 Cheers. A presentation of TFF. The Tom O'Brien Show is produced every business day. Tom takes your phone calls toll-free at 1-877-927-6648 internationally at 727-873-7618. Let's go to Andy in Boulder, Colorado. Hey, Andy, what's going on, brother? How much you tell how you've been? I'm great, man. It's all pretty good. Hey, congratulations on the grand baby. Yes, thank you. I know. Tommy just sent me a picture. I mean, it's gorgeous out right now. He just was taking them out for his first walk. He's growling and prowling already. Now, Tom O'Brien. Folks, this is Larry Pesavento setting in for the master himself, Tom O'Brien, and this happens to be the Chinese year of the tiger. So I'm sure we'll be hearing his lovely growl for another year and many years thereafter. Today he's taking a day off to spend with his lovely little grandson, Tommy the 13th. I think that's what they refer to him as. Anyway, what I thought I would do today, because you folks here listen to the stocks all the time, is to show you what's happening across the pond over there in England and Germany. And I posted a chart for the FTSE and also for the DAX. And as you can see, they also had a big drop down and been rallying for the last few days. They don't seem to care what happens in our markets, just like they don't in Asia. And that's the way it should be. Each market is separately, and that's how it should be viewed. But let me tell you a little story. About 10 years ago, there was a man there in Clearwater, Florida named Tom O'Brien, and I had been doing his radio show for about four years. And Tom coined the phrase, the phrase, King dollar, when the dollar was trading at 73. And from 73, it went all the way up to, I believe, 150, as I recall, something like that. Some ridiculous number. So we're going to be talking about the King dollar today, because it's got a very interesting picture that's looking at it. I want you to see here, I'm going to put it into the chart room, so you folks will be able to take a look at it. And as soon as I can find it, which will be hopefully some time in each of our lifetimes. Here's where we are today, folks. This was as of last night. As you can see here, we had a big double top up in here. We had a big gap up last night and we closed right on that double top. But folks, let me see, double tops are there to be broken, and this one was broken very dramatically. I mean, it is told everybody that, look, look at me, I want to go a whole lot higher. And this next chart, you're going to see where the US dollar is going. Now, the pattern that you're looking at here is known as the AB equals CD pattern. This was formulated by H.M. Gartley way back in the 1920s, but Ben Mendel brought it out and showed that the fractal that he used to discover all the things that happened in nature and stuff is based on this seed pattern, which is known as the ABCD pattern. As you can see in the blue turquoise triangles there, that's nothing more than another ABCD triangle. It's also known as the lightning boat pattern, but it really helps describe where things are going. You can see we're looking at at least 98.23 in this US dollar index, which, you know, folks, you stop and think about it. The euro is 53% of the dollar index. So if the dollar index goes up, it means that the euro must go down, and that's exactly what is happening. If we take a look at the dollar here, get it up here so we can look at it on a little bit longer time frame, and I'll bring this up to you here for just a second here. There it is right here. Now take a look at the dollar going back over the last two years. You're going to see that we came all the way down to 89.40, and now we're heading to that number we just looked at on the daily, which is 98.29. At that point, you're going to be reaching a .618 Fibonacci number. We use a lot of our technical analysis based on these numbers because we see them act not all the time, but, you know, better than 65% of the time they help us out on where markets should go, and this one certainly looks like it wants to go at least to 61%, and that's up another full handle in the dollar index, which means the euro would be dropping another few handles, and that's not very good for the euro, but it is also good for people that happen to be looking to be buying gold because you're going to be buying gold a whole lot cheaper because as the dollar index goes up, gold goes down, and that's what we've been seeing here over these last few days. Now I want to give a quick little summary here on the euro because this is what we're looking at here in the euro. As you look at the US dollar going up, if you'll take a look at the euro, you can see that the euro is heading down. Now with the US dollar going up, it means we buy things in other countries cheaper because we get good dollars and we're buying them with the things like the British pound has been dropping, the euro has been dropping, that means we can buy things from Europe and also from Britain to tell us that prices are going down, so it's a good switch for us. How long that lasts? We don't know, but just take a look at this euro over the last two years, from 2020, and you'll notice that big drop during that time of the COVID where it went from February, those strong three weeks down into February when COVID was starting. Well, after that started, you can see the way it went all the way up to 120 and now the euro is down at, it's around 112 right now, but folks, it looks like it's heading to 106. That's a perfect Gartley pattern, also known as Benoit Mendelbrot's seed formula, the AB equals CD, and that should come in sometime around April or May, maybe even a little bit later, a little bit sooner. The timing is not important. The thing is the price level that we're looking at here should bring it down to that level. Now, let's get back to the gold market. If we take a look at gold and what we're going to do now is we're going to look at gold on a, just a second here, we'll get it up right here for you. And we're also going to look at the silver market too because silver's down almost a dollar an ounce today down around 22. That's $2.50 from where it was just the other day. Now, here is the price of gold, as you can see here as we get this up here to take a look at it. You'll notice here that we were looking for the price of gold atop somewhere in that 18.50 level, and it topped at 18.54, the 78% level, one of the Fibonacci numbers, the square root of 618, came in exactly at 19.54. Excuse me, try that again, 18.54. We're now trading $60 a barrel. Late in the day for me, folks, I'm a futures and forex trader. It's down over $60 a barrel down at the, and we've broken the old support there at 1800. We're down to 17.92. If we are correct on this, I think you're going to be able to buy gold at one heck of a good price somewhere between 17.18 and 16.74. One of those two numbers is what we're watching for. If you'll notice, look at the top of this chart here, when we hit 18.79. You see that big lightning bolt pattern again? In other words, Mandelbrot's ABCD. There it is right there. The exact high, folks, was 18.79. You can't make this up. And what did it do? It came all the way back down. It dropped from 18.79 all the way down. $150 lower, $125 lower to 17.50. Then we rallied up, and that tells us, hold on one second, I have to answer a question, and we'll be right back here. It gives us an ABCD. It should take us down to 17.18. We'll stop and think. 17.18, folks, is only $80 from where we are right now. That's it one day. We'll be right back. 877-927-6648. Are you looking for a way to consistently add winning trades to your portfolio? Tom O'Brien is here to help. Tom O'Brien has been successfully trading markets for over 30 years. A frequent contributor to TD Ameritrade Network and CNBC, Tom O'Brien founded TFNN over 20 years ago to help educate investors just like you. Tom's Daily Market Newsletter, Market Insights, is published every morning when the market's open to give you the competitive informational edge you need to succeed. These newsletters are packed full of Tom's advanced technical analysis and are geared to deliver comprehensive strategies for a successful portfolio. Get Tom O'Brien's newsletter, Market Insights today, and try all of our products and newsletters 30 days risk-free with our money-back guarantee at TFNN.com. TFNN, educating investors. The TAS Profile Scanner is the premier market-profile-based scanner. Powered by its acclaimed TAS proprietary algorithms, this feature-rich scanner instantly filters over 2,500-plus global financial markets, such as stocks, ETFs, commodities, futures, and forex. This powerful suite of tools leverages instant trade filtering and strategy formulation to show you emerging trades before they happen. For a limited time, you can save $100 off your first month by using the promo code UPGRADE, and you still get a 30-day money-back guarantee so you have nothing to risk. 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TFNN, educating investors. 727-873-7618 Okay, folks, we're back. This is Larry Pesevento setting in for Tom O'Brien today. And what I'd like to do is we were talking about gold, and then I posted the chart of silver, showing you the daily chart much, much weaker than gold. Can't even take out the previous month's high at any particular time. But the next chart really was the one that made us really get sort of bearish on the gold and then also on the silver. Those of you that like head and shoulders patterns, you'll notice here that we have the left shoulder, the head and the right shoulder. Now, Dr. Andrew Lowe in his book, The Evolution of Technical Analysis and also the Non-Random Walkdown Wall Street, he had a formula for predicting, you know, what a head and shoulders pattern should look like. And there are two factors that must be there. The first is the distance in time between the left shoulder and the head and the head and the right shoulder should be very, very close to being equal. And then also the right shoulder, where we are currently, should be lower than the left shoulder or equal. It cannot be higher. If it's higher, it's not a head and shoulders pattern. As you can see on this one, it was just a tiny bit lower than it was back in September and it was hitting a perfect 1.618 expansion at 2475 and the high on that day three days ago was 2475. We're now looking at a $22 handle. That's a $10,000 drop in two days. So that also tells us there's a good chance that gold has a chance to drop even further and some great buying opportunities come in. Now, someone has just asked a question, one of Tom's listeners and that is have I ever seen situations like we're seeing in the stock market before and the answer is yes and I'll go through with that right now to try to answer the question. If we look what happened in the stock market over these last few days, if you'll remember here, we had this big drop in the Dow Jones industrial average. I'm going to bring it up here so you'll be able to see that this is an hourly chart so it covers at least eight or nine days and you'll notice here the last few days we've completed this thunderbolt pattern again. There it is exactly where it should be at 34,700 and what happened was look at this the market came all the way back down but something even more important has happened folks. This is what's really important from my perspective because the gentleman asked have I ever seen this again before and I certainly have and what I'd like to do is to try to share it with you of what I saw before and this happened to go way back into 1987 going into October the second when I saw that and that was two weeks of course before we had the greatest buying opportunity of all time which was also known as the big crash because even if the market breaks here sometime in the near future we're going to be able to see it that it's able to really able to do it but look what's so important here today folks and this is what the gentleman asked if you look at this I understand that Tesla's down 10% today but look at this we made the first ABCD and we came down last night and we tested it again today folks we go below 33,400 by Friday oh my god don't be long and let me show you why if you believe anything about what Mandelbrot did and believe me you don't get to be as smart as Mandelbrot without having a whole lot of followers and so what you have to look for and what you've really got to be afraid of is what you're looking at here very very shortly and that's here is the Dow Jones industrial average and what we're going to do here is we're going to look at this pattern that we've seen many times before and there it is the first one you see the ABCD pattern telling you it's a top and look at the ABCD pattern here and look where we're going to be if we start closing down here below 33,600 33,250 by tomorrow you're looking at a drop of 3,000 points in the Dow Jones industrial average sometime in the next two weeks folks that's 10% the markets are acting stop and think today folks the Dow was down 400 points last night it rallied 600 points that's 1,000 then it dropped 600 right then it went up 200 that's an 18 point swing in the Dow Jones industrial average people don't like that kind of stuff they want to buy it watch it quietly go up quietly go down these are volatile markets what is that volatile market telling you get out of dodge unless you know what you're doing it's not for the faint of heart so be careful anything below 33,250 you're going to be able to buy it 10% lower if this is correct and believe me you don't want to fade it for two reasons first of all the rally that occurred took three days a three day rally in what is called a bear market and then reverses not a good thing but remember I'm a technician so maybe it doesn't work but the key is like on that other chart it goes below 33,250 that's the key to what you're looking at I haven't checked to see where it is one of our friends in the den will tell us where the Dow is where is the Dow Jones trading right now folks around 34,000 probably where is the Dow index itself 34,000 okay well you've got another 600 or 700 points to really be afraid of because it gets below 33 shut the front door and raise the rent it's going to be a very good thing to look at that's when it gets really really crazy and we don't like crazy we like things that are really easy to do and that's why the danger signals are out on this we see it happening in some of these commodity markets also it's really amazing look what happened here to the E-mini S&P here just the other day here this was happening on the 24th that was just a couple of days ago we had the big drop and that 382 retracement the high that day should have been 4440 and guess what that high was that day folks 4440 and it's trading down below 4320 right now so there again you got a market that is telling you be really careful from an old movie you know be afraid be very afraid and I'm just saying these patterns don't work all the time but they work more times and they fail and that's why you really want to pay close attention to them because it's very important and let me explain to you why the statistics behind this are so very important when we had the first drop in that S&P which was down on the 24th I want to bring this to your attention here so you'll be able to get a pretty good idea of what we're looking at right here and let me see there's the first one where there it is right here this is what happened when the market broke and this is important because these algorithmic people watch this this was the break you'll see on the 24th we got down to one standard deviation and the market immediately reversed ok now what happened last night unbelievable you can't make this stuff up it's just really exciting because I see it happen all the time here is the same situation when we had the market come down you'll see the first standard deviation came down again folks if we go below that standard deviation one more time boy oh boy this is where the option option people the guys you know they're six seven times the size of the stock market that's where they have to change their strategies they have to start covering positions and believe me when they start covering positions they're not worried about what price to get out at just let me out and that's the other thing you have to worry about with these markets with all these TFs if we could get a lot of people starting to come to the well at the same time we could easily see a downdraft and believe me the people in the investment business they love these downdrafts because the public is selling getting out at any price and at a much lower price they'll be looking at them and that's what we want to be watching for if this happens so the other alternative maybe this is a major high of this move that's been going on since 2009 we'll be right back we'll cover some fang stocks when we get back 877-927-6648 and round yourself with these sharpest minds in the trading world subscribers to the tiger's den are also the first to have their questions answered live on air and can privately chat with our TFNN hosts live during their shows interact with other tigers and tigers as they share trading ideas news analysis and discuss the market action all trading 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become the investor you were born to be TFNN Educating Investors you to scan thousands of stocks for Fibonacci formation setups including Gartly's, ABC's, Butterflies and much more. The art of timing the trade charts is designed to help you when scouring the markets for stocks just beginning to form the trading patterns that many investors spend days, weeks or even months searching to find and right now we're offering licenses available at only $79 a month we are so confident that you're gonna love this new charting software that will even give you a 30 day money back guarantee. Don't miss out on this incredible new piece of software get your copy of the art of timing the trade charts today by visiting TFNN.com This segment is brought to you by Think or Swim for more information just click the Think or Swim banner on the front page of TFNN.com Ok folks we're gonna look at a couple of fang stocks here because it does a couple of fangs it shows this you can see Tesla here there's two turquoise triangles there's nothing more than the ABCD pattern these patterns can be found in Tom's award-winning book very very popular timing the trade and he focuses on these patterns gives us a pretty good idea of where we're going but as you can see here I don't know where the price of Tesla is right now but as you notice here that the pattern that we were looking for said it should get down to about $800 it can't be very close because last time I saw it it was like $900 or something someone could update me where we are with Tesla we're almost at $800 shut the front door and raise the rent so that one worked relatively well I don't trade stocks folks I'm just giving you the 10-4 on this now I wanted to show you a couple of others here this is the weekly chart of you're gonna see it's had a heck of a correction here this is the weekly chart of Netflix and as you can see we're looking for support to come in somewhere around the 350 level we think that should be a pretty good correction and this remember this was done quite a while ago so so far it's running true to form now if we look at Tesla on a smaller time frame look what's happened here just in that you'll be able to see the ABCD patterns as Tesla is making its high up there around $700 you know we're in half now it's dropped in half in a matter of two months that's not a good sign but things are picking up maybe this virus thing will be over in a little bit making it a whole lot better for us to look at some of these things by the way if you have any questions it's 877-927-6648 I'd be happy to answer them for you and if I don't know what it is I'll make something up let's take a look here at another one here the one of my favorite stocks of all time and that is the I had to change the name of it I think they were afraid to call it what it was faceless no not faceless Facebook just drive safely Shane Shane was listening Shane Smolian one of our favorite contributors here TFN is on the picking up his son from school and it's listening to us on the old Jackson Jackson take good care of your dad tonight buddy I know you're a day older but that's okay you're still a little boy you'll notice here in Facebook the pattern that we had with the ABCD pattern there that was way back in September when it topped at 385 it's trading below 300 today and you notice here this market has been in a really pronounced downtrend here for the last three or four months telling the folks that maybe some of these tech stocks have been overvalued and we've seen that in the NASDAQ by the fact that it gives so much of it you know away each day I think it's holding its own right now as I recall yep it's starting to hold its own that's a good sign that we might be able to put it together here for the end of the day and we'll see what's happening but we had another day with a market you know tried to rally and it still could rally this last half hour but frankly it's it looks getting weaker and weaker as we look at it now let's look at one of the all-time favorites here this is the daily chart of none other than Mr. Appel who's down by the well get this up here okay this is uh this is Apple you notice here that we were looking for support to come in somewhere around that the 162 level and what happened was that day Apple gap down below that level and that was why it was so very important let me explain to you why there was a possibility that it could gap down below that what we do is we go down and we look at a four-hour chart so that tells us where we are in the sequence and as you can look here you'll see all of these patterns completing down here 162 well when that market opens you know a half a dollar and it opened a lot lower than that it opened down to about 159 that that tells you that there's something seriously wrong so if you got the big daddy rabbit the one that's been the best for the last well forever since 82 I guess 84 whenever it was I think 82 is when it came out but this has been a heck of a stock you know multi dollars in cash and everything but they're having a little trouble with supply chains like everybody else but that's where all we're doing is we're just looking at the price charts trying to get an idea of where we are with some of these things so that's I think it's very important someone just posted a book David White just did about the short history of financial euphoria by John Kenneth Galbraith in 1993 I happened to have met him when I was doing my master's degree in Indiana finance and he came down to talk to us about the speculation and everything and one of his favorite quotes was from that presentation was he said we were in a graduate school for two years and he said kids he said you know you learn more about going short a contract of soybeans and you will in these two years that you're going to be here so and he was probably right anyway I was just beginning trading back time back in the early 60s but I remember the quote really nice fellow and really very nice to meet and here's one that's got big troubles folks and it has had trouble for quite some time this stock this was done on Sunday and it's had a huge break from that level and that's Amazon you'll see it had the huge break of a little over $150 last Friday and I know it's continued down I don't know where Amazon is trading right now but the minimum objective would be around $254 in Amazon and if someone would be kind enough to tell me where Amazon is trading today I would certainly like to know that but where is it that is it too well it's still ahead it's almost close to that level but it's still got another few hundred dollars to go just looking at these charts watching it and then we need to look at soft this is one that is really has come down and should have held this level at $296 that was a really big spot I think it has held it for a few days but anything below $296 in Microsoft tells you're going to drop another you know $20 down to $279 so if it can hold that $296 and I believe it has it's $299 last so it's certainly done that so we still have a possibility the stocks could hold this level but folks go below that level that we were talking about earlier and that is $33,000 in the Dow that's another thousand points from where we are right now you don't want to be in that because it's going to go to $3,100 and that's $3,000 points in the Dow and it could do it very very quickly you know we got enough things out there we got COVID we got the we got what else we got COVID we got the Ukraine situation we got well you just pick one out you just whatever you want to look at but any of those could you know flare up and you can be looking at just the movement in some of these financial markets could be enough to make it you know make it you know very very scary now the strongest of all of these stocks has been Google and as you'll notice here even Google I don't know how low we got in Google this week but it said we were going to go down to about 25 2520 and someone could tell me the last price in Google did we get anywhere near 2520 this week we only got one more day to go but that said we should get pretty close to that this week 2520 in Google and where that is now I don't know but someone's going to tell us soon there it is 2592 we're only 90 bucks away so we're getting close in that one too so this is going to be interesting whether these things hold as we come up this week because we got a lot of things going on that will make it you know very very important to look at so I hope that helps you as we're going through looking at some of these things I think we have to pay a couple of bills here for Mr. O'Brien and the Tiger Financial Network in the year of the Tiger which starts on the 1st of February the full moon up the new moon and then we'll be right back 877 927 6648 Are you in the market for buying or selling real estate in the Tampa Bay Area including the surrounding St. Petersburg Tampa and Clearwater markets Tiger Real Estate LLC is a firm that has extensive experience in the Tampa Bay Area whether you're looking to sell your current property for maximum value or you're in the market for a second home or investment property Tiger Realty has the experience across all areas of real estate in the Tampa Bay Area to help buyers and sellers make the most informed decisions across all price levels from the price you should be paying per square foot in certain up and coming areas to the type of cash flow investment properties are capable of creating Tiger Real Estate can help you make the 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services LLC 1-8 Tom O'Brien okay folks Larry Pesimento for Tom O'Brien in the year of the tiger I have put up the charts of the Dow Jones e-mini contract it mimics exactly what the Dow Jones is doing you can see here from the 13th of January two weeks ago you know we came down hard into the 24th and then we've had a nice little three-day rally 25 26 27 here's where we are today if we go below this low at 33,400 we're only we could do it today but I don't think we will if we drop another 600 points and close there on Friday you do not want to be long market and I'll tell you why for two reasons one this pattern that we're looking at but the second reason is it's historical the last time I saw something like this was in October of 1987 and I saw this started this pattern that was completing on the second of October okay this one we're looking at right here and I bought put options on the second of October right on that high that we had just about two days ago okay and what happened over the next two weeks was known as the biggest buying opportunity the stocks had ever seen in any decade of with the 1980 in it but it was also known as the big crash we dropped 16% in the Dow in one day now they've got safeguards against that happening but there's a lot of people out there Millennials and edits reddits and all these other people that are not old enough to shave they've never said through anything like this and history has a tendency to wake people up and say hey look at me I've happened before maybe I should happen again maybe it won't maybe it will all I'm saying is just be very very careful if we close below 33,400 tomorrow especially tomorrow and if by tomorrow we happen to be closing below 33,000 man you just don't want to be there when the Chinese markets going to be closed all all next week because of the you know the Chinese holiday that's the that's their new years and they don't have a one day party you have a five day party so you just want to be very very careful maybe it won't happen you know maybe it'll go down and fake everybody out but I don't think so and I've been doing this a long time I I put my first trade on in 1959 and you know I've been doing a lot of things since then but I've seen these before and it's just a pattern markets go up and down and they do it in you know natural sequence but like like I mentioned before you know it's not it's not really worth your risk if you just look at this pattern that I that I posted earlier on the Dow Jones on on what it could possibly do I mean it's a it's a little scary and in fact it even scares me and I'm fearless so let me find it again so we'll be able to see it where is it I did I lose it again I have a tendency to lose a lot of things these days hold on one second okay nope that's the one for the S&P I've even done that one where is it let me look a little bit tiny bit closer here and we'll be able to see it I hope I know it's here because I haven't deleted anything and I'll find it somewhere well I guess I found it there it is nope that's not it I want to show you I've already showed you the Euro on that one I know I have not there it is I found it I'm sorry boys and girls here it is right here this is the Dow Jones here's where we are over the last you'll see the three-day rally you see that little three-day rally bada bing bada boom you see if we close below 3300 33,000 that's got a target of a minimum of you know 10% lower and you don't want to you don't want to do that that's just a really tough thing to do so let's remind ourselves just be very very careful and I think that's a very you know smart thing to do so those are the few things we got a lot of other markets you know the hurt not just the you know the Nasdaq has brought everything down but other things are getting hurt too so you've got to be very careful and there's another reason why you need to be very careful and that's this one right here which is many many times that's one of the other things that we're looking at here and that is the Treasury notes and Treasury bonds we're going to look at the Treasury notes here first here's that there's the ABCD pattern right there you see that little rally that's where we that's where we are right now in the Dow Jones were down a little bit from there so we're heading towards point D down there 125 that's what we're looking at so the same thing we're seeing in Treasury notes we saw it in the other was a daily but the patterns are still there they're valid doesn't make any difference what it is all the markets act the same you know they you know people don't understand that but all the buyers and sellers are all the same fellas that's that's really what it amounts to now if we look at the Treasury bond market here's a perfect example again of that pattern known as the ABCD pattern also featured in Mr. O'Brien's book you know what is it called timing he and David White put that together and it's a beautiful ABCD and that also if you look at that pattern on a much look longer term basis you know you'll be able to see that it will be hitting a whole lot lower just like we looked in the Treasury notes only what's happening is it can go a lot lower we got bonds trading about 154 right now we broken that support folks because of what the Fed did this week that sets up a price level of 129 that's the ABCD pattern that we're looking at here heading down towards 129 so that's why you've got to be alert to what's going on with these markets because by golly you know they can they can turn on a dime as we've seen many times but now is the time we've got to be you know extremely careful and I think you got to really be super careful here if you want to see a chart that should scare you look at the this is the weekly chart folks of the Russell 2000 index look what's happened here in the Russell I mean look at that big down move now if you want to be afraid go back and look in 2020 when we had a big down move like that in the Russell you see similarities there back in February of 2020 and where are we now we're going to be in February on Tuesday so let's be careful you know that's that's all I'm trying to do is to give you heads up here and there but as long as we can stay above that 34,000 33,000 you know there's no there's no danger but should we get in an area where we get way above that then you don't want to have anything to do with that puppy trust me on that one oh my old favorite word trust me yeah I've heard that a million times in these markets so they just they're just acting very poorly folk now let's get back to why this all could be happening and that could be the fact that we're having a lot of trouble in the foreign exchange markets and that is because of what's happening with the dollar again if I put up the euro which is 53% of the dollar index you'll see here again there's that same ABCD pattern getting ready to move that's the things that can make it really jump around in 1987 crash it was a deutschmark that did it and then the Japanese yen secretary Baker was over in Japan and he walked out of a meeting and he said the words that they couldn't come to a conclusion and boy that's what did it that's the market the Dow Jones gap down I think down about 50 or 60 points on the opening remember the Dow was trading at 2600 and it went all the way down to 1600 and 60 which was a 61% retracement of the 1982 low starting the biggest bull market of the 1980s which was on October the 19th and 20th of 1987 so hopefully we're going to see some really wild moves that we'll be able to buy and sell do both ways but right now the looks like the bias is just tightly slanted to the right side of the of the ledge and could change tomorrow just like it's done the last three days it's come back every time there's been a battle going on they run it up and they can't get above it run it up and they can't give it above it and pretty soon they're going to get tired my opinion only boys and girls my opinion only we'll be right back 877-927-6648 sharpening your skills as an investor is like getting better at playing a musical instrument you have to practice sure but you also need excellent instruction from experts at TFNN you'll get advice and guidance from the authority and technical market analysis and it's not just dry tedious text either TFNN airs live financial content streamed live on tfnn.com and TFNN's YouTube channel with Tiger TV live every market day from 830 a.m. to 4 p.m. Eastern for free each host is an experienced trader and gives their take on the market while taking calls and questions live from around the world from the moment the market opens until the closing bell sounds Tiger TV has eight different shows with expert hosts to help you make the right moves with your money watch online at TFNN.com or on TFNN's YouTube channel and become the investor you were born to be TFNN educating investors you might think that if you want to be successful at trading 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the market was stopping at that time but I've been writing this letter for 15 years now but if you'll go back and look at 2009 if you'll notice the first little white triangles that are there this is where we are in the market right now my friends I really believe it you'll see the two white triangles there there's the first one and the second one I think we're getting ready to go down to make the second one for another low coming in in a few months but the key to remember here is that you'll notice how the market just rallies a very short distance in that little tiny ABCD format just like we did in both of those just like we're doing now and when that breaks here be careful so that's all I'm trying to tell you you got to be really really careful with these markets because they're very volatile when you see that Dow Jones can move $14, $1500 a day every day for three days are you kidding me people are scared hey raise my hand I'm scared too so you know it's you just got to be really careful these days folks you do that by using stop placement and when you see a market rallying really strong you say well I got to get out of the way here this is not working and try it again that's what patterns are for it's all about risk control folks it's not about the money that you make it's about the amount of money that you don't lose remember the slot machine nowhere in the slot machine does it say I've taken in more money than I've given out no way that you can ever beat me long term and over the past year I've taken in $500,000 and I've only given out $350,000 nowhere do you see that in any of your stock material that any of the people send you about risk control so you have to do that yourself you have to focus on what you're risking and not what you're making that's the real key to what we're watching here in the market we got one more day to go to Friday remember the thing to watch is $33,000 in the Dow Jones live every day in an attitude of gratitude and may God bless folks see you on the flip side