 I'm Amis the Basel Chapman as you do each and every Tuesday at 20 past the hour and don't forget folks Basel is an outstanding show here every trading day 10 to 11 Eastern standard time also is a great newsletter the opening call That's very easy to get the opening call folks come over to our website at TFNN You'll see it right ends of featured content. You just hit the subscribe button to the opening call You can get the opening call for one month for $149. You can get it for six months for 695 Which is the savings of $199 or 22% Get it for a year for $1195, which is a savings of $593 or 33% When you come over and you subscribe folks You're gonna see that Basel has about 11 to 12 archives on there. You really get to understand the markets You're gonna really get to understand the Chapman wave and guess what you get it for 30 days It works for you awesome You just continue to get it for some reason it doesn't work for you folks you get your money back So check it out. We got a traders market out here in a big way There's a lot of different trades you got a lot of different waves running back and forth Basil Chapman, what's going on? Hi, Tom. How are you doing there? I yeah, you know, I can't complain because you know, it's cold to it. Well, it might not be it's 57 here today Well, what is it up there like? No, I think it's gone through about 40 something like that. Okay. Yeah, it's just what you get used to you know For us when we go from zero degrees to 40th, that's great It's exactly and I'm just a baby used to it I remember when I came from South Africa a long time ago having grown up with the winters exactly the opposite of here But it's very short winter But it can be very cold and very damp and there you weren't set up with heaters and everything like today So the winters I found really cold even though they were short says what your blood gets used to I guess Yeah, it is there's no doubt. So Your blood gets used to how about our heads getting used to where we are in this market basil? So this is really fascinating. Look I like to use some very simple techniques. I use some complex ones But basically what we're looking at is we try to identify the The lowest low and then look for higher highs We label the alphabetically on the way up when we get to the fourth highest peak peak a peak b peak c is Three pds the fourth one as you saw right yet 36,952 in the down the fifth of January Tumbled down to 33,150 But that was only two legs down. They went to a trough b That's usually a good sign that if there is a balance you're going to bounce quite well So what I've been anticipating and we we are still Caught along from a long time ago trying to add to the down the diamonds because I think what's happening is You see this I've got this little narrow Channel right here. Basically, I'll consider this a wedge. It's like a declining Expanding cone so you make lower highs and much lower lows and at some point It makes it kind of a base and then it turns around and tries to tackle the resistance line What I usually do is within the resistance line I draw just two little lines and that's like a repellent zone and look how many times it downs me repelled from this All of a sudden we were touching it earlier this morning Or by midday and then there was a sharp pullback Pullback over 100 points from the height and then we got the second burst of energy Now what's really important about the second burst of energy Is that If there is a break above this trend line that all of a sudden the repellent zone becomes a propellent zone And that's really what you want to see So I'm going to make it as simple as possible the dozen 35,440 If at any point there is a close Now I don't I like often to see a pop up you can pull back when I want to see it make a leg in this case I want to see trading at the 35,600 area, which is not too far from here We've got a lot of things going on this week But if there is then all of a sudden I think we're going to start to see a leg see to the upside About 35,679 and that will probably take the the stochastic above 80 percent the magnate is strong And probably that will also turn the nine period moving average positive by crossing the 14 period moving average I'm doing about the daily chart So the Dallas kind of our focus has been on the down the doubt type stocks We are along the S&P. We are along the S&P the the the This is the SPY V so this is the Most for me. I had never really looked at this before but for the last couple of weeks I've been saying, you know Well, actually more than that. I've been saying value has been coming back So we decided we would go into a value the value part of the S&P And it seems to be holding now now even as we're looking at this is up 0.65 percent and the spy Is up 0.69 So it's it's in parallel, but I wanted to see How this moved to either cyclicals or value is going to unfold So we've got a mixed portfolio. We only have long positions We don't have any short positions not even thinking of it right now And the other thing that's very important is I've been saying to subscribers Why on earth would we see the iShares broker dealer and security ETF Rallying so sharply near the 116.25 all-time high We've been long since the 45 is back in 2020 at the low But we we're trying to add through we've added through Schwab and s and this is also acting very well It's almost coming back to the previous high of the 14th of january of 95 62 And here's the thing that I want to discuss with you We've seen so many stocks And indexes go to within pennies of the previous high And then pull back if they're able to push um I would say not just above but have a couple of closes above Like look the crudor back in october of 2000 and I think it was 18. Let me just pull this up Yeah, back in 2018 made a high of 85.65 plunged down to seven dollars and 61 We know all about that back in April of 2020 But look what it did it came all the way back to night. Uh, was I think it was 93 Let me just give you the figure. So what's happened is yep 93.17. This is a continuous contract That's quite a bit above the 85. So that says to me that even though I've got a very short term near term Let's say potential pullback coming here in the crude oil um The fact that it's closed a couple of times above that previous high of the october of 2018 kind of says that you look at the weekly and my weekly charts in the xle and the crude oil Only in leg c so this is such a complex market because if you're looking at you were talking about the qqq But look at the qqq how under how it's been underperforming even here look four days It's just been a little narrow wedge Is actually a rectangle So we've been very selective. We've remained along the dba, which is the commodity index We've in a way kind of avoided the whole area of the tech sector Like the cues we're going for you know value. We're going for If you look at the slx look at the way this the um silver The silver etf is acting look at this a very nice rally Is it going to get to the left side high? It's at 57 and a quarter Is it going to get to this first left side high of 58 and break out? So those are the questions So I love the market as we're looking at it right now But it is extremely selective and you had spoken about the the bonds if you look at the jnk And I always say the fourth highest peak these we've got to be careful in the monthly chart It made a high at about 110. It's now trading at 104 So we're going to watch these bonds really close the spark is high yield bond Yeah, there's no doubt man. You got a prison company out there today folks The people that feed the prisoners and the phone calls. We know that's a big scandal the bottom line They're paying 11 and a half percent for money today. Like really? Yeah, exactly Listen folks really easy to get basils newsletter come over to our website at tfnn Hit that opening call bass. You have a great one. Say fun. We look for a show tomorrow. Thank you, john. Thank you