 Welcome back folks. Take a look over here. We have the opening call newsletter by Basil Chapman, you know So every morning I look at the newsletters just seeing what's going on. I proofread some of them and Basil's is always I love it, right? He's informative. He he writes enough to get it across but it's concise as well Okay, you can try this for 30 days. You don't like it for whatever reason. I can't imagine why but you get your money back Mr. Basil, are you there? Hi, how are you doing? All right, how are you doing? Thank you, Basil is good to have you on Thank you. So what do we got looking at today? You're talking about my newsletter and what's really interesting is that in the in the chapwave The concept that I originally founded way way back when I was hand charting with pencil and ruler on the engineer paper was that if I identified the lowest low bar if There were four peaks that is each higher Peak where it was alphabetized peak a then the next peak which starts the leg starts a penny above the left side Peak a it starts leg B then it makes a peak be et cetera until it gets to do the fourth highest peak that Essentially over the years developed so that I I take it from a buy signal Upgraded to a buy mode and applies that it should go to at least a peak D That's the core at D other things can happen So what's interesting here, especially since I'm on with you at this particular time at what is a 320 on the Tuesday the day before Fed meeting. This is the 13th of June we've got a leg C and For subscribers, we are long we're actually long from this low right-hand the October loan This is the weekly chart of the Dow. We're long the Dow diamonds That's the one to one long and we're long the three times long we've held it even though that's really just a trading position, but it's it's We've managed the stops of health has been very good and we've added to it on the way up We've even shortened it but we've lately at about a week ago We added to it and here we are in leg C So this is the difficulty at C with a Fed meeting you say is this it? Irony of the whole thing is that if all the technicals are good and this daily chart shows you that the MACD the moving average Convergence divergence really strong. The stochastic is really strong at 94 percent on balance Voinless blue line is a lagging a little bit. I'm going to show you something in a moment or two I'm period moving averages over the 14 I mean everything that you want is exactly here for a buy mode to continue So we are waiting regardless of what happens with the failure waiting for maybe a pullback and then perhaps a minor high towards the 34,000 Today's high 34,000 310 maybe you know above to get your leg D And then we've got to be careful now. What's interesting is in the weekly chart We've already got a leg D even though it's technically under this last April. I was it I'm sorry is that April that was the December the week of the 16th of December that peak as in the 34,700 This is still in the waveform. It's in D. So there are a couple of things that are going on So we've got The the down in legs C You were mentioning just a moment to go. Oh, what was the stock did I write it down? You were talking about it and I thought oh, that's a great example Let me see if I can see it in my list of Sure of stocks that we were looking at am Stld amd. Yes stld. That's right. It's a steel dynamics. If I'm correct, right? Yes, the dynamics So still the stld. Where is it? Let's see here. We're in a leg B in the daily chart And the mac d is good the stochastics actually at 82% on balance volumes lading But the red little gray line is is improving the weekly chart doesn't look great in the monthly chart Has had a huge pullback from its its peak e but it's still acting very well So here I am and I'm saying okay. Well, I'm getting a little cautious because the tech sector And I'll show you this here. We have in the tech sector. We have A stock I've spoken about very often when I've been interviewed by tom for weeks now I've been saying we have a stock called symbiotic ink. It's in the AI the artificial intelligence robotic warehouse automation systems And we're long from the 21s And it's actually now more than double it hit 47 today But I wanted to say so in the one air now look at the on little blue line the on balance volume It's the exact opposite of something like a caterpillar or your your std, which is steel dynamics Look cannibalism leg e but the the stochastic strong, but the on balance volume is lagging So I in my show this morning and I'll do that again tomorrow in my show at 10 o'clock I what I wanted to emphasize was That this is a rotational market And that somehow other that whole artificial intelligence area Could in fact, we also have bots, which is b o t z is the symbol This this is a global ex robotics and a i etf the the weekly is a little extended It's in leg e if you look at the technicals look at that on balance volume Everything else is fantastic with the on balance form says just be ready for some kind of a pullback Just a pullback not a smash bit of pullback the data says the same thing So the way I'm looking at the market right now, and I should also mention we are long This from the 24s is at 20 You there basal Looks like we might have lost basal for the time being we'll try to get him back There he is Oh, you lost me. Am I back? Yeah, we're you're back basal. We can hear you. I was saying is that I think that We've got a rotational correction that is possible coming up And that means that some of the sectors that have done really well Take a bit of a breather and the sectors that are like in the cyclical as I just showed you catapult Like you just mentioned Sdld which is still dynamics that area starts to see some strength. That's the way this market works So often that when one sector takes a breather the sectors that were lagging start to play catch up So I'm kind of intrigued and as I say we got we got to be a little careful We are at sea in a chapter where we expect to be But this is where I start to get a little bit cautious just on the shorter term the daily charts the weekly charts actually are all or The broadening of the market rally has extended enough for me to say I think that the market would cope with some negative news from the Fed But at the same time it's really important to be a little careful in the sectors that have really run to the upside in an extreme way Fascinating fascinating and so tomorrow you're going to go over that a little bit more, right? I'm curious what you're looking at with the blue line. I think about 45 seconds left But are you looking for that convergence? Where it converges with the other stochastics or how are you looking at that? No, the blue line is a completely independent thing. Joe Granville years ago we used to add up the price It's a running total of a bar that closes up You add it you add the right to the running total of the volume and if it's down you subtract It's a very simple technique once they've pulled made it a line and you have to do that calculation is fantastic So I'll talk about that tomorrow. It's almost independent of everything else This is the only thing I use as an overbought and oversold signal the others keep going a lot longer than your patience Fascinating basil. Thank you so much. We'll definitely tune in tomorrow 10 eastern time basil. Thank you so much Bye now