanted you to look at if you could is if you go back to 2017, it's been kind of in this consolidation between around 6 and 12, 13 area. Yes. But then if you go back further to 2015, end of that to 2016, that's when it got down to I think under two. And so I just wondering, and there's also, I guess, you know, near a term, there is something that's not too long ago, a little hammer candle down there around six. This seems to be testing. I have some bones. I was going to have you look at the different time frames and give me some idea what she, if you think the six is potential support or if you get down to two, I just wanted to take a look at that. Okay, sure. So before you get down to two, you've got to clear the six level. And when I mean by the six level, $6.30 to be specific at $6.30. So if we take a look at the monthly time frame chart, folks, if we take a look at the monthly time frame chart for Cliff CLF out here, dating back to February of 2018, from February of 2018, all the way till October of 2018, what we saw were nine consecutive months where the close of each month was a close above the close of the bar four months preceding the current bar that you would be looking at. Now what happens is this is kind of like the marathon out here. And you can imagine if you've ever run a marathon, Brent, have you ever run a marathon? I've done a lot of exercising, not to that quite to that extent, but gone on some pretty crazy backpacking trips that are probably the equivalent of that. Okay, and so when you're done with those, you're kind of exhausted. You're ready for a rest at least, or maybe a good college football game or something. But in this case here, so the market kind of the same thing. So the TD set up nine count is a version of a marathon inside the market. And so it typically will get tired in making that move out there. And so in the case of the monthly chart for Cliffs, that's where it made its high, most recent high out here, I should say, and just looking from 2017 till the current timeframe. And the nice thing about that nine count is it generates a level of a breakout area, what Steve refers to as a breakout area. And that level happens to be $6.30. So if you see a close below $6.30, then those lower levels start coming into play and where Brent was going with those $2-ish type levels, takes you all the way back into January of 2016. Now in January of 2016, prices moving lower, doing less relative energy out there. Part of the roads went in indicator strategy out here. So the bigger picture on the monthly timeframe says watch for 6.30 out there. Now let's come take a look at the, now it's possible that price doesn't move all the way down there. On a monthly basis, prices sitting right now on the bottom of its monthly profile, that is $7.29, we're priced out at $7.26. So September comes to an end in about a week out here. If you see a close below $7.29, Brent with that would kind of suggest to both you and I is at $6.30 becomes real out here. So watch this $7.29 level as a clue as we come into the end of the month. As we look at the weekly timeframe, that's in the center of our screen out here. $7.13 is the bottom of its weekly profile. If price closes below that, what the weekly chart would be signaling to us is that if we come in and we do a wave count from back in February of 2019 out here, we'll see that the current low got into wave number 6. That's letter number F. So any close below that level, that price, let me see if I can get that price for you. I know I can. It's $6.64. Anything that spikes below that could get you to wave number 7 or letter G out there. But right now the read as of $1.22 in the afternoon is prices above support, the bottom of its box is $7.13 on the weekly and add support on the monthly timeframe. The daily out here, I guess the question is, what kind of volume is going on today and yesterday in the past couple days as prices moving back into a swing point that does have volume, which is September 3rd. That volume was 32 million shares. A couple days ago as price got into it, it was with half the volume. That was with 14 million shares. Yesterday, 9 million shares. And so far today, you're at 5 million shares. So it looks like volume is sort of depleting as it gets down here. What you would be to see price reach the low of September 3rd, deal with less than 32 million shares, close back above that low, which is $6.64. That could give you wave number 7 in the weekly timeframe chart. Letter G, we're not showing that right now. And that could be the trade setup out there. That's the way I would call it and take a look at it. Now you've studied the chart a little bit further than I have. Is there something else specific that you're looking at that you can help our listeners, viewers look at? What should we, what have I missed? What should we look at? No, that's what I had mentioned on the shorter term, that area that you're talking about. You have the vertical line on at the moment. So that's, yeah, that's on the shorter term. That was my thinking. I just, like you just did, take a look at the going back further, which you did and that's helpful. I think we're going to get to different levels of potential support for the thing. And as always, just watch it and look for some kind of a reversal and all the usual criteria that we look for. Sure. So the daily timeframe, we're going to be in day number 5 of a TD setup nine count. No, I don't know that it will unfold this way. But if you could, if you could make a valid nine count pattern while testing that lower swing point you know, you'd have all the reasons, all the makings of wanting to take a, to take a stab at a long trade out there. What I can't, what I don't see is erosement, a indicator pattern here setting up just yet on the daily timeframe, but that's looked so far. So everything here is looking like a potential for a bottom. Now we just need the market to confirm whether that's the case or not. What does Cleveland Cliffs do? Okay. Okay. Okay. Got it. Yeah. So that's like a valley or one of those. I think they actually do the unlike U.S. Steel or something like that I think they actually oh, they almost like the pellets that they melt down. I mean they actually mine the ore itself. I think they don't, you know. Got it. Got it. I think the actual forming of the steel or maybe they do, but I think the main thing they do is just actually the use for our, you know, to produce the steel is what they do. Right. Right. Okay. Well, thanks for that info. I appreciate that. And keep an eye on it and give me a call back if Pryce is heading down there. Let's see what chart patterns are unfolding. Yeah. Just like always these are the ones I just kind of have on my watch list and see what they're doing and it helps to have at least some idea of what I should be looking at and what I should be talking about. Sure. Okay. If you don't mind I probably won't stay on the line but I just noticed that the VIX was I think over the 50 and then but it also has done 16% rate of change and so I just didn't know which was the kind of took, you know had the more relevance to it out of those two. So if you could maybe talk about that one when you come back and I'll do that. I appreciate it. Thank you so much for joining me and for the great and many for Maria in the den and as much as we can in the hour that we have right now. We're going to heartbreak. Hey Brett, always good to hear from you. Thanks so much for calling in. All right. Thank you very much. Have a wonderful day. You bet. We'll be right back folks. I'm certain you are or strive to be one of the best of the best at everything you do in life. It's the most common trait of life. I'm Steve Rhodes, author of Mastering Probability and for the last 12 months Timer Digest has been tracking my newsletter signals which have earned me the ranking as their number one market timer in the nation for the S&P 500 for the last 12, 6 and 3 months. Timer Digest also ranks me as the number one market timer for gold as well. The fact is markets can be timed and I'll teach you the exact set of tools to transform me into one of the best at what I do. 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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 For more information just click the Think or Swim banner on the front page of TFNN.com Welcome back folks Dowdown195 S&P is off 29 so for Maria and the Den want to take a look at the ES Mini so Maria we have to do this in two different ways or I'm going to suggest that we do that by the way the Dow the ES Mini is off 35 points the average true range over the last 10 days is 35 points now it's more than 35 points from the high to the low but we're not seeing anything more than for the most part what is the average daily price movement now this is probably 1.272 or 1.618 expansion of that level but here we take a look at this in the December contract and so the key support level that I've been sharing with folks out here for several days since that profile form last week was a 29.72 level out here on the daily timeframe now when we switch over to my other set of charts out here this for quadrant area you're going to see a different set of profiles certainly in the daily timeframe now again this is using my synthetic version of the contract which has more data more data means more reliable profiles out here it's not that the one for the December contract wasn't reliable it's just that we really need to put the we need to really check to see eventually these things will all tie together but that could take a couple of weeks before that happens so the other daily profile to be watching is the bottom of the synthetic version of Stevie's ES mini chart and that's 29.65 29.64 we're trading right now at about 29.63 so we're within a point of that so this could be some support out here you can also see on the weekly timeframe this we're going to the synthetic version of the contract is really helpful especially during contract rollover period over in the upper right-hand corner you can see the prices above the top of the weekly profile that would be an indication of no major damage prices above the top of the monthly profile which is 29.07 no damage there and in the ES mini prices above the top of the quarterly profile so and that's the reason why I wanted to when we open up the show was to immediately go to the shorter term timeframes the 30 minute charts for the ES mini for the NQ and for the Dow equity futures contract the ES mini specifically because there was the potential of this TD set up nine count bottom pattern forming so unless there's a lower low that takes place so as of 130 during that 1 to 130 session the ES mini went out and made a lower low that's the bar following bar number nine if there's a bounce that's going to take place folks it's beginning right now and so all that says for those of you that are short and your intraday traders out there adjust your stop there's not this is not a guaranteed pattern out here but it's a pattern that works enough that we simply pay attention to it out there so that's the ES mini and Maria I hope that that helps you out with regard to what you are looking for there if we take a look at the NQ and again in this case here let's just go straight to the synthetic version of the contract out here see if this thing will populate during times like this where the markets are moving oftentimes things slow up now in the case of the NQ you're going to see a huge wide profile whether I'm using the synthetic version or let me get out here and see if this will populate for us rather quickly here this is the daily chart for the December contract I think we see that same widest version out here so the potential for support bear a structured profile which is 73 25 on the December contract and I got 73 77 on the synthetic so these numbers are close enough for us to be able to identify support but in this case here support is so far away from price it's really not the first place for us to look inside the NQ instead for the NQ we would look to the weekly time frame and we can see on the synthetic version of the contract 77 11 is the number the low today 77 05 we're trading at 77 30 as we speak right now so in essence prices pulled back to support out there but look it isn't there's I'm not saying that there's not problems now and we don't know what today's closes I can say as a 134 if this were the close we'd say you know there's problems we know at profile levels to be keeping our eyes glued to to determine whether there's a legitimate change in trend here we take a look at the four horsemen of the equity futures contracts and we pay attention to Stevie's green line what we see is the unanimous vote that there should be a further retracement now again I don't know what the close is going to be today but if there's a close below 20992 in the yes many that Stevie's green line value right now says more retracement 7855 inside the NQ 26956 inside the Dow and 1554 inside of the Russell 2000 so when prices below Stevie's green line that is a level of support that has failed out there and then that that takes us back to well what are the next levels of support those take us back to those profile levels so there's your yes your NQ and your Dow equity futures contract I don't have the synthetic version set up here for the Russell 2000 otherwise I would go ahead and post that for you but since I can't I can't and I won't now let's go see what questions have come in there's two questions the first one coming from LB writes in I wonder if you could take a look at the GDX and give me your take both on a very short term less than a weekend intermediate term I'm long and I'm wondering whether or not to stay long so what we want to do out here LB is certainly take a look at Goldilocks see what gold is doing here when we take a look at its daily profile notice that prices right up against the resistance level of its daily timeframe task market profile and that is at price at 15.6 we're trading at 15.38 so what you'd like to see today is you'd like to see a close above that 15.36 60 level to be exact out there why just simply because of the directional correlation in gold and the gold mining equities out here what happens if price doesn't close above that level well it's up at resistance now I don't have the crystal ball to tell me what that next move might be you're talking about short term an intermediate term so we'd say short term if price doesn't close above the top of that box up there that could be resistance and just simply be careful now of course we'd like to go take a look at a at a intraday time period for Goldilocks let's do that let's put up the 30 minute chart here for gold see what patterns are forming up as it moves up to the as it moves up to these highs I don't have any topping signal on the short term base doesn't mean that it doesn't trade lower and so forth it's only made bar number six of a potential and we're in bar number eight right now which is trading lower so it looks like this nine count pattern may just simply get invalidated here if we continue to see a pullback inside of gold on a short term timeframe now I'm using the 30 minute timeframe for you you're asking about the intermediate term timeframe so on an intermediate term basis what are we going to do I know we're going to do let me see if I can get this thing to populate here pretty quickly so for an intermediate term timeframe we'd really want to take a look at the weekly timeframe chart for you let's do this let's do this let's come over and take a look at the gold contract the December contract here let's see what profiles pop up here this says you would be so if you get a close above 1536 Lee what this would be telling you it's 1550 80 for your resistance area now that can happen overnight and then reject that level and then trade down you won't be able to close out your GDX trade if that's what you were looking to do but intermediate term timeframe right now we can see gold trading in between the bottom of its weekly profile 1489 20 and potentially the top of its weekly profile at 1550 80 longer term which may not be too long or intermediate term gold needs to close about 1551 let's call it in order to be more longer term intermediate term bullish Steve Rhodes with TFNN that was Goldilocks for LB we'll be right back if you're in the CD market and looking for a secure investment the target first mortgage program may work for you the security for these first mortgages are building lots in the tax opportunity zone in st. 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the Russell 2000 30 minute time frame chart out here so let's go put up the Russell 2000 chart and what we've got is just like the ES and the Dow it has made that TD set up nine count pattern so there's the potential that a bottom here has formed you want to watch the low of the day it becomes pretty easy whether this pattern is going to play out or not that low is 15 30 to 60 there's going to be a bounce the first target because there's no profile level out here would be Stevie's red line that would be in the 15 45 area that line is going to move up or down so I have to use the word area because I don't know what that level is going to look like an hour from now or two hours from now as we speak but right now you've got a valid short term 30 minute time frame pattern out there it just says be cautious use stops and anticipate a bounce up towards that 15 45 ish area as we look out here Doug we look at the 60 minute 120 the 5 hour 300 minute and the daily which also gives our weekly set of profiles you see red shoots out here so everything is below support levels now in the that means Russell 2000 is below daily and the weekly profile level of 15 3850 out there you're 1535 so watch that level see a price comes back above that so thanks writing in I hope that that helps you out and and I look forward to hearing you again so Alex writes in Alex writes in says a Dow drops 200 points as Democrats talk Trump impeachment okay yes stocks rated lower after House Speaker then okay just providing me with some information so I thanks Alex I appreciate that you know whether that's the driver behind it or not you know who knows if it is you know was it really just was that really the robots that were trading and now the robots you know made that move down to wave number not wave number but TD count nine kind of like the marathon that Brent and I were talking about only on the shorter term timeframe the 30 minute timeframe chart out there and only to now turn maybe it doesn't matter the cool thing is when we take a look at bars you know like Doug was looking you know for hey what's going on inside the Russell 2000 out here maybe Doug's thinking is you know what's the weak guy what's the weak link doing out here what I don't have nobody maybe there's some maybe somebody has something that exists that you can place your crosshair over a specific bar and then it gives you the news the news that may have affected the market right at that point in time out there somebody's probably got it those guys they don't know what to do with them maybe they that's what they've incorporated into their system for doing their back testing that's what I would do if I were doing the back testing out here but what they don't have is what is it that causes those bottoms maybe listen to show and they're familiar with the nine count patterns that you and I look at or wave number seven or the road's meant to indicator bottom or the Gartley by pattern the Gartley by pattern oh yeah that was on the NQ that the Gartley by pattern potential bullish engulfing that would confirm that one to one point two seven two eight to be equal CD to the downside you'd anticipate a bounce into the seventy seven eighty eight level no more questions right now in the email system so let's go back to Brent's question which was hey the spot volatility index and I believe his question was which one has priority the one day rate of change of ten percent which right now the spot volatility is up a dollar ninety six percent to be thirteen percent or closing above the fifty day exponential moving average and it's really going to be a combination of the two what do you mean there Steve oh well let's just take right now let me find it right here we're going to go ahead and open up this chart this is the chart right here in essence that Brent sort of referred to I'm going to refer to it and that's going to show you one day rates of change greater than above plus ten percent those would be one day rates of change below minus ten percent out there I think I said that correctly today right now we may have one of those blue arrows a one day rate of change that would be positive now if we just come back and take a look at the prior incident of this so take a look at the day of August twenty third out there August twenty third of twenty nineteen yet a nineteen percent one day rate of change I'm just curious I'm going to switch over let me just I think this is how I'm going to have to do it let me come over here so August twenty third August twenty third the spot volatility next Brent was above the fifty day exponential moving average that's where my cross areas so it would be kind of like the equivalent to what it is that you're asking about today so I'm just going to go back to the chart look at the data and let the chart do the give you the opinion then I am just a narrator here I really am not giving you my opinions we're just narrating what the chart is coming that is the coolest thing about technical analysis I just I get every day I get floored by as you and I together as we go take a look at these different charts out there and we look at those patterns that form now not every single one of these patterns identifies the top or bottom and sometimes these patterns don't even exist when markets will go ahead and make a turn that's not the point the point is when these patterns do show up we pay attention so back to the one day rate of change stay on target Stevo if you take a look at the last time out here again August twenty third spot volatility above the fifty day one day rate of change in this case nineteen percent what do we see we saw a bouncer bottom on the very next trading session go back another time go back to the day of August fourteenth and I know that the spot volatility was above the fifty day one day rate of change twenty six percent what happened the next day you had that bounce or Bob now we're just looking at the S&P five hundred cash really was kind of a bottom because the following trading session things went higher out there come back to a prior session that would be the session of August twelve one day rate of change there seventeen percent you had a nice bounce very nice bounce on that very next trading session no point of this there's really several points of this number one the spot volatility index is a cool tool it is not meant to be used as a tool that says whether there is or isn't complacency I want to blow my brains I want to hear that because you can't trade on that here we've got something that we can we can trade off of it's it's it's like really not every single one of these one day rate of change above ten percent are going to turn into a bounce or bottom you at least we'll see typically you'll see that bounces bounce area that you'll see that in the ES many typically you'll see some type of pattern that would form overnight now we're not overnight right now and you know coming in one thirty we may have seen that bottom for the a day out there and it may not be invalidated the ten percent rule that you and I are talking about here come four o'clock I don't know whether that's the case but certainly we can come back to July thirty first out here a one day rate of change of fifteen point six four percent look the very one day rate of change of about eleven percent out there so but but this but this pattern of that bounce or bottom happen so often you really should pay attention to it not telling you to pay attention to it I'm just asking you to pay attention to my charts and what takes place out there because you see the most important thing is if it's a really bad close what I don't want you doing is taking a short going into the end of the trading session too many chances of a bouncer bottom out there that's the point of this tool well there's several points but that's really important one we'll be right back since nineteen eighty four Basil Chapman has been using the Chapman wave methodology to advise traders of his expert market opinion well originally hand drawing charts from the late nineteen seventies into the nineteen eighties Basil noticed that prices under most circumstances virtually always had a certain number of legs to the upside before declining sharply later Basil found the computer software which included the standard market technical indicators enhance the degree of accuracy and calling price turns as well as market trend calls thus was born the Chapman wave sequence using the Chapman wave methodology along with other indicators Basil Chapman advises his subscribers of his expert market opinion each market day with his opening call newsletter right now you can get a two week free trial to the Basil's daily trading newsletter by visiting the front page of tfnn.com cancel at any time during that trial and pay absolutely nothing get your two week free trial to Basil's newsletter the opening call today by visiting tfnn.com if you're a trader in 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the primal edge banner on the front page of tfnn.com this is David White stay tuned because coming up next is the power trading hour right here on tfnn welcome back folks we do have a couple of questions we'll try to get through all of these peter to ask about the advanced decline oscillator reading for the new york stock exchange right now you're going to see that it's below zero below zero the reading is minus forty five that tells us that sellers are in control of the market that's if there's a second close below zero tomorrow now the worst case scenario for the new york stock exchange is that the advanced decline oscillator stays below zero along with the spot volatility next standard of its fifty day expansion moving average by the way that sixteen sixteen for that but that's really more about tomorrow because you need to see follow-through so we'll follow back up on that we have a question here from john who wants to take a look at the merry at ticker symbols m a r and he wants to buy some calls for a short term time frame is it approaching support here and could we see a bounce so we take a look at support price below the daily the weekly profiles out there so that is below support if we're going to use those as support which we do we look at other support on the daily time frame prices testing a swing point most recent one from back on john from September the third had volume of about two million year one million today it could be a rejection if it's less than one point eight nine million shares today and it closes back above one twenty three sixty three year one twenty three forty six right now so that could be a trade I would love to see some type of pattern form as prices coming back into support out there where as we had as price was coming back into support on September third that swing point I mentioned what was going on there was we had a roads momentum indicator signal pulling back in the support level of its TD set up nine count breakout from back on June third at one twenty three forty six prices back to that level again but I don't have that potential bullish pattern out here that we did the last time price was down on September third so I think you need to wait for a better trade setup right now but you asked me was price at support and the answer was yes it was and that number as we close out the session one twenty three forty six that's your magic number you're at one twenty three fifty right now folks thanks so much for being here stay tuned great hours coming up one from your favorite polar bear David White Tom O'Brien to take us on home and I'll see you back here tomorrow on wonderful Wednesday take care