 The ones who all put your hands together and welcome our host today, Melissa Armo, www.thesports.com. Melissa, please take over the microphone. Everybody can hear me? Let me know if everybody can see the chart here today. Okay, very good. You should see a chart of CMG. So, plan a vacuum today as I'm going to do something a little bit different here. Instead of talking with a PowerPoint today, I'm going to talk about charts. The topic for today's webinar was to learn a strategy that you can use to short to make money in the market. And how can you make money shorting? Well, you've got to find stocks that are dropping in price. The only way you're going to make money short is if you find stocks that are moving lower. And so that is very, very key. And interestingly enough, even though I'm not going to talk about going long today, you can make money going long. And I'm just going to show you briefly here the chart of the market because it had a really nice bullish move today. Actually, look at this. We've got over 249. Anyways, I'm going to talk about the market here before I start into the shorts. Because once you learn how to spot weakness, once you learn what to short and become an expert in shorting, which I am, then you will also more easily be able to see longs are what's bullish or particularly what stocks are strong, or in the case here of the market, which is the spiders, what ETFs are strong. This is an ETF. So, I think it is very important if you want to be successful trading to have a focus. When I first first started trading, I ended up doing gap and it was a gap that was trading lower. It was a short and I made a lot of money and that's how I got into shorts in the first place. The one thing that I love about shorting stocks, whether you do options or swing trades or day trades, is that when panic comes into a stock, it can happen very, very quickly, almost like a train wreck. Like a train running out of control type of action and that's selling. Now, let's look at here at this. This is CMG, Chipotle. This stock has fallen almost completely straight down vertical ever since all the way back here in June. In fact, let's look at the whole chart here where the previous high was at one point. 2015, everybody knows this place. It's a restaurant. They're all over the place in New York. Looks like this got up to 758.49. This is all the way back, summer 2015. Now, that was a very high price for the stock. What did it do? It had a gap down that happened here then in the fall of that year. If you see where this is, I squished these bars together here because I'm trying to show you something. If you knew how to read gaps, and I'm going to go over what a gap is here in a moment, and I'm going to blow this up so you can see the bars better, but if you knew my strategy and how to read gaps, you could have traded just this one stock to the downside a ton of days in the last two years because really this was like the fall of 2015. It's September 2017. You could have done this stock. You could have bought putts. You could have shorted it as a swing trade. You could have done a million day trades in this. That would be the right thing to do. Going long anywhere in here would be almost a disaster because the stock has collapsed. It has lost actually more than 50% of its value in the last two years. Now let's go back and I'm going to briefly describe to those of you that are brand brand new what a gap is if you don't know. I'm going to go back to that one that started the whole thing from two years ago. Now this is a daily chart. We can see the candlesticks. Here it was. So this is two years ago, 2015. The stock ran up here. 758.49 was a high in August. The stock gap down. Now if you don't know what a gap is I'm going to tell you right now. The stock closed here the night before. The market closes at four o'clock eastern time. Closed at this far here in the night of. Was 705.63. Boom. Then a gap down. Now what is a gap down? Or a gap up but we're just going to talk about gap downs today. When a stock or an ETF closes at four o'clock and opens at a different price the next day at 9.30 that's a gap. So this could close at whatever I just said 705.63. And open at any price lower than 705.63 would be considered a gap down. Now in the case of this guy here. It got down an open where 665.67. So that's pretty noticeable. Okay. But I want you to see something here. I'm going to blow it up again on the live day. The stock rally day. Actually know the open was 650.60. I was looking at the close. It opened at 650.60. Rally up. Closed at 665. So the stock actually gap down 50 bucks plus from the open. But it rallied on the live day. But guess what? It fell then every day since. So this day here in October 2015. The day in the morning when the stock opened in the gap down. And again, let me get the price ready. It opened at 650. On the day it rallied. But it wasn't a buy. Now if you went long this on this day particularly on this day. Could you have made money theoretically as a day trade? Yes. Would that have been the right thing to do? No. Why? Because you would have been watching this to short. Now whether this would have rated well per my system to short or not as a day trade. Or even set up intraday. You don't know until the stock opens in trades. But do you see here how it really was a short? Okay. And anyways, I'm not going to go back in time here this far back this many years. But it would have rated well as a gap. As a gap down to short. And if you had looked to do it. You would have done it as a follow through trade the following day. It sold off like freezing. And then it broke. And then it gap down again and gap down again and gap down again. So I'm trying to show you the transition here what happened with this stock. And why am I using this as an example? Because shorting is something that can be extremely profitable. Because when panic comes into a stock. It kind of almost never looks back. Unless. Unless what? Somebody try to finish my sentence here. So you understand my logic train of thought. When panic comes into a stock. It goes out of control until or unless what happens. Anybody want to guess? Don, what do you think? When panic comes into something. It goes out of control to the downside. Until what? Gala had. Guess. Somebody. Battery. Here we go. Eclipse trader has a guess. Reassurance that big money is buying it also. That's a very good answer for a new person. A plus plus to eclipse trader. Who signed it for the class this weekend. But hasn't even done the class yet. So obviously eclipse trader gets the concept. Bogey says it hits support. But Bogey, there's a bazillion supports. How do you know which support is going to hold? This day here it held this support. But it didn't last long. Broke it, broke it. Gap down here this day held this prior support. Broke it, broke it, broke it. There's like 100 gazillion supports. So no you can't say until it holds support. Because how do you know which support it will hold? And I'm going to go back to the market in a minute. Because it's a good example of the opposite of this chart here. Of the opposite. And again, go with my train of logic here. If you can see weakness and learn to read that really well. You're going to be able to learn strength well too. Okay. So it's the opposite. But it's the thought process of what you're going to understand when it's not coming in. When the buying isn't coming in. Which it wasn't coming in here. Okay. Barry says overshould. I'm not sure what you mean by that. Daryl says exhaustion. I think him and Barry are thinking the same line of thought. But again, how do you know when that is? Let me just blow this up again here to today's. Because this thing here. And I literally haven't looked at this for a little while here. I'm just looking at this today. This thing here. Do you think this is exhausted here? Barry and Daryl. Do you think that CMG cannot go any lower right now for the near short term future in the next couple of days or weeks? Do you think that this is exhausted? What do you think? Barry, do you think it's oversold? Let's look at what happened today. The stock fell on Friday. Gapped up today with the market rallied. Barry says no. No, you don't think it's oversold? What determines exhaustion? Do you see it's like, it's too, you can't determine that. It's too indeterminate. It's too willy-nilly. It's to your opinion. It's to anybody's opinion. You can't train based on what you think is oversold or overbought or exhausted or can keep going. You've got to actually be more specific. Which is what I do. Which is what? I'm looking at the stocks that are gapping. Particularly, if we're just going to look at CMG tonight here, I'm going to look at the gaps in this chart. Which we're going to talk about. Which there was a gap on Friday. There was a gap back here in June. But let's go back to the one I was talking about earlier that started the whole shebang from two years ago. I have a system where I'm looking at the gap. The gap is a strategy. And by the reigning system that I look at, and this is what I teach in my class, I'm making a decision based on the points. If I think it will keep going lower or not. So I look at 26 points in a chart. If it's gapping down and it rates 20 points or more, chances are high probability that the stock will continue lower. Whether it's on the day or lower the chart in the big term picture. So that's how you know how to get in. And ultimately, the concept of trading, no matter what you do, is very, very simple. Which is, if you're in the right direction, you'll make money. If you're in the wrong direction, you'll lose. And the sooner you can get in the trade in the right direction, the more money you'll make. Because if you're chasing something up, or you're chasing something down, if you're chasing it, you may have to have a quick, quick, quick exit. If you get it late, or you may have to have a terrible price. And even if you're in the right direction, you may have to hold it long for a bigger move for your risk to reward to be there. So, you know, conceptually trading is something that's easy if you get the direction right, but you still have to get the entry right too. And in this case here in the CMG, you had a beautiful entry the day that the stock gap down. No matter where you got it, but you had to wait to get paid because the stock didn't start to fall until the second day after the gap. And it didn't really start to get going and pay you until one week later. But it didn't take that long. And then it broke, broke, broke and fell. Now this bar here, which is a monstrous one here, I don't even remember the reason, but the high of this bar here is 614, low is 534, this is insanity, okay? 80 points or something here. This is not a gap down, but this is a huge sign of weakness in the chart, okay? And if you just look here, the stock has never gone over the high of this day. So this day here was around high of the day 614. The stock has never gone over the high of that day. So this is follow through of the selling from the original gap. You wouldn't have played this here as anything, but it would have given you the conviction to know that it really had more into it. It had more leg to go, that there was no exhaustion yet, that it wasn't holding any of these areas here that Don was talking about. Let me see the questions here. It depends what you use to indicate exhausted. Nothing. You're not going to make your trading decisions based on that. That's what I'm telling you. If you make trading decisions based on exhaustion, you're going to get tripped up because there is no such thing. It's a matter of opinion. It's like if I say, oh my gosh, this is a beautiful, fabulous weather we're having here in New York. It's lovely. Some people may go outside and say, this is so cold. It's freezing here for this early in the year. It should be hot out. It should be much, much warmer. I have to wear a jacket now. This is too early to be this cold. But some people might say, oh my gosh, this weather is fabulous. It's a matter of opinion. It's like if you, it's whatever you think, because a lot of people here, I'm sure, and I'm going to go over here to this one here, because it really had a collapse into 2017, which some of it was earnings gaps, and some of this fall off in this stock was news stuff. I don't even remember. Like people eating food and getting sick. I don't even remember all of them. But the big, big, big collapse really, this was this year. So here was the gap down. I'm going to talk about this one here that happened. This was in June, June, July, August, three months. This stock in three months has gone like that. So anyways, to make a long story short, going back to what I was saying, you don't make trading decisions based on exhaustion. You make trading decisions based on a strategy, and that's what I'm here to talk to you about today. No matter what decision you take, whether you go long or short in trades, and I prefer to short, which I'm reviewing with you here too, and I'm going to explain why, but whatever you do, you have to have a strategy to do it, and it can't be based on your opinion of something that is so subjective that somebody else couldn't come to the same conclusion. Because if somebody here would look at this and say that this is probably exhausted in a drop-off, I would say I don't feel that way at all. I would say looking at this here, this clearly looks like it's fine off a cliff, and based on that, I would never, never go long this. Also the idea, even if we could all agree, let's just say we get up tomorrow morning and this stock is gapping down at something crazy, under 200. He rolled out of bed tomorrow morning. CMG is at 200. Another person got sick. Somebody died, let's say. Something horrible happened and the stock loses 100 bucks overnight, which absolutely could happen. It could lose that much overnight in a gap from something, bad news, earnings, whatever. But anyway, say that that happened, would you say it's exhausted then? See, you know, everybody would have a different answer, but the point is, people play exhaustion in the reverse, meaning that they'd buy it. And somebody said in here about buying support. Well, 200 is the supports. So here's the support in here. Find out. Right in this area. So would you buy the stock there, though? Would you think it'd have a bounce? Would you want to buy it? Would you want to buy this stock here if it gapped down to 200 tomorrow morning because five people got sick eating enchiladas at, you know, at the restaurant, loses 100 bucks overnight? You think then it's exhausted. It can't possibly get any more. Would you buy it? Would that be the right thing to do? Bo, you're saying today went up a low buy-in. So it looks like it's to keep going down. The only reason that this rally here today was because the market gapped up. Otherwise this probably wouldn't have even done that. Anyways, okay, let's go back to the original gap. So why short? So let me just make sure I got the one point I was trying to say. Exhaustion is in a strategy. Buying support is in a strategy. Of course you're going to look at things like support, like moving averages. If you can look at something and feel like it's already had a move, you could say, well I don't want to do this maybe because not because it's exhausted, because it's already had a big move, you don't want to chase it, and you choose to walk away from the trade. But it doesn't mean you're doing the opposite direction. And it probably could keep going anyways, even still, okay? Anyways, selling action. Getting back to my original question, which Eclipse Trader did answer correctly. When selling action comes in, it keeps going, going, going, going, and till what? It keeps falling off a cliff with a panic until something tells you that it's going to stop going down. So do you get it? And Eclipse Trader's answer was again, reassurance that big money is buying it also. So you need to see that coming in. That gives you the confirmation if you'd want to either exit this as a short, if you're in it for a long-term short, let's just say you're in a swing trade short in the CMG, or if you were short puts, you'd get the confirmation if big money came in, institutional money came in to buy it, that it was turning around. You'd either exit your short or you could buy it. Now I'm going to go into this one over here because this is a good one today to discuss, which is Tiva. Tiva, Tiva had a gap down here. Just a couple of weeks ago, a little bit more than a month. Again, panic selling. Do you see this here? How do you make money? Getting the trades in the right direction. In the case of Tiva here, the stock closed the night before a gap down. You would have raided the gap using my system if you did my class and were a golden gap course student and it would have told you, hey, this could set up as a good short. You watch it to take it to trade it on the live day. You see the gap in the morning pre-market and sometimes you see them at night. Anyways, it worked as a short. Followed through here. Kept going down. Fell, fell, fell, fell, fell, fell, fell. Low in here was around 1522. Yes, 1522 was a low. So Tiva looks to me like, well, it's getting selling. It looks weak. Now today, Tiva had some news. Some kind of trial thing or whatever. And the market gapped up. So Tiva gapped up today on positive news, I believe, and it also gapped up with the market and it had a green bar day. High on the day was 1924. So what do you do with this here? Again, how do you make money trading? Well, if you shorted this today as a day trade, you didn't make any money. This was not as short today. But would you have wanted to go long this? Like you can't ignore all of this situation here. Okay? Now I want to show you something interesting about the intraday chart of this of the Tiva. Here, I'm going to show you. Here's the 15 minute. This is the rally up in the stock. Hit a point, fell, fell, fell, and then flat line and pitted off. Right in here. Now where does this go after this? You say Melissa, where does this go? Well, right now the chart still looks lower. Did it have a lift today? Yes. But again, going back to what I was saying, about shorting and what's happening, things fall, fall, fall, fall, fall, fall, fall, fall, until they fall off a cliff. Okay? The panic comes in. The panic keeps coming in and the panic isn't over until when? Until something's telling you that the panic is over. Do you think the panic is over in this? Somebody answer me. It's stock outduped up today. It rallied on the day. Do you think that everything's fine now? It's sunny days ahead for this stock. Is the panicking over yes or no? Gallowhead says not yet. Anybody else? Bogey says no. Doggy says no. Anyone disagree with them? I don't think that the panic is over yet in this. So I would agree with the people that answered. Okay? Darryl says no too. Eclipse Trader's saying, don't know unless you see the follow-through. Well, that's right. You're going to wait and watch and see what happens here, for example. Okay? Now what if the market rallies tomorrow and it's green tomorrow and gaps it again tomorrow because the market is such a bullish state today? Could this follow-through for a second day? Yes. But is it going to go anywhere? What's really going to have the people coming in? Were they just stepping like a monster? Here, I'm going to blow this up. This is like, and again, I'm talking about shorts today, but I'm going to use examples of monster buying too to show you. So you can read the difference here so you can understand what I'm talking about. Big money comes in like a monster. So this isn't a monster. It's a move. Okay. It got the stock I bought up today. It did. Okay. I wouldn't have bought it. But anyways, this here is, see, this is a monster. The stock closed here. 3125 gap down. Boom. Open at 2575 and fell all day into a dream target. Almost got to 23. High of the day was over 26. Stock dropped $3 on the day. Dropped again the next day. Gapped down the next day. Fell hard. Fell almost down to 20. A $6 move from the oak, from the high of this day to the second day and from the previous day, $31 move in, you know, 48 hours. Boom, boom, boom. So this is a monster of the selling. This isn't a monster over here. Okay. And even if this has another little rally in here, it still wouldn't look like a monster. And also here's the chart. This is the chart you're looking at here of the stock. So you can really see when I squish the bars together, the more data I squish, you can see what I mean by the power of shorting and panicky action to profit. If I could make it smaller, but I can't. This is as small as I can make it. But you see how this is almost like, if I even squish this together more, it would almost look like one line down. It would almost look like... It would almost... Shoot, I don't have a thing up to draw on. But it would almost look like, I could almost draw a line that would almost have no bend in it. This actually has no bend in it. Look, it just went... It just went like that. Look. In fact, before today, it had absolutely no bend in it. Here, you can look at the moving averages. The moving averages kind of depict it easier. And these are just drawn on here. You can see it just went... And it went like that. Now, let me go back to this one, too, because this had a bigger move. Let me squish it. Going all the way back two years before, this, again, if you're an overnight trader, if you're a day trader, similar concept, the strategy that I trade and teach can be used for looking at transactional bias in any stock or ETF. You're playing it based on the gaps in the correct direction if the gap rates well. And in this case here, you can really see the power of panic. Selling action. When a stock has made just a tremendous lift, a tremendous move, and then takes a fall just ever so quickly. As quickly as it rallied up, it lost it all and fell. This is done yet, either. But, you know, you watch the gaps, you rate the gaps, you could have shorted this on Friday a gap down, and it had a nice, nice move. And you could be in this for a long-term trade. So the key to making money in shorts is to finding stocks that have a panic look to them, that have selling action going on in them, that look like they are going to need help and that the help isn't coming. And that's what I'm saying about the Tiva and even the Green Day here. This isn't help coming, and I'm trying to break this down to talk about it in really common-sense terms. This isn't really help coming. It's like these stocks need a savior. It needs somebody to save them. They're drowning. That's the best way to describe it. Does anybody have any questions about anything here that I'm saying at all? Now, I'm going to go over to what I was talking about earlier about the spy. And if you have questions, ask me here. Now, again, shorting makes sense because the moves come in big and fast and swift. You can make money going long, okay? The reason shorting is fun, though, is because in fact that the moves can happen very quick. And if you're day trading and you want to trade just quick trades in the morning, you can be in and out fast. And we're going to look at some one-minute charts here in a minute. But I want to go back to this idea of seeing something and then flipping it, okay? A couple of weeks ago, not even two weeks ago, before all this happened, this was back on here. It was a month. This doesn't look like the gap in CMG or Tiva, but it is a gap and it is valid for you to look at to actually watch, to check out or to rate, okay? So the spy had a close here at 2.4694 on the 16th and then it opened in the morning, gapping down at 2.4624. The market then power trended all day on this day and closed at the low. In fact, it closed exactly at the low. The low and the close were the same number, which is extreme weakness, 2.4309. It followed through here on the next day a little bit by gapping down and falling a little, little, little. So then you had to watch it, but then it didn't and then it recovered. So do you see here where you could be gapping this thing and you could have shorted the market on the day as a day trade. You could have and if you did, you made money. Now if you were doing my system you would rate this gap and you would determine if the gap rates 20 points or more for you to short it. If it does, you could look it for a setup intraday, okay? But as far as the follow through, you did have panic on this day. Then you had a little more panic here the second day down and I remember even looking at this and saying well it will be interesting. It will be interesting to see where we go here. This is really a tell-tale side for the market. It will be interesting to see what happens next. But see, nothing did. We retraced almost 100% of the move that happened then. And see going and looking at the TVA I'm just going back to these two other charts or what you've been talking about. That has not happened here at all. Number one. CMG that hasn't even even remotely happened here at all on CMG, okay? So going back to this do you see how it was just a temporary you didn't have you didn't have that panic following through you immediately had somebody saving you or saving the spy here. Really this to me wasn't panicky but a lot of people read it that way and it could have I mean it could have. We could have fallen all the way down all the way down in here. We could have fallen 30 points. 20 points. 25. But I really would have been surprised if we did that. But anyways it could have. You don't know. This happened immediately where the saviors come in and it retraces. Okay so then that tells you that no reason to panic don't have a you know conniption but a lot of people do panic. Okay whenever they see red and people also panic when they're in something that looks like this and I'm just talking about this chart this could be anything this could be any symbol in the world. This chart itself is a chart of the spy. Man we broke out today look at that chart we really are higher. But this is a beautiful chart. So people look at this though and any red they panic I'm explaining how people think not me but I'm saying people if you would be along this thing which is the spy but it could be anything any symbol at all you want to give it when people are along and they're up money and they see red they do sometimes tend to panic because then they wonder if they should get out and if this is it. Does this make sense what I'm saying? So that is why sometimes you have bars like back on the day of the 17th and you do have selling and the selling did happen all day in the day and you have it but it doesn't really go anywhere you just get the people that are very excitable and they are up money and they're taking the profits and they're getting the profits and they're getting out and when people are in things for a while sometimes they're in it and this chart keeps going and they say well this can't keep going and it can't keep going and it can't keep going but it does. But at any little sign of the red people panic because then they think well this is the end this is the top this is it I better get out now this is all over that's how people think they understand but that's not how people that are in charge of stocks and that move stocks in the market think Now any questions about anything I just said because I'm talking talking talking here but I think this is going to be a good chart lecture here for today. Does anybody have any questions about anything I just said here so far tonight let's go look at the one from this was two weeks ago because the room was closed last week for the labor day AMBA okay here we go now you understand this is great thank you I think so too alright let's go look at this guy here um this was back always was the first actually this was on this before the labor day so again have a strategy which cannot be exhaustion because it's too it's too opinionated and not based on enough reference that is something that could be replicated and duplicated and that two people or ten people or 25 people could come up with the same conclusion remember you know when you're doing something that almost every single person or every single person comes up with the same conclusion then you have something to make a basis on if it's too opinionated too much based on someone's judgment of something yes or no then it comes from their place of knowledge and therefore it can't be replicated where everybody can come up with the same conclusion because everybody's knowledge base is very very different if you come from a place where you're you're used to seeing things back up that fall really really hard then you will come to the conclusion exhaustion more so in play it than other people so it has to do with your frame of reference and that's why you can't trade on basic you know assumptions like things like that you have to have a set set system okay that's not to say that everybody doesn't have different variances because everybody comes from a different skill set when they come and learn with me but the system itself has every point and you go and you total them and you look at the points and you tally them up it's the same points so you add them up and that's it and that's how you follow my system it's not subjective looking at things like where this what support level it will hold what support level or what resistance level it will hold or what resistance level it will break it's too subjective because there's way too many on a chart number one and number two something like the idea of exhaustion as well it you can't you can't say it trading itself should not be subjective because the stock is only going to do one of two things on any given day rally or drop that's it you only got two options unless the stock is not going to move or it's halted stocks must move if they are open and live on the day trading day unless they're halted they must move they can only go two ways one is up and the second is down that's it so you only have two picks to play it long or short alright it's not subjective it's going to go where it's going to go and the person that's going to be right is the one that makes the prediction and takes the trade in the right direction and makes the money before it happens you know after the fact if you see for example the spy trading all the way up and blowing over the high today if you're looking at that at 12 o'clock noon today well you didn't have to be a genius to see the market was green on the day but you're in the trade very very late and may have a terrible entry or stop now let's get here to the amba getting back to the shorts it was a gap down so the strategy is a gap down and then you will rate it per my system to look for an entry stock close here the night before at 5440 open in the morning where again another monster beast opened in the morning at 4593 almost 46 so looking from here to here about eight bucks down and there we have it it's had a gap down and you would get up in the morning and you would look at the gap and you would rate the gap per my system determine what to do is it going to fall on the day is it going to rally do you want to go along it do you want to short it so my point system tells you that now let's go to the intraday chart and you can ask me any questions while we're here because it's just very free flowing here tonight because I think it's it's good to look at a lot of charts so this is a one minute off the daily now if you want to day train after you figure out that ambo looks good lower you say I like it it rates good for Melissa's system the system tells me that this has a high probability of falling today that the panicky action will come into the stock okay which it did so you watch it so what did it do 930 in the morning the stock opens has a rally in live live time the stock had a move up and actually it was almost above the stock rallied in 60 seconds which happens very fast but if you watch did it did then the next bar did what 931 again we're on the one minute chart off the daily it did not rally and it started to go red and then it started to go really red and this is all happening into 945 okay and then it fell fell fell all the way down again into 10 o'clock so I just want to show you here and again you would learn this in the classroom me if you came to do the class with me you could have shorted this stock now why would you have done it you would have done it because the gap rating system here in the daily chart told you that this stock has a high probability of continuing to fall on the day but you still don't get in it until it sets up you would learn the setups with me in the class anyways this did set up and it didn't rate good and you could have watched it as a short okay here again is the panic the panic panic panic panic panic panic and this is how you make money shorting on panic again you can make money going long I called the market long in the room today but the nice thing about shorting is that it seemed to just happen just very very quickly the market did move over the high today but it took a while to get there in fact what time did the market let's just compare because I just want to show you here again why shorting is so great 12 30 so 3 hours it took 3 hours for the market to have the big move today this took 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 minutes if you held it all the way down if you didn't you could have get out in 10 minutes we have this big action happen in 10 minutes the long bullish reaction the market had today took 3 hours and that's very very typical that's very very typical when you're going long you have to wait longer for the trades to go when you're going short you want to see the move quickly you want to see that panic okay but you still have to watch the right stock to do it still have to know to take the entry which are 6 different entries and you have to put stops but I want to show you here this was a really big move even if you got out in the first area the stock moved 3 bucks that's a huge move if you had a thousand shares of this how much money would you have made? $3,000 if you have 2,000 shares of this and you're in this drop and the first 10 minutes of the day and it drops $2 how much do you make? 6 grand the moves happened swift and quick but the real benefit is knowing knowing my system actually to know that AMBA has a high probability of falling on the day and therefore the only thing that you could possibly do to do anything at all is what? short it because you wouldn't go long it now let's look at the overall here does anyone have any questions about that? let's look at the overall chart of what's happening here we say gosh let's look at this thing 1, 2, 3, 4, 4 days up fell broke is it extended? is this exhausted? is it filling the gap? is it going to rally? is this done now? what's happening here? what do you think everybody? AMBA does anybody have any opinions on AMBA at all? risk the farm? if you had 10 million dollars would you go long and short it? AMBA AMBA AMBA Kathy you're cute thank you yes I will be on fox business on the 13th does anybody is anybody awake anymore? it's only 515 people have your caffeine somebody needs a coffee burst dog is saying 35 is the target gal ahead saying short if somebody here thinks it's going to fill the gap koala bear says short eclipse trader does not want to risk the farm in any direction which is always a good idea do not risk the farms the pigs won't have a place and the cows won't have a place to go koala bear says short Dara says short T says resistance can't get through which resistance where? give me a price number of a level of resistance you're talking about because there's a million resistances which resistance level do you mean? give me a number bear flag I don't play bear flags I pledge allegiance to the flag I don't play bear flags or bull flags I pledge allegiance to the flag of the United States of America that's the only flags that are in my vocabulary give me a number give me a number T anyways 46 okay so T thinks it's rallying up to 46 let's find 46 here's 46 so what do you think it's going to do if it goes there? hold it drop again go over it first of all if you day traded this here you made a lot of money second of all if you shorted this here second day down you made good money too if you did this as any kind of long term overnight short swing trade put trade you would have had to be out of half of this trade the whole trade or some of it why one of the targets was 40 bucks it got it if the third day down it reached $20 so if you did if you had done this for an overnight you had to get out of either the whole trade or at least half or more because it hit the $40 target before it even did this thing here in the last few days alright before it even rallied so you would have made money the downside here if you did that was the right thing to do let's just say you didn't let's say you did it as a swing trade you didn't get out of any in here you had in your mind a piggy target somebody said 35 if you had in mind a piggy piggy target of 35 and it bounced at 40 and you didn't take out any profit in the trade if you were up and if you'd shorted it at 46 and I'm just theoretically here if you'd shorted it at 46 and you swore 35 or bust you'd still be up in the trade it said 40 for 59 if you shorted it at 46 you'd still be up but you wouldn't be up as much as you would have been up when it was at 40 and you got within $5 of the number of the original number you had even though $40 really was a target Galli had saying it may rally up to 48 what if it does it may rally up to these United States flag number 46 and what if it does go all the way up here to 48 goes over the the area of the previous scap down the one that had the big move on the first goes up to 48 goes over 46 what do you think then that it's turned around that all the panic is over that everything looks beautiful and fabulous and amazing would you go along the stop then if that happened I mean if you were still in it to the downside obviously you would be down if you'd shorted it at 46 and it does rally to 48 but hopefully you would have killed it then and again no one should have been in this still through that drop into 40 but would you would you want to go long here then would you say all the panic is over Galli says no way well I would hope you would say no way okay and again this is just a sidebar here brings up another point and then I'm just going to finish up what I'm saying to answer any questions there's so many different levels of support and resistance in a stock 46 is a resistance level could it go over it yes if it does doesn't mean that the stock isn't low or no but if you did the trade and shorted it at 46 money management says that you really should have been out of trade into 40 or way before and if you didn't get out of it I mean the only thing you could possibly do would be to kill it at break even if it does touch 46 because you wouldn't want to lose in a trade that you were up $6 in that would not be good money management okay but it doesn't mean that the stock isn't going to break or go lower again and Tiva really is a better example because Tiva had this gap up today and Amber really is just kind of rallying but I'm sure some people will look at this today and say this is why I use this as an example too that the move in this is done or that it's exhausted or whatever they will say it for lots and lots of reasons one because it couldn't break 15 two because it did get up today in its own reason too it wasn't just the market it had news some kind of positive news alright and it didn't have a small move today I mean the stock actually rally more than above so you know that actually happened again I wouldn't have called this long in the river gone long yet because the stock still looks like a piece of crap where does it go from here you have to watch it and see but there's still plenty of panic in this alright and that when you're looking to short and you're looking to get in a trade and you're looking to play it no matter what you want to do and I'm going to go back to the CMG whether you want to go whether you want to do the day trades or whether you want to do the options trades which really in an ideal world you do them all but if you have a if you have a set time if your time is limited where you can trade where you can't be in the room where you can only be in the room you can't watch options I mean depending what happens with your lifestyle schedule right now to make money in the market okay either way you're the concept the strategy is the same as the gap and you're looking for if you're shorting something to play on the weakness to play on the selling action you're looking to get the direction right your targets will vary whether your day trade or doing swing trades or doing options okay but the most important thing that you have to do and think about when you're trading is getting the direction right and making money it doesn't always pay to hold something to a dream-dream target there are many many many areas to look at the spy today could have very well rallied all the way up to 250 I wouldn't be surprised at all if we got there tomorrow it looks like there's nothing stopping that from happening if you had if you said I'm not getting out of this day trade today until it reaches 250 or bust it did not get there you ran on a day it hit the high of the day at 12.30 face-based-based and held all afternoon which actually tells me I should do a market video this is unbelievably bullish from 12.30 until 4 o'clock the market traded in a tight range that isn't weak people reading a weakness that I've learned how to read strengths so well this is so strong the market traded in a narrow range in the spiders all day from 12.30 to 4 o'clock I would be shocked if we don't run up tomorrow it's almost like no matter what we do tomorrow is going to we're going to rally we could gap down a little bit tomorrow rally we gap down a little bit into the barn rally we gap down a half the barn rally we grab a neutral rally unless we gap down and fall all the way down to something crazy I can't see us not rallying tomorrow for almost four hours today the market traded in a range of it looks like 20 cents and that is not a sign of weakness that is a sign of strength so the market is digesting all of the buying coming in here if people wanted to sell they would have nobody should the market got bought and kept going and then stopped nobody got out do you see here what I mean there's no panic here none not only did the market gap up and have a nice move up and then a big move on the day went over the high no one panicked thinking that it wasn't going to keep going they said fine and they're waiting for it to go to the magical number of 250 and blow see you see how this is not weak and this is actually weak so this had a move up today time of the day that this hit the high same time as the market 12, 15, 12, 30 do you see how this didn't hold itself it came in hard and then we closed but do you see the difference between this and this and I'm just looking at an intraday 15 minute because both these stocks tiva and spider is gapped up today but the spy is strong and tiva is not it's weak I really care the reason for tiva trials this that news somebody bought the company I don't know who cares I don't look at any of that stuff I look at the gap I look at the price action I'm very good at reading price action does anybody have any questions at all so far of anything here today I have a class this weekend if you're interested in taking it and learning it's Saturday Sunday and Monday Monday is going to be a repeat of day one if you cannot do Saturday classes this is a great time for you take advantage of this because I normally always do a Saturday and Sunday class so the class would be Sunday and Monday okay and the bottom line is that I usually don't do this so if you if you have a conflict with a Saturday class if this is a good class to do it you do Sunday and Monday and day one or day one and day two which is Saturday and Sunday day one you learn all the 26 points which is my system how you would know that something like CMG or even the AMBA was a good stock to short and you learn the 26 points and you fill out a worksheet and you learn how to see where the gap is going to go in the day and then day two is you learn the entries which we talked about a little bit here in the one minute in AMBA but do you see how the panic that comes into shorts is so attractive because you don't have to hold something for hours and hours and hours which to be honest with you is a pain in the butt and the people then were in the market this morning when I called it so listen if you want to get this up to the next number to 249 or 250 if you want to if you don't get out of this here in the morning you're holding it into the close you're holding it waiting all day and actually whether you get out of 1215-1230 I'm not a patient person overall I'm trying to get better about it but honestly, honestly, honestly in an ideal world all the trades in the morning go just like AMBA 5 minutes, 10 minutes, 15 minutes, boom drop off a planet, fall out so here's the dates for the class and if anyone is interested in signing up you can email me here okay yes I will be on Fox Business on Wednesday and it's exciting I wish I would have been on today because I could have talked about the market I could have said the market looks like it's going to make another brand new all-time high today don't be surprised and then boom I did it at 1230 any questions about the class any specific stock chart you want me to look at the market shorting Eclipse Traders once you're looking for to the class you're going to do great you've got the general concept of trading gaps down which helps you have to learn my system how do I get the picks which you're going to learn in the class but you get the concept getting the concept understanding the concept helps you take the trades it helps you, number one, pay for the class number two, take risk take the trades because you have to risk your own money to take the trades you're not going to make any money you can't make money trading unless you take the trade and you actually put the trade on and if you understand what's going on conceptually and you get it then you'll be able to do it better whereas so many people that are in the market are risking money or trading they just they think that it's gambling and it's not what we do is because what we were just talking about about the support and the resistance stuff people get upset when they see something like this I'm just going to go back to the TV they get very upset and they say, gosh darn it this thing I swore was lower now this sucker happened today but it's still lower this one little blippy happened today, that's it it doesn't mean the stock isn't lower stocks do not go straight down every day just like they don't rally straight up every day you can't get tripped up on things things wiggle and jiggle and that's why money management is a big part of trading too because you've got to get out when you're up and you have to watch your trades and you have to make good money management decisions I will be on TV at 4 o'clock on after the bell on Wednesday, September 13 on Fox Business Network CRM and actually I'm going to be on TV Thursday too but I didn't send out that email yet but not Fox another station I have a busy week CRM what do you want to do with this here what do you want to do with this guy here Tee what do you want to do with it are you in this here something or what are you doing with it Tee are you there there's nothing to do in this right now if you're long the stock you're up it's just hit a target today 98 if you're not long it I wouldn't go long it here and you definitely can't short it you believe it's up yes sell it 80 plus I don't know what you mean sell it 80 plus this is nowhere near 80 I don't see any signs this is going in the near future to 80 if you're not in it there's no play here in this the play here was long you missed it I'm going to go along here today tomorrow and there's nothing here to do with this 100 100 it could go to 100 I mean you need something to get it there though 98 22 this gapped up today with the market most likely I'm guessing I can look it up but I'm just guessing this gapped up with the market ran out 98 22 100 is a number could it reach it yes again the stock is an uptrend in a time frame that you could predict like tomorrow you'd have to watch it tomorrow and see this isn't necessarily going to just run right up to 100 because that is a number that it's getting close to it's been running up every day for two weeks the market is bullish it could keep going and get there tomorrow because the market is bullish but otherwise this needs a reason to get up to that number which may or may not happen in a time that you could know to take the trade unless you can just wait it out you know when you're in options you have this fixed time that it has to go day trades too because you got to be out before four you got to be you're in and out if you're in October calls I don't know what day in October you're in it that is dependent on if it's the end of the month if it's the end of the month you've got six weeks or something like that you got a long long long long time does this report between now and then October 20th you got more than a month does this have a report between now and then you know you got to look at that stuff too you know you got to look at that stuff too does this have an earnings report earnings season starts fourth quarter so you know that's something else you got to look at too I don't know if this gets right straight up immediately to 100 with the market continuing higher which I do think happens tomorrow this could make it but close is close enough and it's almost there if you're up in this trade there won't be a piggy so there again I'm giving you the same thing that I say to Gala had no piggies, no piggy targets if you don't get a run up again with this tomorrow and the market goes then you know you're taking a chance this could stop the pull all the way back five points and may not make it then through the number to the number even by the 20th this has had a good move what do you want out of it it's just moved ten points in a month what do you want from life from this unless it does a reason to keep going something's going to happen here to make it to that number do you know what I'm saying so don't be a pig and for sure you're up in this because it's gone it worked the trade was good, get out in fact this might have been it today you got to look at this here you got to watch this here this was an unusual move for this to happen today to help with the market it got very very very very very very close 215 it ran up I would be very close watching this tomorrow $120 in one contract that's not bad I wouldn't complain see if you had done this trade with more size you'd be up more what if you were up $1200 what if you're up $12,000 you and Gala had sound like you could be best friends he always says well I'm only up $100 I'm only up $200 I'm only up $50 $120 is $120 add a couple zeros on to your size you wouldn't be pig-ing it you'd say oh my gosh I'm up $12,000 it's just had a beautiful move and you could say I got it I got 80% of the move I did it and you wouldn't be pig-ing it out probably would have gotten out today but because you're up $120 and you don't think it's enough you're like I gotta get more what are you gonna make if this goes up to $100 and then I'm just gonna answer my question what are you gonna make $175 you're gonna lose a little bit of time value you lose a little bit of time value every day Tuesday, Wednesday, Thursday, Friday you'll lose time value the stock will trade higher it goes up another $1.75 when you lose 4 days in time value $35 more and you sweat it a bullet every day you're not gonna make a grand more if this goes to 100 do you know what I'm saying so this is where common sense common sense, common sense, common sense common sense in order to get to the point where you're trading with a lot of size, with good size you can make the moves and make the money make thousands of dollars in a couple of minutes or in a couple of days or in a couple of weeks in the options trades you gotta think like someone that is making good, good decisions about money let's say this one last thing it's very, very important here you have to be thoughtful about what you're doing with your money see people think they're thoughtful because they're like I'm gonna think about doing Melissa's class for 3 years for 4 years, I'm gonna think about it for the rest of my life I'm gonna think about it every day until she decides not to do it anymore than miss my opportunity and that's probably gonna happen with many, many people and I'm not kidding you or the class will be $25,000 for a weekend and you come to New York and you learn from me live and people won't be able to afford to do it being thoughtful about your money is not being stingy and it's not not spending it's just being smart it doesn't mean not spending money it doesn't mean hoarding your money either it doesn't mean risking the farm either okay, if you can't afford it and don't have a farm to even risk it means it means being smart it just means being smart I had a gentleman that I talked to two weeks ago that I spent a lot of time talking to and he's done I don't know how many classes I'm telling you a story he's not here tonight but he watches my video so he'll hear it he can only afford to pay $500 for the class I said you are not in a position to be trading then you are not in a position to be trading okay you don't have money to trade the most important thing is learning it because if you know what to do and you can make $120 every day from now until the end of the year however many days are left in the year October and November December so we got 9 weeks 12 weeks plus 2 14 weeks 14 weeks times 5 days in a week you got about 70 more trading days say in the year so if you could make $120 your profit in this trade right now you'd make $8400 between now and December 31st and if you could do that then come next year you could make $240 every day from January 1 to December 31st 2018 and then you'd make even more so that makes sense that you have to be smart being smart with money doesn't mean being a piggy and it doesn't mean being singy too and it doesn't mean not spending it means being thoughtful and saying you know what it makes sense that I probably should learn what to do before I take any trades or risk any money it makes sense that I need money to trade before I do it which is more than $500 it makes sense that if I hold this to the piggy target I could make $45 and you know I'd rather get out because I am up $120 and if I could do this tomorrow and the next day and the next day and the next day and the next day and the next day and the next day and get in the habit of doing just that I'm going to make more in the long run the stocks have moves when the move is over you get out this is what a lecture gala had about all the time you're not married to this you're not married to CRM gala had you are not married to tesla what a beautiful move here today don't marry this stock it doesn't want to marry you anyways okay don't marry your trains go on a date with them have a good time have a fun go out to dinner too if you want go out on the weekend spend a whole Saturday do not marry your trades you're not living and dying by every trade you take if you want to be a professional trader and think like a wealthy successful person you are getting the job done and you're getting in and you're getting the money and you're doing the task at hand and when the job is completed you're off to the next job if you want to work if you're a doctor if you're a lawyer if you're whatever a nurse you go get the job done you come home that's it it's the same thing when you're a trader you do the job you take the trade out your job is not holding every trade to the piggy target you'll make it that way you'll lose in the end you'll have an up all day I have an up since early this morning and I need my beauty sleep for TV alright so gala had his argument with me right now he wants to have a theoretical and a little discussion he's saying maximize the position Melissa I'm gonna go we went over and Kathy has to go to bed so great job everybody that did the task so today great lecture very very good doggy says thank you Melissa you're the best looking forward to seeing you in a fox me too and so are my parents alright have a great night everyone watch me on TV alright I'll see you later thanks for staying Kathy don't marry your stocks I don't love you actually Tesla loved you a lot today you might have you might have considered marrying Tesla you might marry it tomorrow too because it looks higher even still tomorrow but I'm telling you you're still not gonna marry it saying Kathy I mean I appreciate you staying over Kathy's mad cause she's saying that she's not going to bed 45 I was joking alright have a good night everyone email me if you're interested in the gap class okie doke wow ok well kind thanks go to our presenter Melissa Armo that is www.thestockswitch.com emails to Melissa at the stock swish swish.com I'll be posting it one more time the information to bookmark the fox business channel because they'll be you know obviously putting a link and if you've given a valid email for today's registration when I send Melissa the list you will absolutely get follow-up information from her they're very very good and her emails are extremely interesting she does play at the day I mean it's worth it alone if you can't take the class right now it's worth it alone just get on her mailing list ok so you all have a great night ahead and good day trading tomorrow we will wish you all the best of luck email her at Melissa at www.thestockswitch.com to get more information about the upcoming course and like she said she's doing a very specialized one where she's keeping a day one on that Monday alright you all have a great night ahead good day trading tomorrow