 I'm Amis the Basil Chapman as we do each and every Tuesday at 20 past the hour and don't forget folks Basil has an outstanding show here every trading day 10 to 11 Eastern standard time also has a great news there the opening call Now it's very easy to get his newsletter folks You can move to our website at TF and then you guys see a red of the featured content the opening call You just hit that button you hit subscribe you can get the opening call for one month $149 you get it for six months for 695 which is savings of $199 at 22% And you can get it for one year for 1195 which is a savings of $593 or 33% now they all come with a 30-day money back guarantee folks Okay, so bottom line you want to check it out just hit well a month six months a year Check it out Basil also has about approximately 10 to 12 archives on there That show you exactly how to ride that wave each and every day How's the Chapman? What's going on? Tom hope you had a long week a good long weekend. I did. I hope you had a great father's day. It was fun It was I know I love it. I love it So these three three-day weekends you can get used to them, you know Oh, man, I think we should have three-day weekends all the time man That's that's where it's at you get just as much worked on man Just depends on what's interesting is that the futures were open and Sunday night the futures ran up They ran down and they ran up very strongly and we followed through on Monday So even though it wasn't a market day I thought there was a really important session and On Sunday, I waited Saturday because I did a bunch of work. I need to go through and on Sunday I did my market overview video for my subscribers to my opening call And I said I like a lot of what's going on here Even if it's a short term the fact is that some kind of relief rally Should come early next week and the reason that I had looked at that was if you see this little tiny doji candle Yeah, this is the dating chart on the left of the down the middle is the weekly and the right is monthly This tiny little doji candle came about just as the unbalanced volume I don't usually talk about the MACD and stochastic older Used them all the time as being overboard oversold because the stochastic holding strongly above 95% is fantastic It's usually great. And if it's underneath 10% which is the exact opposite of being over 90% this is on the way down 10% That's usually a negative But I do use the unbalanced volume is very overboard and you can see right here on the what was that? That was a 27th of May the unbalanced volume made a high and then turned down quite sharply That's almost where we got that turn in the Dow at thirty three thousand two seventy two So a couple of things I like very much I like the fact that I went through all whoops I went through all the Dow stocks that he stocks and Why I didn't get any real buy signals many of them were extremely oversold and ready for at least a bounce That was number one number to the fact that I had this little Small doji candle which can either be a halfway market You can see this long one here was like a halfway market to the downside It could also be a reversal candle. So I like that I like the fact that the unbalanced volume Which when it gets oversold or overbought, that's the one thing they can turn with the price of whatever we're following so we went along on Friday and I needed the confirmation that we'd have a The futures would be up over the weekend and thank goodness. They were so this is a very good follow through but Until the Dow You can see this pink line here is a nine period moving average and way above it that and that's a thirty thousand eight seventy seven Way above it at thirty one thousand two forty nine is the fourteen period moving average So to get these to cross so that the pink turns green because it's above the fourteen will take Oh at least thirty one thousand five five hundred thirty one thousand six hundred So I like to go step by step. So we've got the first initial turnaround. That's important But it's still the days young we've got thirty five minutes to go anything can happen But so far this is good because I said to subscribers today that if after one thirty or two o'clock The Dow is holding strongly to the upside and the VIX is pulling back and the VIX is now at twenty nine sixty four That's the volatility index that will at least allow the Dow to close strongly because if there was a failure We would have had that by about two o'clock. So so far. This is good action So that's just one step. The other is that in looking at a number of the And I and as I say we went along on Friday already. So we're long via the diamonds, but also looking at the different Dow stocks We also took a position in IBM as a first. I can't even remember when last I ever looked at IBM as a long position But one of the reasons is look how it held look how the market The IBM was at 144 just where was it on the 6th of June Then the market took a huge dive and you look IBM only went down to 132 So my reasoning is that We've seen Microsoft Adobe and you can just go through the list of stocks from the year 2000 that just got hammered at almost 90% Or sometimes even more of a decline and then morph they they reinvigorated their company and and thought through the the process of what they need to do and Most of them went on to new all-time highs. So my thinking is that IBM in the AI and Information technology and the cloud There's a chance that they have finally got something right So I'm we we took a long position and it's at this particular point There's a lot of evidence on the upside that we will need to confirm that it's going to go much higher The fact that it held well on the downside We've seen stocks that have held well and when the market broke to the upside They didn't do very much in this case. It was really important to see what it did today And it's up $3 and 12 cents at 138 14 So I'd go one step at a time But I'm kind of putting it in the Dow category as kind of for me It's a kind of a visual icon because if IBM is able by this coming Friday or early next week to actually trade in the one 43 144 area I think that'll be a really good sign that that is you can't just look at a sector You have to look at the sector leadership and it would be surprising to everyone if IBM Suddenly became a leader in the tech So I like the action and so far is acting well And we're also we're in a another position that we just added that is in the It's kind of the former Nasdaq winners that really got beaten down So we have an ETF that kind of represents that and so far today's up about four and a half percent So when selective when when we get to how do you get to a a letter a? So you identify the low bar actually let me just show you right We don't know this the low or not. That's why that's why I'm asking Oh, that's it. That's exact. That's a very good point. So my my thesis always is we use different techniques on the way down I usually use the technical indicators. I use the magnetic. I use the stochastic. I use the unbalanced volume So does it have to get does it have to get to the 14 day of the 9 day to get to a day? Or is it just doesn't know it doesn't have to the other techniques that I use but most importantly on the way up I always use the alphabet a b c d e f d and d is where other things go That's a very good question. Right. So on the way down. I use other there I use the look. This is a trough B in the IBM I use that but it isn't as important because on the way up I'm always using the letters and yes simply shows there's a starting position and he go alphabet I got it. Okay, yeah Yes, so that's I mean that's basically it. So I we're looking at this is I think this Based on the oversold action that I'm looking at I think this can last a little longer than the usual just pop up and drop So I'm hoping for that because the technicals indicate we are very over oversold and folks It's very easy to get Bowser's newsletter come over to our website at TFN You see it right into featured content to hit that button and you are off the races Guys have a great one safe one and we look forward to show tomorrow. Thank you very much. Thank you