 Welcome back folks, Dow, Dow finished down 128 and has got 82 S&Ps up, 15 lots of numbers out here folks, lots of action out here. Let's go over to IMAM, it's the Basel Chapman, we're talking about action, we are riding that wave folks and don't forget, every trading day, Basel is an outstanding show here right here at TFNN, 12 to 1 Eastern Standard Time, also is a great newsletter, the opening call. Now the way you get the opening call folks, come over to our website at TFNN, you're going to see it right under featured content, you hit the opening call, you can just hit subscribe, you can get Basel's newsletter for one month for $128, you can get it for six months for $5.95 which is a savings of $173, you can get it for a year for $995 which is a savings of $541, they all come with a 30 day money back guarantee, great newsletter, great program, every trading day. Basel Chapman, what's going on? Hi John, how are you? Doing great man yourself? Very good, thank you. Good, so what's the weather like up there? Oh it's starting to get hotter again, it was a coolish day yesterday but now it's getting hotter again, but that's summer, I'm pleased for summer. Yeah summer in the city, that's alright, that's alright. So weather in the market, let's take a look at it, I get your charts up here. Yeah so on the left is the Dow Daily with my notations, in the middle is the weekly and on the right is the monthly chart and what is very interesting about this is that little top that was made on the 16th of July at $27,398 because there was a little doji candle the day before and my 120 minute chart was starting to show signs of a little bit of excessive wear on the upside for the technicals and that the turnaround that I was anticipating in the MACD and the stochastic were very close, using a bunch of channel wave techniques, we did go short for this is a completely separate position because I didn't have any technicals in all the indices to say that this should be a very sharp immediate sell-off, the way the nine and fourteen period moving averages were acting it said to me this could be a slow process take maybe six maybe even seven or eight sessions before key support was held, we've already gone one, two, three, four, this is a seventh session since that high and the Dow is basically traded sideways but you can see the MACD started to deteriorate the stochastic is at 79% it's getting a little weaker so this is going to be very important two days now for us it's a it's a kind of a tricky situation because we did go quite heavily long back on the day of the love June the 3rd and we've remained in that position took a little bit of profits and what I'd say let's just treat this as a separate position so now we're short seven points from the top in the Dow but the reason why I wanted to keep it as a separate position is because I'm not sure yet that we could even get close to the June 3rd low unless a lot of very negative things happen so I don't want to get out of a position that we got in so perfectly at the bottom so I'm treating this as one day at a time and we haven't done too much in the adding or anything like that to the short side we still have long positions so if the Dow starts to trade it in the next it's today's Thursday let's give it until Monday or Tuesday if the Dow starts to close under 26,930 somewhere around that level the close it can't just go there has to close below that'll say to me okay now we've started the consolidation there's a good chance that the other indices might follow and you can see that there's a lot of resistance just above and the market has been working very hard to try to to break out to the new highs now the Q's did go a little higher but even then there's quite a lot of resistance so I'm just treating this as like a one step at a time we still have long positions they've done very nicely now Bank of America where we belong from the 24s area hit 30 what was today's high today's 30.89 it's in leg E in the Chapman wave if I can just show this for a second I wanted to show you the actual notation for those who are not used to my work I'll grab it right here there it is so just briefly I want you to say I like to look at the market as having three actions one is up and down that's one the arch formation that's two and the cup formation and then you can get a mixture winners I got it read here to show that if the left side low is taken out decisively it can keep going down and the upside we're going to see that in a moment if the right side is taken out and that's really positive if the technicals are confirming and you can see when I when I show the cup formation we've taken out that left side high so there's another cup formation that's positive and there's something else just while we're talking about it to show some of the techniques that I like to do with my subscribers to my to subscribers to my opening call if I can just go here this is Charles Schwab and Charles Schwab I showed subscribers that there's a beautiful cup formation forming it made a low back in June 25th or 38th 33 made an arch formation retested it successfully for that H pattern but a successful H pattern and then started to rally so real long and what I was looking at is I called it a left side right side price time match so the high that was made at 4415 back on the 6th of June comes all the way down and I couldn't use the very the low but I used a different bar to measure to the right side and I drew it in with what I call a chapwave inside track sorry inside wedge but this is a target resistance line this little green line here yeah and we just we hit it exactly look at that inlet D this is what we look for right up against the 200 period exponential moving average the MACD and stochastic are very strong and the weekly is starting to improve so I like to show subscribers the way that so that they're working with me we're going together each waveform we count the waves we look at the patterns we see if we're getting confirmation with the technicals so it's like a work in progress as we're moving along and it's a study piece I sometimes I send out to subscribers a piece that I say hey this is just a study piece that's how that works yeah that's pretty man yeah I mean this is mathematically very nice to see right and what's what's interesting is we were just looking at amazon because it's come out with earnings so it made a peak D there's your D and from D at 20 20 35.80 that was back a few days ago and that was on the 12th I think is the 11th of July it's gone sideways so it's a stair step down stair step down it's going to be very important I think the conference call is going to be very important of course but if it takes out 1951 support starts another level on the downside this is going to be very important for amazon we'll see what happens yeah I mean we wait after the close on Amazon that's down 50 bucks that's the only one that I go down 73 I don't know whether mine's updated or yours is but that's a lot yeah it's good number no doubt no doubt you know the rest of these though guess what google is up big I mean google closed at 1130 it's trading at 1215 Starbucks so it's it's up as much as I've got amazon down so this kind of equals on Starbucks actually broke out to the upside oh big time you know Starbucks closed at $90 that's trading at 9663 and then you get the old standard count leg D in in Starbucks and then you get intel intel closed at 52 16 you're trading 54 90 so inside the end the x100 there's going to be some strength there I mean yes you know that's google's a google's a big one no doubt amazon's a big one too one could offset the other there but then you get Starbucks Starbucks because and the x folks is a modified waiting index Starbucks also has a large waiting structure so that'll put some real juice into it in fact if we will be able to tell right now if we take a look at the three cues the cues closed there you go look at this the cues are up almost a dollar they closed at 193 30 it's trading 194 right now oh eight you know so it's up from the low yes just up from the close oh yeah okay in the close they never mind the down drop folks the way you get basil's news that come over to our website at tfnn go right under featured contents the opening call bang you hit that supply basil you have a great night safe night we look forward to show tomorrow thank you Tom thank you thank you stay right there folks come right back