 The following is a presentation of TFNN, The Trader's Edge with Steve Rhodes, toll-free at 1-877-927-6648 or internationally at 727-873-7618. The Trader's Edge. Now, Steve Rhodes. Hello, folks. Welcome to today's abbreviated version of The Trader's Edge. Today is August the 27th out there. So it is the Thursday, Thursday edition. I'm recording this show between 8 and 8.30. Tommy will pick it up from 8.30 till 9. And obviously this is being replayed at 1pm during the normal slot out there. So my apology for not letting you know. I think maybe just at the very end as I was going off the air yesterday that I needed to use the morning segment here to get the show going. So we'll look, we'll use this half hour here for me to go through all the charts. Kind of the process that I use and go through each morning as I begin assembling my very detailed newsletter. Because we cover all the futures contracts. That includes all the commodities out there. And so let me just kind of go through that process. So we'll get to kind of stop the normal opening, so to speak. Because I didn't tell folks, you know, I don't know how many people are actually listening in. But you can call if you've got a question, 877-927-6648. But we'll be back to normal programming on Fantastic Friday. So let's go ahead and get the show started. So right now as we speak, it's 8.08 in the morning. So this is the first page that I take a look at when I'm up. You've got equity futures. Dow equity futures are off 77. Nasdaq is down 40. If you just take a look at the percentage changes, really not that big of a deal. 3-tenths of a percent is what we're taking a look at out here. Then I move down and I take a look at the major international markets. What's going on in Asia. And there was a mixed bag out there. The Nikkei was off 82 points. The Hangs hang down 2-10, 8-tenths of a percent. And the Shanghai was up 21, 6-tenths of a percent. We see over in Australia, its market, the Aussie 200 closed higher by about 2-tenths of a percent. And over in Europe right now, the DAX and the FTSE are both trading lower. Now what does all that mean that they're trading lower? We'll go take a look at that because I always like to understand if there's topping patterns in play going on around the globe out here. We've got gold right now is off 6 bucks. Silver's down 11 pennies out here. Natural gas is up about 4 cents. We'll take a look at it, what it's doing. You've got the 30-year trading out at 178.11. That's up 6 ticks. U.S. dollar index is up just slightly. So this is the first, in essence, table I look at to get a feel for what's going on inside the market. You can't see my other four screens that I have going. So I have to pull different things over so that you can get a feel for what I'm looking at. The next thing I do is I just open up my little table that automatically is always calculating for whatever time frames it is that I have listed here. My rogementum indicator top. So here you're looking at it says 30 RMI. So I'm really looking at the short-term area. Nothing I don't look at the longer term, but here I've got a 30-minute, 120-minute, 5-hour, and subscribers are getting all of these. So they understand where support and resistance is at for each of the time frames. Many traders that subscribe to the service are inter-day traders, so they're looking for these important levels of support and resistance, or what type of top or bottoming signals here. What I just focused on, the equity futures contracts. I know to go investigate right now the ESPIN in the NQ because of the topping pattern. They've got confirmed rogementum indicator top. So what I want to know, what you want to know, what inquiring mind wants to know out there is has price broken through key levels of support to anticipate that price would be moving lower? Or is this just nothing more than early morning, overnight trading, jostling around? So here, since we already have that, there's really two things for you and I to investigate. Let's do the latter one first, which is those 30-minute charts here for the ESPIN. So let's open this up and what do we know? Here we can see wave number seven, that's letter. There were two topping signals last night that identified the pattern. Wave number seven, that's letter G. It's part of the Chapman wave, but it is not the Chapman wave. And then we can also see that there's a third one. There's an A to B equal CD pattern. It looks like this. I'll go ahead and draw it in for you. Now I can't, I don't have the A to B equal CD patterns automated. So that means I've always got to look at charts, just as you do, to try to pick up on any other patterns that are out here. So here we can see the A to B equal CD pattern. So several patterns that were completing up at that high. Now just because there's more than one, does that mean that this is, oh my goodness, the end of the world? No, no, no, no. That's not what it means. It just means that pretty good odds were that there was going to be a top, and there was. And we can see that. And we can see that just through the way the market was communicating to you and I, because what the market does is it generates patterns over and over and over and over again. There are some charts where the patterns are schizophrenic. There are some people that are schizophrenic. That's just the way that things are, right? And so those are markets when we don't see any kind of patterns in there. We just step away from it because we can go take a look at something that does have a pattern. Now here we can see that price is traded down into support and support has not been broken. And that is the bottom of its profiles out here. Now if support were to be broken, and you were to say, okay, Stevie, where's the downside? Because you can call me Stevie, that's okay. Where's the downside support level? Well, it happens to be the TD9 breakout level. And that was at $34.41. There's a red horizontal line that gets drawn across the screen. That is a key level of support. If the ESMini were to close below that, there would be the potential that it would be our first signal of a change in trend top out there. Now we've got to go take a look at the daily to figure out, because there's a bearish reversal candle that we'll need. Well, we've got to go take a look at the daily to see what that meaning might have. Is there a topping pattern that is in play out there? And I don't know the answer off the top of my head here. So let's go take a look at the 30-minute chart here for the NQ. Again, do the same thing. We're looking to see, so we knew about the topping signals. We knew about the patterns that are out there. Want to investigate it to see how to interpret the message of the markets. Here we can see the roads momentum indicator top pattern that was confirmed with this bearish and golfing candle it formed out here. But price is still holding support. So here's what you know. When you take a look at this screen out here with regard to the futures, you see that things are trading lower. You don't know how to interpret it. If you're short, maybe you're licking your chops. If you're long, you're getting concerned out here. In all, either part, it really needs to do is understand, hey, what's your topping pattern in place? Okay, there was that makes sense. And then it has price broken through any levels of support. And where are those levels of support? And so we've taken a look at that in this stage here in the game. We know that no key levels of support have been broken from an interday standpoint. So that's very helpful. I mentioned we took a look at those international markets. So let's go take a look at those because what I immediately do is want to understand, hey, what's going on? So let's just start with Europe right now since it's actively trading. And if we take a look at the FTSE, here's the FTSE. So the same tools that are on my 30 minute chart or on my daily, my weekly, any timeframe chart that is out there. That way it makes it easy. Here's the TD9 bottom that formed inside the FTSE. So price had broken through its breakout support level. That's at red horizontal line, 59, 93, 28. Price is trading above that. It's holding as support right now. Price needs to close below this bullish engulfing candle out here. That price point, by the way, inside of the FTSE, that would be 58, 57, 06. And if price were to close below that, the FTSE would be telling you it's headed back to the March lows. There's no other support. Not that there couldn't be some other support, but there's no other major support on the daily timeframe chart here for the FTSE. Right now, it's really neutral. It's trading between Stevie's green red line, two lines, right? It's trading between our horizontal breakout TD9 levels in its trading underneath Stevie's oscillator and change line. So it's really very neutral as we speak right now. So it doesn't have a ton of meaning. We do know that support is held. Let's go take a look at the German DAX here as we close out this first segment. What do we know? It's got a rogement to indicator top. That pattern is still in play with price above Stevie's green line. So you could see more rally out here. The key level of support that the DAX needs to close below is $12,535.90. That would take price down to $10,677. Steve Rhodes with TFNN. 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I'm recording the show here between 8 and 8.30 for listening live. So thanks so much for doing that. Just really taking you through really my process in the morning so that you can understand how I'm getting the message of the markets from the data, from the chart information. So we just took a look at many of the international markets. I'm not going to spend the rest of the time right now going and take a look at Asia out there. What I can share with you with regard to the Asian markets, even though they were mixed last night, they all have topping patterns that are in the play as we speak. So does the European market, the DAX and the FTSE that we just took a look at out there. Now, many of you know, because you listened to the show out there, that I'm very cautious right now about the markets. One of the reasons is it's not me, it's the charts. So all I'm doing is just reading the chart data. I am an absolute pattern recognition trader because these markets do make patterns. We've already discussed that, and we take a look at that on the charts out here. And so when those patterns are, and so I've created these tools so that in a snapshot, I can understand it's live data right now with regard to what's going on. Now I say it's live data. We're not looking at futures. We're looking at ETFs. So this data here is really as of yesterday's close. But what this is taking a look at is you can see I've got this broken down. I've got major international markets and all via ETFs. That way each of you can do this at home too. You've all got access to the ETF data. So this way you don't have to worry about indices and exchanges and so forth. So here you can take a look at it. You don't have the tools necessarily to tell you whether there's a rose momentum indicator top or what our TD9 count is or what our Chapman Wave count is. And the, as you can tell, a yellow, pink, or not yellow, but pink and or light pink colors are telling us about a possible top out here and bottom signals would be the green highlighted area. So it becomes very easy for me to just focus in on what it is that I need to know about the market. So if we take a look at, we've got the sectors inside the S&P and I've got other worldwide indices out here. So we have a pretty good feel for what the signals of the markets are. Now these RMI signals are signals. Some are signals. Some are confirmed. Most are just signals as we speak right now. So signals are waiting for various reversal candles because the markets are stretched out there. And those patterns will change with daily data, but it's the reason why I am cautious out here. Now, if we take a look at that being said, we take a look at the equity futures out here and we look at their daily profiles. What I can't share with you, what I do know is that the Dow equity futures contract is trying. It continues to try to form a new profile. It just can't hold. So we have to go with the data that is on our screen right now. What we know is that the ESM need the NQ and the Dow are each trading above the top of their profiles. The top of the profiles where sellers are at. In the case of the NQ and the Dow, I am, both of those were bare structured profiles, meaning the center line was closer to the top than the bottom. Whenever you get above a bare structured profile, it is a strong moment to move. So we have to consider that the Dow right now has a strong moment to move on that. Well, let's go take a look at the Dow. Is there anything that traders need to be concerned with out here? Well, yeah. Price is still moving higher doing less relative energy. If there were to be a bearish reversal candle, it would then generate the RMI signal would go from a signal to a confirmation if there's a bearish reversal candle. And we need to see a close below Stevie's green line. It's called the oscillator and change sign out there. When price is above that, it tells us we have a rising price oscillator above zero, folks, and that is a bullish condition. Now, this tells us that short of a top forming here inside the Dow, the price is going to target its breakdown level. Price oftentimes, when price is moving up, what you like to do is you like to buy it when price is pulled back to a breakout area. Well, where's the breakout area? The TD-9s take care of that for you. And they work. They're magnificent out there. Learn this tool. Just sign up for mastery probability. You'll learn it. There's an archive workshop that'll teach you exactly how to do this. Here, we can see the TD-9 count topping pattern that formed out here back in the June timeframe. But what did price do? It pulled back to support the 24266 area. Well, it works just opposite out here. And when you get through one, you go to the next and so on and so forth. Well, here, we can see that price now is targeting its next resistance. We're just flipping the chart, so to speak. And that's at 29222. So if we do see a bearish reversal candle, we get a different prognosis right now. Support is held. Price should continue to move higher. The YM is trading above the top of its daily profile. But I do know there is some real resistance out here because I have seen it several times during the evening and early this morning where there's a new profile that tries to form. I reset it to see if it's really taking hold or not. Now, the Russell 2000 is the weak link out here. It's trading below its bullish structured profile. As we pull over the Russell 2000 chart, here's what we're going to see. First, we're going to see wave number seven. That's letter G, so it's got a top. But look what the Russell 2000 actually did. It formed a Gertley bi-pattern. Gertley bi-pattern has got an A to B equal CD. That's what's really shown here on these green lines. And it's confirmed the A to B equal CD pattern must, must, MUST be confirmed with a reversal candle if the market's moving lower. It's got to be a bullish reversal candle. Then when you do get a viable bottom, viable bottom pattern, you have to identify where is resistance. Well, resistance here first is Stevie's green line. That's at 1585. That's the first level of resistance. You've got support or resistance, depending on where price closes at 1560. Price right now trading at 1559. So it's just below its support level out there. But two closes in a row below that 1560-90 level would then suggest price pulling back to 1467-80. Now, that would be confirmed with price closing below the support level established by that bull sash candle. That confirmed this little Gertley bi. Now, what happens if price takes out 1585, 40? Well, price would be back inside the range out here. And probably you'd take a look at a move up to the 1605 level. Now, remember, the Russell 2000 for its 30-minute time frame chart was not one that popped up on our screener to say, hey, go take a look at it. But we will take a look at it just so you can see what information it has out here. Now, it formed its Rosamund indicator top way back here. That was on the 25th, so a couple of days ago. And the reason why it didn't show up on my screen out there, we were just trying to look at the current signals. But you can see a bunch of support here. You see the bullish reversal candles down in this area where it's traded into. So you do know that bulls are trying to support the Russell 2000, which is really what the signal is coming from on the daily time frame, at least with regard to where its profiles are present out there. Okay, so what else do we know? You like to understand market conditions. What's the market breadth like? Really important to understand market breadth. So here we can take a look at the, well, this is the short-term time frame for the S&P 500. And right now, we would take a look at the ESMini, the 30-minute time frame chart, showing this topping signal here. Right now, we know there's 148 constituents, components inside the S&P 500, that are trading above the top of their profile. So above the tops as you're above resistance. Below the profile, you've got 193. So the market breadth on a 30-minute time frame is still struggling inside of the S&P 500 or via the ESMini that we can take a look at. We have seen a little bit of a bounce since we came on the air at 809. But here in the ESMini, price has got to take out its green line. So it's just a counter-trend rally so far to the 3476 level. That's DB's oscillator and change line. If price closes above that, price will go ahead and target its recent highs out there. And if it can take out that prior high, you'll know that it was a topping pattern. And a failed topping pattern would be bullish. And so you would expect and you anticipate that price would continue to move higher. But right now, it's trading in between support and resistance. So you've got a neutral signal out there. Now, it's 826 in the morning. You're going to be looking at this at 126 in the afternoon. And you'll be able to take a look at those two things, see where the ESMini was trading, and then try to figure it out. Here's what we know, folks, at this stage of the game here, the NQ, probably the most important instrument to watch today. Yesterday was a TD9 count top. That says, and it was the bar following bar number nine. That says if the NQ begins trading about 12, 0-1-50, and closes above that, that is a super oop or strong bullish message. Folks, thanks so much for being here. Stay tuned for the next half hour. Tommy Jr. will take you on home. And we'll be back to normal programming tomorrow and have a terrific thirsty Thursday. Take care, folks.