 I'm gonna do a little lecture here. Anyone cares? Does anyone's paying attention? Besides June? I was trained yesterday. Anyway, to make a long story short, Gallagher said, well, should I wait? Should I wait? Should I wait for a full back? Well, if I make the call, you do it the day that I make the call. All right? So, you know, if you don't want to do it the day I make the call, it's up to you. It's just like any day trade. You don't want to do the day trades I call, that's up to you. You want to do something different, you like something better, that's up to you, okay? But the fact is that Gallagher's thought process of the pullback made me then think about a concept, a concept that we really actually have never talked about, which is, well, Gallagher's saying something's up for days and days. And so I'm gonna use the market as an example because this is a good example. The concept is about buying and pullbacks. Many day traders, now listen, this is important. And if you have time to stay, stay, you've got to get to work fine. I know it's 10, 15, but the market, I just got done telling you, has gapped up into the last 11 days. That's number one, okay? It also has rallied three full days. It had a tiny red bar here, but it's rallied three full straight days here on the daily chart. So, you know, Gallagher's like, well, three days up, you know, how can you buy anything three days up, wait for a pullback or, you know, and that's what made me think, well, let's have the discussion. I'm certain that many people don't know how to read this market, right? They're waiting for the market to pull back, to pull back to where? Well, it could pull back to a prior support. Here's a support level. Here's a support level, here's a support level, here's a support level, here's a support level. Here's a support level, here's another support level, here's one here, here's one down here, here's another one here, here's another one here, There's another one here and the one all the way down here. I don't know how many I just said, 15, 20, 12. The point is that buying into a pullback may not necessarily hold, even if it pulls back. So that's not what I do, okay? We go long or we go short on the concept of a gap. If you're waiting for something to pull back, it may never pull back if it has had a gap, okay? And B, if it pulls the first pullback because there's so many different levels of support and resistance. So the concept that I taught you to train is based on a gap concept, not based on buying pullback, not based on shorting resistance, it's based on the gap concept. In something that I'm making a call, it's based on a gap, okay? Now, as this market here today or yesterday or even the prior day, but obviously if you had gone long, you'd be up. You'd be up. And as far as profit taking goes, and the reason I don't see the market is just what why? Because new money just came into the market. So new money just came into the market and therefore people are not going to buy. So new money came in and therefore that new money is new, okay? So it's not going to turn around and sell it. And many, many people have not been long in the market. So they have no reason to sell because they haven't been long. Now, I was long. I was long as fighters. Options back from last year, way before anyone on the planet even called the pet to happen. And my price was so horrible. And I suffered it in all year. Then when I had a chance to get out with something I did yesterday. And the only reason I did was because I don't think it's going to get through the number I want. And I saw another trade yesterday. So I threw that money into another trade which had a higher risk of reward. So I'll make up the difference of the ground. But the call I gave was right. But I took it so early. I took it crazy, crazy early. And as I said yesterday, I'm going to give more time stretching out for those six. But the point I'm trying to make is that nobody here is going to be selling. You're at the people that have been long because people are waiting to see what the market has been doing. New buying came into the market which is power of money which isn't going to turn around and sell it right out when it just made the investment of buying it because that's not how institutional money works. And the only people you have doing editing in here that would make the market red in the last couple of days or week or two weeks even or the last 11 days would be people that are wanting to short more. That are people that are actually would be wanting to short more, okay? As you can see, that's not happening. Now, wherever the next level people might try to push the market down. Well, if we fly up for the next two, three days of the next week, we make a nice point upward like a vertical move. Shorts may think it's another top and try to short in more. I don't really see a flurry of short covering here. So it's very interesting because I don't think people are covering. I think there are some people that have covered that are short that market goes over the high but I don't see a lot. I don't see a short squeeze that's even happening here yet. It may not be till 2020, 225. And I don't know when we get to those numbers. It may not be till 230. I think that's far away. Since the high was around 214-ish, I think the next flurry of the squeeze could come at possibly 220 where short is covered. So maybe people are giving themselves an area here of a cushion and saying, well, I'm not going to kill the short here in the market yet. I'm not going to kill it yet. People still believe the market could be lower. I don't know why anyone would think that but some people still think that. But the reason you're not getting any pullback in here is because it would have to sell off to pullback. A new money bought the market so they're not going to sell. People aren't long in the market in general here because the year has been so sideways and so many people sold long so they were in anyways which made all these dropdown days. And people got scared with the Brexit which we talked about. You don't know more people shorting in here yet. Maybe today, who knows if they decide to do it today, either four days up or five days up, some more shorts will come in and probably add to the position they're already in. Again, maybe they're stopped at 215, 220, 225, who knows. If we run out for five, six, seven days, people will think that's the top in the market but it's not. The reason it's not is because of new money. So the concept of buying pullbacks is not a strategy. It's just flat out not. So you can wait to buy the pullback if you want, you may miss the move. That's not the reason you're doing it anyways. It's not the reason I ever make a call. You gotta look at something and say, is this a good price to get this? Now just listen to what I'm saying here. If I tell you that the spiders are going to 300, I don't know when, but just work with me here. I'm just giving you a number. If I say they're going to 300, would you think if you bought them today at 215, forget about the fact that the spiders are red? Don't even look at this. Just here, I'm taking this off. I don't want you to see a darn thing. Just listen to me talk. If I'm telling you that the price of something is $215, would you think that's a bad train? Would you wait till it pulls into 200 so you could get to buy it at 300? Would you or would you not? You would say, holy crap, I'd better buy this now because it's an $85 move. Geez, I gotta get that. I don't care about the 15 bucks, I should have got it in 200. I should have got it in what Melissa told me but I didn't do it. I didn't do it. I didn't get it in a 180 and I wish that it would have. And you want to wait for a pullback. What if it never pulled back to 200? Here, I'm gonna put the chart back up. Guess what? I'm not saying we never get back here. I'm not saying we never get back here at all. I'm not saying it, but we might not. There's the 200 level. We might not for the very reason that that was two gaps in a row, the flush down, the power trend day down and the gap up that flipped around immediately with the Brexit. And we just took off like a Banshee and we have, like I just told you, we rallied every day almost for the last two weeks. So the point is though, if you're waiting for a pullback to take a train to get in something, you may completely miss the move. What about Costco? Well, maybe just pull it back. I don't know when. If the market keeps going, this won't. One of the strongest things we ever talked about, the day to buy it was the day of the gap. And if you missed it, well, find another tree. Find another tree then, okay? So anyways, the point is that many, many, many, many, almost every trader I know, almost every trader I know and before Paul met me, he might have traded like this. I don't know, he can talk about his philosophy about pullback but I will tell you that you see a good price in something. The strategy is there, which is the gap. You take it, okay? This isn't about chasing something. You have a reason for doing it. And there was a reason for me making the call yesterday. There's a reason for me making any of the calls that I make, but I'm telling you that you have to look at it and say, I'm willing to spend this much, here's the price. If you have to pay up a little bit and you're like, crap, it's rally for three days. I should've got it four days ago. Well, should've would've cut it, then you just take less. You just take less. You take whatever the amount you would normally risk. If you would normally risk $1,000, you take as many contracts as you can get filled for that position on that day for the price to get in and back the end of it and you walk away. And if it ends up pulling back and you wanna take more later, fine. And if it doesn't, you've got the trade and you spent the money you're willing to risk and you're in. And you have the target and the expiration date and whatever. But I'm generalizing this here now and talking about options, but it's just a concept of pullback in general, whether you're doing trade or swing trade or option trade, you look at the strategy, which is the gap, which is actually nothing to do with pullbacks at all. So will we pull back to 200 and spy? I don't know. Maybe we will, maybe we won't. Now that we got over the high, I don't think that's likely. So what I'm explaining to you about money is that who's gonna move this market down right now? Who? Okay. Not the people that just bought in. Not the people that are long, because there really wasn't that many longs in this year for people that were just regular people buying trades or swing trades. People have been very sketchy back and forth about what to do. I'm not talking about institutions but talking about just big traders or normal traders. You have shorts here. I don't know if anyone's gonna come in here right now and short the market. They may be waiting to see what's gonna happen up at the next area, which is 220. So we may just climb all the way up there, which I said to you two days ago or three days ago. And so we climb up to 220 and the market gets shorted again and runs up for eight days, maybe it gets shortened. I don't know. The short squeeze hasn't happened. This is not a short squeeze here. A short squeeze looks like a blow and it's buying coming in and then people also covering short. What this is just is buying. I mean, that's all this is just happening here. And some people may have covered some shorts but this is just basically buying. So it's institutional buying that's been happening for the last two weeks, okay? And I don't see it stopping. So there's no reason to have any red at all. You have a little bit of red today. Don't be surprised if tomorrow we rally up again. This is gonna be, I can't just look here. This is what I looked at yesterday and when I made the call on the other thing I made the call on. You see this here? Now pretend you don't look at this. What would you do with this? Would you short here? Look, this is a one minute chart. It's a 15 minute chart. Would you go short this? Here, can I blow it up? And I mean, this is gonna just look weird if I blow it up. Here, let me look at the one minute. This is, let's see if I can make how small I can make them. I don't know if I can get all this in here. I'm gonna try to get as much as the last two days I can get in here. Here, this is the last two days of trading and the one minute chart of the spy. Now just look at this. Would you short that? Hell no, you wouldn't. So when, now just listen. When the daily chart looks like this. Now this is, I'm teaching you something here. I don't know if anyone even gunning it. When the daily chart looks like this you think, oh my gosh, it's extended and we've missed it and we've gotta wait for a pullback. But I'm looking at this. I'm like, holy cow. And when you look at this you actually see it much, much clearer because you would never short this. You would endure this to save your life. You look at this, you say, whoops, it's long. So when the daily chart starts to look like this you gotta kind of pull out what the strategy is which is what I'm doing in the gap. And you're looking at this and you're saying, wait a minute how do I figure what we're gonna next? And this is kind of how I was telling you about the five days up. And yesterday being up again. Because this is a pure. It's a different way to look at something now because you're looking at this, you're saying, well, how do I figure out where we're gonna next? This is so hard to read here. Five days up, but I just explained to you about how money works and who the heck is gonna short this? And I'm not saying any of this. There's some idiots out there that are not short today because the market's right. But not really. I mean, look, we've moved like 40 cents. But the point is pull it on down. And you look at this, you say, I've never, never, never short that. It belongs. And it looks weird because we're so many days up. But when you look at the daily chart in a whole and you hone in on the strategy which is the gap analysis, you would never, never short any of these gap up. You just wouldn't. And it's very clear to me, but this is so challenging for day traders trying to figure out what the market's gonna do if you need the market for your trade because you don't know. If you don't have a specific strategy to trade you don't know how to trade this week. Very surprising for many people the market went over the high and then kept gapping up. And even today we gapped up. Now, we're red today. And I'm not saying that we don't close red today. And I don't know where we gap tomorrow, but that's not the point. The point is buying pullbacks is in the strategy. It's just not. If you see the trade and you have a price in it and you have a risk and it's a gap and it makes sense then you do it. Okay. If the trade is valid and the reason for taking it is there, you take the trade. You could only say you could get a better price if you had taken it a week ago. You can only say you could get a better price if a pullback, but what if it doesn't? Okay. So you don't risk more than you're willing to risk and you take what you're willing to risk. And if you're not sure, then take a half sign. Take a half lot. You've got something. If it runs up, you've got it and you're up money. All the people that are waiting for the market to have a deep pullback, which I'm sure many people are now that we got up over the high we're waiting for the market to pull all the way back probably to here. The 200 period moving average to around 203 like I was talking about 203, this is going to lift. So this 203 number by the next two days is going to look like this. So this 200 period moving average isn't going to be at 203 in the next week, two weeks. It's going to be up here. It's going to look different because this line moves. So as the market is climbing, this line is going to lift. So the 200 period moving average that today, I hope you're taping this pause, is sitting at 203, is it going to be at 203 in two weeks from now? It's going to be at 204 and 205 in the next month. So this is going to look different. Hard to imagine, but that's what is happening here. This line is lifting. So this level of where the support is is going to pull up as the market climbs. All of this is lifting the price up of the line. These are just computer generated lines. The candlesticks will still be there, but the level of support that people are looking for the pullback will be higher as the market lifts. And for the people that are waiting for it to pull into there, it could, it may, it may not, who knows. We are definitely bullish. I just told you one million reasons why, but who is going to make the market go red here? Only short, not sellers. Unless you were someone like me that's been in the long for so long that you just want to get out of it, what did I do? I threw my money into another long. Guess what? I took my money and threw it into another long. So I just pushed something else up higher. So this intraday chart is showing me nothing but bullishness and you got to pull it down because the problem is this is getting harder and harder to read here. I'm reading the gala and they are real, but if you're trying to determine the absolute next move right now, this second, pull it down to the intraday chart and I saw it. I saw it this week and I'm like, what is very interesting? Because I'm sure many, many people think, like Gala had said, it's going to pull back and it may, it's very well may, but what if it doesn't? What if it doesn't and you missed the move? Buying pullbacks is not a strategy to trade for consistent profit. There's too many levels of support and that's the reason why. How do you know which one to buy in? And this is called, people end up doubling down. They ended up, they pulled in, they buy the support, set it around and set it pulled down again. Then it breaks that support and it pulls in again and people are down money and they double down and they take more of the trade and it lifts up again. They think, this is it, this is the one, this is it, I'm in and then that breaks. And then they take more again and they double down, double down and meanwhile they're adding to a negative position the entire time. Cost average of the price down but taking bigger, bigger, bigger moves and I've done that before. I've done that before on and off throughout the years and you get whipped, you get butt whipped. So the point is though, you do the gap tree, that's it. Take what you're willing to risk. If it pulls in more, you've already taken your full risk and it's up to you if you want to risk more in the trade and you may not want to. Just leave it easy, peasy and keep what you got. So the blow number has not been hit. It was not over the high. I have no idea where it is. We have to see how we act. The more we rally up, the farther away that blow number will be. Like if we rally up to 220, 225 to keep going to blow number could be 230. So it's very, very interesting what this market's doing. But this concept of pullback, many, many traders trade like that. They believe that it works. It's not a strategy. Look at support, read it. Look at resistance, read it. You're not taking the trade because of that. Don't wait for the trade because of that. The reason you're taking the trade is because of the gap. And that's how I make the call. So, you know, Jean is saying a partial position size sounds like maybe a good solution for Gala had that would get him in the trade. If it retraces with the market, yeah. I mean, that's, yes. I think he did get a full position there yesterday. He did do the trade and I did the trade too. And we actually have the exact same price. I had several orders out yesterday at many different prices. I would never get in sales. So I just pulled it up and took it. With Amazon, you only took a partial position. Gala had was the one that did the Amazon. He's already out, which I said, I think you need to get out on Monday or Tuesday, whatever day that was. And he only did a partial position, never pulled back. Here, just again, I told you, the call that I made two weeks ago, or a week ago, and this, did you wait for this to pull back? You never got it. Gala had didn't take the full position. He took the half position and never pulled back. He made $3,400. If he's taking your full position, what, you want to make it almost $7,000? So what, do you believe me now? Yes. You're taking your full position this trade, you want to make it almost $7,000. You were waiting for a pullback and never came. I made the call. It's nothing to do with pullback. That is a very old, old, old school trader philosophy that is not the reason and way that I trade. And I'm telling you that it's not a strategy and it does not work consistently and you cannot make money buying pullbacks and shorting resistance for the rest of your life. You need to be aware of supporting resistance levels and we talk about that and I teach that in the golden gas class. But that is not a strategy and it's not the reason you take this trade. Why? For the simple, very common sense reason that there's a one Cajillion support level in a stock or a chart. And there's no guarantee that any of them will ever hold. When I call a trade and I'm looking at an area and I'm looking at an area of resistance and something, oh, look at this, look at the stinker. This broke 27. Did anybody even hold this? 26 at 85. I'm all out of this, but look. Look at that stinker, it just broke. Did anyone hold that down anymore? When I look at the numbers here, when I'm rating the gap and I look at the support and the resistance and the targets for we're doing something like this, I'm just looking for that one day. The one day and the gap that I know it needs to hold. This is not a long-term trade overnight, it's MIK. Wow, okay. You should be up. Well, I'm looking for the one day where I know that needs to hold in the gap. Overnight, you've got to look at a bigger timeframe, but I still know in the overnight where it needs to hold the levels, but when you take an option, trade you have a fixed risk. So you don't have a stock, but you only lose what you risk if it doesn't work. And if it works, you have unlimited potential if it goes to the number. Or even just in the opposite cost of the price going up the option, if the stock goes in your right direction. You're in a call or the rallying or in a put with it going down. But I'm saying this has to do this because I only got to four o'clock. I don't have time for MIK. Now this is very important. And I'm gonna let Paul go to the mic and then he can talk. I don't have time for MIK to rally all the way up here when I've got to take the trade, get in between nine, 30 and 10. And even if I waited until after 10, I've got to be out by four. I don't have time for this to go to resistance level. I know exactly the resistance that it has to hold in the live day to do it. And I got to be in and I got to be out. I even stopped yesterday and I know it broke. I know it all, but in the morning right in the open it held the number that I wanted it to break and we were out of it and we didn't take a trade. Don't do late trade. It did end up breaking the law. It did end up falling. It was 11 o'clock in the morning. That's like four o'clock in the afternoon for me. It's too late. But I'm telling you though that it held the level that it needed to break in the morning so I was off of it. Okay. So these are very crappy intraday moves in my opinion. They're too hard to predict because once it doesn't break the level you needed to it's not gonna hit in the morning between nine, 30 and 10. It's not gonna break to the bigger targets that you want to. And the possibility of it rallying to a very large resistance level is real. This went some unknown number at the high of this bar that I didn't even have yesterday. In fact, let's just look and see the number that I actually saw. What did I have for the, here fast resistance? Here's what I gave. I did give it a big number, but it went over it. I said 44.50, went 20 cents over it. Wasn't a huge amount over it. But that was the highest, highest number I gave was 44.50. But this is a crappy intraday chart to play here. This is crap. I mean, I just don't do that. But if you shorted it later, it worked. In fact, this looks like it's, it's, it's 12 today. It's actually 12 today. Wow. I forgot about this. We could have put this in the room this morning. I mean, I'm glad we did what we did, but.