 The following is a presentation of TFNN The Tiger Technician Hour with your host Basil Chapman Call now toll free at 1-877-927-6648 Internationally at 727-445-1044 Now Basil Chapman Hi everyone Basil Chapman at 8.06 in the morning I'm doing this pre-recorded show so that it'll be played at noon and of course it's played at noon it'll be 8-830 here and 12-1230 then then of course you get Tommy O'Brien a great show that he has just summarizing where we are what we're looking at and all these different stocks and different parameters overnight that have been hit so we're looking at the Dow right now with a close you can see this chart and the chart says that there is a close at 26119 when I did all my work from the close yesterday into the evening and then this morning I just kept saying to myself wow in the Chapman methodology we are always looking for at least a peak D that's the fourth highest peak let me just do this quickly because we always have new people and there it is I'll just say quickly that we are always looking for the lowest low bar to start a count to the upside there are seven peaks that can be made higher peaks but I alphabetized them ABCDEFG on the way up but it's that fourth highest peak peak D where other things can happen the patterns I'm looking for are let me just do this right now straight line moves up or down the cup formation or the arch formation or a mix the lowercase h which is like it looks like a we call them dreaded h because if it takes out the left side low that's why it's red you can keep going lower and on the right you've got very positive green because if it makes a cup formation or a viscer formation takes out the left side lip high that can go much higher so keep it as simple as possible but the pattern I've been looking at which is so important is this Chapman way falling axe formation which leads often to a Chapman way one to one parallel extension cup pattern so that long handle expanding cone declining cone looks like an axe break out to the upside you can go much higher but if this line especially if it has a Chapman way inside track repellent zone now there was just below it I draw another little line that says every time the price gets there for some reason it just gets repelled watch out because you're going to make the you there's a the arch formation there's a fighting pattern so here we are we have the falling axe and I drew in the arch formation and where as I went through these look peak D and the in the down the daily the MACD's down the stochastic is very weak the S&P oh let me just tell you that the futures YM this is a little strange you made a peak C I can't even call it an alternate count that's just very unusual but I'm going with the cash and I'm calling that a D but look at that falling axe pattern now the futures were actually positive for a moment I had a Chapman wave Tringage reading yesterday that was very high which said there should be a 90-11 point at least rally over within the next two days were overnight you got more than that and then it gave it all back gave it back look we're down 287 in the futures so let me show you why I'm a little a little cautious here and I said to subscribers caution prevails because that pattern that I'm looking at the age pattern I need to just draw this in yeah there's the falling axe and it got repelled at the wrong look how many times twice they got here look since it made the high at 3233.33 in the cash S&P you've had two lower highs slightly lower highs and then a sharp move to the 200-period moving average a sharp rebound yesterday that's stored right at the line and now you're finding underneath it so yes we could still have a intraday rally but I think that we're starting just to have a digestive phase that I've been talking about for a little while I think it's still continuing from the highs that were made around about the 6th or the 8th of June so now let's see the QQQ and EXO let me just show you this is the ESU-20 there is what I show subscribers and I send this out to the den every day I show this pattern I didn't do the 120-minute chart because this is exactly what I show I show the daily the weekly and the 120-minute chart and you can see there's the falling axis getting repelled it's gone underneath the 14-period moving average again it's down 31 at 3,075 can you believe it was almost unchanged just an hour or so ago maybe two hours ago yeah two hours ago and now it's down sharply and look the MACD the moving average is weak sarcastic is weak and we had the chapwave stalking formation which says when the beak is finished there could be a very sharp rally and then you're on your own but it rallied beautifully and now you're on your own so I think we have a chance to roll over here but it's only the start unless you're in the E-mini unless you take a 33,038 that says oops be careful you're going to make an H formation maybe even test the 200-period moving average at 2,968 but I'd rather say this is a consolidation at this particular point so for subscribers we still long the Dow we sit along all these positions but we've added some shorts as of right now that's where we are so QQQ and DX100 look at this rebound the V-shaped formation 247.82 was the highest six sessions ago yep and now what we're looking at is the chance that this could roll over a little bit the MACD is kind of weak sarcastic is weak unbalanced volume is very strong and now let's look at the futures NQ let's see we've got there and there it is futures stalling out a little bit potentially making that pattern that I talk about the falling axe it is double top there and sharp decline okay so it makes it real simple in all cases if there's reversal in the next few days going to a new recovery high watch out we could retest the most recent highs but let's see what happens I think the consolidation is going to go on IWM and remember this is a pre this is an early show this is not my usual noon time show this is now 8 12 in the morning and we're looking at 180 minus 183 at 139.94 for the IWM it has an even greater potential for a falling axe pattern because look at the resistance levels doesn't mean to say you can't come rebounding back when it says you could get back in to the 139 area 137 area so we've got to watch this closely and this is some news ladies and gentlemen the sparks a fantastic rally I think we're looking at lower highs and lower lows just for the very short term now let's go to gold gold should be running but no it's down 10 at 1725 where's it being repelled Chapman falling axe formation with the inside track repellent zone working beautifully and it's pulling back but it's not breaking down it's just pulling back at 78 sauce to break down if it goes under 1716 1716 1712 that's it's now it's in a real problem because we're going to make the H pattern but right now all you need to see is some kind of reversal on really intense selling pressure where money wants to flow back into the security of gold and the TLT will go then a moment so you've got 17 you need to see a break into the 1758 1762 level in gold to say it's going higher silver right now this is in the morning 815 in the morning like 13 in the morning it's breaking down same patterns failing making the arch pattern let's see what's happening with the dollar is the dollar rallying well as a rallying a little bit it's up six ticks at 97 14 it's really stuck here it needs to get above 97 90 to 98 20 and then i'll say hey dollar has a chance now to have a good rebound from that 200 period moving average in the weekly chart let's just have a look at the TLT the TLT is bonds of course 124 up at 161 89 that has made the arch formation will it five be found as a security blanket as people say oh man volatility in stocks meaning going down let's go back to the safety of bonds and you'll know that if bonds in the next 40 sessions by Tuesday of next week if the bonds are trading above 165 and the market is still weak even if you're in for a deeper correction in the market and the TLT is going to be the security blanket if it just pulls back and comes back to the 160 level it says hey oh um we'll be here before that's what's happened early show i'll be right back if you're not currently using the TAS profile scanner when looking at setting up your trading opportunities then your arsenal is short a mighty weapon the TAS profile scanner is a standalone piece of software that instantly filters over 2,500 global financial markets such as stocks ETFs commodity futures and forex headed by steve doll TAS understands that in today's technological world the use of top flight software applications and technical analysis expertise is essential to successful trading in today's market you also gain access to the webinar that Steve doll and Tom O'Brien just hosted the best way to use the TAS profile scanner to profit this webinar archive is available for all subscribers immediately upon 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ADS I think it's a Chinese company of some sort so here in the 10 120-minute chart it's going to peak A B C D so it's pulling back a little bit and the question is let's see so the question is here we go hi Basil good morning I have no position but we're scanning for potential entry day how should I enter for entry day may I need to look at a 15 minute chart 15 six it sucks with higher highs make new highs that's what I always say and this one if my notation is correct is in leg D correct absolutely what is the significance of a round number high I always look at that when you in the potential little toppy area this one made a 42 high thanks Anikuma so Anikuma I'm looking at this and you did everything correctly first of all remember stocks that are making new highs those are not really the ones that you need to short now we happen to choose a particular sector that was almost at a new high as a potential short for the day I got such a tight stop one and a half percent just just tiny percent but there's a chance that we could get about three percent or four percent on the downside maybe more I just don't know yet we haven't even seen any action since we got in and so that's different because I've done my analysis and it's a sector and I've looked at the stocks in most of their mind there's D's and E's and they look like they need to at least digest a little bit so in this particular case you're absolutely correct but you've got to be careful so wonder what I do I do the 120 minute chart as I say here there it is it's made a PD I use the 42 as a stop it's at 41 33 up 22 cents pre-market so you've got yourself a little more than I would like as a stop it's about a two and a half percent this is not one of those that I favor but what I would say is that 42 level if it isn't taken out in two days yes this has become some kind of a top but I actually so much I see so much support between 38 and 37 that you'd have to be real quick and you have to time it really well so yes you're looking at the correct thing use the 15 minute chart see if you can get a PD or E in the chapter methodology with the technical side to fail but this is not the perfect this is one that you want to say wow legs see in the monthly chart leg F maybe even recycled in the in the weekly chart and leg D it looks like it wants to pull back to the 37 35 area so obviously there's a short yep that would be very nice if it works out but it's not perfect because I would rather be looking at this and saying Billy Billy is kind of the stock you want to be looking at for the next big pullback in the market to be buying so yes if you're very quick you can do that so you've answered your own questions correctly you've even said stocks with higher highs making your highs so I'm just saying that 42 round number is a signal and if today there's another round number lower than 42 you'll have two that says you break above that and it could go even higher but that's your level so I would put 42.01 as a stock if you're using this personally I think that this is more a high risk because if this market suddenly turns up the best of the best meaning the ones that are making your highs are the quickest to snap to the upside and they also the ones that most people are looking at to short for some reason but you should be looking at other things short the weakest ones are really the best shorts okay so we did that now I want you to go through this as a scenario let me just do this I'll use the Dowl everybody always asks me why do I use the Dowl I've used the Dowl for 40 something more than more every year I made a call in the Dowl almost every single day for the last many many decades so it's the one but I do the same thing with S&P all the others it doesn't make any difference I just talk about the Dowl and use it because we are along the Dowl from the day of the low 23rd of March and then at 210 and the diamonds so we still want I want to keep that long as long as those long as long as possible today we'll probably be rotating the option we'll see what happens so there's the H pattern that I drew in so this is the potential but it's just the potential I mean make these a little bit weak so the cascades very weak and it says to me there's a greater chance now that the upside is limited rather think of it that way so for subscribers always do this I maybe I'll just show you there right here what I've done yeah let me just show you this so this is what I do every day for subscribers I show I give an outline I show the daily chart with no MACD or stochastic and I do the analysis right there then I do the same thing the same thing with my MACD and stochastic and relative strength and the unbalanced volume and it has slightly different connotations and implications but it's not so crowded and this one is the 120 minute you can see the chap we've automated resistance points starting from 26300 to 26400 they're right there they've stalled the 120 minute chart and the MACD is good and the stochastic sits under 80% to 78% so yeah this could make an H pattern here as well so I give this an opposite and I'll tell you what to look for usually I say after 130 or I give a time on when to look at what should be happening if the market is doing a particular thing so I wouldn't be surprised right now if we're getting it you're gonna get a little bounce for all I know we might have made the law of the day who knows but the fact is that all of the charts are suggesting that there's a lot of upside resistance and because of that I'm looking at some kind of a consolidation I still think there are just too many people that are not in the market yes there's a whole bunch of Robin Hooders that's another category altogether but the main thrust of the market in terms of people over 40 to 60 and then people over 60 it used to be there huge bunch over 60 we're always been running the market I would not be surprised if in this smash to the downside on the 24,843 on the 15th of June a lot of people got out of the market but I wouldn't be surprised if the major thrust to the downside on the 14th a month earlier 14th of May got a lot a lot of people out of the market that was vicious and it held it started a beautiful trend line to the upside we've taken that out that's a hint to say it's just slightly weakening but the nine period moving average the green line is still way above the 14 period moving average so that says there's still internal strength so don't think this is going to be an easy slide I think it's going to be a choppy slide I think it'll wait make its way some point to doubt 25,671 now I believe that's my final cue I'm out of here Tommy Junas going to be taking over and