 Folks this video is going to be about some thoughts about this market and why I am issuing a bit of a warning With regard to some nefarious action that's going on in the marketplace right now We're going to talk about my opinions about this market. Why you need to get caught is we're going to talk about charts We're going to do some technical analysis, and then I'm going to follow up on the top stocks I went over the weekend and the first symbol that will be up will be OP TT That's ocean power technologies then I dex pharmaceuticals then the Dba, which is the agriculture ETF aligned technologies ALGN And then leaving off with rent the center RC II. So let's get to it. Let's begin with this Quote which goes back a couple of thousand years by Sensu and of course repeated by one of my favorite characters the entire world Gordon gecko As played by the incredible michael douglas in wall street Every battle is won before it is ever fought every battle is won Before it is ever fought think about it What does that mean and how does it pertain to this conversation right here right now? Let's get to it partially what we're doing here is we're playing a bit of 4d chess in the markets What the markets want you to think right now what the news the financial news media wants you to think right now Is that we have a deal at hand here? There's going to be a covid deal. It's going to be about two trillion bucks pumped into the economy Not to mention what treasury still has left over from the last stimulus package on the slick back Suspender wearing thugs on wall street want you to believe that this market is going to Take off like a rocket ship immediately following that news of an announcement Let's take the opposite side of that trade for a moment What if what we're seeing Is our traders taking advantage of an anomaly. What's the anomaly? Well think about what today was and what was closed. Why are we looking at kipplinger's stock market holiday in 2020? Stock market was open. But what wasn't open the bond market? The bond market is the tail that wags the stock market dog And it's the stock market that takes its cues from the bond market And today the bond market was closed NYSE open nasdaq open bond market Right column closed So it was a perfect environment for the crux on wall street to orchestrate an event and that event is get excited get very very excited It began last night sunday evening when we did Sunday night futures live and then it only gained steam overnight and when we woke up this morning We had futures at the open up Over 1.6. They continued to chug higher throughout the day And at the end of the day, I said, you know what? I need to I need to get aggressively short of this market while we went into the market today with a Hedge on our long positions. I became a bit more aggressive to the short side. I didn't sell anything today to the long side I'm still long But I wanted to get a much larger hedge to the short side The question is besides what we just went over with what I believe was to be is shenanigans a setup a ruse a Buy the rumor sell the news event Which is being orchestrated take a look at the charts The s and p 500 today was up 1.64 on the day a very powerful day A very powerful day up strong another gap up higher as they've been doing of late. That's been the game Spiked the futures in the morning, but today what they did is they they're playing Chicken with the 3d bologna band the third standard deviation bologna band in red I'll save you the technical jargon if you're not familiar We're not supposed to be here on a 20 day moving average relative basis I'm not predicting a crash. In fact, I believe the dow jones industrial average could make new all-time highs By election day But beware what they're trying to do is right here right now is to lure you in To getting along of this market in advance of a deal. They want that's the carrot They want you to chase that carrot and then you're going to end up if you chase that carrot like wiley coyote Remember wiley coyote? He used to run off the cliff until he realized there was no more ground underneath them He'd look down and then he dropped like a bag of rocks Don't let that be you. Why else am I very short term? Barrage on this market despite the fact we had an outstanding day. Well The fact that volume was not wonderful today despite the fact we moved up higher on the s&p 500 You know what? Let's just let's just ignore that. What else is bothering me? Look no further than the vicks Folks as I always like to teach members the markets send you signals And one of my favorite signals and all too often i'm seeing it of late and I saw it before The market crash back in February march april The vicks was trading up along with the s&p 500 Recently we saw that only a few trading days ago Before the most recent sell-off the vicks was up along with the s&p 500 And you may be saying you know bob what's wrong with that? Well, it's not supposed to happen and it happened again today The vicks closed up on the day and it managed to recapture 25 support So what do we read into this what we read into this is that while you had Money rotating into the s&p 500 they weren't going in naked They were buying insurance Visa v the vicks the market sends you signals We can we can complain that the market's rigged. It's not fair to the little guy. That's all true unless you have exhausted Your ability to read charts and spot the signals level out the playing field read the charts do the analysis What else is going on out there? Look no further than the dow transports. There has been no bigger bull on the dow transports than me Over the past couple of trading weeks That just came to an end As of today Short term longer term still bullish short term Barrage why we have just closed out our fourth consecutive day Above the two standard deviation bologna band not a three standard deviation bologna band, but a two However, you're dealing with a massive index and again on a 20 period moving average This is a daily chart. So a 20 day moving average. We're not supposed to be here The last time we were here back here on the 16th. It didn't end well back here prior to August the 11th. We went into a consolidation range. We could have easily have rolled over We consolidated then ultimately we broke out. This is not a time to be buying It's a time to sit on your hands And wait if you're overly long you got profits make some of them real So these are my concerns. There's a lot a lot of nefarious activity going on there and when you Compare the nefarious activity to the technicals in the market. The market is vulnerable. Be very very careful This is a short term call only. I don't see a Geopolitical event immediately the election is a whole different bag of rocks that we're going to have to deal with But we'll deal with that in the coming days short term very short term Bearish the market be very very careful doesn't mean we can't press hire tomorrow But it does mean you should be thinking about Taking cash off the table move to the sidelines. Let's talk about The symbols that we spoke about over the weekend We had spoken about optt ocean power technology And I warned over the weekend while longer term. I was bullish on the shares I was short term concerned and it wasn't because of the daily chart Although I did say that we were right at resistance and I wouldn't buy it into resistance But I was more concerned about the weekly chart. Here is the weekly chart We closed out the week last week up and above the third standard deviation Bollinger Band No shock that we pulled back this week. So some of the froth is coming off here on optt They'll be in time to buy it. We'll watch it. It's not right now Let's watch and wait Idex laboratories we spoke of as along It didn't even give me an opportunity to buy the shares. They just they just skyrocketed higher And I'm not one to go chasing Stocks, but what I will do here is I will create an alert To see whether or not we pull back and retest the breakout point Now I'm labeling this potential long entry because I'm concerned about the market And I'm really just sending a reminder for myself to Take the pulse of the market prior to make a decision Prior to making a decision with regard to opening a new trade. So Idex looking good We really didn't have an opportunity to get along today. Not on our terms So we'll wait for our terms to get hit. They always do eventually Patience patience patience, and I wasn't born with patience The next symbol up DBA This is the ag ETF It pulled back on the day. I'm still bullish. It's holding support And what really has me bullish about the DB ag fund is not the daily chart Not the weekly chart But the monthly chart, right? This is a monthly chart And this is our software I'm using is trend spider. There's a link below 35% off the leader in automated technical analysis using artificial intelligence And one of my favorite things here automated trend lines There you go. So we're right at a resistance level. I wouldn't buy here right now I'd rather buy the breakout unless of course we pull back to test one of these two support levels below So sit watch and wait. No rush here. DBA will come to us align technologies Now a line did put in a new weekly high so far this week. However, it hasn't broken through our alert our resistance level Daily chart now to be fair We did tap it. However, we were unable to break out one of two things. I'd like to see what happened here one a Breakout one of two things. I'd like to see what happened here one a breakout and a close above resistance to Let's throw up the automated trend lines Click of a button A pullback and a retest of this breakout point. We gapped up higher today sensitivity Very low. So our alert is set. We want to know when we touch or bounce Keep that active for five days. We're good to go So I have two alerts set here I can find them right here On the right hand sidebar And the last chart up is going to be rent a center rcii Now rent a center did put in a new weekly high. However, it faded a bit. This is why we don't go chasing stocks Think about the poor son of a gun who bought all the way up here in the morning all excited about the market He was watching cmbc He got sold at the markets going to new all-time highs within the next 22 minutes bought rent a center at the very high because it was a surefire bet that he got It was a whisper stock from his buddy over in The plush offices of goldman sacks and he got whacked think about what this does to confidence when you get a fade It's happened to me. I know it avoid it. Don't go chasing stocks Wait for the pullback. These alerts were not fired off rules based approach This is the first time i'm looking at rent a center all day long. I didn't look at it I didn't think about it. I care about when my alerts get fired off. That is it members Let's talk strategy. It's posted in the members area. Go check it out everyone else I will talk to you tomorrow morning on swing trading today catch the replay here on youtube Or on the website the contrarian trader com and if I can ask you to please smash that like button hit the subscribe button And tap that bell button and get notified of when we go live or post a new video Everybody have a great evening. Stay safe out there and please be careful Don't go chasing the morning pumps. It's a game. It's a scam. Don't get lured in. Have a great night. Be well