 Welcome back folks. I doubt. Dow industry is right now up at 267. We'll get the Nasdaq down to 10 SMPs are up, too Let's go over to our mammoth the Basil's Chapman as we do each and every Tuesday at 20 past the hour And don't forget folks Basil has an outstanding show here every trading day 10 to 11 Eastern standard time also has a great newsletter the opening call now It's very easy to get the opening call folks come over to our website at TFNN Go right into featured content. 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Yeah, we're starting the new year with an old-time high in the Dow I know we got some divergence, huh? That's what we've been talking about for some time now and one of the things that I think is really important for Investors and you know just the general listeners of TFNN who I think a lot of people Kind of have money that they put into the market and they're really not too sure about what's happening But I think what we've been discussing for some time Is the selectivity is something you've got to be aware of and one of the aspects that I've been talking about is that those Fantastic Nasdaq 100 stocks that were just unbelievable going into Towards the end of last year Well, wait a minute. This is not 2022 to the end of the 2021. Yeah We're down all the way into September highs, etc They having very strong pullbacks Some of them, you know, 20 30 40% Declines so what's really important and I think I've done this for subscribers I've tried to focus on what has worked what in this whole rotation of sector Diversification What is happening here? And I think I've really loved the Dow for a long time I call it the Dow 30. It has nothing to do with the Dow industrials going back to the 1800s, this is just this is now the Dow 30 and I love the mix It's got a perfect match for this general market and you can see that today here. It is an all-time high 36,000 856, I'm not sure how it's gonna if it's going to break 37,000 right now But it's just gonna, you know, I blink away. It went to 36,000 934 this morning Most importantly, I love to draw trend lines. I like to draw this v-shaped pattern. I like to draw What I call inside track repellent line This was there was one here in the day You can see in the daily chart this green and red line how it broke out above it and went to more than one to One to the upside and then I thought just before we came on I said, you know what? I'm gonna draw this trend line right here from the gap is the gap down November to all the highs that were made And you can see this this trend line touched one two three four Then didn't touch 5678 so for four bars It didn't then nine and then a huge v-shaped pattern that all of a sudden look out came back To importance right in fact just for for the show. I'll make this thicker said we really looking at that Yeah, you know and after the run that You know the NASDAQ have I could see Large money managers the beginning of the air saying hey, you know what? I'm gonna take some bread off of here I'm putting some in the Dow. I mean it's just when you were in the probability business folks And you know I could see that because the Dow not that it's been legging but you know what I'm saying It's just it hasn't been the NASDAQ or the MDX 100 That's correct So as the rotation goes they're trying to find money on what they think is still strong But one little maybe lagging indexes and to a certain extent that's what we're looking at here But look there are all these resistance lines in the weekly. Yes, the chap we've inside track Repel on zone just like the line I showed you over here, which we snuck above and pull back and here we go in the monthly chart Look at this massive move to them to the upside and it keeps getting repelled by this trend line So it makes it real simple if the Dow at any point happens to get into the 37,400 500 area in January That is really strong action And one of the things I did for subscribers We've been long since March of last year at the low via options And then a week later we got into the diamonds which we still have But we've been trading short and long short along over the period of the year And now what I've done is for the past Ever since I let me just see the exact date that was on the On the 21st of December right here We went along again the Dow the diamonds and we say what was the objective in the chapter way We're always looking for four higher peaks at least and here we are today. We've got that fourth highest peak I haven't done anything yet, but isn't this exciting here? We are on leg D bumping up against the trend line Which makes it very simple because if you go the higher you go away from a trend line The more the less important it becomes as a magnet So that's important to me and I just you know we're talking about these trend lines. Look at this In the QQQ it's the same technique. There's what I call the Chapman Wave inside track repellent zone What did the QQ the NDX 100 the Q's do 408.71 was the all-time high on the 22nd of November Drops down to 378.90 makes a big U shaped pan or an arch formation takes out the left side low Then has a really good rally This rally technically should have been right at the 411 412 all-time high level And it's stored where? Right, it's amazing how this works right at that repellent zone So you got it got declining today. So what I've done for subscribers to open and call We've had some stocks that were making all-time highs a couple of days ago. I said, let's be real careful now We're raising some cash and today we actually started a long position in one of the indexes Not the actual index itself that is normally looked at but in the value index the same thing But the value and this particular index today Is up almost 1% and it's colleague the the regular one is not acting as well at all So I think what we're looking at here is that fund managers are starting to look at value Probably they're going to be looking more at dividend stocks So I think we've got a rotation for 2020 that came out It didn't happen by accident it happened over a period of I'd say two months has been happening And I think we started to see it now that there's a chance that there's a lot more selectivity And I I don't see a major sell-off right here because of this rotation And one of the one of the things that kept me on the long side Is that the II the ice is broker dealer index was holding very nicely and it too had Resistance and today it's having a very strong move and I thought well One of the stocks that we had just briefly unfortunate We just got stopped out of it and I was doing exactly what we wanted was Charles Schwab Look at this move up 4.76 up almost five and a half percent today at 90.52 And and I've got it as a leg F But somehow other the way it's breaking out I had to be impressed with the way these stocks have been acting to say Public is in the market and this for me represents very much the public participation So if you can look at the II this is a good sign. It's at 114 This is a broker dealer index if it can get towards the 116 level the all-time high that'll be amazing action So we've been very selective. Yeah And listen folks It's very easy to get bowser's newsletter come over to our website at tfnn You're gonna see it right in the featured content right in the front page Just hit that button for opening call. Bows up a great one safe one. We look forward to show tomorrow. Thank you very much Thank you. Stay right there folks. Come right back