 Hey folks, Bob Desmond here over at the Contrarian Trader. And today, what we're gonna be looking at on best stock charts for the coming week are obviously some charts of some really high quality trades. Most of them are gonna be long trades. One of them is going to be a short trade. But before we go into those symbols, what I wanna talk about is our week last week. How did we do? We did very well. Our portfolio, I should say, they were up dramatically. We had a very strong week. We knew that bond yields were going to break out or have a continuation breakout. Sure enough, what were we long of and what did we buy more of? The banks. Why? They do well when the market rallies along with bond yields. Now I was asked about the performance page. There was no activity last week. The reason is we didn't close out anything. We were positioned in advance of a rally. So we allowed those positions to gain some momentum, to gain steam. So net net on the week, it was a very profitable week. However, those are paper gains, not realized gains, big difference. So I don't wanna come off that. We booked realized gains. However, our portfolio did very, very well. So moving into this new week, what we need to be mindful of, and this is important. I know some people get triggered when you talk about politics, folks. If you're looking to make this your career, trading your career, or even to have it as a side hustle, a business, which you can. And it is a business. If you get triggered because we're talking about what's going on in Washington, DC, maybe this business isn't for you. Honestly, we need to talk about where the power lies. When I first started the contrarian trader back in 2005, the power was in the conference rooms of the Wall Street brokerages. Now, the power is in Washington, DC, after the financial crisis and after the Federal Reserve primed that pump and has never stopped since. So we're gonna talk about politics here a little bit, not a support or repudiation of one candidate over another. The fact of the matter is, this is going to be the final full trading week of trade prior to the election, expect volatility. It's gonna be nuts, the headlines coming down. So expect volatility. I think that since we didn't roll over on Friday, Thursday, Friday with no deal, I don't think there's going to be a deal. I just checked, this is Sunday morning, I'm recording this, I just checked and there's still no hint of a deal, meaning any stimulus out of Washington. So I think what they're gonna do is they're gonna punt until after the election. The fact that we did not sell off on Friday, Thursday, Friday, implies to me that the street is saying, okay, we're gonna get a stimulus in about 10 days. So they'll live with it. So we're gonna stick with a long side bias. However, this market is on very, very thin ice. So if you think that this market is gonna go ripping to new all-time highs and stay there absent some economic growth or organic economic growth, you're surely mistaken. We're gonna be taking the ride up with the markets so long as the momentum holds up. The minute I see weakness in this market, I am exiting, especially in advance of election day. We are gonna be looking to lighten up on shorts in advance of election day. So, oh, before I get into the charts that we're watching for the new trading week, tonight is Sunday evening, obviously. Join us for Sunday night stock market futures live at 6 p.m. Eastern Standard Time. What we'll do is we'll review the opening price action of the futures market. Then I'm gonna talk about some headlines, economic data from last week, how it influenced our positioning for this week. We'll also talk about economic data earnings coming out this coming week. And then of course we'll take members' stock chart requests. That's where we'll review the symbols that our members submit for me to review live on video. And if we have time, I'll take a few symbols from the audience. I usually take them from familiar names that I see frequently that are really dedicated fans. So understand going in that we have a hierarchy that we go with members, dedicated fans, and so on. So let's get to our, oops. Let's get to our symbols for the new trading week. The first symbol that we're gonna be talking about is SNAP, Snapchat, symbol SNAP. It's an extreme overbought stock relative to, this is a daily chart. I'm just gonna discuss the reason why I like it. We do a deeper dive with members on the week ahead commentary posted in the members area. So if you're not a member, you wanna see the deep dive on market pulse check meaning, how do we close out the week last week? How did the closing price action of the stock market and the bond market influence how we positioned moving into this new trading week? Also, we reviewed our portfolio. Do we wanna add? Do we wanna sell? And we also do a deeper dive on the symbols I'm about to go over meaning, not just daily charts or weekly charts. We do intraday charts when necessary, monthly charts when necessary. We have a longer commentary with regard to entry points, exit points, stop loss points on these names. So if you're not currently a member, 14 day free trial offer, and I'm using TrendSpider, silver gold level members, get that free. TrendSpider, if you just want it alone, you want a 35% discount, use the link below in the video description area, 35% discount code, lowest price on the internet because I do so much business with them. Let's get to the charts. All right, snap, daily chart, RSI closed out the day on Friday at 92 spot one five, extreme nose bleed levels. Add to that the fact that we rallied up and through the third standard deviation Bollinger Band on Friday. This rally in snap is unsustainable. This will not last much longer before we get a correction. Am I predicting a crash? No, I'm not predicting the crash. What we wanna do here is enter to the short side, whether it be short in the common or buying some put options and taking 5, 10% profits to the downside as it corrects, allowing this froth to come off the stock, then it'll probably consolidate and then it'll probably move up higher. Now, the weekly chart is very overbought as well, closing out the week with RSI at 87, above that actually, and above its third standard deviation Bollinger Band. So daily timeframe, weekly timeframe, extreme overbought levels, unsustainable. We are probably gonna pull back really, really soon, but I'll tell you, as we look into Monday morning and how we close on a 30 minute timeframe on Friday, it appears as though given the closing price action, it appears as though we are going to move up higher if I had a better nickel on Monday morning. It's on that rally that I'll probably be looking to lean into the short side on Snapchat. So moving on to our next symbol, Alaska Air. We wanna go with a weekly timeframe here because what the chart is telling you, in fact, let's see if the automated trend lines. You know, I'm gonna draw my trend lines first and then I'm gonna see if the automated trend lines validate what I'm saying or pick up something that I missed and that's really the value of Trendspider for those who are experienced technicians. It's not just for beginners, it's for experienced people too. I call it my spell check for technical analysis. So I'm gonna put up my manual trend lines and you can see that last week, we closed right at a resistance level on a weekly timeframe. So now what I'm gonna do for giggles is overlay the weekly trend lines to see whether or not I'm accurate with my call of as to whether or not resistance is on or about where I just stated. And here we go, click of a button. I should actually, it's somewhat validating when I'm saying here, I think I have a higher threshold for expectations of a stock when it's attempting to break out the, we're in the ballpark, meaning the automated trend lines are saying, you know what Bob, we broke out last week on Alaska Air Group. My trend line is saying, no, we haven't had a clean breakout yet. I'm gonna go with mine because it's a higher threshold of expectation for the stock. Remember, we're still in a downtrend on Alaska Air. So what we wanna do is we wanna pay it respect. The path of least resistance remains down. So we wanna have that higher expectation of a breakout on the share price. So that way we don't get whipsawed out of the trade too soon. We wanna enter the trade once we validate the breakout on my manually driven line. And what we're seeing here is a beautiful, beautiful RSI. And we have an indicator leading price performance on RSI, beautiful. Now with members, I go over the daily chart to discuss an entry point, exit point, stop loss point. It'll be listed on the watch list in the members area as well. So go check that out, members. The next chart up is Facebook. Now I've been a hater on Facebook for a while because I just don't like the censorship and the playing God stuff. I think ultimately it's gonna come back to haunt these companies, Twitter as well. Google, it's already happening with. DOJ is on them with a lawsuit, antitrust lawsuit. I think they're just setting themselves up for bad things to happen with regard to liability protections. But be that as it may, my concerns being pushed aside. The share price is looking very good here on Facebook. Last week, we broke out above resistance. We're still technically in a channel. I won't say in a downtrend per se. Here would be your lower band of that downtrend. Here's your upper band of the downtrend. But we haven't broken out above that upper band of the downtrend channel. I'm using that term loosely downtrend channel. And why am I using it loosely? Because we have not broken down despite the fact we have lower highs. We did not confirm the breakdown through new lower lows. So Facebook looking good as we move into the new trading week, we may get a pullback and a retest of support at 278, 279 per share. That would be an interesting entry point. RSI would then pull back, retest support. That would be a good event to occur. So we'll sit, watch and wait. And again, I go over this with members on the week ahead commentary posted in the members area. The next startup is EMR, Emerson Electric. I spoke about this one last week as a watch stock. Why didn't we enter the trade? It simply didn't do what we wanted it to do. It did not break out on the week. And that's what we were looking for. Now we did attempt to break out last week. However, that breakout was rejected. But I do believe that we will be moving up higher this new trading week. And if we fall back, I like entry points down below as an entry point. In fact, what I'm gonna do here, I'm gonna create an alert at the support level. So here's my alert. I wanna get notified when we touch or bounce on a 30 minute candle, my sensitivity is low. Meaning I wanna get pretty close to that support level before that alert fires off, not be in the approximate area. So I could widen it out if I wanted to, but I don't wanna do that. I wanna keep it nice and narrow, true, to support, notes to self. And of course, I wanna keep this active for a certain timeframe. We'll keep it active for five days and set it and forget it. We'll also wanna get notified of when we break out. All right, so here's our alert. One hour timeframe, I wanna get notified. I don't care about five minutes, 10 minutes. If it spends that much time above that mark, I wanna know on a closing timeframe of a one hour candlestick. If we break out above resistance, notes to self, which is incorrectly spelled. Left off the A, there we go. Breakout weekly timeframe. I wanna either open or add. If I add, that means I would have opened a position down here and I wanna add on a breakout. That alert is now set and forget it. I'm not gonna look at this for another week or so when I do a new round of scans for the week ahead commentary. The next symbol up is XAR. XAR is an ETF putting you long of defense stocks. Now, this was also on that stock charts last week. However, it just consolidated last week. So therefore what we did was we watched for a continuation breakout. And if you just saw what I did, I clicked this button for the automated trend lines and you could see that back here on, we're during the week of October the 5th. We broke out on XAR. We've pulled back and done a retest once, twice. I think that we're gonna get a follow-through to the upside fairly soon. Okay, so here's our alert. I wanna know when we break out and through this resistance level, I want sensitivity really low. I don't care if we're in the neighborhood. I wanna know when we're above that mark and note to self, XAR breakout weekly timeframe, more significant than the daily timeframe. That's why I put that note in there because sometimes things get very, very rapid fire intraday. And what we wanna do is be able to refer to our notes so we can go about our business without having to reanalyze charts. So our alert is set moving on to Dupont. That's a weekly timeframe that we're looking at now. And again, members, I do a deeper dive in the members area. It's posted there, go check it out. Now, Dupont, I went over last week as well. Why didn't we trade it? Because it didn't meet our level of expectation with regard to an entry point. I think that it will. That's why I'm talking about it right now. All I need to do here is because I already used them is the automated trend lines. And actually I wanna modify this a little bit. I think that what we could do here is modify and set up a trip wire. And what I mean by a trip wire is I wanna get notified that a weekly resistance level, although it's not the primary breakout point here in green, I wanna know that a trip wire, an intra-channel resistance level has been pierced. And once I see that, I go to the daily chart and I see how we closed out the day. Did it hold? How was volume? How was price? Did we close at the highs of the day? Did we fade on the day? And then I'll take my cues of as to whether or not I wanna scratch the edge, maybe put on a small opening position to test the market and then on a breakout above the primary resistance level then add more, more aggressively to that trade. So that's what we're doing here. We're not gonna jump in with both feet because one of our alerts fired off. That's stinking thinking. We don't do that here. We wanna be very deliberate. Okay, so here's our alert. I wanna know when we break out sensitivity light, one hour candlestick, I wanna get notified. That'll fire off on my cell phone, PC, whatever. And here's my note to self, long entry, teeny weeny. That's a new technical term I just came up with. Is it spell right? I don't know. I don't think that this is appropriate spelling for it. I think I just made it up. Therefore, investimonials and Miriam Websters enter it just like I spelt it here, please, for historical reference. And we're gonna keep this active for five weeks. We're really all kidding aside. If we enter on a breakout above this trip while, very, very small, scratch the itch, test the market and that alert is set. And then I really wanna know if there's a breakout above the primary, upper band of resistance. Cause that's the Pimp Mac Daddy. We close above that weekly resistance level. It's game on to the long side, especially with the industrial names. I don't mean the Dow 30. I'm talking about your cyclical names. Steel, copper, energy, beginning to rally. If they're gonna rally, so are chemicals. Okay, so here's the alert. One hour candlestick, I wanna get notified of a breakout sensitivity, very low. I don't care if we're in the neighborhood. There we go, that's even better. I only care if we close above that resistance level. Not if we come a dime short of it. I only care about the close above that resistance level. Not if it's above it at 10 a.m. I'm beating the drum here. I know I'm boring the heck out of you, but it's important. Not at 12 a.m. or p.m. if it's trading above that resistance level. I care at 3.55 in the afternoon. Are we trading above resistance? If yes, then it's game on. If no, we fade, well, we live to play another day and we wait. Note to self, do punt, primary, weekly breakout point. We're either going to add or open to a position. In this case, I'm gonna keep this live for 10 business days, and there we go. Set it and forget it. And with that, folks, everybody have a great remainder of your weekend. Don't forget, join us tonight, 6 p.m. Eastern Standard Time, where I go live on YouTube, use the link below, set the reminder button. Sometimes that doesn't work, or it fires off after I go live. If you wanna get notified prior to me going live, use the link below, enter your email address. We hate spam too. If you're already on our email list, don't re-enter it, and you get notified 15 minutes prior to us going live. Hopefully I'll see you there and have a profitable trading week. Be well.