 Hey Charles. Good morning. Hey, what's up, Bruce? Oh, not much. How are you good man? How was your weekend? That's chill pretty good. How are you? Ah a little chill a little not We busy Oh anyway, oh, I see you're streaming already in YouTube I'll let you go. You're all up and running and good. So I will Take off. All right. Well, you could stay and hang out if you wanted to but I appreciate you stopping by Okay, thank you Charles. Good luck. All right. Thanks a lot. Okay. Bye. All right. Well, good morning everyone Welcome one. Welcome all We're happy to have you here today If you don't know my name is Charles I run a YouTube channel called pirate traders where I talk about markets and try to create a community for people to Support one another and grow in their trading here today on this live stream I'm just going to be kind of giving you a rundown of what I see happening in the markets What I predict moving forward and then we'll hang out and watch the the opening bell together So if you have any questions for me, please put those questions in the YouTube Chat I can't actually look at the The discord at the same time that I'm live streaming we're working on dealing with that But for now those questions got to come in on the YouTube. All right So let's start by just taking a step back I generally like to just particularly on a Monday morning to just kind of give myself a little bit of perspective Nothing wrong with that. So the first thing I'm gonna look at is the monthly chart And there's not any really specific trade setups that I'm looking for here I'm just looking to give me an idea of what the market is doing So when I just zoom out and I look very quickly at the monthly chart to me the market is in balance You see this large white box That is balance on the monthly which means essentially the market is just working its way up and down inside this range Trying to break out one way or another Until it is able to get above the high and find support for continuation or fall back down below the low and find Resistance for continuation on the monthly. I'm assuming we're gonna keep going sideways Okay, so we'll just jump into the weekly real quick and ask ourselves Is there any particular levels that jump out as at us as being important looking at it on the weekly? Well, there are a couple things that jump out at me first and foremost is the fact that we are at the upper end of This range right that the high we just made Is very very similar to the previous highs that caused this market to reverse and head the other direction So that's the first thing I'm making note of it's not bullish or bearish. It's just a piece of information The next thing I'm noticing is the balance clearly I can see that whilst it felt like we had one little balancing area here on the daily and then another little Balancing area here on the daily when I look at it on the weekly. It seems like it's probably just a larger balance area That tells me the highest probability again on the weekly is that we're heading down towards that balance area low Doesn't mean it has to happen today doesn't mean a bearish. I'm just taking it on as a piece of information to carry forward Okay, so then I'm jumping into the daily and I'm asking myself What do I see on the daily? What jumps out at me here as an important thing to to keep in mind? Well first off if we're talking about momentum, I can see that the momentum has clearly rolled over Okay, there was momentum to the upside. We made these new lows. We pushed higher We got this big short covering rally and so far all we've done is spend time Rotating at higher prices. So that is all very bullish that the market wants to keep going But seeing that it's rolling over tells me that bullishness might be coming to an end And I want to be aware of that The next thing that I'm noticing that's jumping out at me is the momentum on the daily We are starting to form a little bit of a channel to the downside We're making lower highs and lower lows on the daily. So, you know last week It was slowly trending down not very far, but does slowly trending down on the daily Will that keep going today? Will we make new lows and new highs today? Or will we turn around and head back up? So that all just kind of gives me a place to start from now What's my takeaway from looking at the monthly the weekly in the daily? Well, honestly, and this is very unsatisfying The answer is I just generally don't know I could make a case that the market is turning around right now to break out to the upside and we can look for a Bunch of continuation there Visually that looks like the most likely scenario, but I could just as easily make the case for the fact that the market just rolled over We need to pull down Test the 4100 area and then if we can't find support there look for continuation lower And I could also make a case that we might spend the whole week this week Just going sideways inside the range from the last two weeks, right? There's no reason why we can't just keep going sideways in this range So honestly looking at monthly weekly daily, I'm completely neutral and I think the market could go anywhere So I'm going to zoom in and take a look a little closer with the the market profile software and Try to find some nuances in here that I can use to give me a signal of what is happening Right to try to know what is going to happen today and what is taking place? Okay So first and foremost the thing that jumps out at me is the fact that the market is going to open completely neutral Okay, what does that mean? What do I mean by completely neutral? I just mean there is the same number of buyers and sellers Why is that because we closed right job and we're gonna open? Right job. So literally the overnight over the weekend went Nowhere where you go win? Nowhere, okay, so that's neither bullish nor bearish. It's neutral It doesn't give us any insights moving forward The one thing I will carry from the overnight though is the fact that we were able to get below Friday's lows that is a little bit bearish to see So when the market opens this morning because we are opening inside the previous day's range I'm gonna assume chop I'm gonna say to myself probably the market is gonna grind up and down and up and down in a very tight range It's gonna drive lots of traders mad in that first hour or so While it just reverses once and again and once and again and once again over and over So I'm not gonna mess around with that chop. I'm gonna avoid that chop but there are opportunities if I can watch how the market chops and Figure out what's going on. So the first opportunity that the market will give us is that overnight high Okay, which we could call 4157 25 that's the first level of interest to me. So the question is when we whoops So the question is when we get there What happens right if the market opens and we grind a little bit and we push up there What happens when we get above that overnight high? Do we instantly fail and pull right back down or are we able to stay up there and bring in some new buyers and keep the business? Going if we are I will look to test yesterday's high. So support I'm not guessing ahead of time. I want to be crystal clear about this This is not a guess ahead of time. This is something I will need to see happen in real time in the moment Then I will know so if the market can get above the overnight high and find support It is a good trade to test yesterday's high Okay, if we're able to get to yesterday's high same thing there We get we get above yesterday's high and then we find new buyers and we stay up there. Well, that's bullish for continuation higher why Because of all those things that we talked about looking at the daily that there is a very real argument to be made Sorry, give me one second There's a real argument to be made that this market is heading higher right that this is all just giant momentum To the upside and this market is just going to keep going So if we're able to get above yesterday's high if we're able to get above Friday's high my assumption is we're back on that train Okay, so I'm bullish as soon as I see support above yesterday's high for continuation higher. Oh, no momentum And it's so much harder when I have my system like this Okay, so that's if we find support at the overnight high and push up to yesterday's high if we find support yesterday's high I'm bullish for continuation higher. Well, what if it doesn't what if let's say it pushes up to the overnight high And it doesn't find support there it comes back in or let's say it pushes up to that overnight high It does find support there and then it heads up to yesterday's high But it doesn't find support there it looks above and pulls back in Either of those moves a look above and fail of the overnight or a look above and fail of yesterday's Hi, both of those signal to me that the market isn't ready to go higher. So that means I am not bullish I am either neutral or bearish. So then I watch the market chop its way down Now I know we have these weak references down here at 41 49 and 41 47 25 Those weak references are in need of repair. So if the market can't go higher I'm almost certain we'll come down and repair those weak references But once again, that's where I want to watch and see what happens to the market there So I've got support right here around 41 48 and I've got support right here around 41 44 That is the area. I'm watching for as the downside to the chop zone Yeah Come on pen tool work with me here. Okay So basically if the market tries to get above yesterday's high and can't I'm looking for it to come down Once it does, where does it find support? If it can find support in here or it can find support in here I'm gonna assume more chop. That is the market telling me it just wants to go sideways It went up couldn't go higher. It came down couldn't go lower It just wants to keep grinding and grinding and grinding and it may do it all day Inside the chop zone look they did it all night on this night. No reason. We can't have a day like that again today Okay, only if we break below 41 44 and we start to get new selling there Do I think okay? We're heading down to test Friday's lows and then I'm monitoring for continuation lower from there Okay, so it's really simple my approach to the markets today is really really simple Levels of interest Right there as long as we can find support above the first one We'll head to the second as long as we can find support above the second We'll keep going if either of those fails We're heading down to the lower levels if we find support at the lower level We're turning back around and heading up if not testing the next one find support there turn around and head back up If not, we're going lower So that's it. So now when the market opens. I don't have to do anything I don't have to sweat at all. I can just draw a little box and say to myself. Here's my chop zone We're gonna Chop it up inside that chop zone and only if we can break out one way or another will I look for a trade? Okay, so I can go long if we find support up here or I can go short for a look above and fail I can go short down here with resistance for a breakout or I can go long with a look below and fail But in the middle, I don't diddle in the middle. It's just a guess It's just a gamble and I leave that to the short-term traders to pick each other's pockets We got 53 people hanging out only 15 likes smash that like button and let me know if you have any questions In the chat Good morning to Tim a Darth liquidity chillin with Dylan Mark novice trader The Shaw office trader says crush sure Flood the beer Welcome, why don't we just take a quick second to pop over and look at the NQ. Oh, oh Yikes, that's a mess So the NQ clearly balancing on the daily look at that. Oh Yeah, 16 days 16 days half a month of Going nowhere where you go in nowhere So obviously on the NQ to me intraday. This is incredibly difficult to trade You're just right in the middle of a balance area They could easily take it back up towards the balance area high or take it towards the balance area lower or just do whatever They want in the middle So that's very difficult to trade intraday Let's jump into the chart and look for some levels might give us some clues Okay, so you do still have that same momentum on the daily as the ES where you're making lower highs lower lows consistently and you've got the value Overlapping to lower three days in a row. So that is a little bit bearish to see So actually you could play this very similar to the ES You're looking at chop in the beginning of the day to stay basically above 13 070 or 13 060 and and then that overnight high around 13 100 and So in between there you're just looking for the market to grind around and drive you mad But same as I said with the ES if they can find support above the overnight high That would be bullish to try and test Friday's high If they can find support above Friday's high, that's very bullish, right because of the the break of that momentum But if not if they look above and fail, I mean, you're just gonna chop it up and I would only really get bearish for further downside continuation if you broke below 13 060 and then started to get some resistance there Then I would look to test that overnight low and monitor for continuation from there but yeah, I would say between the 13 060 and 13 100 area, it's just gonna be a mess Choppy choppy chop chop. I'm talking about a chop zone Trading donkey been a minute. How are you nor is here? Good morning anybody got any questions for me? I got nothing to do for the next 11 minutes I've covered I've covered everything I have to cover nothing left for me to do now, but wait caution says The challenge is watching the damn thing play out. I need to throw Throw away my mouse. I know it's very hard and this is something I was just recently talking about with a group of people in the workshop was that like You know if there's one thing I can be certain of it is that before the market opens when I read the chart And I look for an understanding of what could happen that day I'm really good at it like I'll always come up with three potential scenarios a Scenario where it could go up a scenario where it could go sideways and a scenario where it could go down And I have really good like Like win rate of guessing one of those three scenarios like almost always one of those three will happen Almost exactly as I described it But when I go back at the end of the day after a day of trading where Throughout the day, you know the emotions and the excitement and the auction process and everything gets me so worked up I might feel so confused and so like I don't know what to do Should I go along here? Should I do this? Should I do that? But then when I look back at the end of the day It's like the market did exactly what I thought it was gonna do like tick for tick It went exactly to the level. I thought it was gonna go it found support it continued But like because it spent like an hour and a half grinding right on that level and the ticks were all over the place And I you know, it's like in the moment you get so lost in the complexities of what's happening that You really have to remind yourself to just step back and take it very very simply The basic idea is they're gonna try to take the market up or down if they can't they're gonna go the other way and And once that opening bell rings it becomes harder and harder to keep that simplicity clear in your mind Yo, yeah, do you look at stocks like NVIDIA? I don't look at individual names, but we've got nine minutes I'll pull it up if you want so I should also preface. I have no edge whatsoever with this With just looking at daily candlesticks by themselves Yeah, I would put NVIDIA. I mean this is no surprise, but exactly right and right with NQ It's the same thing. So they're balancing and they're stuck inside this range And because we're like right in the middle of it, you really can't guess which way they're gonna go So if I was trading NVIDIA, I would wait until it got around the two 79 10 11 area and I would look for either a breakout with support for continuation or a look above and fail So you're either looking can the market come back up find support Right, and then that support is viable Or does it come up fail and start to pull back in you could then short it to get to the opposite end right there Or if it heads to the lows the same thing down here around the 265 area So if it comes down it finds support you could buy that for a rotation back up Or if it looks below comes back up and finds resistance you could sell that for continuation lower But as long as it's grinding around inside the zone, it will be difficult to predict In my humble opinion and for what it's worth. This looks pretty bullish to me. I mean, this is a little bit Little bit steep here. So they probably need a pullback, but that looks like A cumulative accumulating right here novice says AI stock Yeah, yeah, I saw a funny meme about that the other day. It's like NVIDIA can't lose They're they're like the perfect whatever the hype thing is of the moment When the hype thing was crypto, they did well because of that when the hype thing was NFTs They did well because of that when the hype thing is AI they're doing well because of that David says can I look at CLF? I assume you mean crude futures Yeah, you don't want to be long that right now. That was a Not ideal. I would say you could have bought 8121 to see if they could keep it going so they had this gap up Then they just went sideways. Let me zoom in. Sorry guys. It's probably very small for you Okay, so they had this gap up and then they balanced for about five days So if the breakout if you bought right here, right? If you bought the retest of that breakout looking for continuation, that would be fine But you should have been stopped out very quickly when they didn't find support there From that point on it was a rotation to the opposite end and now it's a breakout lower So in my opinion and again, I'm not a crude trader So don't don't take this, you know as a tradable thing, but I think they're trying to fill that gap So I think until you get back down to 75 You don't want to be long There's potential down here though. So the question is what got you into the long What would have told you you were wrong if you were trading the momentum because you had a gap up That's fine. That's totally fine. But as soon as that momentum broke You should have been out of that trade Invictus is saying the Dow the Q and the Russell are all looking strong Looks like we might grind higher To convince me that you're right. We got to make a new high So we got to get above yesterday's high and break this downtrend on the daily But if we can Yep, I'd be happy to to get bullish Not until I see it though All right, so for those of you that are just joining us one minute before the market opens Because the overnight Inventory took us down to yesterday's low but brought us right back up almost to the closing price on friday I assume the overnight inventory is neutral So this morning I am expecting the market to just chop and grind I've got resistance levels marked up here around 41 59 and 41 63 And support levels marked down here around 41 48 and 41 44 I suspect between those levels the market is just going to grind So if we push up and get rejected, it'll come back down if we push down and find support will come back up And it will only be when we can break through these levels that will get any further continuation So i'm just watching for what the market does when it gets there Okay, so we created a week low that increases the odds. We're gonna have to come back for it So don't get overly bullish We got the uh The bot shenanigan zone happening over here on the uh book map That's just a signal to us that there's short term bots Trading with each other and not to trust anything we're seeing until that ends Okay, so we pushed above the overnight high. We're now testing the resistance Here's where the market can give us a signal. Can we turn the overnight high into support? 41 57 Okay, looking to test that support Generally the first clue that a market is going to break out of a chop zone It will find support at the halfback The fact that we just did not means More chop, baby More chop. Oh, look at that bot shenanigan zone Someone's playing some kind of game here. I don't know what it is They needed to get 200 long and 500 short at exactly the same level. I don't know why Oh, David. No, you were looking for the ticker signal. My bad. We'll look at that in a bit Okay, so opportunity number two. Can they now turn the overnight high into support? Can they hold 57? If they can hold 41 57 from here, they should be able to head up and test yesterday's high at 41 46 If they pass back through the halfback again, then we know they'll just be more chop can they Hold it Since i'm in a book map room. I've always wondered is anybody have an idea why they do this where they where they put a Iceberg order in here that automatically moves tick for tick for tick With price, but it doesn't ever seem to let it fill When I first started seeing them, I thought it was like they were looking for a liquidation And they would get filled on that, but they just don't let it get filled I'd love any ideas of what's going on here Doesn't happen often John says I think it's pappy Okay, so they keep reversing on this exact level you guys see this level around 41 59 they keep reversing right there and we can see this big note of volume That tells us that they're doing that on purpose to create liquidity above So they keep reversing hoping that the sellers will then put their stops up here And that gives them liquidity for a pop higher So I am now bullish to test that uh high from yesterday 41 61 And we'll see what happens there Uh coop if iceberg orders fill in a chunk, but those orders never fill How do we know it's an iceberg order? It's a great question Well, it's it's what the software defines as iceberg so they partially filled But they they kept the rest of those orders in so it's just the same account That filled some at uh right here So they filled a little bit and then they just kept those orders So the computer is just tracking the fact that the same account has orders in the order book But like I said, it's unusual to me. It doesn't really make sense There's so many things happening. I just don't understand In markets these days Someone's doing something. Hopefully they're making money. Okay, so there's the test of yesterday's high That is bullish to see Purely because it breaks that downtrend on the daily We now have higher highs and higher lows value overlapping to higher So now the question is can we turn friday's high 41 60 into support For continuation higher or do we pull right back down in the range and get more chop? Okay, that is new buyers that yesterday's high which is bullish So I am now bullish for continuation to the upside And I stay bullish as long as we are above 41 57 Which is the current half back and the overnight high If we're going to get continuation to the upside we should be able to hold support there Mark says, I know it's early, but the ad chart in the internals looks pretty suspicious Suspicious, let's take a look Oh, yeah, I see what you mean Yeah, that wick is scary looking It's all right They're above the zero line for now. We'll just have to give it give it some more time To get a good signal out of that All right, it appears we might not have the buyers at yesterday's high To get continuation. I remain bullish above that half back We're just looking for buyers right now Here they go again So they're trying to short it right at the high to bring in more liquidity above for that next pop Got 124 people hanging out only 49 likes. We're not going to go test that resistance Until we break 100 likes. It's just the way the it's just the rules of the market. Okay Let's get those likes going It's science So you're saying to yourself you're seeing charles We're starting to break the support at yesterday's high. Shouldn't you be getting bearish as a look above and fail? Well, no, I'm not and I'm gonna tell you why because of book map and the way they just made that high Because they stopped at exactly the same level again and again and again My assumption is there's a reason they did that To convince you to go short right now And where are you going to put your stop if you go short right now? Well, you're going to put it right above that high creating some liquidity up there All right. Well now, what if you get nothing for it? What if the market pushes just a little bit down into yesterday's range and then it bounces right back up Well, then you're fixing to get yourself squeezed And the market gets another pop That is what I believe is happening here Quit playing games with es Mark says charles is there advantage to zooming out on book map? Um more to the profile level It depends sometimes I like to be able to kind of see it bigger picture It gives me an idea of where the bigger pools of liquidity are Um But in a in a moment right now all that matters to me is one thing and one thing only right If you go back and watch the first five minutes, what did I say? If we could get above the overnight high can we get to yesterday's high? If we can get above yesterday's high can we hold it? Can we turn it into support? So right now I don't care about any of this that's happening down here I don't care about any of this that's happening up here All I care about is this area right here right now Can they hold this can they keep that momentum going? So for that I want to be zoomed right in This is a great example of those nuances if all I was looking at was market profile I'd see good taper and I think maybe maybe we made the high But because of the book map and how zoomed in I am and I can see they're reversing at exactly the same level Well, then I know it's just to create that liquidity Uh jeffrey can you explain the concept of shorting the high to bring in liquidity? Yeah, I mean I just did but I'll explain it once again. So imagine you're the trader Okay, you just saw the market make a high What are you telling yourself? Uh, oh, we've run out of steam. We're gonna go down. I need to get short the market, right? So this whole time over the last what's it been? You know 10 minutes for 10 minutes straight. They just keep stopping us at the same spot stop us stop us stop us stop us Why right? Well, because everyone that's going short right now like at this second the people that are going short Are putting their stop above there Okay, so what if the market comes down a little bit? Find support and then comes back up through that level. What are all those traders who went short who are going short as we speak? What will they do when the market comes back to that high? They'll exit their trades, right? They'll they'll have their stops get filled and that pushes the market higher Does that make sense? So they they fake you out to think the market's gonna go down to get you to go short So that when you cover that short, you are the momentum that takes the market higher And it's literally what they're doing all day every day Global trading they so mean I don't know man Is a shark really mean? He's got to eat too Private planes are expensive Tarth liquidity Algos just try to feed their family Here's one for you. I wonder if A chat btc type of algorithm Were to feel like if it were to write code for you that that's its child All right, so here we go. So now all those short sellers are feeling like geniuses They just kept going short again and again and again right at 62 And here's where they think they're about to get something for it. They think the markets are gonna crash and burn And what we're wondering is what happens if we find support and pass right back up through 62 once again What will happen to all those shorts? Askar says laugh out loud man. You're long will die today Um, I agree to disagree Go back and watch the first five minutes I said if the market can get above the previous days high and find support We can look for continuation as of now. We're above the previous days high and we're finding support So so far I am 100 right So now we're looking for that short covering pop Can we get that b period above that a period high? With that I will say goodbye to everyone It's time for bruce's stream to start so I will say farewell If you're a member of the brigade head on over to the private stream and I will see you there If you're not a member of the brigade for just 10 bucks a month you can listen to me talk like this every day for the first hour Uh as far as what to expect moving forward I am still bullish as I said as long as we remain above 41 58 I remain bullish. I think this is just a move to take us higher If we start to pull below the half back And in particular if we pass back through the opening price I will be bearish to head down here and test those lows that chop zone low But we'll assume we're just going sideways Unless we get below 44 and find resistance there as we discussed earlier However, to me that is less likely at this point and the higher probability is continuation to the upside Now how far we'll get I don't know But I do believe that's the direction they want ahead So with that I will say goodbye and wish you the best of luck Brigade head on over to the private stream Thank you kindly and we'll see you Monday morning